Notice Regarding Revision of Earnings Forecast for the Fiscal Year Ending May 2026 (49th Term)

Overview of Revision to Earnings Forecast

Heiwa Real Estate REIT, Inc. has revised its earnings forecast for the fiscal year ending May 2026 (49th term), upwardly adjusting operating revenue to JPY 11,531 million (+28.8% vs. previous forecast), and both ordinary income and net income attributable to owners of parent to JPY 5,629 million (+77.5%). This revision is due to the decision to transfer the properties "HF Nishi-Shinjuku Residence WEST" and "HF Nishi-Shinjuku Residence EAST," which is expected to cause differences exceeding 10% in operating revenue and over 30% in profit. Meanwhile, the distribution per unit remains unchanged at JPY 3,990.

Assumptions for Revision and Future Outlook

This revision assumes the transfer of two real estate trust beneficiary rights by the end of the fiscal year ending May 2026, with no other changes in operating assets. Interest-bearing debt stands at JPY 138,680 million, with all upcoming maturities scheduled to be refinanced. The impact on the operating forecast for the fiscal year ending November 2026 is minimal, and the distribution amount is not guaranteed. Going forward, forecast figures may fluctuate due to changes in asset composition or market conditions.