HEIWA Real Estate REIT : (Correction) 32nd Fiscal Period Financial Report

January 22, 2018

For Immediate Release

REIT Issuer

HEIWA REAL ESTATE REIT, Inc.

9-1 Nihonbashi Kabuto-cho, Chuo-ku, Tokyo

Masaaki Higashihara, Executive Director

(Securities Code: 8966)

Asset Management Company

HEIWA REAL ESTATE Asset Management CO., LTD.

Takaya Ichikawa, President & Representative Director

Inquiries: Yoshio Ito, General Manager, Planning & Finance Department

TEL. [phone]

(Correction) 32nd Fiscal Period Financial Report

HEIWA REAL ESTATE REIT, Inc. (the "Investment Corporation") corrects the following part of the "32nd Fiscal Period Financial Report (REIT)" dated January 17, 2018. Details are provided as follows and the change is indicated by the underlined portion.

Correction:

The under lined portion in page13 "Management status forecast assumptions for 33rd Fiscal Period (from December 1,2017 to May 31,2018) and 34th Fiscal Period (from June 1, 2018 to November 30, 2018)"

＜Before Correction＞

Item	Assumptions
(omitted)
Non-operating expenses	 Interest expenses (including interest on investment corporation bonds) and related borrowing expenses are estimated to be 461 million yen for the fiscal period ending in May 2018 and 471 million yen for the fiscal period ending in November 2018. Amortization of investment unit issuance expenses and investment corporation bond issuance expenses are estimated to be 7 million yen for the fiscal period ending in May 2018 and 8 million yen for the fiscal period ending in November 2018.

＜After Correction＞

Item	Assumptions
(omitted)
Non-operating expenses	 Interest expenses (including interest on investment corporation bonds) and related borrowing expenses are estimated to be 471 million yen for the fiscal period ending in May 2018 and 461 million yen for the fiscal period ending in November 2018. Amortization of investment unit issuance expenses and investment corporation bond issuance expenses are estimated to be 7 million yen for the fiscal period ending in May 2018 and 8 million yen for the fiscal period ending in November 2018.

* Distribution: Kabuto Club, Ministry of Land, Infrastructure, Transport and Tourism Press Club, and Ministry of Land,Infrastructure,

Transport and Tourism Press Club for Construction Publications

* Investment Corporation Website:http://www.heiwa-re.co.jp/english/

-2-