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

April 23, 2024

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 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 and Term Loan 58 (loan amount: 600 million yen)* and Term
   Loan 61 Tranche A (loan amount: 2,300 million yen)** to hedge the risk of interest rate fluctuation.
2. • For the details of the loan, please refer to the press release "Notice Concerning Borrowing of Funds" announced on January 26, 2022.
   • For the details of the loan, please refer to the press release "Notice Concerning Borrowing of Funds and Repayment of Loans" announced on May 25, 2022.
3. Details of Interest Rate Swap Agreements

Loan	Term Loan 58
Counterparty	Sumitomo Mitsui Trust Bank, Limited
Notional Principal	600 million yen
Interest Rate	Fixed interest rate payable at 0.86330%
Variable interest rate receivable at JBA 3-month Japanese Yen TIBOR
Start Date	April 30, 2024
End Date	November 30, 2029
Loan	Term Loan 61 Tranche A
Counterparty	Sumitomo Mitsui Trust Bank, Limited
Notional Principal	2,300 million yen
Interest Rate	Fixed interest rate payable at 0.82580%
Variable interest rate receivable at JBA 3-month Japanese Yen TIBOR

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Start Date	April 30, 2024
End Date	May 31, 2029

(Note) According to this interest rate swap agreements, the floating interest rate of Term Loan 58 is set at a fixed interest rate of 1.38830%, and the floating interest rate of Term Loan 61 Tranche A is set at a fixed interest rate of 1.42580%.

3. Future Outlook

The risks associated with the conclusion of interest rate swap agreements as described above do not change from those detailed in "Investment Risks" in the periodic securities report (yuka shoken hokokusho) for the fiscal period ended November 2023 (44th Fiscal Period), which was submitted on February 29, 2024.

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

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