September 10, 2019

Brief Summary of Kessan Tanshin (Financial Report)
Advance Residence Investment Corporation (ADR / Securities Code: 3269)
18th Fiscal Period (February 1, 2019 – July 31, 2019)

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)

16,465 million yen
8,202 million yen
7,094 million yen
7,094 million yen
5,254 yen
5,504 yen
7,277 yen
6.5 %Total Assets
Net Assets
Net Assets per Unit
NAV per Unit
Net Asset Ratio
End-of-period LTV

451,589 million yen
219,837 million yen
162,842 yen
270,753 yen
48.7 %
49.9 %

2. 18th Fiscal Period Highlights■ The DPU for the fiscal period came to 5,504 yen, an increase of 125 yen compared to initial forecast,
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mostly due to rent rise and occupancy rate being higher than expected. As a result, DPU increased 82
yen compared to previous period.
The average portfolio occupancy for the period was a record high of 97.1%, 0.1pt higher than theprevious period and 0.5pt higher than initial forecast, helped by the fact that the FP included the peakleasing season. The rent rose consecutively for the tenth period. The tenant replacement and renewal
rents rose 5.0% and 0.8% respectively, and overall portfolio rent rose in average of 0.68%.
Even though the market continues to be very competitive, ADR has succeeded in acquiring one property,
RESIDIA Shin-Osaka II, at 92.3% of appraisal value during the period.
ADR continued to strengthen its financial position by reducing interest expense, diversifying debtmaturities, maintaining duration and increasing fixed interest rate debt ratio. During the period, ADR
procured a total of 11.1 billion yen (at an average duration of 6.9 years, average interest rate of 0.28 %).
This included an issuance of a green bond, a first for a residential J-REIT. As a result, the average interest
rate of our interest bearing liabilities was lowered to 0.75%, at the end of the fiscal period.
On September 10, 2019, ADR launched its 6th follow-on offering. The procured funds will be used tofund a transaction involving acquisitions of 9 properties and disposition of one property, where the totaltransaction value is approximately 9.7 billion yen.

3. Earnings Forecasts
19th Fiscal Period Forecast(August 1, 2019 to January 31, 2020)

20th Fiscal Period Forecast(February 1, 2020 to July 31, 2020)

Operating Revenues

17,046 million yen

Operating Revenues

16,715 million yen

Operating Income

8,741 million yen

Operating Income

8,170 million yen

Ordinary Income

7,715 million yen

Ordinary Income

7,133 million yen

Net Income

7,714 million yen

Net Income

7,132 million yen

Earnings per Unit (EPU)

5,570 yen

Earnings per Unit (EPU)

5,150 yen

Dividend per Unit (DPU)

5,450 yen

Dividend per Unit (DPU)

5,550 yen

Outstanding No. of Issued Units

1.385 million units

Outstanding No. of Issued Units

1.385 million units

Number of Properties

269

Number of Properties

273

Average Period Occupancy

96.5 %

Average Period Occupancy

96.6 %• 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 10, 2019.