September 16, 2021

Brief Summary of Kessan Tanshin (Financial Report)
Advance Residence Investment Corporation (ADR / Securities Code: 3269)
22th Fiscal Period (February 1, 2021 – July 31, 2021)

1. Summary of Key Financial Data
Operating Revenues
Operating Income
Ordinary Income
Net Income
Earnings per Unit (EPU)
Dividend per Unit (DPU)
FFO per Unit
ROE (semi-annual)

16,884 million yen
8,224 million yen
7,294 million yen
7,294 million yen
5,266 yen
5,646 yen
7,313 yen
6.4 %Total Assets
Net Assets
Net Assets per Unit
NAV per UnitNet Asset Ratio
End-of-period LTV

459,211 million yen
230,491 million yen
166,420 yen
307,372 yen
50.3 %
48.2 %

2. 22th Fiscal Period Highlights






EPU of 5,266 yen decreased by 184 yen compared to the previous period due to the lack of gain on
sales, decrease of interest expense, etc., and although NOI was almost at the same level as the previous
period due to the maintenance of the occupancy rate.
We will distribute 5,646 yen per unit for the FP. A portion of the retained earnings of 137 yen and theperiodic drawdown of 242 yen is included in the dividend. It is a 46 yen increase from the previous
period, and it is a record high.
In March, busy seasons, the occupancy rate reached 97.0% mainly by capturing the transfer demand ofcorporations, but it was difficult to back up the move-outs that increased in April and May. As the rangeof decline in occupancy rate became large in June and July, we worked to recover the occupancy rate
mainly by relaxing the conditions for recruiting single-person dwelling units in central Tokyo. As aresult, the average occupancy rate during the period was 95.9% (down 0.7pt from the same period of
the previous year).
There was steady demand for family-type dwelling units, including in central Tokyo, and we were able
to raise new contract rents at the same level each year. Combined with the relaxation of the above
recruitment conditions, the rent fluctuation rate at the time of replacement was + 1.3%, which was +0.1pt from the previous period.
We acquired RESIDIA Kyoto-Mibu at an acquisition price of 614 million yen. The property is acompact type (1DK approx. 30 ㎡) rental housing located in Kyoto City, which has excellent
transportation convenience and is a good property with convenient living facilities in the surroundingarea.
Even in the COVID19 pandemic, there was no change in the lending attitude of financial institutions toADR, and we were able to borrow a total of 14.7 billion yen (average interest expense 0.34%, average
procurement period 8.2 years). As a result, the average interest expense as of the end of the current
period was 0.66%, which was a reduction from 0.69% in the previous period. In addition, the remaining
years were extended from 4.8 years to 4.9 years, and we were able to further strengthen our financialbase.

3. Earnings Forecasts
23rd Fiscal Period Forecast(August 1, 2021 to January 31, 2022)

24th Fiscal Period Forecast(February 1, 2022 to July 31, 2022)

Operating Revenues

17,212 million yen

Operating Revenues

16,922 million yen

Operating Income

8,577 million yen

Operating Income

8,102 million yen

Ordinary Income

7,676 million yen

Ordinary Income

7,244 million yen

Net Income

7,675 million yen

Net Income

7,243 million yen

Earnings per Unit (EPU)

5,542 yen

Earnings per Unit (EPU)

5,230 yen

Dividend per Unit (DPU)

5,600 yen

Dividend per Unit (DPU)

5,600 yen

Outstanding No. of Issued Units

1.385 million units

Outstanding No. of Issued Units

1.385 million units

Number of Properties

270

Number of Properties

270

Average Period Occupancy

95.9 %

Average Period Occupancy

96.1 %• The above forecasts employ figures that have been calculated based on number of assumptions. The actual net profit and the dividend
may vary due to changes in those assumptions or in other conditions. Therefore, these forecasts do not in no way guarantee the dividend
amounts for the respective periods.

Please contact below with any inquiries you may have on this report.
AD Investment Management Co., Ltd.
TEL: +81-3-3518-0480
FAX: +81-3-3518-0481
ir@adr-reit.com
This document is an English-language summary of the Japanese financial report “Kessan Tanshin” disclosed in Japanese on September 16, 2021.