September 6, 2016
Brief Summary of Kessan Tanshin (Financial Report)
Advance Residence Investment Corporation (ADR / Securities Code: 3269)
12th Fiscal Period (February 1, 2016 – July 31, 2016)
1. Summary of Key Financial Data
Operating Revenues
Operating Income
Ordinary Income
Net Income
Earnings per Share (EPU)*
ROE
FFO per ShareDividend per Unit (DPU)

15,444 million yen
7,727 million yen
6,206 million yen
6,205 million yen
4,773 yen

Total assets
Net assets
Net assets per unit
Net asset ratio
End-of-period LTV

448,160 million yen
207,915 million yen
159,935 yen
46.4 %
52.2 %

3.0 %
6,749 yen
4,774 yen

• The earnings per share is calculated by dividing the net profit by the average number of outstanding issued units during the fiscalperiod.

2. 12th Fiscal Period Highlights■ The DPU for the fiscal period is 4,774 yen, an increase of 184 yen compared to the initial forecast. The
■
■

■

■

increase was mostly due to increase in occupancy and decrease in restitution costs.
The average portfolio occupancy for the period was 96.8% up 0.3% compared to the initial forecast. The
rent rose +0.45% following the last fiscal period’s rise of +0.13%.
Aiming to increase the earning potential of the portfolio, the ADR acquired 5 properties from ADR’ssponsor ITOCHU Corporation (4 properties) and from a third party (1 property) totaling 8,663 million
yen during the fiscal period. Even in a very competitive market ADR was able to acquire assets that are
scarce for each of its location.
ADR continued to strengthen its financial position by reducing interest expense, lowering LTV,
diversifying debt maturities, maintaining duration and fixed rate interest debt ratio. Also on back of theBank of Japan’s monetary policy, ADR was able to issue unsecured bond with a duration of 15 years forthe first time.
On September 6, 2016, ADR has decided to launch a public offering and secondary distribution ofinvestment units. Along with the decision to acquire 3 properties and with the lowering of LTV, ADR
expects the decisions to contribute to ADR’s stable growth.

3. Earnings Forecasts
13th Fiscal Period Forecast(August 1, 2016 to January 31, 2017)

14th Fiscal Period Forecast(February 1, 2017 to July 31, 2017)

Operating revenues

15,399 million yen

Operating revenues

15,709 million yen

Operating income

7,663 million yen

Operating income

7,723 million yen

Ordinary income

6,210 million yen

Ordinary income

6,386 million yen

Net income

6,210 million yen

Net income

6,385 million yen

Earnings per share (EPU)

4,600 yen

Earnings per share (EPU)

4,730 yen

Dividend per unit (DPU)

4,859 yen

Dividend per unit (DPU)

4,979 yen

Outstanding no. of issued units

1.35 million units

Outstanding no. of issued units

1.35 million unitsNumber of properties

257

Number of properties

260

Average period occupancy

96.2 %

Average period occupancy

96.3 %• 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 6, 2016.