September 12, 2023

For Immediate Release

Advance Residence Investment CorporationSecurities Code：3269
1-105 Kanda-Jinbocho, Chiyoda-ku, Tokyo
Wataru Higuchi, Executive Director
Asset Management Company:
ITOCHU REIT Management Co., Ltd.
Junichi Shoji, Representative Director, President & CEO
Inquiries:
Isao Kudo, Executive Officer
TEL. +81-3-6821-5483 Mail. adr_ir@itc-rm.co.jp

Brief Summary of Kessan Tanshin (26th Financial Report)
Advance Residence Investment Corporation (ADR / Securities Code: 3269)
26th Fiscal Period (February 1, 2023 – July 31, 2023)

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)

18,523 million yen
8,800 million yen
7,939 million yen
7,939 million yen
5,732 yen
5,850 yen
7,557 yen
6.9 %Total Assets
Net Assets
Net Assets per Unit
NAV per Unit
Net Asset Ratio
End-of-period LTV
Number of Properties
Average Occupancy

471,288 million yen
230,784 million yen
160,781 yen
348,536 yen
49.0 %
49.5 %277
96.5 %

2. 26th Fiscal Period Highlights

EPU decreased by 97 yen from the previous FP to 5,732 yen, mainly due to an increase in depreciation expenses resulting
from a change in the useful life of the property, despite an increase in NOI and a decrease in interest expenses due to anincrease in rent levels and other factors.
DPU was 5,850 yen, including a portion of gain on sales generated under review (606 yen per unit) retained internally,
reversal of reserve for temporary difference adjustments (548 yen per unit), and distribution from retained earnings (175yen per unit).
As a result of ITOCHU REIT Management Co., Ltd., the asset management company of ADR efforts to properlycollaborate with property management companies for management and operation, the average occupancy rate during theperiod under review was 96.5% (-0.2 pt year-on-year).
Although the turnover rate of the single type in Tokyo 23 Wards had been continuously in the negative territory since theperiod ending January 31, 2021 (21st period) due to the spread of the new type of coronavirus, socioeconomic activities
gradually normalized due to the relaxation of behavioral restrictions, etc., and the number of excess move-ins in Tokyo 23
Wards also showed an increasing trend, the rate turned to positive territory at +1.5% for FP under review. New contract
rents remained high as in the previous FP due to firm demand for family-type properties, including those in central Tokyo.
As a result, the replacement rent of whole portfolio for the FP under review increased 4.0% (+1.5 pt from the previous FP).
Of the units that underwent renovation works under review, 66 units for which new lease contracts were signed by July 31,2023, increased rent by an average of 19.5% compared to the previous rent, effectively contributing to internal growththrough the renovation works.
During the FP under review, ADR acquired RESIDIA Tamatsukuri (acquisition price: 1.9 billion yen) through a relativetransaction with a third party. As all units of this property are 2LDK type, which is rare, solid family demand can beexpected. In addition, ADR sold two properties, RESIDIA Azabudai (49% quasi co-ownership interest) and RESIDIA
Sakae, for a total disposition price of 2.5 billion yen, resulting in a total gain on sales of 0.8 billion yen.
Borrowed a total of 12.7 billion yen (average interest expense 0.72%, average procurement period 6.5 years). As a result,the average interest expense as of the end of the current period was 0.57%, which was the same level as the previous period.
In addition, the remaining years changed from 5.0 years to 4.8 years.

3. Earnings Forecasts
27th Fiscal Period Forecast(August 1, 2023 to January 31, 2024)

28th Fiscal Period Forecast(February 1, 2024 to July 31, 2024)

Operating Revenues

18,623 million yen

Operating Revenues

18,186 million yen

Operating Income

8,861 million yen

Operating Income

8,113 million yen

Ordinary Income

7,944 million yen

Ordinary Income

7,179 million yen

Net Income

7,944 million yen

Net Income

7,179 million yen

Earnings per Unit (EPU)

5,543 yen

Earnings per Unit (EPU)

5,010 yen

Dividend per Unit (DPU)

5,870 yen

Dividend per Unit (DPU)

5,890 yen

Outstanding No. of Issued Units

1,433,000 units

Outstanding No. of Issued Units

1,433,000 units

Number of Properties

283

Number of Properties

287

Average Occupancy

96.5 %

Average Occupancy

96.5 %

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.
This document is an English-language summary of the Japanese financial report “Kessan Tanshin” disclosed in Japanese on September 12, 2023.