Notice Concerning Revision of Management Status Forecast for Fiscal Period Ending November 2026 (50th Fiscal Period) and Announcement of Management Status Forecast for Fiscal Period Ending May 2027 (51st Fiscal Period)

Variance (B) - (A)

435

348

236

236

0

Variance (%)

4.8

8.2

7.3

7.3

0.0

Item

Assumptions

Management period

50th Fiscal period ending November 2026: from June 1, 2026 to November 30, 2026 (183 days)

51st Fiscal period ending May 2027: from December 1, 2026 to May 31, 2027 (182 days)

Assets under management

・The Investment Corporation plans to acquire 3 properties and dispose of 2 properties by the end of the fiscal period ending November 2026 (50th Fiscal Period) as described below, in addition to the 138 real estates and real estate trust beneficiary rights (the "Acquired Assets") it owns as of today.

・It is assumed that the Investment Corporation will acquire "HF UENO INARICHO BUILDING" and

"HF KITA JUJO BUILDING" on June 3, 2026, and "HF CHIBA FUJIMI BUILDING" on June 5,

2026 (these 3 properties are hereinafter collectively referred to as the "Assets to be Acquired").

・It is assumed that the Investment Corporation will dispose of "HF NISHI-SHINJUKU RESIDENCE WEST" and "HF NISHI-SHINJUKU RESIDENCE EAST" (hereinafter collectively referred to as the "Assets to be Disposed") on May 29, 2026 (the assets owned by the Investment Corporation, which consist of the Acquired Assets and the Assets to be Acquired, excluding the Assets to be Disposed, may be referred to as the "Assets Under Management").

・In forecasting the management status, it is assumed that there will be no changes to the Assets Under Management (acquisition of new properties, disposition of existing properties, etc.) other than the acquisition of the Assets to be Acquired and the disposition of the Assets to be Disposed until the end of the fiscal period ending May 2027 (51st Fiscal Period).

・The actual number of properties owned may vary if properties are newly acquired, disposed, etc.

Investment units outstanding

・The forecast assumes that, in addition to the 1,251,533 investment units issued and outstanding as of today, the Investment Corporation will fully issue 92,000 investment units, as part of issuance of new investment units through offering (the "Offering") resolved at a meeting of the Investment Corporation's Board of Directors held today, consisting of 87,700 units to be issued through a public offering (the "Primary Offering") and 4,300 units, which is the maximum number of units to be issued through a third-party allotment (the "Third-Party Allotment"). For more information about the Offering, please see the "Notice Concerning the Issuance of New Investment Units and Secondary Offering of Investment Units" released today.

・Apart from the above, it is assumed that no other new investment units will be issued and no acquisition or cancellation of treasury investment units will take place until the end of the fiscal period ending May 2027 (51st Fiscal Period).

・The forecasts of distributions per unit are calculated based on the number of investment units issued

and outstanding at the end of each fiscal period, which is 1,343,533 units in total, including the number of investment units to be issued through the Primary Offering and the Third-Party Allotment.

Operating revenues

・Operating revenues are calculated based on the assumption of the above Assets Under Management.

・Operating revenues are calculated based on the past performance of the Acquired Assets, taking into account the cancellation notices currently received and the current market environment.

Operating expenses

・Operating expenses are calculated based on the assumption of the above Assets Under Management.

・Assumptions concerning major operating expenses are as follows:

【Fiscal period ending November 2026 (50th Fiscal Period)】

Public charges and taxes (fixed property tax, city planning tax, etc.): 622 million yen Maintenance and repair fees: 355 million yen

Management commissions: 963 million yen

Depreciation: 1,228 million yen

【Fiscal period ending May 2027 (51st Fiscal Period)】

Public charges and taxes (fixed property tax, city planning tax, etc.): 642 million yen Maintenance and repair fees: 353 million yen

Management commissions: 978 million yen

Depreciation: 1,249 million yen

・Fixed property tax and city planning tax, etc. associated with properties held are accounted for as expenses related to the leasing business by posting the amounts corresponding to the relevant calculation period from the amount of tax determined to be due. In general, in the sale and purchase of real estate properties, fixed property tax and city planning tax, etc. are calculated on a pro-rata basis between the buyer and the seller based on the ownership period and settled at the time of transaction. The amount equivalent to the settlement amount is not expensed upon acquisition, as it is included in the acquisition cost. Fixed property tax and city planning tax, etc. associated with the Assets to be Acquired will begin to be recorded as expenses, starting from the fiscal period ending May 2027 (51st Fiscal Period).

・For maintenance and repair fees, an amount deemed necessary during the period based on the

maintenance and repair plans for the properties is posted.

・Emergency costs may arise as a result of unforeseeable factors, and actual operating expenses may therefore vary significantly from the forecast.

Non-operating expenses

・Interest expenses (including interest on investment corporation bonds) and borrowing-related expenses are estimated to be 1,103 million yen for the fiscal period ending November 2026 (50th Fiscal Period) and 1,221 million yen for the fiscal period ending May 2027 (51st Fiscal Period). Amortization of investment unit issuance expenses and investment corporation bond issuance expenses are estimated to be 28 million yen for the fiscal period ending November 2026 (50th Fiscal

Period) and 28 million yen for the fiscal period ending May 2027 (51st Fiscal Period).

Interest-bearing liabilities

・The balance of interest-bearing liabilities as of today is 138,680 million yen.

・It is calculated based on the assumption that 3,500 million yen will be newly borrowed as part of the funds for the acquisition of the Assets to be Acquired in June 2026, and that the balance of interest-bearing liabilities will be 137,040 million yen as of the end of the fiscal period ending November 2026 (50th Fiscal Period) and 137,040 million yen as of the end of the fiscal period ending May 2027 (51st Fiscal Period).

・The Investment Corporation assumes that the long-term debt (5,140 million yen in total) will be repaid

in advance on June 1 and 30, 2026, and that all interest-bearing debt maturing by the end of May 2027

will be refinanced.

Distributions per unit

・Distributions per unit are calculated based on the cash distribution policy stipulated in the Investment Corporation's bylaws.

・With respect to distributions for the fiscal period ending November 2026 (50th Fiscal Period), it is

assumed that a total of 5,387 million yen will be distributed (distribution of 4,010 yen per unit), calculated by adding 1,931 million yen (1,437 yen per unit), which is the sum of the planned reversal amount of the reserve for adjustment of temporary differences and a portion of retained earnings brought forward to the expected profit of 3,456 million yen.

・With respect to distributions for the fiscal period ending May 2027 (51st Fiscal Period), it is assumed

that a total of 5,414 million yen will be distributed (distribution of 4,030 yen per unit), calculated by adding 1,928 million yen (1,435 yen per unit), which is the sum of the planned reversal amount of the reserve for adjustment of temporary differences and a portion of the retained earnings brought forward, to the expected profit of 3,485 million yen.

・Distributions per unit may change due to various factors, including changes in leasing income

attributable to changes of Assets Under Management or changes in tenants or to unexpected maintenance and repair work.

Distributions in

excess of earnings per unit

・The Investment Corporation does not expect any distributions in excess of earnings as of today.

Other

・The Investment Corporation assumes no amendments to laws, the tax system, accounting standards, the rules of the Tokyo Stock Exchange, or the rules of the Investment Management Association of Japan, etc., that would affect the above forecast figures.

・The Investment Corporation assumes that no major unforeseen changes will occur in the general

economic trends, real estate market conditions, etc.