Heiwa Real Estate REIT : Notice Concerning Transfer of Domestic Asset (HF NAKANOSHIMA RESIDENCE)

December 19, 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: Naomi Kawasaki, General Manager of Planning & Finance Department

TEL. [phone]

Notice Concerning Transfer of Domestic Asset (HF NAKANOSHIMA RESIDENCE)

HEIWA REAL ESTATE REIT, Inc. (the "Investment Corporation") announced today that HEIWA REAL ESTATE Asset Management CO., LTD. (the "Asset Management Company"), the company to which the Investment Corporation entrusts its asset management operations, decided to execute the transfer of asset (the "Transfer"). The details are as follows.

Details

1. Overview of the Transfer

Property		Type of	Transfer price	Book value	Estimated gain
Property name	(million yen)	(million yen)	(million yen)
number	specified asset
	(Note 1)	(Note 2)	(Note 3)
	HF	Trust beneficial
Re-45	NAKANOSHIMA	575	400	157
interest in real estate
	RESIDENCE

(Note 1) "Transfer price" is the price described in the trust beneficial interest transaction agreement (consumption tax excluded), and does not include the amounts of settlement for fixed property tax, city planning tax, etc.

(Note 2) "Book value" is estimated amount as of the scheduled transfer date. The same will apply below.

(Note 3) "Estimated gain" is the difference between the scheduled transfer price and the sum of the book value and fees related to the transfer. Since the gain has been calculated for reference only, it may differ from the amount of actual gain (loss) on transfer.

(Note 4) "Book value" and "Estimated gain" are amounts below a million yen have been rounded off.

1. Agreement execution date: December 19, 2023

(2)	Scheduled transfer date:	December 22, 2023
(3)	Transferee:	Undisclosed (Note1)
(4)	Method of settlement:	Lump-sum payment at time of delivery
(5)	Brokerage:	Applicable (Note2)

(Note1) Not disclosed as consent cannot be obtained from the transferee. The transferee does not fall under a party with a special interest in the Investment Corporation and the Asset Management Company.

- 1 -

(Note2) The broker does not fall under a party with a special interest in the Investment Corporation and the Asset Management Company.

1. Reason for the Transfer
   The Investment Corporation's Articles of Incorporation stipulates that the "targets and policies of asset management" is to ensure the steady growth of the investment portfolio and medium- to long-term sustainable profit. Under the Articles of Incorporation, the Investment Corporation seeks to expand its assets through continuous property acquisitions and to improve the quality and profitability of the portfolio by replacing assets. The Transfer of this 22- year-old property with a total of 38 units will generate a gain on transfer and increase cash on hand, raising the Invest Corporation's property acquisition capacity going forward. The Investment Corporation has decided to proceed with the Transfer because it considers that this will contribute to realizing the relevant policy and improving unitholder value.
   The asset to be transferred was acquired at the then current market price in 2010 in connection with the merger between the Investment Corporation and Japan Single-residence REIT Inc. in that year. The asset value of the property increased thanks to subsequent initiatives to improve profitability and a recovery of the real estate market. The appraisal value of the property at the end of the fiscal period ended May 31, 2023 (43rd Fiscal Period) was 551 million yen (37.6% unrealized profit margin), exceeding the book value by 150 million yen. The transfer price is expected to surpass even this appraisal value, standing at 575 million yen (the estimated realized gain after taking transfer-related fees into consideration will be 157 million yen, and the realized gain ratio, which will be calculated based on the book value and the estimated realized gain, will be 39.3%).
   From the perspective of increasing unitholder value, the Investment Corporation will continue to seek to improve the quality of its portfolio and profitability and aim to achieve steady growth in managed assets and stable medium- to long-term profits.
2. Details of the asset to be transferred

Property number / Property name	Re-45 HF NAKANOSHIMA RESIDENCE
Type of asset		Trust beneficial interest in real estate
			(Building address on real estate registry)
Location (Note 1)		3-38-1, Nakanoshima, Kita-ku, Osaka, and one other
	(Lot Number)
			3-5-19, Nakanoshima, Kita-ku, Osaka
		Form of ownership	Ownership
		Area (Note 1)	375.95 ㎡
Land		Use district (Note 2)	Commercial district
		Building coverage ratio (Note 3)	80%
		Floor area ratio (Note 4)	600%
		Form of ownership	Divided ownership (100% interest)
		Use (Note 1)	Residence
		Structure/Floors (Note 1)	Reinforced concrete
Building		Flat roof 10 floors above ground
		Total floor space (Note 1)	1,486.57 ㎡
		Construction	June 1, 2001
		completion date (Note 1)
Transfer value		575,000 thousand yen
Book value		400,440 thousand yen

- 2 -

Difference between transfer value and book	174,559 thousand yen
value
Tenant details (Note 5)
	Total leasable units	38 units
	Total leased units	37 units
	Total rent income	37,867 thousand yen
	Leasehold and security deposits	2,577 thousand yen
	Total leased floor space	1,216.95	㎡
	Total leasable floor space	1,242.30	㎡
	Occupancy rates	Nov. 2021		May. 2022	Nov. 2022	May. 2023	Nov. 2023
	100%			93.9%	92.8%	98.0%	98.0%
		Appraiser				DAIWA REAL ESTATE APPRAISAL
					CO.,LTD.
Overview of real estate appraisal report
Value Date		May 31, 2023
		Appraisal Value		551,000 thousand yen
		A memorandum of understanding has been concluded with neighbors who
		use the pathway existing on the east side of the property in trust to secure
Other items of special note	the said aisle in future years.
Drainage pipes and gas pipes, and the catch basin attached to the foregoing
		which the above pathway users use pass through the property in trust. In this
		regard, a memorandum has been concluded.

(Note 1) "Location (excluding indication of residential address)", "Area," "Use," "Structure/Floor" "Total Floor Space" and "Construction Completion Date" are as stated in the real estate registry.

(Note 2) "Use District" is the type of use district as listed in Article 8, Paragraph 1, Item 1 of the City Planning Act.

(Note 3) "Building Coverage Ratio" is the ratio of the building area of the building to the site area as stipulated in Article 53 of the Building Standards Act.

(Note 4) "Floor area ratio" is the ratio of the total floor space of the building to the site area as stipulated in Article 52 of the Building Standards Act. The floor-area ratio of the property is limited to 360% due to the regulation regarding frontal road width.

(Note 5) Figures in "Tenant details" are as of November 30, 2023. Furthermore, "Total rent income" is the annualized figure (multiplied by 12) of the monthly rent (including common expenses but not including fees for the usage of parking, storage rooms and such as well as consumption tax) as of November 30, 2023, based on lease agreements or sub-leasing agreements concluded between the Investment Corporation, the trustee or the master lease company and the end tenants.

(Note 6) Amounts are rounded down to the nearest thousand yen.

1. Overview of the transferee
   The transferee of the asset to be transferred is a domestic business company, but the Investment Corporation has decided not to disclose it because the transferee's consent has not been obtained. The transferee does not fall under a party with a special interest in the Investment Corporation and the Asset Management Company.
2. Outlook
   For the impact of the Transfer on the management status forecast for the fiscal period ending May 2024 (the 45th Fiscal Period) published in the 43rd Fiscal Period Financial Report dated July 14, 2023 is minor, and the management status forecasts will remain unchanged.

- 3 -

6. Overview of the appraisal report

Property number / Property name	Re-45 HF NAKANOSHIMA RESIDENCE
Appraisal value	551,000 thousand yen
Appraiser	DAIWA REAL ESTATE APPRAISAL CO.,LTD.
Value date	May 31, 2023
Item	Content		Overview, etc.
(1,000 yen)
Value	551,000		Estimated by linking indicated value by DCF method and
	indicated value by direct capitalization method.
	Value indicated by the income approach	554,000
	(direct capitalization method)
		Effective gross income	39,362
						Assessed based on current rental levels in contract, new rental
			Potential total profits	41,608		levels for comparable real estate in the same area with the same
				demand and supply as well as their trends, and taking into account
						the medium- to long-term competitiveness of the target real estate.
			Losses from vacancies, etc.	2,245		Assessed after consideration of the competitiveness of the target
				property and other factors based on the typical vacancy rates of
						similar properties.
		Operating expenses	10,352
			Management fees	2,525		Assessed based on the current building management commission
				fees.
			Property management fee	884		Assessed based on the current PM agreement.
			Utilities expenses	901		Assessed after referring to utilities expenses of similar properties
				and amounts actually paid.
						Repair expenses are stated upon appraisal based on such expenses
			Maintenance and repair cost	1,208		described in the engineering report and using the cost levels of
				similar properties. In addition, tenant replacement expenses are
						stated, taking into account replacement ratio and vacancy ratio.
			Tenant advertisement expenses, etc.	1,245		Assessed in reference to tenant-seeking costs of comparable real
				estate.
			Public charges and taxes	2,829		Posted amounts based on actual payments, taking tax burdens,
				etc., into consideration.
			Casualty insurance premiums	81		Assessed based on the judgment that current amounts paid are
				appropriate while also conducting checks according to the level of
						casualty insurance premiums for similar properties.
			Other expenses	676		Internet expenses, etc. are stated by reference to past results.
		Net operating income (NOI)	29,009
		Interest on lump-sum payments	27		Assessed the investment yield at 1.0%.
		Capital expenditures	3,564		The amount of capital expenditures is stated upon appraisal of
			major repair expenses and renewal expenses described in the
						engineering report and the cost levels of similar properties.
		Net cash flow (NCF)	25,473
		Capitalization rate	4.6%		Assessed individually considering locational conditions, building
			specifications and rights of the target real estate in reference to
						returns on investment in transactions of comparable real estate.
	Value indicated by the income approach	549,000
	(discounted cash flow method)
		Discount rate	4.4%		Assessed by comparing with the discount rate related to the
			transactions of comparable real estate, investment yields of other
						financial products.
		Terminal capitalization rate	4.8%		Assessed by taking into account the marketability of the target real
			estate upon the expiration of the holding period based on the
						capitalization rate.
Value indicated by the cost approach using the	615,000
cost accounting method
	Percentage of land	75.2%
	Percentage of building	24.8%
Other notable items regarding the appraisal as	-
stated by the appraiser

(Note) The balance above is based on that in the appraisal report and is not that of the Investment Corporation or the Asset Management Company.

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

- 4 -

【Attachment】

Portfolio list after the Transfer

- 5 -

(Attachment) Portfolio list after the Transfer

Property

No.

					Investment		(Scheduled)		Investment
	Property Name		Location			Acquisition Price
			Area			Ratio (%)
				(million yen)
					(Note 1)			(Note 2)
						(Note 2)

			Of-05	SUITENGU HEIWA BUILDING	Chuo-ku, Tokyo	I	1,550	0.68
			Of-06	HF MONZENNAKACHO BUILDING	Koto-ku, Tokyo	I	2,500	1.10
			Of-07	HF HAMAMATSUCHO BUILDING	Minato-ku,	I	1,530	0.67
			Tokyo
			Of-08	HF TAMEIKE BUILDING	Minato-ku,	I	2,700	1.18
			Tokyo
			Of-11	HF NIHONBASHI ODENMACHO BUILDING	Chuo-ku, Tokyo	I	2,150	0.94
			Of-12	HF HATCHOBORI BUILDING	Chuo-ku, Tokyo	I	3,092	1.36
			Of-17	HATCHOBORI MF BUILDING	Chuo-ku, Tokyo	I	1,110	0.49
			Of-18	M2 HARAJUKU	Shibuya-ku,	I	3,418	1.50
			Tokyo
			Of-20	FUNABASHI FACE BUILDING	Funabashi City,	II	3,900	1.71
			Chiba
			Of-21	ADESSO NISHIAZABU	Minato-ku,	I	640	0.28
			Tokyo
			Of-23	HF IKEBUKURO BUILDING	Toshima-ku,	I	1,314	0.58
			Tokyo
			Of-24	HF YUSHIMA BUILDING	Bunkyo-ku,	I	1,624	0.71
			Tokyo
			Of-25	KAYABACHO HEIWA BUILDING	Chuo-ku, Tokyo	I	4,798	2.10
			Of-27	KOBE KYUKYORYUCHI HEIWA BUILDING	Kobe City,	III	2,310	1.01
			Hyogo
			Of-29	SAKAE MINAMI BUILDING	Nagoya City,	III	1,580	0.69
			Aichi
			Of-30	HF SAKURADORI BUILDING	Nagoya City,	III	4,900	2.15
			Aichi
	Office		Of-31	HF NIHONBASHI HAMACHO BUILDING	Chuo-ku, Tokyo	I	1,900	0.83
				Miyagi
			Of-32	HF SENDAI HONCHO BUILDING	Sendai City,	III	2,700	1.18
			Of-33	HF UENO BUILDING	Taito-ku, Tokyo	I	3,400	1.49
			Of-34	KOJIMACHI HF BUILDING	Chiyoda-ku,	I	1,350	0.59
			Tokyo
			Of-35	HF KUDAN MINAMI BUILDING	Chiyoda-ku,	I	2,720	1.19
			Tokyo
			Of-36	HF KANDA OGAWAMACHI BUILDING	Chiyoda-ku,	I	3,150	1.38
			Tokyo
			Of-37	NISSO 5 BUILDING	Yokohama City,	II	3,100	1.36
			Kanagawa
			Of-38	ACROSS SHINKAWA BUILDING	Chuo-ku, Tokyo	I	3,750	1.64
			Of-39	SENJU MILDIX Ⅱ	Adachi-ku,	I	1,650	0.72
			Tokyo
			Of-40	ARK Mori Building	Minato-ku,	I	3,085	1.35
			Tokyo
			Of-41	Nihonbashi Horidomecho First	Chuo-ku, Tokyo	I	2,140	0.94
			Of-42	Southern Sky Tower Hachioji	Hachioji City,	II	1,600	0.70
			Tokyo
			Of-43	HAMACHO HEIWA BUILDING	Chuo-ku, Tokyo	I	3,100	1.36
			Of-44	KINSICHO SQUARE BUILDING	Sumida-ku,	I	2,840	1.25
			Tokyo
			Of-45	HF NIHONBASHI KABUTOCHO BUILDING	Chuo-ku, Tokyo	I	3,580	1.57
			Of-46	HF SENDAI ICHIBANCHO BUILDING	Sendai City,	III	2,501	1.10
			Miyagi
			Of-47	OSAKI CN BUILDING	Shinagawa-ku,	I	5,160	2.26
			Tokyo
			Of-48	Faret East Building	Tachikawa City,	II	1,610	0.71
			Tokyo

- 6 -

Property

Investment

(Scheduled)

Investment

Property Name

Location

Acquisition Price

Area

Ratio (%)

No.

(million yen)

(Note 1)

(Note 2)

(Note 2)

Of-49

HF ESAKA BUILDING

Suita City,

III

2,500

1.10

Osaka

Of-50

Shinsaibashi FRONT Building

Osaka City,

III

7,300

3.20

Osaka

Of-51

SAKAE CENTER BUILDING

Nagoya-City,

III

4,000

1.75

Aichi

Of-52

IWAMOTOCHO TWIN BUILDING

Chiyoda-ku,

I

3,380

1.48

Tokyo

Of-53

IWAMOTOCHO TWIN SAKAE BUILDING

Chiyoda-ku,

I

400

0.18

Tokyo

Of-54

STAGE NISHIKI

Nagoya-City,

III

2,100

0.92

Aichi

Of-55

Kitahama 1-Chome Heiwa Building

Osaka City,

III

3,370

1.48

Osaka

Of-56

Heiwa Real Estate Kitahama Building

Osaka City,

III

1,650

0.72

Osaka

Of-57

PRIME TOWER YOKOHAMA

Nagoya-City,

III

3,800

1.67

Aichi

Office Subtotal

116,952

51.29

Re-03

HF ICHIKAWA RESIDENCE

Ichikawa City,

II

430

0.19

Chiba

Re-05

HF MEGURO RESIDENCE

Meguro-ku,

I

660

0.29

Tokyo

Re-09

HF KASAI RESIDENCE

Edogawa-ku,

I

650

0.29

Tokyo

Re-11

HF WAKABAYASHI-KOEN RESIDENCE

Setagaya-ku,

I

3,610

1.58

Tokyo

Re-12

HF HIMONYA RESIDENCE

Meguro-ku,

I

1,560

0.68

Tokyo

Re-14

HF MINAMIAZABU RESIDENCE

Minato-ku,

I

1,370

0.60

Tokyo

Re-16

HF GAKUGEIDAIGAKU RESIDENCE

Meguro-ku,

I

1,000

0.44

Tokyo

Re-17

HF HIGASHIKANDA RESIDENCE

Chiyoda-ku,

I

1,100

0.48

Tokyo

Re-18

HF HIGASHINIHONBASHI RESIDENCE

Chuo-ku, Tokyo

I

1,210

0.53

Re-19

HF NERIMA RESIDENCE

Nerima-ku,

I

690

0.30

Tokyo

Residence

Re-20

HF SHIROKANETAKANAWA RESIDENCE

Minato-ku,

I

4,030

1.77

Tokyo

Tokyo

Re-21

HF MEIDAIMAE RESIDENCE

Setagaya-ku,

I

1,070

0.47

Re-22

HF NIHONBASHI RESIDENCE

Chuo-ku, Tokyo

I

1,130

0.50

Re-23

HF KAMISHAKUJII RESIDENCE

Nerima-ku,

I

950

0.42

Tokyo

Re-24

HF KINSHICHO RESIDENCE

Sumida-ku,

I

1,100

0.48

Tokyo

Re-25

HF GINZA RESIDENCE EAST

Chuo-ku, Tokyo

I

5,940

2.60

Re-26

HF SHIN-YOKOHAMA RESIDENCE

Yokohama City,

II

3,350

1.47

Kanagawa

Re-30

HF MAGOME RESIDENCE

Ota-ku, Tokyo

I

1,630

0.71

Re-31

HF GAKUGEIDAIGAKU RESIDENCE II

Meguro-ku,

I

1,650

0.72

Tokyo

Re-33

HF KAMEIDO RESIDENCE

Koto-ku, Tokyo

I

1,050

0.46

Re-34

HF TANASHI RESIDENCE

Nishi-tokyo

II

911

0.40

City, Tokyo

Re-38

LA RESIDENCE DE SHIROKANEDAI

Minato-ku,

I

730

0.32

Tokyo

Re-39

HF GINZA RESIDENCE EAST II

Chuo-ku, Tokyo

I

1,460

0.64

Re-40

HF HATCHOBORI RESIDENCE II

Chuo-ku, Tokyo

I

1,890

0.83

- 7 -

Property

No.

Property Name

Location

Investment

Area

(Note 1)

(Scheduled)

Acquisition Price

(million yen)

(Note 2)

Investment Ratio (%)

(Note 2)

Re-42

HF GINZA RESIDENCE

Chuo-ku, Tokyo

I

944

0.41

Re-43

HF KOMAZAWA-KOEN RESIDENCE TOWER

Setagaya-ku,

I

6,520

2.86

Tokyo

Re-45

HF NAKANOSHIMA RESIDENCE

Osaka City,

III

-

-

Osaka

Re-47

HF MARUNOUCHI RESIDENCE

Nagoya City,

III

624

0.27

Aichi

Re-48

HF HIRAO RESIDENCE

Fukuoka City,

III

1,780

0.78

Fukuoka

Re-49

HF KAWARAMACHI NIJO RESIDENCE

Kyoto City,

III

534

0.23

Kyoto

Re-53

HF SHIJYO KAWARAMACHI RESIDENCE

Kyoto City,

III

1,820

0.80

Kyoto

Re-54

LA RESIDENCE DE SENDAGI

Bunkyo-ku,

I

820

0.36

Tokyo

Re-55

HF SENDAGI RESIDENCE

Bunkyo-ku,

I

870

0.38

Tokyo

Re-56

HF KOMAZAWA-KOEN RESIDENCE

Setagaya-ku,

I

615

0.27

Tokyo

Re-57

HF MUSASHIKOYAMA RESIDENCE

Shinagawa-ku,

I

842

0.37

Tokyo

Re-58

HF KOKUBUNJI RESIDENCE

Kokubunji City,

II

839

0.37

Tokyo

Re-59

HF HISAYAODORI RESIDENCE

Nagoya City,

III

1,080

0.47

Aichi

Re-60

HF KARASUMA KURAMAGUCHI RESIDENCE

Kyoto City,

III

572

0.25

Kyoto

Re-61

HF NISHI-SHINJUKU RESIDENCE WEST

Shinjuku-ku,

I

1,990

0.87

Tokyo

Re-62

HF NISHI-SHINJUKU RESIDENCE EAST

Shinjuku-ku,

I

1,170

0.51

Tokyo

Re-63

HF HIGASHI-SHINJUKU RESIDENCE

Shinjuku-ku,

I

1,360

0.60

Tokyo

Re-64

HF HIGASHI-SHINSAIBASHI RESIDENCE

Osaka City,

III

566

0.25

Osaka

Re-65

HF KITA-YOBANCHO RESIDENCE

Sendai City,

III

809

0.35

Miyagi

Re-66

HF ATAGOBASHI RESIDENCE

Sendai City,

III

684

0.30

Miyagi

Re-68

HF ASAKUSABASHI RESIDENCE

Taito-ku, Tokyo

I

771

0.34

Re-69

HF ICHIBANCHO RESIDENCE

Sendai City,

III

834

0.37

Miyagi

Re-70

HF HIGASHI-NAKANO RESIDENCE

Nakano-ku,

I

942

0.41

Tokyo

Re-72

HF WASEDA RESIDENCE

Shinjuku-ku,

I

2,090

0.92

Tokyo

Re-73

HF WASEDA RESIDENCE II

Shinjuku-ku,

I

872

0.38

Tokyo

Re-74

HF WAKAMATSU KAWATA RESIDENCE

Shinjuku-ku,

I

1,158

0.51

Tokyo

Re-75

HF SENDAI RESIDENCE EAST

Sendai City,

III

1,638

0.72

Miyagi

Re-76

HF NISHIKOEN RESIDENCE

Sendai City,

III

1,310

0.57

Miyagi

Re-77

HF BANSUI-DORI RESIDENCE

Sendai City,

III

790

0.35

Miyagi

Re-78

HF KANNAI RESIDENCE

Yokohama City,

II

1,800

0.79

Kanagawa

Re-79

HF MEIEKI-KITA RESIDENCE

Nagoya City,

III

2,160

0.95

Aichi

Re-80

HF HIGASHI-SAPPORO RESIDENCE

Sapporo City,

III

1,560

0.68

- 8 -

Property

No.

Property Name

Location

Investment

Area

(Note 1)

(Scheduled)

Acquisition Price

(million yen)

(Note 2)

Investment Ratio (%)

(Note 2)

				Hokkaido
	Re-81	HF HAKATA-HIGASHI RESIDENCE		Fukuoka City,		III	880	0.39
		Fukuoka
	Re-82	HF SENDAI ITSUTSUBASHI RESIDENCE		Sendai City,		III	850	0.37
		Miyagi
	Re-83	HF TABATA RESIDENCE		Kita-ku, Tokyo		I	1,100	0.48
	Re-84	HF RYOGOKU RESIDENCE		Sumida-ku,		I	1,400	0.61
		Tokyo
	Re-85	HF HACHIOJI RESIDENCE		Hachioji City,		II	1,120	0.49
		Tokyo
	Re-86	HF MITA RESIDENCE II		Minato-ku,		I	1,210	0.53
		Tokyo
	Re-87	HF MONZEN-NAKACHO RESIDENCE		Koto-ku, Tokyo		I	945	0.41
	Re-88	HF MINAMI-SUNAMACHI RESIDENCE		Koto-ku, Tokyo		I	900	0.39
	Re-89	HF SENDAI NAGAMACHI RESIDENCE		Sendai City,		III	1,030	0.45
		Miyagi
	Re-90	HF SHOKOJI AKABANE RESIDENCE		Kita-ku, Tokyo		I	1,150	0.50
	Re-91	HF SENDAI HONCHO RESIDENCE		Sendai City,		III	1,070	0.47
		Miyagi
	Re-92	HF OHORI RESIDENCE BAYSIDE		Fukuoka City,		III	1,150	0.50
		Fukuoka
	Re-93	HF HAKATA-HIGASHI RESIDENCE Ⅱ		Fukuoka City,		Ⅲ	1,198	0.53
		Fukuoka
	Re-94	HF FUKUOKA RESIDENCE EAST		Fukuoka City,		Ⅲ	1,180	0.52
		Fukuoka
	Re-95	HF SHOKOJI AKABANE RESIDENCE Ⅱ		Kita-ku, Tokyo		I	1,690	0.74
	Re-96	HF YAHIRO RESIDENCE		Sumida-ku,		I	1,220	0.53
		Tokyo
	Re-97	HF SETAGAYAKAMIMACHI RESIDENCE		Setagaya-ku,		I	700	0.31
		Tokyo
	Re-98	HF SOKA RESIDENCE		Soka-City,		II	1,300	0.57
		Tokyo
	Re-99	HF UENO IRIYA RESIDENCE		Taito-ku, Tokyo		I	900	0.39
	Re-100	HF TSUJIDO RESIDENCE		Fujisawa-City,		II	1,870	0.82
		Kanagawa
				Kawaguchi-
	Re-101	HF KAWAGUCHIEKIMAE RESIDENCE		City,		II	1,260	0.55
				Saitama
	Re-102	HF HIGASHIOGU RESIDENCE		Arakawa-ku,		I	1,210	0.53
		Tokyo
	Re-103	HF IMAIKE-MINAMI RESIDENCE		Nagoya-City,		Ⅲ	860	0.38
		Aichi
	Re-104	HF FUSHIMI RESIDENCE		Nagoya-City,		Ⅲ	610	0.27
		Aichi
	Re-105	HF NAKANO-SAKAUE RESIDENCE		Nakano-ku,		I	1,050	0.46
		Tokyo
	Re-106	HF UENO RESIDENCE EAST		Taito-ku, Tokyo		I	2,500	1.10
	Re-107	HF OMORIMACHI RESIDENCE		Ota-ku, Tokyo		I	1,200	0.53
		Residence Subtotal					111,089	48.71
		Portfolio Total					228,041	100.00

(Note 1) The Investment Area column entries are as follows:

I: Investment in the Primary Investment Area (The 23 Wards of Tokyo)

1. Investment in the Secondary Investment Area (Tokyo, outside the Primary Investment Area, and major urban areas in Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture)

1. Investment in the Regional Investment Area (major urban areas in the metropolitan area excluding the Primary Investment Area and the Secondary Investment Area).
   The metropolitan area is the urban area including the central wards that are the main districts of Tokyo, the government-designated cities, and the surrounding municipalities that are socially and economically connected to Tokyo.

(Note 2) Figures for the (scheduled) acquisition price are rounded off to the nearest specified unit, and figures for the investment ratio are rounded

- 9 -

to the second decimal place. Accordingly, the figures may not necessarily add up to the figures in the total columns.

- 10 -