March 11, 2016

Brief Summary of Kessan Tanshin
Advance Residence Investment Corporation (Securities Code: 3269)
11th Fiscal Period (August 1, 2015 – January 31, 2016) Performance

1. Summary of Key Financial Data
Operating revenues

15,082 million yen

Total assets

440,108 million yen

Operating income

7,489 million yen

Net assets

207,661 million yen

Ordinary income

5,951 million yen

Net assets per unit

159,733 yen

5,951 million yen

Net asset ratio

47.2 %

4,577 yen

End-of-period LTV

51.4 %Net income
Earnings per share (EPU)

*ROE

2.9 %

FFO per share

6,524 yen

Dividend per unit (DPU)

4,578 yen

* The earnings per share is calculated by dividing the net profit by the average number of outstanding issued units
during the fiscal period.

2. 11th Fiscal Period Highlights■ The DPU for the fiscal period is 4,578 yen, an increase of 48 yen compared to the initial forecast. Theincrease was mostly due to increase in occupancy and reduction in interest expense.

■ The average portfolio occupancy for the period was 96.5% up 0.2% compared to the initial forecast. The
rent increased 0.13% following the last fiscal period’s 0.12% increase.

■ Aiming to increase the earning potential of the portfolio, the fund acquired 2 properties, with an average
yield after depreciation that are higher than the existing properties in the portfolio, for 13,610 million
yen for this period.

■ The fund continued to strengthen its financial position by reducing interest expense, lowering LTV,
diversifying debt maturities, maintaining duration and fixed rate interest debt ratio.

■ The fund has decided to draw down at least 335 million yen per fiscal period the reserve based on theearnings from negative goodwill and payout as additional dividend starting from the dividend for Fiscal
Period January 2017. The reserve with an outstanding of 33.5 billion yen will in theory be completely
drawn down in 50 years’ time.

3. Earnings Forecasts
12th Fiscal Period Forecast

13th Fiscal Period Forecast(February 1, 2016 to July 31, 2016)(August 1, 2016 to January 31, 2017)

Operating revenues

15,363 million yen

Operating revenues

15,296 million yen

Operating income

7,509 million yen

Operating income

7,493 million yen

Ordinary income

5,967 million yen

Ordinary income

5,980 million yen

Net income

5,967 million yen

Net income

5,980 million yen

Earnings per share (EPU)

4,590 yen

Earnings per share (EPU)

4,600 yen

Dividend per unit (DPU)

4,590 yen

Dividend per unit (DPU)

4,859 yen

Outstanding no. of issued units

1.30 million units

Outstanding no. of issued units

1.30 million units

Number of properties

255

Number of properties

255

Average period occupancy

96.5 %

Average period occupancy

96.4 %* 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 inJapanese on March 11, 2016. The direct translation of title of the original report is “Kessan Tanshin” for theFinancial Period Ending January 2016 (August 1, 2015 – January 31, 2016).

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