Advance Residence Investment : Notice Concerning Debt Financing and Repayment of Loans

October 21, 2021

For Immediate Release

Advance Residence Investment Corporation

Securities Code：3269

1-105Kanda-Jinbocho,Chiyoda-ku, Tokyo

Wataru Higuchi, Executive Director

Asset Management Company:

AD Investment Management Co., Ltd.

Takeshi Takano, President

Inquiries:

Isao Kudo, Director

TEL. [phone]

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: October 29, 2021)

1. Details of the Debt Financing

(JPY:million)

Planned

Scheduled

Principal

Repayment

Principal

Collateral/

No.

Lender

Draw-down

Interest Rate

Repayment

Date

Amount

date

Period

Repayment

Guarantee

1

1,000

Unfixed note 1

October

4.0 year

Pay in full

Sumitomo Mitsui Banking

October

31, 2025

Unsecured

on the

Corporation

29, 2021

Non-guaranteed

October

maturity date

2

500

Unfixed note 1

3.0 year

31, 2024

Total or Weighted Average

1,500

3.7 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 January 31, 2022 and ending on the principal repayment date.

(2) Purpose of the Debt Financing

To repay existing loan due on October 29, 2021.

1. Scheduled Contract Date of the Debt Financing October 27, 2021

1

[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. Details of the Loan to be Repaid

(JPY:million)

Planned

Scheduled

Principal

Repayment

Principal

Collateral/

Lender

Drawdown

Interest Rate note 2

Repayment

Date

Amount

date

Period

Repayment

Guarantee

Sumitomo Mitsui Banking

April

1,500

1.25425%

October

8.5 year

Pay in full

Unsecured

on the

Corporation

30, 2013

29, 2021

Non-guaranteed

maturity date

Note 2 The interest rate is fixed through interest rate swap.

Reference Material: Debt Financing Balance (As of October 29, 2021)

					(JPY: million)
		Before Refinancing note 3		After Refinancing note 4	Increase (Decrease)
	Short-term Loans note 5	2,700	2,700	-
	Long-term Loans note 5	186,009	183,409	(2,600)
Total Loans	188,709	186,109	(2,600)
Corporate Investment Bonds	34,000	36,600	2,600
Total interest-bearing debt	222,709		222,709	-

Note 3 As of October 24, 2021

1. The balance assumes that the following actions will be made by October 29, 2021
   Of the 6,100 million yen in loam that will become due for repayment on October 29, 2021, 1,500 million yen will be refinanced with the long-term loan on the repayment date, and 2,000 million yen will be refinanced with the same amount of long-term loan on the repayment date, as announced in the "Notice Concerning Debt Financing and Repayment of Loans" dated March 25, 2021. In addition, the remaining 2,600 million yen will be repaid with the proceeds from the issuance of investment corporation bonds and cash on hand as of the repayment date, as announced in the " Notice Concerning Issuance of Investment Corporation Bonds (Green Bond)" dated October 19, 2021.
2. Short-termloans 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/

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.