Heiwa Real Estate REIT : Notice Concerning Change in Rating Outlook

June 11, 2021

For Immediate Release

REIT Issuer

HEIWA REAL ESTATE REIT, Inc.

9-1 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, President & Representative Director

Inquiries: Yoshio Ito, General Manager, Planning & Finance Department

TEL. [phone]

Notice Concerning Change in Rating Outlook

HEIWA REAL ESTATE REIT, Inc. (the "Investment Corporation") announced today that Japan Credit Rating Agency, Ltd. ("JCR"), from which the Investment Corporation has acquired a rating, announced a change in the Investment Corporation's rating outlook as described below.

Details

1．Details of Change

	Before Change	After Change
Issuer Rating	A+	A+
Rating Outlook	Stable	Positive

2．Reason for the Revision

According to JCR, the rating outlook mainly reflects the followings.

1. The asset size has increased to 192.9 billion yen on an acquisition price basis and a high level of diversification is maintained with respect to portfolio composition.
2. Despite the COVID-19 pandemic, stable rental business operations are carried out by making rent increase revisions and maintaining high occupancy rates.
3. Initiatives in portfolio improvements are made on an ongoing basis through asset replacement and a capital increase by public offering, which was executed for the first time in five and a half years, as well as by the utilization of sponsor support programs.
4. Sound financial operations are carried out continuously.
5. • For more details, please refer to the JCR website (https://www.jcr.co.jp/en/)

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