July 11, 2019
For Immediate Release
Advance Residence Investment CorporationSecurities Code：3269
1-105 Kanda-Jinbocho, Chiyoda-ku, Tokyo
Takeshi Takano, Executive Director
Asset Management Company:
AD Investment Management Co., Ltd.
Takeshi Takano, President
Inquiries:
Hiroshi Kawakami, Managing Director, CFO
TEL. +81-3-3518-0480
Notice Concerning the Revision of the Management Performance Forecast
For Fiscal Period Ending January 2020 (FP19)
Advance Residence Investment Corporation (ADR) announced its decision to revise its management
performance forecast for FP January 2020 (FP19: from August 1, 2019 to January 31, 2020), which was originally
announced on March 12, 2019 as follows.

1. The Revision of Management Performance Forecast for FP January 2020
(FP19: from August 1, 2019 to January 31, 2020)
Operating
Revenue(million yen)

Dividend
Earnings per Dividend per per Unit
Net Income
Unit (Note 1)
Unit (Note 2) in Excess of(million yen)
Earnings(million yen) (million yen)
(yen)
(yen)
Operating
IncomeOrdinary
Income(yen)Previous
Forecast(A)

16,151

7,947

6,885

6,885

5,100

5,3490

Revised
Forecast(B)16,856

8,615

7,560

7,560

5,600

5,349

0

Difference(B) − (A)705667675675

500

00Percentage
Change

4.4%

8.4%

9.8%

9.8%

9.8%

00

(Note 1)

Earnings per Units is calculated by dividing the net income by 1,350,000 units which is the number of outstanding
issued units at the end of the fiscal period.

(Note 2)

Including the drawdown of Temporary Differences Adjustment Reserve Account (total 3.36 million yen as 249yen per unit).

[Notes]• Figures less than the stated units are rounded down and percentages are rounded to one decimal place (the same hereafter).
• As dividend per unit includes drawdown of retained earnings, it is different from forecasted earnings per unit.
• The above figures of revised forecasts and forecasts are the current forecasts calculated based on “3. Assumptions Underlying Revisionof Management Performance Forecasts for 19th Fiscal Ending January 2019 Period” below. Accordingly, the actual operating revenue,operating income, ordinary income, net income, earnings per unit and dividend per unit may vary due to future acquisition or sale of realestate, etc., developments in the real estate market, etc., changes in other circumstances surrounding ADR and other factors. Moreover,
the above forecasts are not a guarantee of the dividend amount.

• ADR may revise the forecasts if a disparity of more than a certain level from the above forecasts is anticipated.

1
Disclaimer: This document is a press release prepared for the sole purpose of making a public announcement on revision of management
performance forecasts for FP January 2017 and management performance forecasts for FP July 2017 and has not been prepared as
an offer or a solicitation for investment. Before initiating investments, Advance Residence Investment Corporation asks thatinvestors ensure they refer to the prospectus for the issuance of new investment units and secondary distribution of investment
units and amendments thereto prepared by Advance Residence Investment Corporation (if such have been prepared) and that they
undertake investment at their own discretion and responsibility.

2.

Reasons for the Revision
The management forecast for the fiscal period ending January 2020 was revised mainly due
to the disposal of “RESIDIA Higashi-Ginza,” which has been decided and disclosed today on
the press release titled, “Notice Concerning Asset Replacement, Acquisition of RESIDIA
Ichigaya II, RESIDIA Ichigaya-Sadohara, and Disposal of RESIDIA Higashi-Ginza.”
Although, the net income will increase 9.8% due to the profit in sales of about 0.6 billion yen from thedisposal, the forecast for dividend per unit will be unchanged because ADR intends to retain the profit fromgain in sales as much as the conduit requirements will allow.
In the above mentioned replacement transaction, the acquisition amount will be larger than the disposition
amount. ADR will be using all the cash generated from the disposal including the profit from gain in sales
plus additional cash on hand in the acquisition. Therefore, ADR will like to retain and not payout as dividend,
the amount equivalent to the profit.

3.

Assumptions Underlying Revision of Management Performance Forecasts for 19th Fiscal Ending
January 2019 Period
Items
Calculation Period

Assumptions• FP January 2020: from August 1, 2019 to January 31, 2020

(184 days)• In addition to the current ADR holdings of 265 properties, ADR assumes complete
the disposition one property and the acquisitions two properties (hereafter, “Assetsto-be-acquired”) as indicated below.
(1) C-10 RESIDIA Higashi-Ginza
Assets Under
Management: disposition date, September 26, 2019 (note1)(2) P-111 RESIDIA Ichigaya Ⅱ: acquisition date, September 26, 2019 (note1)(3) P-112 RESIDIA Ichigaya-Sadohara : acquisition date, September 26, 2019 (note1)(Note1) The actual disposition and acquisition is expected between September 26, 2019 toSeptember 30, 2019, but for the forecasting purpose September 26, 2019 is set as theacquisition date.

• Other than the listed disposition and acquisitions above, no other acquisitions nordispositions are expected until the end of FP January 2020.
• The period average of month end occupancy rates are expected to be, 96.5% for FPJanuary 2020.

Operating Income• Rent revenues for the properties currently held by ADR are estimated based on
historical data and by taking into account the current leasing conditions. Rent
revenues for the assets-to-be-acquired are estimated by taking into account of thecurrent market environment and the properties’ competitiveness and other factors.
• No delinquencies or non-payment by tenants are assumed in the forecasts of operating
revenue.

2Disclaimer: This document is a press release prepared for the sole purpose of making a public announcement on revision of management
performance forecasts for FP January 2017 and management performance forecasts for FP July 2017 and has not been prepared as
an offer or a solicitation for investment. Before initiating investments, Advance Residence Investment Corporation asks thatinvestors ensure they refer to the prospectus for the issuance of new investment units and secondary distribution of investment
units and amendments thereto prepared by Advance Residence Investment Corporation (if such have been prepared) and that they
undertake investment at their own discretion and responsibility.

ItemsAssumptions• Within the rent business expenses, which is a major component of operating expenses,
except for depreciation, expense items, such as property management fees are
forecasted based on historical data adjusted for variables.
• ADR estimates depreciations to be 2,753 million yen for FP January 2020, where thecalculation are based on the straight-line method inclusive of ancillary expenses.
• ADR expects the property taxes and urban planning taxes (PT&UT) it will record asexpenses will be 880 million yen for FP January 2020. The PT&UTs for the firstcalendar year of new acquisitions will not be accounted as expenses. Former
titleholders of the acquired assets are reimbursed by ADR for the pro rata portions of
the PT&UT for those assets, based on the number of days of ownership and theamounts equivalent to the reimbursement will be recorded as cost of acquisition.

Operating Expenses
Assets-to-be-acquired in2019

Expensing Starting
Fiscal Period (Note1)

PT&UT Estimatefor 2019 (Note2)(for reference)

FP July 202018 million yen(Note1) Three month equivalent amount of PT&UT will be accounted as expense on the first fiscal
period and six month equivalent thereafter.
(Note2) The full year amount of PT&UT for 2019 is estimated using the actual figures in 2018 andestimated full year amount of tax on amortized assets.

• Building repair expenses are estimated for the amount necessary for the respective
fiscal periods. However, actual repair expenses for the fiscal period may differ
significantly from the forecasted amounts due to the possibility of urgent need ofrepairs for unexpected building damages.
• ADR expects the impact of the consumption tax increase scheduled for October 2019.
Non-operatingExpenses• The interest and other borrowing related expenses are estimated to be 1,050 million
yen for the FP January 2020.
• Although the outstanding amount of interest bearing debts as of the date of thispublication is 225,318 million yen, assuming no change until the end of FP
January 2020.
• All interest-bearing debts that will be maturing after today other than the ones
mentioned above, will be fully refinanced with new loans or through bond issuance.

Interest Bearing Debts• As a result, the outstanding amount of interest bearing debts and the loan-to-value(LTV) at the end of the following fiscal periods will be respectively;
End of FP January 2020:

225,318 million yen, around 49.9%• The LTVs are calculated as follows.
LTV = (interest bearing debts ÷ total assets) x 100
Number ofInvestment Units
Issued andOutstanding• ADR assumes that the total number of issued investment units as of the date of thispublication are 1,350,000 units and do not change until the end of FP January 2020.

3Disclaimer: This document is a press release prepared for the sole purpose of making a public announcement on revision of management
performance forecasts for FP January 2017 and management performance forecasts for FP July 2017 and has not been prepared as
an offer or a solicitation for investment. Before initiating investments, Advance Residence Investment Corporation asks thatinvestors ensure they refer to the prospectus for the issuance of new investment units and secondary distribution of investment
units and amendments thereto prepared by Advance Residence Investment Corporation (if such have been prepared) and that they
undertake investment at their own discretion and responsibility.

ItemsAssumptions

Dividend per Unit

• Dividend (dividend per unit) are calculated according to ADR’s cash dividend
policy set forth in the Articles of Incorporation. In the calculation, ADR assumes itwill, in principle, distribute the entire amount of its net income for the respective
fiscal period.
• The dividend per unit may vary due to various factors, including changes in assets
under management, fluctuations in rent income associated with tenant replacement,and unexpected repairs.

Dividend in Excess ofEarnings per Unit

• ADR is currently not scheduled to pay out dividends in excess of earnings(dividends in excess of earnings per unit).

Other• It is assumed that there will be no other amendments in legislation, taxation,Japanese GAAP, listing requirements and the Investment Trusts Association
regulations that might affect the above forecasts.
• It is assumed that there will be no unforeseen critical changes in the general
economic conditions and in the real estate markets.

About Advance Residence Investment Corporation
Advance Residence Investment Corporation is the largest residential J-REIT, investing in over 260 rental apartments located mostly incentral Tokyo and in other major cities throughout Japan (AUM over 400 billion yen). ADR can be expected have a stable dividend in thelong-term and can be considered as a defensive J-REIT, on back of the stable income from residential assets and with the largest dividend
reserve among J-REITs. ADR’s website: https://www.adr-reit.com/en/[Provisional Translation Only]
English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

4Disclaimer: This document is a press release prepared for the sole purpose of making a public announcement on revision of management
performance forecasts for FP January 2017 and management performance forecasts for FP July 2017 and has not been prepared as
an offer or a solicitation for investment. Before initiating investments, Advance Residence Investment Corporation asks thatinvestors ensure they refer to the prospectus for the issuance of new investment units and secondary distribution of investment
units and amendments thereto prepared by Advance Residence Investment Corporation (if such have been prepared) and that they
undertake investment at their own discretion and responsibility.