Questions & Answers at the Presentation Meeting
For the Results of the Fiscal Period Ended January 2021

Date & Time:
Presenter:

From 16:30 to 16:45, Friday, March 19, 2021
Takeshi Takano,President and Representative Director,
AD Investment Management Co., Ltd.

* Advance Residence Investment Corporation is abbreviated as “ADR”.

Occupancy Rate Related Questions
Q1. Are you expecting the occupancy rate to stabilize going forward?
A1. The compact and family type units are doing quite well. Especially, family type units aregetting many inquiries, and we are able to maintain high level of rent increase.
For single type units we are still seeing rent declines and move-outs continue to be higher
compared to the same period last year. Although, I think this trend to continue for anotheryear, it will recover once the COVID-19 pandemic is over and corporations return tonormalize their operations.
Although we set the forecast average occupancy rate for the fiscal year ending July 2021
as 96.4%, the figure is more of an ambitious target than a forecast. Realistically speaking
I think the occupancy for the period will be around 96.1%. On the other hand, we haveover budgeted repair costs and other expenses to compensate the ambitious top line
revenue. As a result I think we will be able to achieve the NOI and EPU forecast, even if
we cannot bring the occupancy to 96.4% and it ends up around 96.1%. Therefore, if weachieve an occupancy rate of 96.4% we intend to increase the DPU.

Acquisitions Related Questions
Q2. You have said in the presentation that, for the time being, you are not in a hurry toincrease your AUM. But, what will trigger you to pursue asset acquisitions?
A2. As long as property prices remain high, our current pace of asset acquisition will basicallybe 5 billion of acquisitions and 2 billion of disposals per year. We would not acquire
properties just to increase our AUM. Rather our priority will be the gradual increase ofNOI and EPU. Even though I think our current valuation is enough for us to go to theequity market, I think it would not be of anybody’s advantage while the market is sovolatile and the risk of it becoming a discounted offering is so high. We would like to wait
till the market stabilizes.
Q3. Even though you say that the population outflow of tenants from Tokyo city center tosuburbs in your portfolio is limited, my understanding is that suburbs that are asconvenient increasing. In light of such trend, will you be expanding your investment

target area?
A3. We have been making diversified investments including the suburbs to begin with. The
pipeline properties developed by our sponsor are also scattered around the radius of 10 kmfrom the Tokyo Station. Although on basis of unit type we need to reconsider thespecifications of the single type units, such as increasing the size of the unit, installing
workspaces. Our sponsors are also currently starting to develop properties with that kindof specifications in mind.

Student Housing Related Questions
Q4. What is your stance on student housing assets?
A4. Although there are demands in the medium term, the number of students will not be
growing in the long-term. Therefore we do not seek to aggressively acquire such assets.
We will require a fair amount of yield premium when acquiring these operational assets aswith senior housing properties. Our mainstay will continue to be plain multi-family
housing.

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