Heiwa Real Estate Reit Inc.TSE: 8966

47th Fiscal Period (May 31, 2025) Asset Management Report

Aug 28, 2025 at 8:49 AM UTC · Issued by Heiwa Real Estate Reit Inc.

Semiannual Financial Report The 47th Fiscal Period

(From December 1, 2024 to May 31, 2025)

HEIWA REAL ESTATE REIT, Inc.

5-1, Nihonbashi-kabutocho, Chuo-ku, Tokyo

Message from the Executive Director

To Our Valued Investors,

Thank you for your continued support.

Since its stock was first listed in 2005, HEIWA REAL ESTATE REIT ("REIT") has been investing in and operating medium-sized offices and single and compact residential properties primarily in the 23 wards of Tokyo.

Since the change of sponsor in 2009, the Investment Corporation has been working on maximizing the interests of investors and steadily grown its business with Heiwa Real Estate Group as its sponsor. Since 2020, the spread of the COVID-19 pandemic has been adding to the uncertainty in the real estate market. Amid these conditions, the REIT announced in July 2021, the NEXT VISION (asset size of 300 billion yen, distribution of 3,300 yen, AA- rating, and 100% electricity introduction rate derived from renewable energy), its new medium- to long-term targets. It has registered solid growth even in the COVID-19 pandemic and achieved its targets early excluding the asset size. In January 2024, the Investment Corporation announced NEXT VISION II (asset size of 300 billion yen, distribution of 3,800 yen, annual rental income of +1%, 10% ROI, AA rating, 90% GHG reduction by 2030, 100% electricity introduction rate derived from renewable energy) as new medium-term targets and has promoted to build a portfolio that can withstand cost increases attributable to inflation and the impact on interest costs due to policy changes by the Bank of Japan. In January 2025, the Investment Corporation announced NEXT VISION II+, its new medium-term targets.

As part of an expanded effort to enhance capital efficiency and maximize unitholder value, the Corporation aims to implement three key enhancement initiatives: Increasing investor returns, Facilitating internal growth, Strengthening asset turnover-type strategy. Under this plan, the Corporation set a DPU target of 4,200 yen and projected an annual rental income growth rate of +2% through internal growth. Furthermore, in July 2025, the internal growth rental income target was raised to +5% per year.

Responses to issues surrounding the environment, society, and corporate governance are important and significantly affect all of the management and business of the Investment Corporation. It recognizes that efforts to build a sustainable society contribute to the sustainable growth of the Investment Corporation. The Investment Corporation establishes ESG targets and strives to achieve them as one of its growth strategies.

The REIT aims to contribute to the interests of its investors and all other stakeholders while leveraging the sponsorship of the Heiwa Real Estate Group for both external and internal growth.

We earnestly ask for your continued support of our business.

Overview of asset management

Summary of asset management during the 47th fiscal period

The REIT is striving based on its Basic Philosophy of "Steady Growth of Assets Under Management" and "Stable Medium- to Long-Term Profits," as well as "cooperation with and use of the Heiwa Real Estate Group" (collectively referring to Heiwa Real Estate Co., Ltd. ("Heiwa Real Estate") and the subsidiaries of Heiwa Real Estate; the same hereinafter) to manage its assets with the purpose of maximizing investors' value. Following is a summary of our asset management during the 47th fiscal period.

Brief background of the REIT
Investment units in the REIT have been listed on the Real Estate Investment Trust Section (J-REIT Section) of the Tokyo Stock Exchange ("TSE") since March 8, 2005 (Securities Code: 8966). Between then and the start of the current fiscal period, the REIT executed a capital increase through public offering and issuance of new investment units through private placement on several occasions, an investment unit split and investment unit issuance through a merger with Japan Single-residence REIT Inc. on October 1, 2010 (the "Merger"), a cancellation of treasury investment units in September 2020 and public offering, etc. every June for four consecutive years, beginning in 2021. As a result, total investment units issued and outstanding were 1,194,933 and unitholders' capital was ¥108,578 million as of the end of the 47th fiscal period (May 31, 2025).
Operating environment
During the current fiscal period, the Japanese economy benefited from robust inbound demand and resilient corporate performance, but the effects of high prices have become entrenched, and consumer spending is still in the recovery stage. Looking at the overseas economy, future uncertainties are continuing amid the U.S. tariff policy, the situations in Ukraine and the Middle East and other factors, and it will be necessary to continue to pay attention to trends inside and outside Japan.
In this environment, the TSE REIT index recovered to 1,736.74 points at the end of the current fiscal period (May 31, 2025), up from 1,662.14 points at the end of the previous fiscal period (November 30, 2024), due to such factors as the relaxing of concerns about additional interest rate increases by the Bank of Japan, and improvements in real estate leasing market conditions, mainly in office buildings.
1. Office building leasing market
  According to the latest office building market data from Miki Shoji Co., Ltd., the average office building vacancy rate in the five central wards of Tokyo (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) improved to 3.56% at the end of the current fiscal period (May 31, 2025) from 4.16% at the end of the previous fiscal period (November 30, 2024), due to contracts steadily signed for new and existing buildings, as well as relocations for office expansion. In addition, the average rent rose for 16 consecutive months from February 2024, increasing from ¥20,243/tsubo at the end of the previous fiscal period, to ¥20,776/tsubo at the end of the current fiscal period.
  Vacancy rates are also being driven down by the absorption of substantial areas, particularly in newly constructed and recently built buildings. Additionally, the REIT views occupancy rates of portfolio assets as something to be maintained at a high level through advertising strategies and sensible rents set to meet tenants' needs, as tenants' move to review their office strategies is showing signs of further increase.
2. Residential leasing market
  According to At Home Co., Ltd., in May 2025, the average condominium contract rent in areas of major cities across Japan increased year-on-year for area zones in the Tokyo 23 wards, metropolis of Tokyo (excluding Tokyo 23 wards), Saitama Prefecture, Chiba Prefecture, and Fukuoka City. In addition, the average contract rent for couple-oriented condominiums rose year-on-year in 11 areas, excluding Kobe City and Hiroshima City, and reached their highest levels since January 2015 particularly in six areas (Kanagawa Prefecture, Saitama Prefecture, Chiba Prefecture, Sendai City, Osaka City, and Fukuoka City). Furthermore, according to the Survey Report on the Statistics of Construction Starts published in May 2025, the number of new housing starts (rental housing) decreased year-on-year for two consecutive months in May 2025, following a decline in the prior month after it had fluctuated year-on-year since December 2024. The supply and demand for rental housing is currently tight mainly due to the increasing flow of people into Tokyo and the recent surge in prices of new condominiums. There is strong rental demand for condominiums, particularly for those suitable for DINKs and families, and the REIT believes that the favorable balance of supply and demand for rental condominiums will continue in the future. Furthermore, it is believed that occupancy rates will remain at a high level due to continuing stable demand in other major cities. In addition, the REIT will aim to further improve profitability, since the tendency toward increasing rents continues to be expected due to the favorable balance of supply and demand.
3. Real estate
  As for government-assessed land prices as of January 1, 2025, which were published in March 2025, the average prices for all types of land, land in residential areas, and land in commercial areas each rose for the fourth consecutive year in Japan's three major metropolitan areas of Tokyo, Osaka and Nagoya, with each amount of increase expanding. In the Tokyo and Osaka areas, the amount of increase expanded, while in the Nagoya area, the amount of increase slightly contracted. In addition, in regional areas, the average prices for all types of land, land in residential areas, and land in commercial areas each rose for the fourth consecutive year. Although the amount of increase slightly contracted in Sapporo City, Sendai City, Hiroshima City, and Fukuoka City, the upward trend is generally continuing in other areas.
  In government ordinance-designated regional cities, which the REIT considers to be investment targets, land prices continued to increase in both residential and commercial areas.

Management performance

External growth
With the aim of enhancing the profitability and quality of its portfolio, the REIT acquired one residential building on March 19, 2025 (Re-110 HF MEGURO GYONINZAKA RESIDENCE; real estate trust beneficiary right; acquisition price: ¥5,300 million), one office property on March 28, 2025 (Of-60 Park East Sapporo; real estate trust beneficiary right (quasi-co-ownership interest of 45%); acquisition price: ¥2,700 million), and four residential properties on May 9, 2025. These were Re-111 HF NISHI-SUGAMO
RESIDENCE (real estate; acquisition price: ¥1,040 million), Re-112 HF NISHI-SUGAMO RESIDENCE Ⅱ (real estate; acquisition
price: ¥880 million), Re-113 HF TOBU-NERIMA RESIDENCE (real estate; acquisition price: ¥1,050 million), and Re-114 HF
RYOGOKU RESIDENCE EAST (real estate; acquisition price: ¥880 million). In addition, the REIT sold one office property on March 19, 2025 (Of-34 HF KOJIMACHI HF BUILDING (real estate trust beneficiary right, acquisition price: ¥1,350 million)) and one residential property on May 30, 2025 (Re-64 HF HIGASHI-SHINSAIBASHI RESIDENCE (real estate trust beneficiary right, acquisition price: ¥566 million)).
As a result, portfolio assets as of the end of the current fiscal period were 131 properties (total acquisition price: ¥247,201 million), including 44 office buildings (total acquisition price of ¥124,068 million) and 87 residential buildings (total acquisition price of
¥123,133 million).

Internal growth

The REIT has consistently endeavored to increase profitability by improving and maintaining its occupancy rates. During the 47th fiscal period, the REIT continued to be engaged in tenant leasing activities, working to shorten vacancy duration as well as systematic efforts to increase its investment value based on tenant needs and the characteristics of each individual property. Supported by these and other initiatives for maintaining and improving the competitiveness of its assets, the occupancy rate for total assets held by the REIT came to 97.1% at the end of the current fiscal period. The REIT was able to stabilize the occupancy rate, which had reached 97.5% at the end of the previous fiscal period, at a high level throughout the current fiscal period. The average month-end occupancy rate for the current fiscal period stood high at 97.2%.

The REIT has been advancing ESG-related initiatives with a focus on consideration for the environment and energy saving and contribution to communities.

Meanwhile, in terms of renaming managed assets, which has been a consistent focus for some time, the REIT renamed the three properties shown below during the period from the beginning of the current fiscal period to the date of this document. In addition, the REIT plans to rename the four properties shown below that were acquired during the current fiscal period. By renaming the properties, the REIT aims to provide reassurance to existing tenants, increase the appeal of the properties to prospective tenants and conduct leasing activities more efficiently. The new names are used in this document.

Properties renamed

Date of change (planned)	Property no.	Old name	New name
April 1, 2025	Of-59	Kita Nijo Building	HF KITA NIJO BUILDING
June 1, 2025	Of-58	SHINWA ESAKA BUILDING	HF ESAKA EKIMAE BUILDING
July 1, 2025	Re-110	Frontier Terrace Meguro	HF MEGURO GYONINZAKA RESIDENCE
October 1, 2025	Re-111	Harmony Residence Nishi Sugamo	HF NISHI-SUGAMO RESIDENCE
October 1, 2025	Re-112	Harmony Residence Tokyo Sugamo WEST	HF NISHI-SUGAMO RESIDENCE Ⅱ
October 1, 2025	Re-113	Harmony Residence Itabashi Tokumaru	HF TOBU-NERIMA RESIDENCE
October 1, 2025	Re-114	Harmony Residence Tokyo Ryogoku Park Front	HF RYOGOKU RESIDENCE EAST

Procurement of funds

During the current fiscal period, the REIT took out loans totaling ¥11,850 million to fund property acquisition, etc. Additionally, to fund the repayment of loans that reached their principal repayment dates during the current fiscal period (totaling ¥6,897 million), the REIT took out loans totaling ¥6,897 million.

As a result of these loans, the average borrowing period as of the end of the current fiscal period came to 7.1 years, while the average remaining period was 4.0 years, and the average borrowing interest rate was 1.08%. The total interest-bearing liabilities amount (Note) at the end of current fiscal period was ¥125,887 million (period end LTV (Note): 47.97%).

(Note) Interest-bearing liabilities = Short-term debt + Investment corporation bonds due within one year + Long term debt due within one year + Investment corporation bonds + Long-term debt Closing ratio of interest-bearing liabilities to total assets = Closing amount of interest-bearing liabilities / Closing amount of total assets × 100

A rating for the REIT as of the date of this document is presented below.

Credit rating agency	Issuer rating
Japan Credit Rating Agency, Ltd. (JCR)	Rating: AA-; Rating outlook: Stable

Performance and distributions
The management described above led to 47th fiscal period results of ¥10,154 million in operating revenue, ¥5,556 million in operating profit, after deducting interest expenses on borrowings, ¥4,882 million in ordinary profit, and ¥4,881 million in profit. With respect to the distribution of monies ("distributions") stipulated in Article 137 of the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951 and subsequent amendments), distributions shall be not more than the amount of unappropriated retained earnings at the end of the current fiscal period and are defined as anything in excess of 90% of the "amount of distributable earnings" stipulated in Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957 and subsequent amendments) in accordance with the stipulations of Article 32, paragraph 1 of its Articles of Incorporation ("bylaws"). Based on this policy, the REIT declared total distributions of ¥4,600,492,050 for the current fiscal period, which is the amount calculated by adding reversal of reserve for temporary difference adjustments of ¥238,986,600 (¥200 per unit) to the amount calculated by deducting the internal reserve of
¥520,135,715, which includes the reserve for temporary difference adjustment of ¥148,743,724 and the transfer of reserve for tax purpose reduction entry of ¥108,756,208, from the profit of ¥4,881,641,165 for the current fiscal period, in accordance with the "special case of taxation in case of replacement of specified properties" under Article 65-7 of the Act on Special Measures Concerning Taxation. As a result, distributions per unit have come to ¥3,850.

Overview of capital increase

The table below shows changes in total number of investment units issued and outstanding and unitholders' capital over the past five years.

Date	Summary	Total number of investment units issued and outstanding		Unitholders' capital (million yen)		Remarks
Date	Summary	Change	Remaining units	Change	Balance	Remarks
September 29, 2020	Cancellation	-14,914	999,933	-	81,370	(Note 1)
June 1, 2021	Public offering	53,100	1,053,033	8,272	89,642	(Note 2)
June 29, 2021	Third-party allotment	2,700	1,055,733	420	90,063	(Note 3)
June 1, 2022	Public offering	55,200	1,110,933	7,362	97,426	(Note 4)
June 28, 2022	Third-party allotment	2,800	1,113,733	373	97,799	(Note 5)
June 1, 2023	Public offering	34,500	1,148,233	4,948	102,748	(Note 6)
June 27, 2023	Third-party allotment	1,700	1,149,933	243	102,992	(Note 7)
June 3, 2024	Public offering	42,800	1,192,733	5,312	108,305	(Note 8)
June 25, 2024	Third-party allotment	2,200	1,194,933	273	108,578	(Note 9)

(Note 1) From July 16, 2020 to September 15, 2020, the REIT bought back investment units (market purchase based on discretionary transactions with a securities company). On September 29, 2020, the REIT cancelled all of the investment units that it had bought back following a resolution at the Board of Directors meeting held on September 16, 2020. The funds for buying back the investment units were deducted from unitholders' capital surplus, and unitholders' capital remained unchanged.

(Note 2) The REIT issued additional investment units (public offering) at the offer price of ¥161,070 per unit (the paid-in amount:

¥155,783 per unit) for the purpose of procuring funds for the acquisition of specific assets, etc.

(Note 3) With the additional issuance of investment units through public offering at the paid-in amount of ¥155,783 per unit (Note 2), the REIT issued additional investment units (third-party allotment) to SMBC Nikko Securities Inc.

(Note 4) The REIT issued additional investment units (public offering) at the offer price of ¥137,913 per unit (the paid-in amount:

¥133,386 per unit) for the purpose of procuring funds for the acquisition of specific assets, etc.

(Note 5) With the additional issuance of investment units through public offering at the paid-in amount of ¥133,386 per unit (Note 4), the REIT issued additional investment units (third-party allotment) to SMBC Nikko Securities Inc.

(Note 6) The REIT issued additional investment units (public offering) at the offer price of ¥148,239 per unit (the paid-in amount:

¥143,449 per unit) for the purpose of procuring funds for the acquisition of specific assets, etc.

(Note 7) With the additional issuance of investment units through public offering at the paid-in amount of ¥143,449 per unit (Note 6), the REIT issued additional investment units (third-party allotment) to SMBC Nikko Securities Inc.

(Note 8) The REIT issued additional investment units (public offering) at the offer price of ¥128,271 per unit (the paid-in amount:

¥124,126 per unit) for the purpose of procuring funds for the acquisition of specific assets, etc.

(Note 9) With the additional issuance of investment units through public offering at the paid-in amount of ¥124,126 per unit (Note 8), the REIT issued additional investment units (third-party allotment) to SMBC Nikko Securities Inc.

[Changes in the market price of investment securities]

The table below shows high and low prices (closing prices) of the investment securities of the REIT in recent fiscal periods on the Tokyo Stock Exchange Real Estate Investment Trust Securities Market, on which the investment securities are listed.

(Unit: yen)

Fiscal period	43rd FP	44th FP	45th FP	46th FP	47th FP
Closing date	May 31, 2023	November 30, 2023	May 31, 2024	November 30, 2024	May 31, 2025
High	163,700	155,700	143,500	135,000	133,900
Low	147,000	135,400	129,700	117,200	114,700

Distributions

Under the REIT's bylaws, distributions shall be not more than the amount of unappropriated retained earnings at the end of the current fiscal period and are defined as anything in excess of 90% of the "amount of distributable income" stipulated in a special provision in taxation for investment corporations (Article 67-15 of the Act on Special Measures Concerning Taxation).

Based on this policy, the REIT made a decision to pay out ¥4,600,492,050 as distributions, calculated by adding reversal of reserve for temporary difference adjustments of ¥238,986,600 (¥200 per unit) to the amount calculated by deducting the internal reserve of ¥520,135,715, which includes the reserve for temporary difference adjustment of ¥148,743,724 and the transfer of reserve for tax purpose reduction entry of ¥108,756,208, from the profit of

¥4,881,641,165 for the current fiscal period, in accordance with the "special case of taxation in case of replacement of specified properties" under Article 65-7 of the Act on Special Measures Concerning Taxation. As a result, distributions per unit have come to ¥3,850.

Fiscal period		43rd FP	44th FP	45th FP	46th FP	47th FP
Fiscal period		May 31, 2023	November 30, 2023	May 31, 2024	November 30, 2024	May 31, 2025
Unappropriated retained earnings	thousand yen	6,755,071	7,254,729	7,442,828	7,701,017	8,472,089
Reserve for temporary difference adjustment	thousand yen	-	-	-	-	148,743
Reversal of reserve for temporary difference adjustment	thousand yen	44,549	45,997	45,997	238,986	238,986
Retained earnings	thousand yen	3,280,224	3,505,947	3,602,051	3,590,448	3,961,840
Total distributions	thousand yen	3,519,396	3,794,778	3,886,773	4,349,556	4,600,492
Distributions per unit	yen	(3,160)	(3,300)	(3,380)	(3,640)	(3,850)
Distributions of profit	thousand yen	3,519,396	3,794,778	3,886,773	4,349,556	4,600,492
(Distributions of profit per unit)	yen	(3,160)	(3,330)	(3,380)	(3,640)	(3,850)
Contribution refunds	thousand yen	-	-	-	-	-
(Contribution refunds per unit)	yen	(－)	(－)	(－)	(－)	(－)
Of contribution refunds, distributions from reserve for temporary difference adjustment	thousand yen	-	-	-	-	-
(Of contribution refunds per unit, distributions from reserve for temporary difference	yen	(－)	(－)	(－)	(－)	(－)

adjustment per unit)
Of contribution refunds, distributions accompanying decrease in capital, etc. under tax law	thousand yen	-	-	-	-	-
(Of contribution refunds per unit, distributions accompanying decrease in capital, etc. under tax law)	yen	(－)	(－)	(－)	(－)	(－)

Management policy and future issues
The REIT has developed and managed a high quality portfolio, primarily consisting of office and residence properties located in Tokyo 23 Wards, with the aim of maximizing investors' value through its Basic Philosophy of "Steady Growth of Assets under Management" and "Stable Medium- to Long-Term Profits" as well as "cooperation with and use of the Heiwa Real Estate Group." In addition, we will focus on "increasing investor returns," "facilitating internal growth," and "strengthening asset turnover strategy". In subsequent fiscal periods, we will continue to adhere to the above philosophy, aiming to further maximize investors' value through the stable management of our portfolio and pursuing a strategy of steady growth.
1. External growth
  The REIT sought to expand its portfolio, enhance the portfolio's quality and increase profitability by selling four properties and acquiring nine new properties of good quality (including one additional acquisition) in the period from the previous fiscal period to the current fiscal period. While the REIT will continue to seek expansion in the scale of its assets in the future, it will also consider the replacement of assets, strive to enhance its medium- to long-term portfolio quality and aim to maximize investors' value. Although the situation with regard to the financing environment and expectations for higher property prices on the back of the economic recovery may change, competitors' appetite for the acquisition of properties is unlikely to weaken dramatically and the acquisition environment is likely to remain extremely challenging. We will endeavor to promptly obtain information on excellent properties by using our pipeline with Heiwa Real Estate and building up our unique information routes as an asset management company. As a basic strategy, we aim to increase opportunities for primarily acquiring properties owned and developed by Heiwa Real Estate, and additionally for acquiring properties owned and developed by other developers to expand our portfolio, contributing to stable profitability over the medium to long term.
2. Internal growth
  The REIT believes that by using the database and information network developed by the Heiwa Real Estate Group and its property management company, it can quickly detect leasing market trends and conduct precise property management, enabling it to maintain and increase occupancy rates and rent levels in assets under management. In the office building leasing market, since demand turned positive in 2022, momentum has continued to follow an increasing trend. Tenants' needs for high-quality office space are continuing to grow, and the REIT recognizes that there are increasingly more tenants holding the view that the office strategies serve as an investment for securing human resources. Under the circumstances, to respond to the tenants' needs, we will continue to exercise management based on value enhancement while seeking varied leasing ways. Meanwhile, in the residential leasing market, the supply and demand for rental housing is currently tight mainly due to the increasing flow of people into Tokyo and the recent surge in prices of new condominiums. There is strong rental demand for condominiums, particularly for those suitable for DINKs and families, and the REIT believes that the favorable balance of supply and demand for rental condominiums will continue in the future. Furthermore, it is believed that occupancy rates will remain at a high level due to continuing stable demand in other major cities. In addition, since the tendency toward increasing rents continues to be expected due to the favorable balance of supply and demand, the REIT will strategically carry out value-enhancement renovations during tenant turnover for condominiums in Tokyo designed for DINKs and families, thereby aiming to further improve profitability and strengthen the competitiveness of its properties. The REIT intends to exercise management carefully tailored to the characteristics of individual properties while continuing to closely monitor market conditions.
  In dealing with tenants, the REIT will continue to focus on maintaining and raising rent levels and reducing the number of departures. The REIT will also perform leasing management, including the reduction of time needed
  to restore properties to their original state, in a bid to shorten the period from tenant departures to the acquisition of new tenants. To make our properties more competitive, we continuously and actively make value-building investments in repairs and improvements of assets under management to maintain and enhance their medium- to long-term value, taking into account each property's asset age, facility level and other aspects.
3. Financial strategy
  The REIT is actively implementing measures in an effort to stabilize its financial foundations and achieve sustainable growth. It will consider the issuance of investment units as one of financing methods while simultaneously taking into consideration the dilution of existing unitholders' rights and the impact of investment units on traded prices, among other factors. It will allocate procured funds chiefly to expand the scale of assets through property acquisition, improve the profitability and quality of its portfolio, and/or strengthen its financial foundations through the reduction of LTV, and by doing so, seek to increase investors' value such as investment unit prices, distributions and NAV per unit from medium- to long-term perspectives. Concerning loans, the REIT will continue to strive to maintain its borrowing periods and diversify maturities by maintaining an appropriate loan-to-value ratio, while promoting measures to reduce risks from higher interest rates in the future and cut financial costs. It will also endeavor to further strengthen its bank formation by strengthening its relationships with financial institutions. The REIT will also issue investment corporation bonds, while keeping a close watch on the effect of reducing financial costs and trends in the financial market. As part of its unitholders' returns policy, the REIT will also consider the purchase and cancellation of treasury investment units based on comprehensive consideration of factors such as the level of the investment unit price, the situation of cash reserves, financial conditions and the market environment. By implementing these measures and initiatives on a continuous basis, the REIT will strive to build sound financial systems that are resilient to changes in the funding environment.
4. Promotion of more timely disclosure
We practice information disclosure that is accurate, fair and timely, complying with the TSE's Securities Listing Regulations and other regulations, laws, etc. relating to timely disclosure. The REIT discloses information on its decisions on the acquisition of new properties, etc. as a rule at the time of the decision by a REIT organization such as the Board of Directors, while events such as damage to assets under management resulting from incidental occurrences are disclosed at the time they are discovered. As a rule, the REIT uses the TSE's TDnet and its official website as its methods for disclosing information.
Significant subsequent events

Issuance of new investment units
At the Board of Directors Meeting held on May 19 and May 22, 2025, HEIWA REAL ESTATE REIT resolved to issue new investment units as described below and the payment for issuance of new investment units through public offering and third-party allotment has been completed on June 2, 2025, and June 24, 2025, respectively. As a result, the amount of unitholders' capital is
¥115,314 million and the number of investment units issued is 1,251,533 as of the date of this document.
1. Issuance of new investment units through public offering
  1. Number of investment units issued 54,000 units
  2. Issue price (offer price) ¥122,996 per unit
  3. Total amount of the issue ¥6,641,784,000
  4. Paid-in amount (issue amount) ¥119,022 per unit
  5. Total paid-in amount (total issue amount) ¥6,427,188,000
  6. Payment date June 2, 2025
2. Issuance of new investment units through third-party allotment
  1. Number of investment units issued 2,600 units
  2. Paid-in amount (issue amount) ¥119,022
  3. Total paid-in amount (total issue amount) ¥309,457,200
  4. Allottee SMBC Nikko Securities Inc.
  5. Payment date June 24, 2025

Acquisition of Assets

Based on the basic policies of asset management, etc., set out in the Article of Incorporation, the REIT acquired two real estate trust beneficiary rights on June 4, 2025 and acquired two real estate on August 7, 2025 and August 8, 2025 (total acquisition price: ¥7,095 million). In addition, concluded a purchase agreement of one real estate trust beneficiary right (scheduled acquisition price: ¥4,720 million) on August 8, 2025.

Of-60 Park East Sapporo (additional acquisition)

Type of specified asset	Real estate trust beneficiary right (24% interest of quasi co-ownership)
Agreement date	May 19, 2025
Acquisition date	June 4, 2025
Acquisition price (Note 1)	¥1,440 million
Location (lot number)	1-3, 1-2-2, 1-4-1, 1-4-2, 1-4-3, 1-4-4, Minami Ichijo Higashi, Chuo-ku, Sapporo City, Hokkaido (Note 2)
Purpose of use	Office
Construction date	November 15, 1985
Structure	Steel-framed reinforced concrete with flat roof, 1 floor below ground and 8 floors above ground
Total floor space (Note 3)	2,607.78 m2
Total rentable space (Note 4)	1,856.52 m2

(Note 1) "Acquisition price" is the price described in the real estate trust beneficiary right purchase agreement (consumption tax excluded), and does not include acquisition costs or the amounts of settlement for fixed property tax, city planning tax, etc.

(Note 2) "Location" is the building address as stated in the real estate registry because the residential address has not been assigned. (Note 3) "Total floor space" is calculated by multiplying the total floor space of one building by 24% interest of quasi-co-ownership

and rounded down to two decimal places.

(Note 4) "Total rentable space" is calculated by multiplying the total rentable space of one building by 24% interest of quasi-co-ownership and rounded down to two decimal places.

Of-61 KYOMACHIBORI SQUARE

Type of specified asset	Real estate trust beneficiary right
Agreement date	May 19, 2025
Acquisition date	June 4, 2025
Acquisition price (Note)	¥3,385 million
Location (lot number)	1-8-33, Kyomachibori, Nishi-ku, Osaka City, Osaka
Purpose of use	Office
Construction date	March 16, 1988
Structure	Steel-framed reinforced concrete with flat roof, 2 floors below ground and 10 floors above ground
Total floor space	5,367.12 m2
Total rentable space	3,715.13 m2

(Note) "Acquisition price" is the price described in the real estate trust beneficiary right purchase agreement (consumption tax excluded), and does not include acquisition costs or the amounts of settlement for fixed property tax, city planning tax, etc.

Re-116 HF HIKIFUNE RESIDENCE EAST (Note 1)

Type of specified asset	Real estate
Agreement date	July 8, 2025
Acquisition date	August 7, 2025
Acquisition price (Note 2)	¥970 million
Location (lot number)	1-51-19, Kyojima, Sumida-ku, Tokyo
Purpose of use	Co-housing
Construction date	September 10, 2021
Structure	Reinforced concrete with flat roof, 6 floors above ground
Total floor space	915.23 m2
Total rentable space	852.24 m2

(Note 1) The name of this building is "Harmony Residence Tokyo Tree Kyojima" as of the date of this document; however, the name will be changed to "HF HIKIFUNE RESIDENCE EAST" on March 1, 2026. Therefore, the name after the said change is stated above.

(Note 2) "Acquisition price" is the price described in the real estate trust beneficiary right purchase agreement (consumption tax excluded), and does not include acquisition costs or the amounts of settlement for fixed property tax, city planning tax, etc.

Re-117 HF OMORI RESIDENCE (Note 1)

Type of specified asset (Note 2)	Real estate and land leasing rights
Agreement date	July 8, 2025
Acquisition date	August 8, 2025
Acquisition price (Note 3)	¥1,300 million
Location (lot number)	2-4-12, Omorikita, Ota-ku, Tokyo
Purpose of use	Co-housing
Construction date	February 15, 2024
Structure	Reinforced concrete with flat roof, 14 floors above ground
Total floor space	1,208.57 m2
Total rentable space	1,054.90 m2

(Note 1) The name of this building is "Season Flats Omorikita" as of the date of this document; however, the name will be changed to "HF OMORI RESIDENCE" on March 1, 2026. Therefore, the name after the said change is stated above.

(Note 2) The acquired asset is a building with land leasing rights (leasing rights for the building and land). Land leasing right is general leasing right.

(Note 3) "Acquisition price" is the price described in the real estate trust beneficiary right purchase agreement (consumption tax excluded), and does not include acquisition costs or the amounts of settlement for fixed property tax, city planning tax, etc.

Of-62 LUCID SQUARE SEMBA

Type of specified asset	Real estate trust beneficiary right
Agreement date	August 8, 2025
Scheduled acquisition date	August 29, 2025
Scheduled acquisition price (Note)	¥4,720 million
Location (lot number)	1-9-26, Kyutaromachi, Chuo-ku, Osaka City, Osaka
Purpose of use	Office and garage
Construction date	September 29, 1992
Structure	Steel-framed reinforced concrete with flat roof, 1 floor below ground and 10 floors above ground
Total floor space	6,329.59 m2
Total rentable space	4,451.54 m2

(Note) "Scheduled acquisition price" is the price described in the real estate trust beneficiary right purchase agreement (consumption tax excluded), and does not include acquisition costs or the amounts of settlement for fixed property tax, city planning tax, etc.

Disposition of Assets

Based on the basic policies of asset management, etc., set out in the Article of Incorporation, and pursuant to the real estate trust beneficiary right transfer agreement concluded on April 3, 2025 and April 10, 2025, the REIT transferred the real estate trust beneficiary rights as follows on June 30, 2025 and June 6, 2025, respectively.

Of-07 HF HAMAMATSUCHO BUILDING

Type of specified asset	Real estate trust beneficiary right
Location (lot number)	2-12-9 Shiba Daimon, Minato-ku, Tokyo
Transfer price (Note 1)	¥2,500 million
Book value (Note 2)	¥1,552 million
Agreement date	April 3, 2025
Disposition date	June 30, 2025
Transferee	Not disclosed (Note 3)

(Note 1) "Transfer price" is the price described in the real estate trust beneficiary right 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" represents the estimated carrying amount of real estate trust beneficiary right as of the date of the transfer. (Note 3) Not disclosed as consent has not been obtained from the transferee.

Re-63 HF HIGASHI-SHINJUKU RESIDENCE

Type of specified asset	Real estate trust beneficiary right
Location (lot number)	2-2-8, Okubo, Shinjuku-ku, Tokyo
Transfer price (Note 1)	¥2,550 million
Book value (Note 2)	¥1,210 million
Agreement date	April 10, 2025
Disposition date	June 6, 2025
Transferee	Not disclosed (Note 3)

Borrowing of Funds

The REIT borrowed funds as described below to partly fund for acquisition of one real estate acquired on August 7, 2025 and one real estate acquired on August 8, 2025 (as described in B. Acquisition of Assets above) (total borrowing amount of ¥2,367 million).

Term loan-81Tranche A

Lender

Borrowing Amount

(Millions of Yen)

Borrowing Date

Maturity Date

Repayment Method

Usage of Fund

Collateral and Guarantee

Sumitomo Mitsui Banking Corporation

¥503

August 7,

2025

November 30,

2026 (Note)

Lump-sum repayment

To fund for acquisition of property and others

Unsecured/

non-guaranteed

Term loan-81Tranche B

Lender

Borrowing Amount

(Millions of Yen)

Borrowing Date

Maturity Date

Repayment Method

Usage of Fund

Collateral and Guarantee

Sumitomo Mitsui Banking Corporation

¥503

August 7,

2025

October 29,

2027 (Note)

Lump-sum repayment

To fund for acquisition of property and others

Unsecured/

non-guaranteed

Term loan-82-1

Lender

Borrowing Amount

(Millions of Yen)

Borrowing Date

Maturity Date

Repayment Method

Usage of Fund

Collateral and Guarantee

The Chiba Bank, Ltd.

¥680

August 8,

2025

May 31, 2032

(Note)

Lump-sum repayment

To fund for acquisition of property and others

Unsecured/

non-guaranteed

Term loan-82-2

Lender

Borrowing Amount

(Millions of Yen)

Borrowing Date

Maturity Date

Repayment Method

Usage of Fund

Collateral and Guarantee

The Norinchukin Bank

¥681

August 8,

2025

November 30,

2032 (Note)

Lump-sum repayment

To fund for acquisition of property and others

Unsecured/

non-guaranteed

(Note) In the event that the maturity date is not a business day, the repayment shall be made on the following business day. In the event that following business day is in the next month, the repayment shall be made on the business day immediately preceding the maturity date.

In addition, the REIT concluded loan agreements on August 27, 2025 as described below to partly fund for acquisition of one real estate trust beneficiary right to be acquired on August 29, 2025 (as described in B. Acquisition of Assets above) (total borrowing amount of ¥4,966 million).

Term loan-83-1 Tranche A

Lender

Borrowing Amount

(Millions of Yen)

Scheduled Borrowing Date

Maturity Date

Repayment Method

Usage of Fund

Collateral and Guarantee

MUFG Bank, Ltd.

¥1,000

August 29,

2025

November 30,

2029 (Note)

Lump-sum repayment

To fund for acquisition of property and others

Unsecured/

non-guaranteed

Term loan-83-1 Tranche B

Lender

Borrowing Amount

(Millions of Yen)

Scheduled Borrowing Date

Maturity Date

Repayment Method

Usage of Fund

Collateral and Guarantee

MUFG Bank, Ltd.

¥700

August 29,

2025

November 30,

2032 (Note)

Lump-sum repayment

To fund for acquisition of property and others

Unsecured/

non-guaranteed

Term loan-83-2

Lender

Borrowing Amount

(Millions of Yen)

Scheduled Borrowing Date

Maturity Date

Repayment Method

Usage of Fund

Collateral and Guarantee

Mizuho Bank, Ltd.

¥1,300

August 29,

2025

November 30,

2033 (Note)

Lump-sum repayment

To fund for acquisition of property and others

Unsecured/

non-guaranteed

Term loan-83-3

Lender

Borrowing Amount

(Millions of Yen)

Scheduled Borrowing Date

Maturity Date

Repayment Method

Usage of Fund

Collateral and Guarantee

Sumitomo Mitsui Trust Bank, Limited.

¥1,966

August 29,

2025

May 31, 2034

(Note)

Lump-sum repayment

To fund for acquisition of property and others

Unsecured/

non-guaranteed

Overview of the REIT

Overview of investment units

Fiscal period		43rd FP	44th FP	45th FP	46th FP	47th FP
Fiscal period		May 31, 2023	November 30, 2023	May 31, 2024	November30, 2024	May 31, 2025
Total number of authorized investment units		8,000,000	8,000,000	8,000,000	8,000,000	8,000,000
Total number of investment units issued and outstanding		1,113,733	1,149,933	1,149,933	1,194,933	1,194,933
Unitholders' capital	million yen	97,799	102,992	102,992	108,578	108,578
Number of unitholders		11,229	12,619	15,849	18,361	21,223

Matters concerning investment units

The following represents major unitholders as of May 31, 2025

Name	Units Owned (units)	Ownership Ratio (%) (Note)
Custody Bank of Japan, Ltd. (trust account)	315,901	26.43
Heiwa Real Estate Co., Ltd.	154,645	12.94
The Master Trust Bank of Japan, Ltd. (trust account)	150,124	12.56
The Nomura Trust and Banking Co., Ltd. (trust account)	47,707	3.99
STATE STREET BANK WEST CLIENT -TREATY 505234	18,069	1.51
SMBC Nikko Securities Inc.	14,721	1.23
THE NOMURA TRUST AND BANKING CO., LTD. AS THE TRUSTEE OF REPURCHASE AGREEMENT MOTHER FUND	12,364	1.03
THE NOMURA TRUST AND BANKING CO., LTD. AS THE TRUSTEE OF REPURCHASE AG FUND 2024-09 (LIMITED OT FINANC IN RESALE RSTRCT)	10,290	0.86
Shikoku Railway Company	10,249	0.85
STATE STREET BANK AND TRUST COMPANY 505103	10,203	0.85
Total	744,273	62.28

(Note) The ratio of number of investment units owned to number of investment units outstanding is rounded down to the third decimal place.

Matters relating to officers

The Executive Director, Supervisory Directors and Independent Auditor in the 47th fiscal period are shown below.

Role	Name	Major concurrent posts	Total remuneration for each role in the period (thousand yen)
Executive Director (Note 1)	Aya Motomura	Attorney at law, Inaba & Partners	2,502
Supervisory Director (Note 1)	Noriyuki Katayama	Attorney at law, City-Yuwa Partners	3,600
Supervisory Director (Note 1)	Hiroyuki Owada	Certified Public Accountant Certified Public Tax Accountant, Owada Certified Public Accountant Office	3,600
Independent Auditor (Note 2)	KPMG AZSA LLC	-	12,800 (Note 3)

(Note 1) No Executive Director or Supervisory Directors have any investment units of the REIT under their own name or anyone else's name. The Supervisory Directors may be officers at companies other than the companies stated above, but those companies, including the ones stated above, do not have a stake in the REIT.

(Note 2) The REIT may dismiss or may not reappoint the independent auditor if necessary in consideration of various circumstances.

(Note 3) There is no consideration paid to KPMG AZSA LLC. for services other than those prescribed in Paragraph 1, Article 2 of the Certified PublicAccountants Act. Moreover, there is no consideration paid to any other firm within the same network as that of the said audit corporation.

Matter of Liability Insurance Policy for Directors and Officers

The table below lists the directors liability insurance policies concluded by the investment corporation.

Scope of the insured

Overview of policy

Executive Director and Supervisory Director

(Overview of insured events covered)

This insurance agreement covers compensation for damage and litigation expenses incurred by the insured as a result of claims made against them for action taken by them within the scope of their role in the company.

(Percentage of insurance expenses to be paid)

The entire amount is paid by the investment corporation. (Measures to maintain appropriateness of performance of duties)

Damage, etc. incurred by the insured as a result of action, etc. with recognition of a criminal act or a violation of laws or regulations are excluded from the compensation.

Asset Management Company, Asset Custodian and General Administrators

The asset management company, asset custody company and administrative service contractors at the end of 47th fiscal period are shown below.

Contract classification	Name
Asset Management Company	HEIWA REAL ESTATE Asset Management CO., LTD.
Asset Custodian	Mizuho Trust & Banking Co., Ltd.
General Services related to Accounting	Ernst & Young Tax Co.
Investors' Registry Administrator	Mizuho Trust & Banking Co., Ltd.
Special Account Administrator	Mizuho Trust & Banking Co., Ltd.
General Services related to Institutional Management	Mitsubishi UFJ Trust and Banking Corporation
General Services related to Investment Corporation Bonds	Resona Bank, Limited

Status on investment properties

Composition of assets of real estate investment company

Asset type	Use	Area	46thFiscal Period (As of November 30, 2024)		47thFiscal Period (As of May 31, 2025)
Asset type	Use	Area	Value of holding (Million yen) (Note 1)	Ratio to total Assets (%) (Note 2)	Value of holding (Million yen) (Note 1)	Ratio to total Assets (%) (Note 2)
Real estate (Note 3)	Office	Tokyo 23 Wards	7,502	3.0	7,512	2.9
		Metropolitan Area (Note 4)	5,085	2.0	5,103	1.9
		Other (Note 5)	5,152	2.1	5,211	2.0
	Residence	Tokyo 23 Wards	34,401	13.8	38,362	14.6
		Metropolitan Area (Note 4)	9,598	3.9	9,562	3.6
		Other (Note 5)	9,293	3.7	9,262	3.5
Subtotal			71,034	28.5	75,015	28.6
Real estate in trust (Note 3)	Office	Tokyo 23 Wards	59,222	23.8	57,989	22.1
		Metropolitan Area (Note 4)	8,819	3.5	8,825	3.4
		Other (Note 5)	37,423	15.0	40,115	15.3
	Residence	Tokyo 23 Wards	37,453	15.0	43,051	16.4
		Metropolitan Area (Note 4)	2,489	1.0	2,480	0.9
		Other (Note 5)	14,897	6.0	14,392	5.5
Subtotal			160,306	64.3	166,854	63.6
Real estate, etc., subtotal			231,341	92.8	241,870	92.2
Deposits and other assets			17,849	7.2	20,534	7.8
Total assets			249,190	100.0	262,404	100.0

(Note 1) "Value of holding" is based on the balance sheet amount (carrying amount after depreciation and impairment accounting in the case of real estate and real estate in trust) as of the end of the period.

(Note 2) "Assets ratio" is the ratio of total amount of assets held by type to total assets, rounded to one decimal place.

(Note 3) The land leasehold right, etc. owned in conjunction with a building, etc. is stated in the sections of "real estate" and "real estate in trust" by aggregating it with the building, etc. "Real estate" does not include construction in progress.

(Note 4) "Metropolitan Area" refers to Tokyo (other than Tokyo 23 Wards) and Kanagawa, Saitama and Chiba prefectures. (Note 5) "Other" refers to investment areas other than Tokyo 23 Wards and Metropolitan Area.

Major owned assets

The table below shows data about major assets owned by the REIT at the end of the 47th fiscal period (top ten properties in terms of book value at the end of the fiscal period).

Property name		Book value (million yen)	Rentable area (m2) (Note 1)	Rental area (m2) (Note 2)	Occupancy rate (%) (Note 3)	Ratio of total rent revenue-real estate (%) (Note 4)	Main use
Of-50	Shinsaibashi FRONT Building	7,448	4,251.67	4,251.67	100.00	2.3	Office
Re-43	HF KOMAZAWA-KOEN RESIDENCE TOWER	6,241	8,141.02	7,821.30	96.07	2.6	Residence
Re-110	HF MEGURO GYONINZAKA RESIDENCE	5,596	3,177.19	2,316.57	72.91	0.4	Residence
Re-25	HF GINZA RESIDENCE EAST	5,396	5,459.49	5,259.96	96.35	1.7	Residence
Of-47	OSAKI CN BUILDING	5,235	3,237.86	3,237.86	100.00	1.4	Office
Of-58	HF ESAKA EKIMAE BUILDING	5,208	7,510.30	7,510.30	100.00	1.8	Office
Of-25	KAYABACHO HEIWA BUILDING	4,933	4,156.53	4,156.53	100.00	2.6	Office
Of-55	Kitahama 1-Chome Heiwa Building	4,477	3,619.05	3,405.79	94.11	1.4	Office
Of-30	HF SAKURADORI BUILDING	4,217	9,934.77	9,934.77	100.00	4.1	Office
Of-57	HF YOKOHAMA YAMASHITA BUILDING	4,055	4,446.51	3,646.07	82.00	1.1	Office
Total		52,811	53,934.39	51,540.82	95.56	19.5

(Note 1) Rentable area is the area of the space that can be rented for office, retail or residential use (excluding common use space). (Note 2) Rental area is based on the rental agreement.

(Note 3) Occupancy rate is the ratio of rental area to rentable area at the end of the period.

(Note 4) Ratio of total rent revenue-real estate is the ratio of rental revenue from each property to rental revenue from the entire portfolio.

Summary of portfolio properties

The table below is a statement of real estate owned by the REIT at the end of the 47th fiscal period.

Property name		Address (Note 1)	Form of asset	Valuation at end of period (Note 2) (million yen)	Book value (Note 3) (million yen)
Of-05	SUITENGU HEIWA BUILDING	1-16-8 Nihonbashi Kakigara-cho, Chuo-ku, Tokyo	Trust beneficial interest	1,907	1,373
Of-06	HF MONZENNAKACHO BUILDING	2-1-9 Tomioka, Koto-ku, Tokyo	Trust beneficial interest	3,190	2,261
Of-07	HF HAMAMATSUCHO BUILDING (note 4)	2-12-9 Shiba Daimon, Minato-ku, Tokyo	Trust beneficial interest	2,500	1,555
Of-08	HF TAMEIKE BUILDING	2-12-10 Akasaka, Minato-ku, Tokyo	Trust beneficial interest	3,470	2,845
Of-11	HF NIHONBASHI ODENMACHO BUILDING	2-7 Nihonbashi Odenma-cho, Chuo-ku, Tokyo	Trust beneficial interest	2,700	2,137
Of-12	HF HATCHOBORI BUILDING	3-12-8 Hatchobori, Chuo-ku, Tokyo	Real estate	2,830	2,984
Of-17	HATCHOBORI MF BUILDING	1-2-9 Irifune, Chuo-ku, Tokyo	Real estate	1,170	1,080
Of-18	M2 HARAJUKU	6-27-8 Jingumae, Shibuya-ku, Tokyo	Trust beneficial interest	5,077	3,340
Of-20	FUNABASHI FACE BUILDING	1-3-1 Hon-cho, Funabashi City, Chiba	Real estate	3,560	3,446
Of-21	ADESSO NISHIAZABU	1-7-2 Nishi Azabu, Minato-ku, Tokyo	Real estate	578	587
Of-23	HF IKEBUKURO BUILDING	2-29-12 Minami Ikebukuro, Toshima-ku, Tokyo	Real estate	1,530	1,278
Of-24	HF YUSHIMA BUILDING	3-37-4 Yushima, Bunkyo-ku, Tokyo	Real estate	1,770	1,581
Of-25	KAYABACHO HEIWA BUILDING	3-1-2 Nihonbashi Kayaba-cho, Chuo-ku, Tokyo	Trust beneficial interest	7,730	4,933
Of-27	KOBE KYUKYORYUCHI HEIWA BUILDING	49 Harima-cho ,Chuo-ku, Kobe City, Hyogo	Trust beneficial interest	3,860	2,393
Of-29	SAKAE MINAMI HEIWA BUILDING	3-19-8 Sakae ,Naka-ku, Nagoya City, Aichi	Trust beneficial interest	2,420	1,420
Of-30	HF SAKURADORI BUILDING	3-23-20 Marunouchi,Naka-ku, Nagoya City, Aichi	Trust beneficial interest	7,090	4,217
Of-32	HF SENDAI HONCHO BUILDING	1-11-1 Honcho,Aoba-ku, Sendai-shi, Miyagi	Trust beneficial interest	3,550	2,414
Of-33	HF UENO BUILDING	5-6-10 Ueno,Taito-ku, Tokyo	Trust beneficial interest	4,100	3,367
Of-35	HF KUDAN MINAMI BUILDING	3-9-14 Kudan-Minami,Chiyoda-ku, Tokyo	Trust beneficial interest	3,290	2,851
Of-36	HF KANDA OGAWAMACHI BUILDING	3-3-5 Kanda ogawamachiChiyoda-ku, Tokyo	Trust beneficial interest	4,200	3,185
Of-37	NISSO 5 BUILDING	2-10-39 Kita-SaiwaiNishi-ku, Yokohama City, Kanagawa	Trust beneficial interest	4,150	3,174
Of-38	ACROSS SHINKAWA BUILDING	1-8-8, 1-8-15 Shinkawa, Chuo-ku, Tokyo	Trust beneficial interest	4,300	4,001
Of-39	SENJU MILDIX Ⅱ	3-98 Senju,Adachi-ku, Tokyo	Trust beneficial interest	1,900	1,590
Of-40	ARK Mori Building	1-12-32 Akasaka,Minato-ku, Tokyo	Trust beneficial interest	3,480	3,262
Of-41	Nihonbashi Horidomecho First	1-2-10 Nihonbashi Horidomecho, Chuo-ku, Tokyo	Trust beneficial interest	2,350	2,142
Of-42	SOUTHERN SKY TOWER HACHIOJI	4-7-1 Koyasumachi,Hachioji City, Tokyo	Trust beneficial interest	1,900	1,594
Of-43	HAMACHO HEIWA BUILDING	2-17-8 Nihonbashi-hamacho, Chuo-ku, Tokyo	Trust beneficial interest	3,180	3,164

Property name		Address (Note 1)	Form of asset	Valuation at end of period (Note 2) (million yen)	Book value (Note 3) (million yen)
Of-44	KINSHICHO SQUARE BUILDING	3-10-8 Koutoubashi, Sumida-ku, Tokyo	Trust beneficial interest	2,770	2,946
Of-45	HF NIHONBASHI KABUTOCHO BUILDING	21-7 Nihonbashi Kayaba-cho, Chuo-ku, Tokyo	Trust beneficial interest	3,910	3,749
Of-46	HF SENDAI ICHIBANCHO BUILDING	1-8-1 Ichibancho, Aoba-ku, Sendai City, Miyagi	Real estate	2,700	2,695
Of-47	OSAKI CN BUILDING	5-10-10 Osaki, Shinagawa-ku, Tokyo	Trust beneficial interest	5,490	5,235
Of-48	Faret East Building	2-34-7 Akebonocho, Tachikawa City, Tokyo	Real estate	1,880	1,657
Of-49	HF ESAKA BUILDING	1-13-48 Esakacho, Suita City, Osaka	Trust beneficial interest	2,670	2,575
Of-50	Shinsaibashi FRONT Building	3-5-11, Minamisenba, Chuo-ku, Osaka-city, Osaka	Trust beneficial interest	8,390	7,448
Of-51	SAKAE CENTER BUILDING	3-13-20 Sakae, Naka-ku, Nagoya City, Aichi	Trust beneficial interest	4,290	4,010
Of-52	IWAMOTOCHO TWIN BUILDING	2-5-12 Iwamotocho, Chiyoda-ku, Tokyo	Trust beneficial interest	3,980	3,616
Of-53	IWAMOTOCHO TWIN SAKAE BUILDING	2-5-12 Iwamotocho, Chiyoda-ku, Tokyo	Trust beneficial interest	550	426
Of-54	HF NAGOYA NISHIKI BUILDING	1-7-34, Nishiki, Naka-ku, Nagoya-city, Aichi	Real estate	2,480	2,515
Of-55	Kitahama 1-Chome Heiwa Building	1-1-14, Kitahama, Chuo-ku, Osaka City, Osaka	Trust beneficial interest	4,790	4,477
Of-56	Heiwa Real Estate Kitahama Building	2-1-5 Kitahama, Chuo-ku, Osaka City, Osaka	Trust beneficial interest	1,860	1,646
Of-57	HF YOKOHAMA YAMASHITA BUILDING	89-6, Yamashitacho, Naka-ku, Yokohama City, Kanagawa	Trust beneficial interest	4,040	4,055
Of-58	HF ESAKA EKIMAE BUILDING	1-13-33, Esakacho, Suita-city, Osaka	Trust beneficial interest	5,830	5,208
Of-59	HF KITA NIJO BUILDING	1-2-9, 1-2-10, Kitanijohigashi, Chuo-ku, Sapporo City, Hokkaido	Trust beneficial interest	1,640	1,573
Of-60	Park East Sapporo	1-1-3, Minami Ichijo Higashi, Chuo-ku, Sapporo City, Hokkaido	Trust beneficial interest	3,456	2,728
Office subtotal				148,508	124,757
Re-05	HF MEGURO RESIDENCE	2-15-10 Shimomeguro, Meguro-ku, Tokyo	Trust beneficial interest	859	604
Re-09	HF KASAI RESIDENCE	7-10-6 Higashi Kasai, Edogawa-ku, Tokyo	Trust beneficial interest	1,061	563
Re-11	HF WAKABAYASHI-KOEN RESIDENCE	4-33-14 Wakabayashi, Setagaya-ku, Tokyo	Trust beneficial interest	6,047	3,105
Re-12	HF HIMONYA RESIDENCE	5-5-15 Himonya, Meguro-ku, Tokyo	Trust beneficial interest	2,108	1,378
Re-14	HF MINAMIAZABU RESIDENCE	2-13-20 Minami Azabu, Minato-ku, Tokyo	Trust beneficial interest	1,675	1,280
Re-16	HF GAKUGEIDAIGAKU RESIDENCE	6-18-27 Shimomeguro, Meguro-ku, Tokyo	Trust beneficial interest	1,290	870
Re-17	HF HIGASHIKANDA RESIDENCE	3-1-9 Higashi Kanda, Chiyoda-ku, Tokyo	Trust beneficial interest	1,720	837
Re-18	HF HIGASHINIHONBASHI RESIDENCE	3-6-8 Nihonbashi, Chuo-ku, Tokyo	Trust beneficial interest	2,020	922
Re-19	HF NERIMA RESIDENCE	3-1-12 Nerima, Nerima-ku, Tokyo	Trust beneficial interest	1,010	545

Property name		Address (Note 1)	Form of asset	Valuation at end of period (Note 2) (million yen)	Book value (Note 3) (million yen)
Re-20	HF SHIROKANETAKANAWA RESIDENCE	1-2-6 Takanawa, Minato-ku, Tokyo	Real estate	6,900	3,542
Re-21	HF MEIDAIMAE RESIDENCE	1-27-7 Hanegi, Setagaya-ku, Tokyo	Real estate	1,200	979
Re-22	HF NIHONBASHI RESIDENCE	9-5 Nihonbashi Koami-cho, Chuo-ku, Tokyo	Trust beneficial interest	1,330	1,048
Re-23	HF KAMISHAKUJII RESIDENCE	3-34-12 Kamishakujii, Nerima-ku, Tokyo	Real estate	1,150	808
Re-24	HF KINSHICHO RESIDENCE	2-10-2 Kotobashi, Sumida-ku, Tokyo	Real estate	1,440	1,042
Re-25	HF GINZA RESIDENCE EAST	7-7-8 Tsukiji, Chuo-Ku, Tokyo	Real estate	6,920	5,396
Re-26	HF SHIN-YOKOHAMA RESIDENCE	2-7-6 Shin-Yokohama, Kohoku-ku, Yokohama City, Kanagawa	Real estate	3,190	2,820
Re-30	HF MAGOME RESIDENCE	1-38-8 Higashi Magome, Ota-ku, Tokyo	Real estate	1,730	1,454
Re-31	HF GAKUGEIDAIGAKU RESIDENCE Ⅱ	1-40-7 Naka-cho, Meguro-ku, Tokyo	Trust beneficial interest	1,490	1,559
Re-33	HF KAMEIDO RESIDENCE	2-36-13 Kameido, Koto-ku, Tokyo	Real estate	1,380	942
Re-34	HF TANASHI RESIDENCE	6-5-23 Tanashi, Nishitokyo City, Tokyo	Real estate	917	813
Re-38	La Residence de Shirokanedai	5-18-8 Shirokanedai, Minato-ku, Tokyo	Trust beneficial interest	1,190	724
Re-39	HF GINZA RESIDENCE EAST Ⅱ	1-6-10 Shintomi, Chuo-ku, Tokyo	Trust beneficial interest	2,010	1,299
Re-40	HF HATCHOBORI RESIDENCE Ⅱ	2-7-11 Shinkawa, Chuo-ku, Tokyo	Trust beneficial interest	2,410	1,680
Re-42	HF GINZA RESIDENCE	1-20-6 Ginza, Chuo-ku, Tokyo	Trust beneficial interest	1,370	788
Re-43	HF KOMAZAWA-KOEN RESIDENCE TOWER	2-7-1 Komazawa, Setagaya-ku, Tokyo	Trust beneficial interest	8,510	6,241
Re-47	HF MARUNOUCHI RESIDENCE	2-11-21 Habashita, Nishi-ku, Nagoya City, Aichi	Trust beneficial interest	756	476
Re-48	HF HIRAO RESIDENCE	2-4-32 Nanokawa, Minami-ku, Fukuoka City, Fukuoka	Trust beneficial interest	2,320	1,451
Re-49	HF KAWARAMACHI NIJO RESIDENCE	84 Enoki-cho, Teramachi Dori, Nijo Sagaru, Nakagyo-ku, Kyoto City, Kyoto	Trust beneficial interest	653	462
Re-53	HF SHIJO KAWARAMACHI RESIDENCE	560 (3 lots) Nakano-cho, Teramachi Dori Ayanokoji Sagaru, Shimogyo-ku, Kyoto City, Kyoto	Trust beneficial interest	2,720	1,626
Re-54	La Residence de Sendagi	2-23-3 Sendagi, Bunkyo-ku, Tokyo	Trust beneficial interest	1,030	744
Re-55	HF SENDAGI RESIDENCE	2-6-6 Sendagi, Bunkyo-ku, Tokyo	Trust beneficial interest	1,170	776
Re-56	HF KOMAZAWA-KOEN RESIDENCE	4-11-2 Komazawa, Setagaya-ku, Tokyo	Trust beneficial interest	789	579
Re-57	HF MUSASHIKOYAMA RESIDENCE	4-8-6 Koyama, Shinagawa-ku, Tokyo	Trust beneficial interest	1,270	763
Re-58	HF KOKUBUNJI RESIDENCE	3-18-7 Minami-cho, Kokubunji City, Tokyo	Trust beneficial interest	1,210	788
Re-59	HF HISAYAODORI RESIDENCE	1-12-1 Izumi, Higashi-ku, Nagoya City, Aichi	Trust beneficial interest	1,310	957
Re-60	HF KARASUMA KURAMAGUCHI RESIDENCE	411-1 Kami Goryomae-cho, Kami Goryomae Dori, Karasuma Higashi Iru, Kamigyo-ku, Kyoto City, Kyoto	Trust beneficial interest	774	501
Re-61	HF NISHI-SHINJUKU RESIDENCE WEST	8-8-20 Nishi Shinjuku, Shinjuku-ku, Tokyo	Trust beneficial interest	3,010	1,887

Property name		Address (Note 1)	Form of asset	Valuation at end of period (Note 2) (million yen)	Book value (Note 3) (million yen)
Re-62	HF NISHI-SHINJUKU RESIDENCE EAST	8-7-11 Nishi Shinjuku, Shinjuku-ku, Tokyo	Trust beneficial interest	1,760	1,104
Re-63	HF HIGASHI-SHINJUKU RESIDENCE (note 4)	2-2-8 Okubo, Shinjuku-ku, Tokyo	Trust beneficial interest	2,550	1,212
Re-65	HF KITA-YOBANCHO RESIDENCE	6-62 Kimachi Dori, Aoba-ku, Sendai City, Miyagi	Trust beneficial interest	1,200	726
Re-66	HF ATAGOBASHI RESIDENCE	260-1 Tsuchitoi, Wakabayashi-ku, Sendai City, Miyagi	Trust beneficial interest	956	596
Re-68	HF ASAKUSABASHI RESIDENCE	2-19-7 Yanagibashi, Taito-ku, Tokyo	Trust beneficial interest	1,150	722
Re-69	HF ICHIBANCHO RESIDENCE	2-1-7 Ichibancho, Aoba-ku, Sendai City, Miyagi	Trust beneficial interest	1,250	716
Re-70	HF HIGASHI-NAKANO RESIDENCE	2-19-4 Higashi Nakano, Nakano-ku, Tokyo	Trust beneficial interest	1,260	852
Re-72	HF WASEDA RESIDENCE	23-9 Benten-cho, Shinjuku-ku, Tokyo	Trust beneficial interest	2,890	1,968
Re-73	HF WASEDA RESIDENCE Ⅱ	23-10 Benten-cho, Shinjuku-ku, Tokyo	Trust beneficial interest	1,150	837
Re-74	HF WAKAMATSU-KAWADA RESIDENCE	9-4 Yochomachi, Shinjuku-ku, Tokyo	Trust beneficial interest	1,820	1,143
Re-75	HF SENDAI RESIDENCE EAST	306-11 Mototera-Koji, Miyagino-ku, Sendai City, Miyagi	Trust beneficial interest	2,040	1,419
Re-76	HF NISHI-KOEN RESIDENCE	7-18 Tachimachi, Aoba-ku, Sendai City, Miyagi	Trust beneficial interest	1,540	1,216
Re-77	HF BANSUI-DORI RESIDENCE	1-3-16 Kokubun-cho, Aoba-ku, Sendai City, Miyagi	Trust beneficial interest	992	737
Re-78	HF KANNAI RESIDENCE	74 Yoshidamachi, Naka-ku, Yokohama City, Kanagawa	Trust beneficial interest	2,420	1,691
Re-79	HF MEIEKI-KITA RESIDENCE	(W) 2-19-22 Kikui, € 2-19-27 Kikui, Nishi-ku, Nagoya City, Aichi	Trust beneficial interest	2,410	2,089
Re-80	HF HIGASHI-SAPPORO RESIDENCE	5-3-2-35 Higashi-Sapporo, Shiroishi-ku, Sapporo City, Hokkaido	Trust beneficial interest	1,990	1,413
Re-81	HF HAKATA-HIGASHI RESIDENCE	3-27-7 Higashi-Hie Hakata-ku, Fukuoka City, Fukuoka	Real estate	1,030	889
Re-82	HF SENDAI ITSUTSUBASHI RESIDENCE	2-4-19 Itsutsubashi Aoba-ku, Sendai City, Miyagi	Real estate	957	869
Re-83	HF TABATA RESIDENCE	2-24-1 Tabata Shinmachi, Kita-ku, Tokyo	Real estate	1,510	1,030
Re-84	HF RYOGOKU RESIDENCE	1-9-3 Midori, Sumida-ku, Tokyo	Real estate	1,730	1,330
Re-85	HF HACHIOJI RESIDENCE	8-7 Nakamachi, Hachioji City, Tokyo	Real estate	1,300	1,204
Re-86	HF MITA RESIDENCE Ⅱ	5-2-2 Shiba, Minato-ku, Tokyo	Real estate	1,590	1,252
Re-87	HF MONZEN-NAKACHO RESIDENCE	1-16-4 Botan, Koto-ku, Tokyo	Real estate	1,330	942
Re-88	HF MINAMI-SUNAMACHI RESIDENCE	7-4-9 Minamisuna, Koto-ku, Tokyo	Real estate	1,120	903
Re-89	HF SENDAI NAGAMACHI RESIDENCE	3-4-20 Nagamachi Taihaku-ku, Sendai City, Miyagi	Real estate	1,140	1,042
Re-90	HF SHOKOJI AKABANE RESIDENCE	37-4 Iwabuchi-cho, Kita-ku, Tokyo	Real estate	1,300	1,150
Re-91	HF SENDAI HONCHO RESIDENCE	2-9-26 Honcho Aoba-ku, Sendai City, Miyagi	Real estate	1,230	1,072
Re-92	HF OHORI RESIDENCE BAYSIDE	3-17-10 Nagahama Chuo-ku, Fukuoka City,Fukuoka	Real estate	1,320	1,173

Property name		Address (Note 1)	Form of asset	Valuation at end of period (Note 2) (million yen)	Book value (Note 3) (million yen)
Re-93	HF HAKATA-HIGASHI RESIDENCEⅡ	1-9-27 Yutaka, Hakata-ku, Fukuoka City, Fukuoka	Real estate	1,510	1,300
Re-94	HF FUKUOKA RESIDENCE EAST	14-22 Futamataseshinmachi, Higashi-ku, Fukuoka City, Fukuoka	Real estate	1,530	1,318
Re-95	HF SHOKOJI AKABANE RESIDENCE Ⅱ	24-16 Iwabuchi-cho, Kita-ku, Tokyo	Real estate	1,980	1,733
Re-96	HF YAHIRO RESIDENCE	4-50-1 Yahiro, Sumida-ku, Tokyo	Real estate	1,500	1,251
Re-97	HF SETAGAYAKAMIMACHI RESIDENCE	1-45-9 Setagaya, Setagaya-ku, Tokyo	Real estate	835	718
Re-98	HF SOKA RESIDENCE	4-2-21, Soka, Soka City, Saitama	Real estate	1,480	1,360
Re-99	HF UENO IRIYA RESIDENCE	1-12-1, Iriya, Taito-ku, Tokyo	Real estate	1,080	947
Re-100	HF TSUJIDO RESIDENCE	2-2-26 Tsujidokandai, Fujisawa City, Kanagawa	Real estate	2,130	2,014
Re-101	HF KAWAGUCHIEKIMAE RESIDENCE	3-2-24 Sakaecho, Kawaguchi City, Saitama	Real estate	1,600	1,348
Re-102	HF HIGASHIOGU RESIDENCE	8-32-5 Higashiogu, Arakawa-ku, Tokyo	Real estate	1,500	1,242
Re-103	HF IMAIKE-MINAMI RESIDENCE	(East bldg.) 9-10, Imaikeminami, Chikusa-ku, Nagoya City, Aichi (West bldg.) 9-20, Imaikeminami, Chikusa-ku, Nagoya City, Aichi	Real estate	925	933
Re-104	HF FUSHIMI RESIDENCE	1-25-23, Sakae, Naka-ku, Nagoya City, Aichi	Real estate	647	664
Re-105	HF NAKANO-SAKAUE RESIDENCE	1-29-17, Chuo, Nakano-ku, Tokyo	Real estate	1,320	1,096
Re-106	HF UENO RESIDENCE EAST	5-4-15, Higashiueno, Taito-ku, Tokyo	Real estate	2,900	2,617
Re-107	HF OMORIMACHI RESIDENCE	1-13-8, Omorinaka, Ota-ku, Tokyo	Real estate	1,340	1,273
Re-108	HF KITASENJU RESIDENCE	1-1-7, Senju, Adachi-ku, Tokyo	Real estate	3,080	2,700
Re-109	HF HIKIFUNE RESIDENCE	3-20-15, Kyojima, Sumida-ku, Tokyo	Trust beneficial interest	1,670	1,413
Re-110	HF MEGURO GYONINZAKA RESIDENCE	1-4-4, Shimomeguro, Meguro-ku, Tokyo	Trust beneficial interest	6,320	5,596
Re-111	HF NISHI-SUGAMO RESIDENCE	3-37-6, Takinogawa, Kita-ku, Tokyo	Real estate	1,270	1,079
Re-112	HF NISHI-SUGAMO RESIDENCE Ⅱ	3-37-4, Takinogawa, Kita-ku, Tokyo	Real estate	1,080	913
Re-113	HF TOBU-NERIMA RESIDENCE	1-32-8, Tokumaru, Itabashi-ku, Tokyo	Real estate	1,240	1,094
Re-114	HF RYOGOKU RESIDENCE EAST	3-18-7, Kamezawa, Sumida-ku, Tokyo	Real estate	1,070	914
Residence subtotal				158,881	117,112
Total				307,389	241,870

(Note 1) Address is based on residence indication or an address stated in the registry.

(Note 2) Valuation at end of period is an appraisal value determined by a real estate appraiser based on the asset valuation method and standard set out in the bylaws and under the rules of The Investment Trusts Association, Japan. Regarding Of-07 HF HAMAMATSUCHO BUILDING, the transfer price stated in the agreement on the sale and purchase dated April 3, 2025 and Re-63 HF HIGASHI-SHINJUKU RESIDENCE, the transfer price stated in the agreement on the sale and purchase dated April 10, 2025 is indicated

(Note 3) Book value is the acquisition price (including expenses for acquisition and subsequent capital expenditures) as of May 31, 2025, after deducting the accumulated depreciation.

(Note 4) Of-07 HF HAMAMATSUCHO BUILDING was transferred on June 30, 2025 and Re-63 HF HIGASHI-SHINJUKU RESIDENCE was transferred on June 6, 2025.

The table below shows the status of rental of real estate etc. owned by the REIT.

Property name		46th Fiscal Period (For the six-month period ended November 30, 2024)				47th Fiscal Period (For the six-month period ended May 31, 2025)
Property name		Number of tenants (at end of period) (Note 1)	Occupancy rate (at end of period) (%) (Note 2)	Rent revenue-real estate (during period) (thousand yen) (Note 3)	Ratio of total rent revenue-real estate (%) (Note 4)	Number of tenants (at end of period) (Note 1)	Occupancy rate (at end of period) (%) (Note 2)	Rent revenue-real estate (during period) (thousand yen) (Note 3)	Ratio of total rent revenue-real estate (%) (Note 4)
Of-05	SUITENGU HEIWA BUILDING	6	100.00	62,969	0.8	6	100.00	61,834	0.8
Of-06	HF MONZENNAKA CHO BUILDING	7	100.00	90,858	1.1	6	100.00	99,825	1.2
Of-07	HF HAMAMATSUC HO BUILDING (Note 8)	9	100.00	49,411	0.6	9	100.00	55,692	0.7
Of-08	HF TAMEIKE BUILDING	8	100.00	89,562	1.1	8	100.00	88,438	1.1
Of-11	HF NIHONBASHI ODENMACHO BUILDING	8	100.00	69,806	0.9	8	100.00	71,074	0.9
Of-12	HF HATCHOBORI BUILDING	7	100.00	85,200	1.1	8	100.00	77,591	1.0
Of-17	HATCHOBORI MF BUILDING	9	100.00	34,788	0.4	9	100.00	35,282	0.4
Of-18	M2 HARAJUKU	5	100.00	88,787	1.1	5	100.00	91,390	1.1
Of-20	FUNABASHI FACE BUILDING	9	100.00	122,770	1.5	9	100.00	121,939	1.5
Of-21	ADESSO NISHIAZABU	4	100.00	15,162	0.2	4	100.00	15,353	0.2
Of-23	HF IKEBUKURO BUILDING	9	100.00	44,776	0.6	9	100.00	45,771	0.6
Of-24	HF YUSHIMA BUILDING	9	100.00	51,232	0.6	9	100.00	50,882	0.6
Of-25	KAYABACHO HEIWA BUILDING	1	100.00	211,006	2.6	1	100.00	210,576	2.6
Of-27	KOBE KYUKYORYUC HI HEIWA BUILDING	40	100.00	152,666	1.9	39	100.00	154,658	1.9
Of-29	SAKAE MINAMI HEIWA BUILDING	6	100.00	94,467	1.2	5	87.30	86,741	1.1
Of-30	HF SAKURADORI BUILDING	22	98.64	343,465	4.3	23	100.00	337,441	4.1
Of-31	HF NIHONBASHI HAMACHO BUILDING (Note 5)	-	-	2,282	0.0	-	-	-	-

Property name		46th Fiscal Period (For the six-month period ended November 30, 2024)				47th Fiscal Period (For the six-month period ended May 31, 2025)
Property name		Number of tenants (at end of period) (Note 1)	Occupancy rate (at end of period) (%) (Note 2)	Rent revenue-real estate (during period) (thousand yen) (Note 3)	Ratio of total rent revenue-real estate (%) (Note 4)	Number of tenants (at end of period) (Note 1)	Occupancy rate (at end of period) (%) (Note 2)	Rent revenue-real estate (during period) (thousand yen) (Note 3)	Ratio of total rent revenue-real estate (%) (Note 4)
Of-32	HF SENDAI HONCHO BUILDING	38	100.00	154,668	1.9	38	100.00	161,446	2.0
Of-33	HF UENO BUILDING	7	100.00	144,615	1.8	7	100.00	142,107	1.7
Of-34	KOJIMACHI HF BUILDING (Note 6)	8	100.00	72,120	0.9	-	-	44,586	0.5
Of-35	HF KUDAN MINAMI BUILDING	3	100.00	91,116	1.1	3	100.00	91,157	1.1
Of-36	HF KANDA OGAWAMACHI BUILDING	6	100.00	106,402	1.3	6	100.00	105,119	1.3
Of-37	NISSO 5 BUILDING	1	100.00	89,308	1.1	1	100.00	89,308	1.1
Of-38	ACROSS SHINKAWA BUILDING	12	97.82	136,929	1.7	13	100.00	137,384	1.7
Of-39	SENJU MILDIX Ⅱ	5	100.00	70,602	0.9	5	100.00	70,957	0.9
Of-40	ARK Mori Building	1	100.00	Undisclosed (Note 7)	Undisclosed (Note 7)	1	100.00	Undisclosed (Note 7)	Undisclosed (Note 7)
Of-41	Nihonbashi Horidomecho First	3	100.00	64,637	0.8	3	100.00	64,518	0.8
Of-42	SOUTHERN SKY TOWER HACHIOJI	3	100.00	72,405	0.9	3	100.00	72,391	0.9
Of-43	HAMACHO HEIWA BUILDING	10	100.00	88,317	1.1	10	100.00	89,865	1.1
Of-44	KINSHICHO SQUARE BUILDING	11	100.00	78,034	1.0	11	100.00	78,623	1.0
Of-45	HF NIHONBASHI KABUTOCHO BUILDING	8	100.00	113,250	1.4	8	100.00	113,109	1.4
Of-46	HF SENDAI ICHIBANCHO BUILDING	15	100.00	88,942	1.1	15	100.00	92,108	1.1
Of-47	OSAKI CN BUILDING	7	100.00	115,754	1.4	7	100.00	115,589	1.4
Of-48	Faret East Building	7	100.00	65,499	0.8	7	100.00	67,080	0.8
Of-49	HF ESAKA BUILDING	7	100.00	72,164	0.9	7	100.00	72,485	0.9
Of-50	Shinsaibashi FRONT Building	13	100.00	193,700	2.4	14	100.00	189,400	2.3

Property name		46th Fiscal Period (For the six-month period ended November 30, 2024)				47th Fiscal Period (For the six-month period ended May 31, 2025)
Property name		Number of tenants (at end of period) (Note 1)	Occupancy rate (at end of period) (%) (Note 2)	Rent revenue-real estate (during period) (thousand yen) (Note 3)	Ratio of total rent revenue-real estate (%) (Note 4)	Number of tenants (at end of period) (Note 1)	Occupancy rate (at end of period) (%) (Note 2)	Rent revenue-real estate (during period) (thousand yen) (Note 3)	Ratio of total rent revenue-real estate (%) (Note 4)
Of-51	SAKAE CENTER BUILDING	21	100.00	142,060	1.8	20	95.31	137,797	1.7
Of-52	IWAMOTOCHO TWIN BUILDING	9	100.00	82,291	1.0	8	62.77	77,982	1.0
Of-53	IWAMOTOCHO TWIN SAKAE BUILDING	9	100.00	15,391	0.2	9	100.00	15,306	0.2
Of-54	HF NAGOYA NISHIKI BUILDING	19	89.03	66,826	0.8	22	100.00	69,580	0.9
Of-55	Kitahama 1-Chome Heiwa Building (Note 5)	18	100.00	119,387	1.5	17	94.11	115,009	1.4
Of-56	Heiwa Real Estate Kitahama Building	15	100.00	51,815	0.6	15	100.00	50,353	0.6
Of-57	HF YOKOHAMA YAMASHITA BUILDING	13	82.00	84,092	1.0	13	82.00	89,082	1.1
Of-58	HF ESAKA EKIMAE BUILDING (Note 5)	11	100.00	124,578	1.5	11	100.00	143,833	1.8
Of-59	HF KITA NIJO BUILDING (Note 5)	40	97.78	45,587	0.6	39	97.46	49,032	0.6
Of-60	Park East Sapporo (Note 6)	-	-	-	-	32	98.78	27,054	0.3
Office subtotal		479	98.94	4,243,425	52.8	503	97.97	4,260,475	52.2
Re-03	HF ICHIKAWA RESIDENCE (Note 5)	-	-	11,532	0.1	-	-	-	-
Re-05	HF MEGURO RESIDENCE	20	95.07	20,545	0.3	21	100.00	20,974	0.3
Re-09	HF KASAI RESIDENCE	44	91.46	27,479	0.3	48	100.00	27,714	0.3
Re-11	HF WAKABAYASHI -KOEN RESIDENCE	88	91.56	124,051	1.5	88	90.68	129,164	1.6
Re-12	HF HIMONYA RESIDENCE	50	94.93	45,378	0.6	52	98.33	47,552	0.6
Re-14	HF MINAMIAZABU RESIDENCE	59	98.32	37,584	0.5	59	98.34	37,169	0.5
Re-16	HF GAKUGEIDAIG AKU RESIDENCE	27	100.00	29,653	0.4	27	100.00	29,777	0.4

Property name		46th Fiscal Period (For the six-month period ended November 30, 2024)				47th Fiscal Period (For the six-month period ended May 31, 2025)
Property name		Number of tenants (at end of period) (Note 1)	Occupancy rate (at end of period) (%) (Note 2)	Rent revenue-real estate (during period) (thousand yen) (Note 3)	Ratio of total rent revenue-real estate (%) (Note 4)	Number of tenants (at end of period) (Note 1)	Occupancy rate (at end of period) (%) (Note 2)	Rent revenue-real estate (during period) (thousand yen) (Note 3)	Ratio of total rent revenue-real estate (%) (Note 4)
Re-17	HF HIGASHIKAND A RESIDENCE	64	100.00	38,681	0.5	63	98.44	38,327	0.5
Re-18	HF HIGASHINIHON BASHI RESIDENCE	65	98.80	44,935	0.6	66	100.00	45,501	0.6
Re-19	HF NERIMA RESIDENCE	48	94.24	25,802	0.3	51	100.00	26,922	0.3
Re-20	HF SHIROKANETA KANAWA RESIDENCE	62	95.11	133,092	1.7	64	96.72	132,879	1.6
Re-21	HF MEIDAIMAE RESIDENCE	52	97.90	30,031	0.4	52	98.14	29,359	0.4
Re-22	HF NIHONBASHI RESIDENCE	48	100.00	36,759	0.5	47	97.04	36,616	0.4
Re-23	HF KAMISHAKUJII RESIDENCE	62	96.52	33,504	0.4	63	98.58	33,389	0.4
Re-24	HF KINSHICHO RESIDENCE	56	100.00	33,478	0.4	56	100.00	34,646	0.4
Re-25	HF GINZA RESIDENCE EAST	97	93.40	132,440	1.6	101	96.35	141,267	1.7
Re-26	HF SHIN-YOKOHAMA RESIDENCE	112	99.25	87,655	1.1	110	97.67	89,496	1.1
Re-30	HF MAGOME RESIDENCE	28	91.74	45,058	0.6	30	100.00	49,998	0.6
Re-31	HF GAKUGEIDAIG AKU RESIDENCE Ⅱ	20	91.06	38,285	0.5	21	96.24	39,170	0.5
Re-33	HF KAMEIDO RESIDENCE	61	100.00	33,425	0.4	60	98.37	35,015	0.4
Re-34	HF TANASHI RESIDENCE	34	97.14	33,181	0.4	33	94.14	32,690	0.4
Re-38	La Residence de Shirokanedai	26	93.01	25,118	0.3	27	96.51	28,187	0.3
Re-39	HF GINZA RESIDENCE EAST Ⅱ	72	93.85	53,166	0.7	71	96.13	53,084	0.7
Re-40	HF HATCHOBORI RESIDENCE Ⅱ	81	95.95	62,585	0.8	77	90.77	61,399	0.8
Re-42	HF GINZA RESIDENCE	45	100.00	33,195	0.4	44	97.85	33,899	0.4

Property name		46th Fiscal Period (For the six-month period ended November 30, 2024)				47th Fiscal Period (For the six-month period ended May 31, 2025)
Property name		Number of tenants (at end of period) (Note 1)	Occupancy rate (at end of period) (%) (Note 2)	Rent revenue-real estate (during period) (thousand yen) (Note 3)	Ratio of total rent revenue-real estate (%) (Note 4)	Number of tenants (at end of period) (Note 1)	Occupancy rate (at end of period) (%) (Note 2)	Rent revenue-real estate (during period) (thousand yen) (Note 3)	Ratio of total rent revenue-real estate (%) (Note 4)
Re-43	HF KOMAZAWA-KOEN RESIDENCE TOWER	275	95.28	213,476	2.7	278	96.07	214,869	2.6
Re-47	HF MARUNOUCHI RESIDENCE	68	94.43	25,139	0.3	72	100.00	25,335	0.3
Re-48	HF HIRAO RESIDENCE	197	98.53	84,525	1.1	196	98.23	85,056	1.0
Re-49	HF KAWARAMACH I NIJO RESIDENCE	49	97.77	20,067	0.2	46	92.28	20,160	0.2
Re-53	HF SHIJO KAWARAMACH I RESIDENCE	129	98.75	75,941	0.9	129	97.61	77,632	1.0
Re-54	La Residence de Sendagi	50	100.00	29,005	0.4	49	98.07	28,687	0.4
Re-55	HF SENDAGI RESIDENCE	47	93.97	32,133	0.4	48	97.16	32,741	0.4
Re-56	HF KOMAZAWA-KOEN RESIDENCE	36	100.00	21,235	0.3	36	100.00	21,800	0.3
Re-57	HF MUSASHIKOYA MA RESIDENCE	50	96.51	32,358	0.4	49	94.60	32,855	0.4
Re-58	HF KOKUBUNJI RESIDENCE	44	94.51	31,340	0.4	46	98.02	32,365	0.4
Re-59	HF HISAYAODORI RESIDENCE	97	99.01	41,851	0.5	94	96.05	41,846	0.5
Re-60	HF KARASUMA KURAMAGUCH I RESIDENCE	39	95.95	22,145	0.3	39	94.98	22,712	0.3
Re-61	HF NISHI-SHINJUKU RESIDENCE WEST	70	90.58	70,899	0.9	77	100.00	72,952	0.9
Re-62	HF NISHI-SHINJUKU RESIDENCE EAST	47	98.00	43,930	0.5	48	100.00	44,554	0.5
Re-63	HF HIGASHI-SHINJUKU RESIDENCE (note 8)	67	98.60	48,363	0.6	65	95.78	48,644	0.6

Property name		46th Fiscal Period (For the six-month period ended November 30, 2024)				47th Fiscal Period (For the six-month period ended May 31, 2025)
Property name		Number of tenants (at end of period) (Note 1)	Occupancy rate (at end of period) (%) (Note 2)	Rent revenue-real estate (during period) (thousand yen) (Note 3)	Ratio of total rent revenue-real estate (%) (Note 4)	Number of tenants (at end of period) (Note 1)	Occupancy rate (at end of period) (%) (Note 2)	Rent revenue-real estate (during period) (thousand yen) (Note 3)	Ratio of total rent revenue-real estate (%) (Note 4)
Re-64	HF HIGASHI-SHINSAIBASHI RESIDENCE (note 6)	37	97.72	21,287	0.3	-	-	20,379	0.2
Re-65	HF KITA-YOBANCHO RESIDENCE	89	98.91	37,636	0.5	84	93.32	37,385	0.5
Re-66	HF ATAGOBASHI RESIDENCE	77	97.50	31,769	0.4	75	95.01	31,590	0.4
Re-68	HF ASAKUSABASH I RESIDENCE	38	97.44	27,713	0.3	39	100.00	28,556	0.3
Re-69	HF ICHIBANCHO RESIDENCE	66	85.17	39,158	0.5	72	92.28	39,538	0.5
Re-70	HF HIGASHI-NAKANO RESIDENCE	48	98.33	34,121	0.4	49	100.00	33,086	0.4
Re-72	HF WASEDA RESIDENCE	119	97.03	77,124	1.0	121	100.00	80,448	1.0
Re-73	HF WASEDA RESIDENCE Ⅱ	50	97.97	31,624	0.4	51	100.00	31,167	0.4
Re-74	HF WAKAMATSU-KAWADA RESIDENCE	32	96.71	44,339	0.6	33	100.00	42,597	0.5
Re-75	HF SENDAI RESIDENCE EAST	147	98.18	68,335	0.8	143	95.00	69,251	0.8
Re-76	HF NISHI-KOEN RESIDENCE	100	98.06	43,488	0.5	96	94.18	44,882	0.5
Re-77	HF BANSUI-DORI RESIDENCE	63	95.45	28,747	0.4	59	89.39	29,140	0.4
Re-78	HF KANNAI RESIDENCE	114	97.46	63,870	0.8	112	95.75	64,979	0.8
Re-79	HF MEIEKI-KITA RESIDENCE	108	95.93	64,296	0.8	108	95.75	66,088	0.8
Re-80	HF HIGASHI-SAPPORO RESIDENCE	151	100.00	58,203	0.7	148	97.97	60,622	0.7
Re-81	HF HAKATA-HIGASHI RESIDENCE	77	98.72	31,235	0.4	78	100.00	31,630	0.4
Re-82	HF SENDAI ITSUTSUBASHI RESIDENCE	54	98.18	26,579	0.3	54	98.18	27,784	0.3

Property name		46th Fiscal Period (For the six-month period ended November 30, 2024)				47th Fiscal Period (For the six-month period ended May 31, 2025)
Property name		Number of tenants (at end of period) (Note 1)	Occupancy rate (at end of period) (%) (Note 2)	Rent revenue-real estate (during period) (thousand yen) (Note 3)	Ratio of total rent revenue-real estate (%) (Note 4)	Number of tenants (at end of period) (Note 1)	Occupancy rate (at end of period) (%) (Note 2)	Rent revenue-real estate (during period) (thousand yen) (Note 3)	Ratio of total rent revenue-real estate (%) (Note 4)
Re-83	HF TABATA RESIDENCE	55	98.61	42,802	0.5	55	97.01	43,526	0.5
Re-84	HF RYOGOKU RESIDENCE	66	100.00	52,344	0.7	65	97.89	53,640	0.7
Re-85	HF HACHIOJI RESIDENCE	49	96.97	34,981	0.4	49	86.82	35,967	0.4
Re-86	HF MITA RESIDENCE Ⅱ	40	100.00	33,208	0.4	38	95.35	32,655	0.4
Re-87	HF MONZENNAKACHO RESIDENCE	43	97.73	29,599	0.4	44	100.00	29,862	0.4
Re-88	HF MINAMI-SUNAMACHI RESIDENCE	39	81.06	27,028	0.3	48	100.00	27,575	0.3
Re-89	HF SENDAI NAGAMACHI RESIDENCE	63	91.02	33,867	0.4	64	91.11	34,447	0.4
Re-90	HF SHOKOJI AKABANE RESIDENCE	49	100.00	37,982	0.5	47	95.25	40,299	0.5
Re-91	HF SENDAI HONCHO RESIDENCE	61	88.41	33,515	0.4	66	95.66	33,612	0.4
Re-92	HF OHORI RESIDENCE BAYSIDE	67	100.00	36,490	0.5	66	96.75	37,005	0.5
Re-93	HF HAKATA-HIGASHI RESIDENCEⅡ	108	98.40	42,165	0.5	109	99.11	43,664	0.5
Re-94	HF FUKUOKA RESIDENCE EAST	113	94.82	45,888	0.6	118	99.15	46,333	0.6
Re-95	HF SHOKOJI AKABANE RESIDENCEⅡ	68	96.65	56,483	0.7	69	97.71	56,228	0.7
Re-96	HF YAHIRO RESIDENCE	60	93.16	41,943	0.5	62	97.37	45,453	0.6
Re-97	HF SETAGAYAKAM IMACHI RESIDENCE	29	96.67	20,569	0.3	29	96.70	21,000	0.3
Re-98	HF SOKA RESIDENCE	96	97.00	42,591	0.5	97	98.00	43,414	0.5
Re-99	HF UENO IRIYA RESIDENCE	33	100.00	25,656	0.3	33	100.00	24,658	0.3
Re-100	HF TSUJIDO RESIDENCE	40	100.00	52,353	0.7	37	92.75	57,848	0.7

Property name		46th Fiscal Period (For the six-month period ended November 30, 2024)				47th Fiscal Period (For the six-month period ended May 31, 2025)
Property name		Number of tenants (at end of period) (Note 1)	Occupancy rate (at end of period) (%) (Note 2)	Rent revenue-real estate (during period) (thousand yen) (Note 3)	Ratio of total rent revenue-real estate (%) (Note 4)	Number of tenants (at end of period) (Note 1)	Occupancy rate (at end of period) (%) (Note 2)	Rent revenue-real estate (during period) (thousand yen) (Note 3)	Ratio of total rent revenue-real estate (%) (Note 4)
Re-101	HF KAWAGUCHIEK IMAE RESIDENCE	85	94.04	55,745	0.7	91	100.00	57,976	0.7
Re-102	HF HIGASHIOGU RESIDENCE	49	100.00	42,079	0.5	48	97.38	42,362	0.5
Re-103	HF IMAIKEMINAMI RESIDENCE	68	95.89	26,223	0.3	66	92.98	26,557	0.3
Re-104	HF FUSHIMI RESIDENCE	34	95.58	19,331	0.2	36	100.00	18,202	0.2
Re-105	HF NAKANO-SAKAUE RESIDENCE	31	94.31	30,283	0.4	33	100.00	30,561	0.4
Re-106	HF UENO RESIDENCE EAST	52	92.74	60,335	0.8	55	98.09	64,380	0.8
Re-107	HF OMORIMACHI RESIDENCE	26	100.00	27,567	0.3	26	100.00	29,565	0.4
Re-108	HF KITASENJU RESIDENCE	87	96.56	74,718	0.9	87	96.27	75,140	0.9
Re-109	HF HIKIFUNE RESIDENCE (Note 5)	31	96.40	32,263	0.4	32	97.96	32,989	0.4
Re-110	HF MEGURO GYONINZAKA RESIDENCE (Note 6)	-	-	-	-	51	72.91	31,051	0.4
Re-111	HF NISHI-SUGAMO RESIDENCE (Note 6)	-	-	-	-	32	97.17	2,783	0.0
Re-112	HF NISHI-SUGAMO RESIDENCE Ⅱ (Note 6)	-	-	-	-	28	93.34	2,367	0.0
Re-113	HF TOBU-NERIMA RESIDENCE (Note 6)	-	-	-	-	34	100.00	3,032	0.0
Re-114	HF RYOGOKU RESIDENCE EAST(Note 6)	-	-	-	-	24	100.00	2,538	0.0
Residence subtotal		5,498	96.41	3,796,593	47.2	5,664	96.41	3,902,260	47.8
Total		5,977	97.48	8,040,018	100.0	6,167	97.06	8,162,736	100.00

(Note 1) Number of tenants is the number of end tenants whose lessors are the REIT, trusteed and master lease companies (number of rental units for residential properties).

The number of tenants for the fixed-rent office property is 1. (Note 2) Occupancy rate is the ratio of rental area to rentable area.

(Note 3) Rent revenue-real estate is leasing business revenue from each property in the fiscal period.

(Note 4) Ratio of total rent revenue-real estate is the ratio of rental revenue from each property to rental revenue from the entire portfolio.

(Note 5) Of-55 Kitahama 1-chome Heiwa Building was additionally acquired on June 6, 2024 (25% of the additional acquisition), resulting in full ownership of the entire building. The dates of acquisition were June 14, 2024 for Of-58 HF ESAKA EKIMAE BUILDING and June 6, 2024 for Of-59 HF KITA NIJO BUILDING. The dates of transfer were June 3, 2024 for 50% of the remaining quasi co-ownership of the trust beneficial interest in Of-31 HF NIHONBASHI HAMACHO BUILDING and November 15, 2024 for Re-03 HF ICHIKAWA RESIDENCE.

(Note 6) The dates of acquisition were March 28, 2025 for Of-60 Park East Sapporo (quasi-co-ownership interest: 45%) and March 19, 2025 for Re-110 HF MEGURO GYONINZAKA RESIDENCE and May 9, 2025 for Re-111 HF NISHI-SUGAMO RESIDENCE, Re-112 HF NISHI-SUGAMO RESIDENCE Ⅱ, Re-113 HF TOBU-NERIMA RESIDENCE, Re-114 HF RYOGOKU RESIDENCE EAST. The dates of transfer were March 19, 2025 for Of-34 KOJIMACHI HF BUILDING and May 30, 2025 for Re-64 HF HIGASHI-SHINSAIBASHI RESIDENCE.

(Note 7) These figures are not disclosed because no consent of the master lease company and the property management company has been obtained. (Note 8) The dates of transfer were June 30, 2025 for Of-07 HF HAMAMATSUCHO BUILDING and June 6, 2025 for Re-63 HF HIGASHI-SHINJUKU

RESIDENCE .

Schedule of securities incorporated into assets Not applicable
Schedule of renewable energy power generation facilities Not applicable
Schedule of public facilities management rights Not applicable

Status of other assets

Real estate owned by the REIT and trust beneficial interests in real estate owned by the REIT are stated in 3. Status of Investment properties (3) Summary of portfolio properties.

The major other specified assets that the REIT makes major invests in are stated below. Table of contract amounts and market prices of specified transactions

(Unit: thousand yen)

Classification	Type	Contract amount (Note 1)		Market price (Note 2)
			Contract period of over a year
Transactions other than market transactions	Interest rate swaps Pay fixed, receive floating	64,981,200	52,504,200	939,592

(Note 1) The contract amounts of interest rate swaps are based on notional amounts. (Note 2) The market prices are based on quotes from financial institutions

Asset holdings by country and region

No asset holdings in countries or regions outside Japan