アドバンス・レジデンス投資法人（3269） – Notice Concerning Partial Revision of Internal Regulations of Asset Management Company (Fund Management Guideline)

For Immediate Release May 24, 2022 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 Partial Revision of Internal Regulations of Asset Management Company (Fund Management Guideline) AD Investment Management Co., Ltd. (ADIM), the asset management company to which Advance Residence Investment Corporation (ADR) entrusts the management of its assets, passed a resolution at its Board of Directors meeting held today on the partial revision (the “Revision”) of the “Investment Policy” stipulated in the management guideline that is an internal regulation of ADIM, as follows: 1. Overview of Revision For the aging of the portfolio of ADR, ADIM has carried out large-scale repair work and renovation of exclusively-owned areas of the buildings to prevent a loss, maintain, and enhance competitiveness. In order to utilize the expertise and create excellent investment opportunities regardless of the age of the property, ADIM will revise part of the acquisition criteria in the fund management guideline in relation to the management of the assets and abolish criteria related to the age of the property. At the same time, to make the investment criteria clearer in the fund management guideline, ADIM will add and enhance the wording of each of the items in the acquisition criteria. Please refer to the attached “Comparison Table of New and Old Fund Management Guidelines” for details. 2. Expected Date of Revision June 1, 2022 (Planned) 1 3. Future Prospect The Revision will not affect business performance of ADR. 4. Other * Home page of ADR: https://www.adr-reit.com/en/ Accompanying the Revision and pursuant to stipulations in the Financial Instruments and Exchange Act, ADR will submit an extraordinary report to the Commissioner of Kanto Finance Bureau dated June 1, 2022. 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/ 2 [Attachment] Comparison Table of New and Old Management Guidelines (Note) Only items with revisions are listed. Other rules that will remain unchanged are omitted. The revised portions are underlined. Old (Before Revision) New (After Revision) Section 2: Investment Policy Article 3: Investment Criteria Section 2: Investment Policy Article 3: Investment Criteria Paragraph 2: Acquisition Criteria: Paragraph 2: Acquisition Criteria: 1) Age of Property 1) Age of Property The age of the property shall, in principle, be 15 years or There shall be no criteria for the age of the property. less at the time of acquisition. 2) Location 2) Location The characteristics of the region and property, together with The characteristics of the region and property, together with the following subitems, will be considered comprehensively to the following subitems, will be considered comprehensively to determine the acquisition. Each of the subitems, however, will determine the acquisition. Each of the subitems, however, will be treated as an element for the purpose of criteria for be treated as an element for the purpose of criteria for acceptable transactions stipulated in the management acceptable transactions stipulated in the management guideline. guideline. a) Good or poor accessibility of the nearest station to the a) Accessibility from the nearest station to the inner-city inner-city area or central terminal station. area or central terminal station. b) Distance from the nearest station. b) Distance from the nearest station. (As a guideline, the distance shall be a 10-minute walk or (As a guideline, the distance shall be a 10-minute walk or shorter for single/compact types and a 15-minute walk or shorter for single/compact types and a 15-minute walk or shorter for family/large types.) shorter for family/large types. For a property with a plurality of unit types, the criteria applicable to the unit type that accounts for over 50% of the units.) 3) Structure 3) Structure The property shall, in principle, be of a reinforced concrete The property shall, in principle, be of a reinforced concrete (RC) structure or a steel-reinforced concrete (SRC) structure (RC) structure or a steel-reinforced concrete (SRC) structure. and meet the new seismic standards (seismic standards However, regardless of the type of the structure, the property applicable to buildings, etc. pursuant to the Building Standards is limited to one that meets the new seismic standards (seismic Act (Act No. 201 of 1950, including revisions thereafter) standards applicable to buildings, etc. pursuant to the Building revised in 1981. The same applies hereinafter.), or a Standards Act (Act No. 201 of 1950, including revisions comparable property. thereafter) revised in 1981. The same applies hereinafter.), or 5) Form of Rights b) Co-owned Property a comparable property. 5) Form of Rights b) Co-owned Property Acquisition of the property shall be determined on an The property may, in principle, be acquired. Specifically, individual basis, with attributes of other co-owners, acquisition of the property shall be determined on an credibility, and other factors in a comprehensive manner, individual basis, with attributes of other co-owners, assuming that the freedom of administration and disposal is credibility, and other factors in a comprehensive manner, ensured. assuming that the freedom of administration and disposal is ensured. 3 c) Leased Property c) Leased Property Property with land leasehold or fixed-term leasehold may, in Property may, in principle, be acquired. Specifically, details of principle, be acquired. Specifically, details of the leasehold the leasehold agreement shall be studied from the viewpoints agreement shall be studied from the viewpoints of of profitability, security, liquidity, etc. to determine the profitability, security, liquidity, etc. to determine the acquisition. d) Other For property with usufruct or property with security interest, Property with usufruct or property with security interest shall details of the usufruct or security interest shall be checked and not be acquired in principle. However, details of the usufruct studied from the viewpoints of profitability, security, liquidity, or security interest shall be checked and studied from the etc. to determine the acquisition. In principle, property with viewpoints of profitability, liquidity, etc. to determine the security interest shall not be acquired. acquisition. acquisition. d) Other 4