June 26, 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 Submission of Revised Shelf Registration Statement
for Issuance of Green Bonds
Advance Residence Investment Corporation (ADR) announced today its decisions to submit arevised shelf registration statement (the original shelf registration statement was submitted onAugust 3, 2017) today for the issuance of green bonds as described below.
1. Purpose and Background of Issuance of Green Bonds

AD Investment Management Co., Ltd., the asset management company for ADR, established aSustainability Policy in March 2015. ADR has conducted operations in accordance with this policy
as it strives to contribute to creating a sustainable society and to further raise unitholders’ value. Aspart of these efforts, ADR has conducted large-scale repairs and value-enhancement renovations toextend the lifespan of its properties and encouraged tenants to conserve energy usage by distributing
sustainability guides. In addition, ADR is moving forward in acquiring environmental certification,such as, “DBJ Green Building Certification” and “BELS Certification” for its properties.
ADR’s efforts concerning issues on ESG (environment, society and governance) has been highly
rated by a third-party evaluation organization. ADR was designated as “Residential/Asia/Listed
Sector Leader” which indicates that ADR earned the top score within the “Residential/Asia/Listed
Sector of 2018 Global Real Estate Sustainability Benchmark (GRESB) Real Estate AssessmentRating and ADR has also been award a top “A” rating for its ESG disclosure.
ADR believes that the issuing of green bonds will further promote ESG considerations in its asset
management and enhance our financing base by broadening our investor universe, especially forinvestors interested in ESG investment. It is with this belief that ADR today submitted a revised shelfregistration statement for the issuance of green bonds.
2. ADR’s Mechanism of Green Finance including Green Bonds

In order to implement green financing in line with the requirements of the Green BondPrinciples 2018 of the International Capital Market Association (ICMA), Green Loan Principles ofthe Loan Market Association (LMA) and the Asia Pacific Loan Market Association (APLMA) andthe 2017 Green Bond Guidelines of Ministry of the Environment of Japan, ADR has formulated agreen finance framework. ADR shall implement, assess and manage the green financing based on
the framework going forward.
Funds procured through green financing shall be allotted to fund the acquisition of assets which1[Provisional Translation Only]
English translation of the original Japanese document is provided solely for information purposes. Should there be any discrepancies between thistranslation and the Japanese original, the latter shall prevail.

meet the eligible criteria 1 (hereinafter referred to as “Eligible Green Assets”), to fund renovation
work which meets the eligible criteria 2 or fund the repayment of loans or redemption of investment
corporation bonds that initially funded such acquisitions or renovations.
Moreover, the total amount of funds procured through green bonds or green loans shall bemanaged so as not to exceed the Eligible Green Assets total acquisition price 3 .There are 7 propertiescorresponding to Eligible Green Assets, and their total acquisition price is 64.9 billion yen.
As long as there are outstanding balance of green bonds or green loans, ADR plans to discloseannually, the allotment status of funds procured through the green financing. the balance of green
financing, the total number and the total acquisition price of the Eligible Green Assets, number andtotal floor area of properties with third party environmental certification and the Eligible Green
Assets’ quantitative environmental performance indices (energy consumption, CO2 emissions, water
consumption, etc.) on our website.
Notes:
1. Assets meeting the eligible criteria (Eligible Green Assets) are assets that have acquired or arescheduled to acquire or to be rectified the following certifications.
• 3-star, 4-star or 5-star ratings in DBJ Green Building Certification• B+, A or S rankings in CASBEE Certification• 3-star, 4-star or 5-star ratings in BELS Certification
2. Renovation works which meets the eligible criteria are works that aims to reduce energy consumption,
CO2 emissions or water consumption by 10% or more.
3. ADR has been established on March 1st, 2010, with the merger between former Advance Residence
Investment Corporation and Nippon Residential Investment Corporation. The acquisition price ofassets formerly held by Nippon Residential Investment Corporation has been revalued at the time ofthe merger.

3. Assessment by External Institutions

Regarding the eligibility of the green finance framework, ADR has received a “Green 1(F)” rating, the highest rating, in the JCR Green Finance Framework Evaluation 4 by the Japan
Credit Rating Agency, Ltd. (JCR), an institution which assesses green finance. Furthermore,JCR, who will be supporting ADR’s planned issuance of green bonds by providing the thirdparty assessment, has been notified by the Green Finance Organization, that it will be able toreceive a subsidy from a program, “2019 Financial Support Programme for Green Bond
Issuance 5” by the Ministry of the Environment.
Notes:
4. The JCR Green Finance Framework Evaluation is a third-party evaluation by JCR on green bondissuers or green loan borrowers and their green bond issuing or borrowing policies, that are issued orborrowed in accordance with the Green Bond Principles, Green Loan Principles and the 2017 Green
Bond Guidelines published by the Ministry of the Environment of Japan. It will evaluate the greens ofprojects, specifically, whether the projects to be funded which are listed in the green finance policy of
the issuer or borrower, are actually green projects. In addition, operations and managements andtransparency of the issuer or borrower will be evaluated. The JCR Green Finance Framework
Evaluation rating will be is decided comprehensively taking these evaluations into account.
The JCR Green Finance Framework Evaluation of ADR can be seen at JCR’s website.
https://www.jcr.co.j/en/greenfinance/
5. Financial Support Programme for Green Bond Issuance refers to a program providing subsidies for expenses
incurred by registered issuance supporters that support companies, municipalities and other bodies who seek to2[Provisional Translation Only]
English translation of the original Japanese document is provided solely for information purposes. Should there be any discrepancies between thistranslation and the Japanese original, the latter shall prevail.

issue green bonds, by providing external review and consultation on establishing a green bond framework. To be
eligible for the subsidy, the issued green bonds must use the full amount of proceeds for green projects and haveto satisfy all the following at the time of issuance.
(I) Must meet at least one of the following requirements at the time of issuance of the green bonds:
1) A project that contributes mainly to domestic decarbonization (renewable energy, energy efficiency, etc.)• Project for which half or more than half of proceeds, or of which half or more than half of the number ofprojects are for domestic decarbonization-related projects.
2) Has a significant effect on decarbonization and vitalization of local economies.
• Decarbonization: Those whose subsidy amount per ton of domestic CO2 reduction is less than thespecified amount.
• Local Community Vitalization: Projects in the ordinances or plans by the municipalities deem it to becontributing to vitalization of local economy in which the municipalities are expected to invest in.
(II) The green bond framework has to be confirmed by an external review organization for compliance with
the Green Bond Guidelines before issuance.
(III) It is not a so-called green-wash bond.
For details of Financial Support Program for Green Bond Issuance, please visit the following link.
Green Bond Issuance Promotion Platform website of the Ministry of the Environment:
http://greenbondplatform.env.go.jp/en/support/subsidy-eligible-costs.html

4.

Issuing Schedule

Even though the issue date, amount and other terms of the green bond are yet to be
determined, ADR is planning investigate the terms of issuance of the green bond throughmarketing.
For further information on ADR’s ESG initiatives, please visit the website of ADR:
https://www.adr-reit.com/en/company/sustain/

About Advance Residence Investment Corporation
Advance Residence Investment Corporation is the largest residential J-REIT, investing in over 260 rental apartments
located mostly in central Tokyo and in other major cities throughout Japan (AUM over 400 billion yen). ADR can beexpected have a stable dividend in the long-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/

3[Provisional Translation Only]
English translation of the original Japanese document is provided solely for information purposes. Should there be any discrepancies between thistranslation and the Japanese original, the latter shall prevail.