Supplementary Materials

12ithFebruary 1, 2016 to July 31, 2016

Financial Result for Fiscal Period July 2016
Revised Forecast for Fiscal Period January 2017
Forecast for Fiscal Period July 2017
tAdvance Residence Investment Corporation
September 7, 2016
✥ This document is intended for the general public and for the sole purpose of disclosing Advance Residence Investment Corporation’s (hereafter ADR) ﬁnancial report for Fiscal Period July 2016,
Revised Forecast for Fiscal Period January 2017 and Forecast for Fiscal Period July 2017. Therefore the document shall not constitute an oﬀer to sell or the solicitation of an oﬀer to buy securities ofADR. Before you invest, make sure that you read the prospectus that ADR publishes and base your investment decision on your own judgment and responsibility.
✥ The information provided in the document is not necessarily presented in accordance with the Financial Instrument and Exchange Act, the Act on Investment Trusts and Investment Corporations,
Real Estate Brokerage Act and related laws and regulations nor the Tokyo Stock Exchange’s listing rules.
✥ Forward-looking statements provide current expectations of future events based on number of assumptions and include statements that do not directly relate to any historical or current facts.
Forward-looking statements are not guarantees of future performance and the Company's actual results may diﬀer signiﬁcantly from the results discussed in the forward-looking statements.
✥ Although the document is prepared with utmost care, ADR does not warrant the accuracy, completeness of the information contained. ADR may also change, update or delete any information on
this site without prior notice.

Executive Summary
Committed in Delivering Strong and Stable Dividend

Advance Residence Investment CorporationResults for Fiscal Period ended July 31, 2016
Increase in Revenue, Proﬁts and Dividend
Due to rise in occupancy rate and lowering of restitution cost by optimization

chg. from initial forecast chg. from last period

Dividend per Unit*

4,774yen +184yen+196yen* Dividend per unit might be abbreviated as DPU and earnings per share as EPU, hereafter.

Fiscal Highlights
Maintained High Occupancy, Succeeded in Raising Rents
and Acquired Five Properties
Internal Growth

External GrowthFund Raising Activities

Maintaining High Occupancy
while Succeeding to Raise Rents

Acquired Five Properties, Mostly Sponsor
Developed and Located in the Tokyo 23 Wards

Lengthened Duration and Lowered Financing Cost

Average Period Occupancy

Portfolio Rent Change
from Tennant Replacementsfrom Contract Renewals

96.8%+0.45%+1.27%+0.40%

increase from forecast+0.3%pt

FP July 2015 ﬁgureschg. on pervious FP

No. of Properties+0.12%

Acquisition Price+1.34%+0.21%

Average Building Age© 2016 Advance Residence Investment Corporation All Rights Reserved

NOI Yield

5 properties
8.6 billion yen
1.9 years
4.8%

Average Interest Rate
Average DurationFixed Interest Rate Debt Ratio

1.05%
4.3 years
92.6%-0.09%pt+0.4 years-5.7%pt2

Results for Fiscal Period ended July 2016
from February 1, 2016 to July 31, 2016

Revenue

Operating Income(1)12th FP Forecast(2)12th FP Results(2)-(1)

Initial Forecast
as of Mar. 11, 2016

Results forFP July 2016

Changes

15,363

15,444(255 properties)
Period avg. occupancy(255properties)
Period avg. occupancy

96.5%

96.8%

7,509

7,727

(Depreciation: 2,573)(Property taxes: 825)

(Depreciation: 2,568)(Property taxes: 823)

+80+217

5,967

5,951

(Funding cost*: 1,538)(Funding cost*: 1,510)

5,967

6,205

+238

Drawdown of
Retained Earnings**

00-

Dividend Amount

5,967

6,206+239

EPU (yen)

4,590

4,773+183

00-

Ordinary Income
Net Income

Drawdown of
Retained Earnings**

+238

Notes

Asset Acquisitions and Dispositions
Increase from RD Funabashi III acquisition
Decrease from disposition of Maison YachiyodaiSame Store
Increases from higher occupancy, etc.

Leasing Expenses
Net effect of additional buy/sell of real estate
Decrease in restitution costsDecrease in utility costs
G & A Expenses
Increases in management fees due to higher profits

Decrease in funding costs due to lower interest rate
Decrease in non-operating income

Retained earnings** after dividend:+13-28+95+5+88+49-7+26-5

33.5 bn yen

Units issued and outstanding
1,300,000 units

Advance Residence Investment Corporation(3)
11th FP Results(2)-(3)Results for
FP Jan. 2016

Changes

15,082(251 properties)
Period avg. occupancy+361

96.5%
7,489
(Depreciation: 2,531)(Property taxes: 811)

5,951
(Funding cost*: 1,539)+238+254

5,951+2540-

5,951+254

4,577+196

0-

Dividend per unit(yen)

4,590

4,774 +184

4,578 +196

Total Asset LTV

52.3%

52.2%

51.4% +0.8pt-0.1 pt* Funding costs include interest payments for loans and bonds as well as other ﬁnance fees.
** “Retained Earnings” means “Dividend Reserve” or “Retained Earnings for Temporary Diﬀerence Adjustment.

© 2016 Advance Residence Investment Corporation All Rights Reservedin million yenNotes
Asset Acquisitions and Dispositions
Contribution from 2016/1 & 2016/7 acquisitionDecrease from 2016/7 disposition
Same StoreIncreases from higher occupancy
Peak-season increases in key money &renewal fee income

Leasing Expenses
Net effect of additional buy/sell of 2016/1 &2016/7
Peak-season increases
Decrease in restitution costs
Increaseindepreciation&expensingofpropertytaxes
G & A Expenses
Increases in management fees due to higher profits
Increase in financing cost from increase inacquisition funding
Decrease in funding costs due to refinancing
No one-off profit

Retained earnings after dividend:+203-27+84+100-49-89+76-9-51-53+79-933.5 bn yen

Units issued and outstanding
1,300,000 units3

Earnings Guidance for FP Jan. 2017 & July2017
Advance Residence Investment Corporation

Revenue

Operating Income(1)12th FP Results(2)
13th FP Forecast(2)-(1)Results for
FP July 2016

Forecast for
FP Jan. 2017

ChangesNotes(announced Sept. 6, 2016)

15,444

15,399(255properties)
Period avg. occupancy(257 properties)
Period avg. occupancy

96.8%

96.2%

7,727

7,663

(Depreciation: 2,568)(Property taxes: 823(Depreciation: 2,596)(Property taxes: 836)

(3)
14th FP Forecast(3)-(2)

Forecast for
FP July. 2017

Changes-44-64

Asset Acquisitions and Dispositions
Increase from FP2016/7&2017/1 acquisitions
Same Store
Off-peak season decrease
Increase from change in contracts fromguaranteed rent to pass-through rent

Leasing Expenses
NeteffectfromFP2016/7&2017/1buy&sellofproperties
Oﬀ-peak season decrease
Increase in utility costs & depreciations
Increase due to change s in contracts fromguaranteed rent to pass-through rent
GA Expenses
Decrease in management fee & increase inconsumption tax settlement+105

15,709-196(260 properties)
Period avg. occupancy

+46

96.3%

-16+91-47
-32

7,723
(Depreciation: 2,636)(Property taxes: 847)

+309+59(Funding cost*: 1,432)

6,205

6,210+4

Drawdown of
Retained Earnings**

0349

-

Dividend Amount

6,206

6,559+353

EPU (yen)

4,773

4,600-173

Units issued and outstanding
1,350,000 units

Drawdown of
Retained Earnings**

0259+259

Begin drawing down (of more than 248 yen per unit***)of retained earnings for temporary diﬀerence adjustment

Dividend per unit (yen)

4,774

4,859+854,979 +120

Total Asset LTV

52.2%

49.7%

-2.5pt49.7%

Decrease in interest payment from refinancing& debt reduction
One off cost related to the public offering

Retained earnings after dividend:

Leasing Expenses
Increase from FP2017/1&2017/7 acquisitions
Peak season increase
Increase in depreciation & expensing ofproperty tax+81-1933.2bn yen

6,386(Funding cost*: 1,334)

+163

-38
-115
-47
-48+175

Decrease in interest payment from refinancing& debt reduction
No one off cost

+101+206,385+175

336-136,721+162

4,730

+130

249-10Retained earnings after dividend:

32.8bn yen

Units issued and outstanding
1,350,000 units-0.0pt* Funding costs include interest payments for loans and bonds as well as other ﬁnance fees. ** “Retained Earnings” means “Dividend Reserve” or “Retained Earnings for Temporary Diﬀerence Adjustment.
*** Number of units issued and outstanding are assumed to be 1,350,000 at the end of FP Jan. 2017.

© 2016 Advance Residence Investment Corporation All Rights Reserved+145

Increase in G & A expenses-15(Funding cost*: 1,510)+4

Asset Acquisitions and DispositionsIncrease from FP2017/1&2017/7 acquisitions
Same Store
Peak season increase

GA Expenses

6,210

Net Income

Notes(announced Sept. 6, 2016)

5,951

Ordinary Income

in million yen

4Earnings Guidance for FP Jan. 2017
Comparison of Old and New Forecast(1)(2)(2)-(1)
Old 13th FP Forecast New 13th FP Forecast
Original Forecast for
FP Jan. 2017
(announced March 11, 2016)

Revenue

Forecast for
FP Jan. 2017

in million yen

Changes

15,296

15,399(255properties)
Period avg. occupancy(257 properties)
Period avg. occupancy

96.4%

96.2%

+103

7,663

(Depreciation: 2,595)(Property taxes: 839(Depreciation: 2,596)(Property taxes: 836)

5,980

6,210

(Funding cost*: 1,510)(Funding cost*: 1,432)

Net Income

5,980

6,210+230

Drawdown of
Retained Earnings**

336

349

+12

Dividend Amount

6,316

6,559+242

EPU (yen)

4,600

4,600-

Drawdown of
Retained Earnings**

259

259-

Dividend per unit (yen)

4,859

4,859-

Total Asset LTV

52.3%

49.7%

-2.6ptOrdinary Income

Notes(announced Sept. 6, 2016)

7,493

Operating Income

Advance Residence Investment Corporation+169+230* Funding costs include interest payments for loans and bonds as well as other ﬁnance fees.
** “Retained Earnings” means “Dividend Reserve” or “Retained Earnings for Temporary Diﬀerence Adjustment.

© 2016 Advance Residence Investment Corporation All Rights Reserved

Asset Acquisitions and Dispositions
Increase from FP2016/7&2017/1 additional acquisitions
Same Store
Increase from change in contracts from guaranteed rent to pass-through rent
increase in key money, renewal fee and other income

Leasing Expenses
Net effect from FP2016/7 & 2017/1 additional buying & selling of properties
Increase due to change s in contracts from guaranteed rent to pass-through rent
Decrease in restitution and utility costs
GA Expenses
Decrease in consumption tax settlement

Decrease in interest payment from refinancing & debt reduction
One off cost related to the public offering+22+65+46+6-36+87+8+81-21

Maintained the previously disclosed per unit drawdown amountUnits issued and outstanding
1,350,000 units

5Advance Residence Investment Corporation20160906✥ This document is intended for the general public and for the sole purpose of disclosing Advance Residence Investment Corporation’s (hereafterADR) ﬁnancial report for Fiscal Period July 2016, Revised Forecast for Fiscal Period January 2017 and Forecast for Fiscal Period July 2017. Therefore
the document shall not constitute an oﬀer to sell or the solicitation of an oﬀer to buy securities of ADR. Before you invest, make sure that you
read the prospectus that ADR publishes and base your investment decision on your own judgment and responsibility.
✥ The information provided in the document is not necessarily presented in accordance with the Financial Instrument and Exchange Act, the Act onInvestment Trusts and Investment Corporations, Real Estate Brokerage Act and related laws and regulations nor the Tokyo Stock Exchange’slisting rules.
✥ Forward-looking statements provide current expectations of future events based on number of assumptions and include statements that do notdirectly relate to any historical or current facts. Forward-looking statements are not guarantees of future performance and the Company's actual
results may diﬀer signiﬁcantly from the results discussed in the forward-looking statements.
✥ Although the document is prepared with utmost care, ADR does not warrant the accuracy, completeness of the information contained. ADR may
also change, update or delete any information on this site without prior notice.