Supplementary Explanation Material for Timely Disclosure Published Today: Notice Regarding Acquisition of Domestic Asset (Nagoya Heiwa Building)

Overview of Scheduled Acquisition Asset

Nagoya Heiwa Building is located a 5-minute walk from Sakae Station on the Nagoya Municipal Subway Higashiyama and Meijo Lines, offering high transportation convenience. It is situated in the center of the Sakae area, where department stores such as Matsuzakaya and Mitsukoshi and other commercial facilities are concentrated, with cultural facilities nearby. The building was completed on 2004-03-22 and has a total floor area of 8,964.70㎡. It features 45 spaces in a mechanical parking lot, supporting tenant demand based on business vehicle usage. The scheduled acquisition price is JPY 5,110 million, with an appraised value of JPY 5,453 million (as of January 2026). The NOI yield is 4.0%, and the NOI yield after depreciation is 3.6%. The rent gap rate is -10.2%, indicating expected internal growth through increased rental income.

Impact on the Investment Corporation and Future Outlook

This acquisition will strengthen the portfolio in the Sakae area. Heiwa Real Estate Co., Ltd. is the sponsor company owning multiple properties in the Sakae area, and leveraging operational expertise in this area is considered a benefit. The scheduled acquisition date is 2026-03-02, with expectations for increased rental income and stable demand. Although improvement in the rent gap rate is anticipated leading to internal growth, attention should be paid to the negative rent gap rate.