アドバンス・レジデンス投資法人（3269） – Brief Summary of Kessan Tanshin (23rd Financial Report)

March 17, 2022 Brief Summary of Kessan Tanshin (Financial Report) Advance Residence Investment Corporation (ADR / Securities Code: 3269) 23rd Fiscal Period (August 1, 2021 – January 31, 2022) 1. Summary of Key Financial Data Operating Revenues Operating Income Ordinary Income Net Income Earnings per Unit (EPU) Dividend per Unit (DPU) FFO per Unit ROE (semi-annual) 17,313 million yen 8,710 million yen 7,813 million yen 7,812 million yen 5,640 yen 5,692 yen 7,390 yen 6.7 % 2. 23rd Fiscal Period Highlights Total Assets Net Assets Net Assets per Unit NAV per Unit Net Asset Ratio End-of-period LTV 459,988 million yen 230,562 million yen 166,470 yen 318,125 yen 50.1 % 48.4 % EPU was 5,640 yen increased by 374 yen compared to the previous period due to gains on sales of properties and an increase in NOI resulting from property acquisitions and higher occupancy rates. DPU was 5,692 yen. The gain on sale (319 yen per unit) in this period is retained and a portion of the retained earnings of 128 yen per unit and the periodic drawdown of 242 yen per unit is included in the dividend. It is a 46 yen increase from the previous period, and it is a record high. Population inflow into Tokyo continues to decline due to a decrease in demand for transfers. As a result, the supply-demand balance has eased, especially for single types in Tokyo 23 wards, and we have eased our leasing conditions to improve the occupancy rate. As a result, the average occupancy rate during this period was 96.2% (+0.3pt year-on-year). On the other hand, there was firm demand for family-type properties, including those in central Tokyo, new contract rents were higher than year-on-year. However, together with the above-mentioned easing of leasing conditions mainly for single types in Tokyo 23 wards, the final rate of change in replacement was -0.6% (-1.9% year-on-year), the first negative figure in 7 years since the January 2015 period. Acquired 2 properties from third parties for a total acquisition price of 3.7 billion yen and sold 2 properties for a total acquisition price of 0.6 billion yen, recording a gain on sale of 0.4 billion yen. Even in the COVID19 pandemic, there was no change in the lending attitude of financial institutions to ADR. We borrowed a total of 19.2 billion yen (average interest expense 0.41%, average procurement period 8.2 years). As a result, the average interest expense as of the end of the current period was 0.61%, which was a reduction from 0.66% in the previous period. In addition, the remaining years were extended from 4.9 years to 5.0 years, and we were able to further strengthen our financial base. 3. Earnings Forecasts 24th Fiscal Period Forecast (February 1, 2022 to July 31, 2022) 25th Fiscal Period Forecast (August 1, 2022 to January 31, 2023) Net Income Ordinary Income Ordinary Income Operating Income Operating Income Operating Revenues Operating Revenues Earnings per Unit (EPU) 17,178 million yen 8,209 million yen 7,369 million yen 7,368 million yen 5,320 yen 5,700 yen 1.385 million units • 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. 17,088 million yen 8,235 million yen 7,369 million yen 7,368 million yen 5,320 yen 5,700 yen 1.385 million units Outstanding No. of Issued Units Outstanding No. of Issued Units Average Period Occupancy Average Period Occupancy Dividend per Unit (DPU) Dividend per Unit (DPU) Earnings per Unit (EPU) Number of Properties Number of Properties 275 96.5 % 275 96.4 % Net Income Please contact below with any inquiries you may have on this report. This document is an English-language summary of the Japanese financial report “Kessan Tanshin” disclosed in Japanese on March 17, 2022. AD Investment Management Co., Ltd. TEL: +81-3-3518-0480 ir@adr-reit.com FAX: +81-3-3518-0481