September 16, 2020

Brief Summary of Kessan Tanshin (Financial Report)
Advance Residence Investment Corporation (ADR / Securities Code: 3269)
20th Fiscal Period (February 1, 2020 – July 31, 2020)
1. Summary of Key Financial Data
Operating Revenues

17,357 million yen

Total Assets

457,568 million yen

Operating Income

8,294 million yen

Net Assets

231,225 million yen

Ordinary Income

7,321 million yen

Net Assets per Unit

166,950 yen

Net Income

7,320 million yen

NAV per Unit

288,991 yen

Earnings per Unit (EPU)

5,285 yen

Net Asset Ratio

50.5 %Dividend per Unit (DPU)

5,635 yen

End-of-period LTV

48.0 %FFO per Unit

7,310 yen

ROE (semi-annual)

6.8 %2. 20th Fiscal Period Highlights
EPU of 5,285 yen decreased by 451 yen compared to the previous period due to the loss on sale and the decrease ingain on sale.
ADR will distribute 5,635 yen per unit for the FP. It is a 15 yen increase from the previous FP, and a record high.
The occupancy rate was 96.7%. Even though the occupancy was 0.1% higher than forecast it was slightly lower
than the previous period. There was a significant fall in the number of rental applications due to the declaration ofstate of emergency. After the end of the declaration, rental terms were eased in order to increase occupancy.
Although we saw some recovery in applications, occupancy was not able to exceed the previous period.
The rent increase rate for both replacements and renewals were an all time high at +5.5% and +1.2% respectively.
In addition, the rent level of the entire portfolio rose for the 12th consecutive year, rising 0.64% from the end of theprevious fiscal year.
We conducted a property replacement with a third party, acquiring RESIDIA Otemachi-Kita and disposing
RESIDIA Kyobashi. We were able to sell our top disposal candidates, RESIDIA Kameyama which had asignificant unrealized loss and RESIDIA Ryokuchikoen, a low-profit property. The net loss on sale was reduced to5 million yen by offsetting with the gain on sale from RESIDIA Kyobashi.
The COVID19 pandemic had on effect on the lending attitude of financial institutions to ADR. We borrowed a totalof 15 billion yen (average interest payment rate 0.38%, average initial duration 9.0 years). As a result, the averageinterest payment rate as of the end of the current fiscal year was 0.70% and the remaining duration of 4.75 years.

3. Earnings Forecasts
21st Fiscal Period Forecast(August 1, 2020 to January 31, 2021)
Operating Revenues
16,702 million yen

22nd Fiscal Period Forecast(February 1, 2021 to July 31, 2021)
Operating Revenues
16,884 million yen

Operating Income

8,152 million yen

Operating Income

8,133 million yen

Ordinary Income

7,175 million yen

Ordinary Income

7,175 million yenNet Income

7,174 million yen

Net Income

7,174 million yen

Earnings per Unit (EPU)

5,180 yen

Earnings per Unit (EPU)

5,180 yen

Dividend per Unit (DPU)

5,540 yen

Dividend per Unit (DPU)

5,540 yen

Outstanding No. of Issued Units

1.385 million units

Outstanding No. of Issued Units

1.385 million units

Number of Properties

271

Number of Properties

271

Average Period Occupancy

96.0 %

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 therespective 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, 2020.