アドバンス・レジデンス投資法人（3269） – Notice Concerning Debt Financing and Repayment of Loans

January 25, 2022 For Immediate Release Advance Residence Investment Corporation Securities Code：3269 1-105 Kanda-Jinbocho, Chiyoda-ku, Tokyo Wataru Higuchi, Executive Director Asset Management Company: AD Investment Management Co., Ltd. Takeshi Takano, President Inquiries: Isao Kudo, Director TEL. +81-3-3518-0480 Notice Concerning Debt Financing and Repayment of Loans Advance Residence Investment Corporation (ADR) announced today its decision to borrow funds to repay loans coming due. 1. Debt Financing (draw-down date: January 31, 2022) (1) Details of the Debt Financing No. Lender Interest Rate Planned Draw-down Date Scheduled Amount Principal Repayment date (JPY:million) Repayment Period Principal Repayment Collateral/ Guarantee Shinsei Bank, Ltd. 500 Unfixed note1 Sumitomo Mitsui Trust Bank, Limited 2,600 Base rate note2 +0.21000% January 31, 2022 January 30, 2032 10.0 year Pay in full on the maturity date Unsecured Non-guaranteed Total or Weighted Average 3,100 10.0 year Note 1 The interest rate for the loan will be announced separately. Interest payment dates are the last business day of January, April, July, October, starting April 28, 2022 and ending on the principal repayment date. Interest payment dates are the last business day of January, April, July, October, starting April 28, 2022 and ending on the principal repayment date. The JBA 3 month yen TIBOR rate of two business days prior to the latest interest payment date will be used as the base rate to calculate the applicable interest rate for the current calculation period. If the calculation period is less than 3 months, the accrued interest will be calculated using the base rate applicable and according to the method described in the contract. The floating interest rate for the loan will not be announced in the future. Please refer to JBA website for the 3 month yen TIBOR. (http://www.jbatibor.or.jp/english/) 1 2 Note 2 [Provisional Translation] This English translation of the original Japanese document is provided solely for informational purposes. Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail. 1 (2) Purpose of the Debt Financing To repay existing loans due on January 31, 2022 and to fund the early repayment of loan as described in the “Notice Concerning Early Repayment of Loan” released on January 13, 2022. (3) Scheduled Contract Date of the Debt Financing January 27, 2022 2. Details of the Loans to be Repaid (JPY:million) No. Lender Scheduled Amount Interest Rate Repayment Period Principal Repayment Collateral/ Guarantee Principal Repayment date Shinsei Bank, Ltd. MUFG Bank, Ltd. Sumitomo Mitsui Trust Bank, Limited Mizuho Bank, Ltd. 500 Base rate note4 +0.14250% January 31, 2022 3.51 year October 7, 2021 2,600 Note3 Base rate note4 +0.30000% October 7, 2022 1.00 year Pay in full on the maturity date Pay in full on the maturity date Unsecured Non-guaranteed Unsecured Non-guaranteed Planned Drawdown Date July 31, 2018 Total or Weighted Average 3,100 1.40 year Note 3 For details, please refer to the “Notice Concerning Early Repayment of Loan” released on January 13, 2022. Note 4 The base interest rate is the JBA 1 month yen TIBOR. 1 2 Reference Material: Debt Financing Balance (As of January 31, 2021) Before Refinancing note 5 After Refinancing Increase (Decrease) 2,700 183,409 186,109 36,600 222,709 100 186,009 186,109 36,600 222,709 (JPY: million) (2,600) 2,600 – – – Short-term Loans note 6 Long-term Loans note 6 Total Loans Corporate Investment Bonds Total interest-bearing debt Note 5 As of January 30, 2022 6 Short-term loans are loans with maturity dates within one year from draw-down date and long-term loans are loans with maturity dates that are more than one year away. About Advance Residence Investment Corporation Advance Residence Investment Corporation is the largest residential J-REIT, investing in over 270 rental apartments located mostly in central Tokyo and in other major cities throughout Japan (AUM over 460 billion yen). ADR can be expected have a stable dividend in the long-term and can be considered as a defensive J-REIT, on back of the stable income from residential assets and with the largest dividend reserve among J-REITs. ADR’s website: https://www.adr-reit.com/en/ [Provisional Translation] This English translation of the original Japanese document is provided solely for informational purposes. Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail. 2