Notice Concerning Conclusion of Interest Rate Swap Agreements

May 26, 2026

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. +81-3-3669-8771

Notice Concerning Conclusion of Interest Rate Swap Agreements

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

Details

1. Reason for Conclusion of Interest Rate Swap Agreements

   To fix the interest rate for the loan amount concerning Term Loan 76 Tranche C (loan amount: 4,600 million yen) as announced in the "Notice Concerning Borrowing of Funds and Repayment of Loans" released on October 24, 2024, and Term Loan 84 Tranche B (loan amount: 395 million yen) and Term Loan 84 Tranche C (loan amount: 1,400 million yen) as announced in the "Notice Concerning Borrowing of Funds and Repayment of Loans" released on November 19, 2025, and hedge against the risk of future interest rate fluctuations.

2. Details of Interest Rate Swap Agreements

   Loan	Term Loan 76 Tranche C
   Counterparty	Sumitomo Mitsui Trust Bank, Limited
   Notional Principal	4,600 million yen
   Interest Rate	Fixed interest rate payable at 2.46950% Variable interest rate receivable at JBA 1-month Japanese Yen TIBOR
   Start Date	May 29, 2026
   End Date	November 28, 2031

   (Note) According to these interest rate swap agreements, the floating interest rate of Term Loan 76 Tranche C will be effectively fixed at 3.02950%.

   Loan	Term Loan 84 Tranche B
   Counterparty	Sumitomo Mitsui Trust Bank, Limited
   Notional Principal	395 million yen
   Interest Rate	Fixed interest rate payable at 2.29170% Variable interest rate receivable at JBA 1-month Japanese Yen TIBOR
   Start Date	May 29, 2026
   End Date	November 29, 2030

   (Note) According to these interest rate swap agreements, the floating interest rate of Term Loan 84 Tranche B will be effectively fixed at 2.73170%.

   Loan	Term Loan 84 Tranche C
   Counterparty	Sumitomo Mitsui Trust Bank, Limited
   Notional Principal	1,400 million yen
   Interest Rate	Fixed interest rate payable at 2.38045% Variable interest rate receivable at JBA 1-month Japanese Yen TIBOR
   Start Date	May 29, 2026
   End Date	May 30, 2031

   (Note) According to these interest rate swap agreements, the floating interest rate of Term Loan 84 Tranche C will be effectively fixed at 2.85045%.

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 securities registration statement, which was submitted on May 18, 2026, and the periodic securities report (yuka shoken hokokusho) for the fiscal period ended November 2025 (48th Fiscal Period), which was submitted on February 25, 2026.

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

DISCLAIMER:

HEIWA REAL ESTATE REIT, Inc. makes no assurance or warranty with respect to the completeness or accuracy of this English translation. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail. For complete and accurate information, please refer to the Japanese original