Heiwa Real Estate REIT : Notice Concerning Conclusion of Interest Rate Swap Agreements

October 25, 2023

For Immediate Release

REIT Issuer

HEIWA REAL ESTATE REIT, Inc.

5-1 Nihonbashi Kabuto-cho,Chuo-ku, Tokyo

Aya Motomura, Executive Director

(Securities Code: 8966)

Asset Management Company

HEIWA REAL ESTATE Asset Management CO., LTD.

Masanori Hirano, Representative Director, President and Chief Executive Officer Inquiries: Junichi Kawamura, Managing Officer and General Manager of Planning & Finance Department TEL. [phone]

Notice Concerning Conclusion of Interest Rate Swap Agreements

HEIWA REAL ESTATE REIT, Inc. (the "Investment Corporation") announced today it has concluded interest-rate swap agreements, as described below.

Details

1. Reason for Conclusion of Interest Rate Swap Agreements
   To fix the interest rate for the loan amount concerning Term Loan 55 Tranche D (loan amount: 3,860 million yen),
   Term Loan 59-① (loan amount: 700 million yen) and Term Loan 66-② (loan amount: 1,500 million yen) to hedge the risk of interest rate fluctuation.
2. Details of Interest Rate Swap Agreements

Loan	Term Loan 55 Tranche D
Counterparty	Sumitomo Mitsui Trust Bank, Limited
Notional Principal	3,860 million yen
Interest Rate	Fixed interest rate payable at 0.72770%
Variable interest rate receivable at JBA 3-month Japanese Yen TIBOR
Start Date	October 31, 2023
End Date	October 31, 2028
Loan	Term Loan 59-①
Counterparty	Sumitomo Mitsui Trust Bank, Limited
Notional Principal	700 million yen
Interest Rate	Fixed interest rate payable at 0.79255%
Variable interest rate receivable at JBA 3-month Japanese Yen TIBOR
Start Date	October 31, 2023
End Date	May 31, 2029

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Loan	Term Loan 66-②
Counterparty	Sumitomo Mitsui Trust Bank, Limited
Notional Principal	1,500 million yen
Interest Rate	Fixed interest rate payable at 0.90240%
Variable interest rate receivable at JBA 3-month Japanese Yen TIBOR
Start Date	October 31, 2023
End Date	May 31, 2030

(Note) According to this interest rate swap agreements, the floating interest rate of Term Loan 55 Tranche D is set at a fixed interest rate of 1.32770%, the floating interest rate of Term Loan 59-① is set at a fixed interest rate of 1.34255% and the floating interest rate of Term Loan 66-② is set at a fixed interest rate of 1.34240%.

3. Future Outlook

The conclusion of interest rate swap agreements will have a minimal impact on the management status forecasts of the Investment Corporation for the 44th fiscal period (June 1, 2023 - November 30, 2023) and the 45th fiscal period (December 1, 2023 - May 31, 2024), no change has been made to the performance forecasts.

• Investment Corporation Website:https://www.heiwa-re.co.jp/en/

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