Additional Documentation for Press ReleaseSeptember 29, 2020

© 2020 HEIWA REAL ESTATE REIT, Inc. All rights reserved. page. 2

(note) NOI Yield = NOI ÷ Acquisition price NOI Yield After Depreciation = (NOI - Depreciation) ÷ Acquisition priceNOI is NOI for 12 months, which serves as the assumption for the value indicated by the income approach under the direct capitalization method shown in the appraisal report of each acquired asset, Depreciation is depreciation for 12 months, which we estimated by the depreciation ratio in the straight-line method corresponding to the service life, in the same way as for our existing assets under management

Overview of Newly Acquired PropertyHF OHORI RESIDENCE BAYSIDE

The property to be acquired is located 10 minutes’ walk from Ohori Park Station on the Fukuoka Municipal Subway Kuko Line. Ohori Park Station, the nearest station, offers excellent convenience to major areas in Fukuoka, reaching Tenjin Station in about 4 minutes, Hakata Station in about 10 minutes and Fukuoka Airport Station in about 16 minutes. The property is about 2 km from Tenjin, and commuting to work by bus and by bicycle is possible. The characteristics of the location are very good.In the Akasaka and Ohori Park area, where the property is located, there are apartments, retail facilities and office buildings, and the area has good access to Tenjin and Hakata. The area is thus particularly popular in Fukuoka City. A commercial facility is under construction at a location a four-minute walk from the property, and convenience is expected to increase. In addition, the property has an indoor hallway and units have ocean views, providing a comfortable living space and a wonderful view.The property consists of 67 units, including eight units of a 1LDK type with a floor area of 39.51 m2, 56 units of a 1LDK type with a floor area of 40.04 m2, and 3 units for stores. Demand is expected mainly from single persons and DINKs.

Characteristics

Location Chuo-ku, Fukuoka City

Total Floor Space 3,420.89㎡

Construction Date November 29, 2007

Acquisition Price 1,150 million yen

Appraisal Value（as of August 2020） 1,250 million yen

NOI yield（note） 5.27%

NOI Yield After Depreciation (note) 4.35%

© 2020 HEIWA REAL ESTATE REIT, Inc. All rights reserved.

A series of transactions in 38th fiscal period (Nov.2020)

Objectives ・ Effects

1

2

3

4

5

6

7

Improvement of NAV per unitincrease of internal reserve and decrease in number of investment units, acquisition of new property.

+47 百万円

Improvement of EPUDiminution rate in the number of issued investment units, acquisition of new property.

+497yen/unit

Increase of Internal ReserveMismatch in the amounts for tax and accounting purposes, and special capital gain tax exemptions granted for the replacement purchase of assets acquired in advance

Improvement of ROEDecrease in the number of investment unitsacquisition of new property

+642 million yen

+878 million yen

+33 yen/unit

A series of transactions in 38th fiscal period

(note1) NOI is calculated by the income approach under the direct capitalization method shown in the appraisal report for this property.(note2) The improvement of NAV is calculated by subtracting the acquisition price from the appraisal value.

HF UMEDA RESIDENCE TOWER

July 6, 2020 Press ReleaseTransfer of HF UMEDA RESIDENCE TOWER

Total number of investment units repurchased 14,914 units

Total amount of investment units repurchased 1,699 million yen

Total number of issued investment units after the cancellation 999,933 units

Improvement of EPU +33.9 yen

July 15, 2020 Press ReleaseRepurchase of own investment units（Jul 16,2020 – Sep 15,2020)

Book the gain on sale 878 million yen

Book value（at the end of 37th FP） 1,695 million yen

Transfer value 2,620 million yen

Increase of Internal reserve 642 million yen

Improvement of EPU -20.2 yen

Increase of AUM 1,150 million yen

Increase of NOI（note 1） 60 million yen

Improvement of NAV（note 2） 100 million yen

Improvement of EPU +19.3 yen

September 29, 2020 Press ReleaseAcquisition of HF OHORI RESIDENCE BAYSIDE

HF OHORI RESIDENCE BAYSIDE

投資口【8966】

Investment Units【8966】

Investment Units【8966】

1.015 X

Book the gain on sale

Guarantee of stable revenue and reduction of revenue fluctuation risks

Improvement of Building ageDifference in age between acquired property and transferred property

- 4.3 years

annually

© 2020 HEIWA REAL ESTATE REIT, Inc. All rights reserved. page. 4

History of Property Acquisition and Disposition (after Main Sponsor Change)

31st30th27th 28th 29th24th 25th23rd19th17th 21st 34th32nd 33rd 35th

PO PO PO PO

Acquisition

Disposition

16th 37th36th

HF GOTANDA BUILDING

KINSHICHO SQUARE

BUILDING

Sannomiya Sanwa Toyo Building

Glenpark Ikedayama

Rune Higashiterao

HF Miami 6 Jo ResidenceHF Tenjin-Minami ResidenceHF Minami 5 Jo Residence

KCA Building Super HotelOsaka Tennoji

Super Hotel Kyoto Karasumagojyo

Super HotelSendai Hirose-dori

Super HotelSaitama Omiya

SHIBUYA AX HILLS

HF NAKAMEGURO

BUILDING

ANWA TSUKASAMACHI

BUILDING

HF SHIN-YOKOHAMA BUILDING

HF TORANOMONBUILDING

HIROKOJI AQUAPLACE

HF TENJIN-HIGASHIRESIDENCE

MITA HEIWA BUILDING

(leasehold land)※50%

quasi-co-ownership

MITA HEIWA BUILDING

（leasehold land)※50%

quasi-co-ownership

KOBE KYU-KYORYUCHIHEIWA BUILDING

MITA HEIWA BUILDING （leasehold land））

SAKAE MINAMIHEIWA BUILDING

HF SAKURADORI BUILDING

HF NIHONBASHI HAMACHO BUILDING

HF SENDAIHONCHO BUILDING

HF WAKAMATSU-KAWADA RESIDENCE HF UENO

BUILDING

KOJIMACHI HF BUILDING

HF KUDAN MINAMI BUILDING

HF SENDAIRESIDENCE EAST

HF NISHI-KOENRESIDENCE

HF BANSUI-DORI RESIDENCE

HF KANDAOGAWAMACHI BUILDING

NISSO 5 BUILDING

HF KANNAI RESIDENCE

HF MEIEKI-KITARESIDENCE

HF HIGASHI-SAPPORO RESIDENCE

ACROSS SHINKAWABUILDING

SENJU MILDIX II

HF HAKATA-HIGASHI RESIDENCE

HF SENDAI ITSUTSUBASHI

RESIDENCE

KAYABACHOHEIWA BUILDING

HIROKOJI AQUA PLACE

HF TABATA RESIDENCE

HF HACHIOJI RESIDENCE

HF RYOGOKU RESIDENCE

ARK Mori Building

Itopia Nihonbashi SA Building

SOUTHERN SKY TOWER HACHIOJI

HAMACHO HEIWA BUILDING

HF MITA RESIDENCE II

HF MONZEN-NAKACHO RESIDENCE

HF MINAMI-SUNAMACHI RESIDENCE

HF SENDAI NAGAMACHI RESIDENCE

(Note) Excluding the properties that succeeded by the merger with Japan Shingle-Residence REIT Inc. on October 2,2010

Current Period

HF SENDAI HONCHO RESIDENCE

KABUTO-CHOUNI-SQUARE

HF SHOKOJI AKABANERESIDENCE

HF AZABUJUBANRESIDENCE

HF OHORI RESIDENCE BAYSIDE

38th

HF UMEDA RESIDENCE

TOWER

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