Advance Residence Investment Corporation
August1,2015toJanuary31,2016
11thFiscalPeriodendedJanuary31,2016EarningsPresentation
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
Index
TSETickerCode :3269 Abbreviation :ADR FiscalPeriodEnd :EndofJanuary&July MainSponsor :ItochuCorporation AssetType :Residential
TheLargestPortfolioAmongResidentialJ-REITs 3
SolidTrackRecord,SolidGrowth 4-5
ExecutiveSummaryof11thFiscalPeriodResults 6-7
InternalGrowth 8-14
ExternalGrowth 15-18
Finances 19-21
ManagementPolicies&EarningsGuidance 22-25
Appendix 27-54
ThepurposeofthismaterialistopresentyouwithanupdateonthefinancialperformanceofAdvanceResidenceInvestmentCorporation(the“Corporation”).WedonotintendtoconductanyadvertisingorsolicitationwithrespecttoanyunitsoftheCorporationinconnectionwiththismaterial.Nothinginthismaterialshouldberegardedasanoffertosellorasolicitationofanoffertobuy,arecommendationtosellorbuy,oradirectorindirectofferorplacementof,anyunitsoftheCorporation,exceptforthepurposeofmeetingcertainrequirementsundertheEuropeanAlternativeInvestmentFundManagersDirective(EuropeanDirective2011/61/EU)(the”AIFMD”)asdescribedbelow.
DisclaimerforDutchInvestors:TheprospectuscontainingtheinformationrequiredunderArticle23(1)and(2)oftheAIFMDasimplementedintheNetherlands
isavailableat[http://www.adr-reit.com/en/financial/en/financial/sonota/].
Anyreproductionoruseofthismaterialotherthanforitsintendedpurposeisprohibitedwithoutpriorpermission.
2
TokyoCentral7Wards
CentralTokyoex7Wards
TokyoMetropolitan
MajorRegionalCities
0% 2.0% 4.0% 6.0% 8.0%
5.0%
4.4%
4.3%
4.1%
6.6%
6.1%
5.6%
5.0%
* AccordingtodatacollectedbyADIMfromthelatestdisclosuresmadebyeachresidentialJ-REITsasofJan.31,2016.
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
TheLargest*PortfolioAmongResidentialJ-REITs
*** BookvalueNOIiscalculatedas“annualizedNOI”÷“bookvalueattheendofFP2016/1”.NOIisannualizeaccordingtoactualnumberofdaysofoperationforeachpropertyduringFP2016/1.YieldafterDepreciationiscalculatedas(annualizedNOI-depreciation)÷bookvalueasofendofFP2016/1.
InvestmentLocation(byacquisitionpriceasofApril14,2016)
NumberofProperties TotalLeasableArea Leasableunits AssetsUnderManagement(AcquisitionPrice)
asofJan.31,2016
asofApr.14,2016**
251properties 760,453㎡ 20,231units 425.8billionyen
255properties 769,415㎡ 20,451units 433.8billionyen
3
NOIYields(%)***bylocation(asofJan.31,2016)
** Fourassets-to-be-acquiredasofMarch11,2016areincluded.
PortfolioYield5.6%4.4%
BookvalueNOIyieldYieldafterDepreciation
56%
Offices&StoresDormitory
2%Large2%
Family15%
Compact25%
Single56%
Over500KyenUnder500Kyen
1%Under300Kyen
2%
Under250Kyen21%
Under150Kyen23%
Under100Kyen52%
Unittype(byno.ofunitsasofJan.31,2016)
Single&Compacttypeunits80%
1% 0.4%
Rents(byno.ofunitsasofJan.31,2016)
Unitrentsunder250Kyen96%
MajorRegionalCities19%
TokyoMetropolitan10%
CentralTokyoex732%
TokyoCentral739%
Over15min1%
10minto15min6%
5to10min35% Under5min
58%
Students9%
Guranteedrent15%
Individuals46%
Corporate30%Over10yrs
38%
Over5yrsto10yrs59%
Under5yrs3%
Tokyo23Wards72%
BuildingAge(byacquisitionpriceasofJan.31,2016)
WeightedAverageAge10.1yrs
WalkingMinutestoTrainStation(byacquisitionpriceasofApril14,2016)
Under10min93%
TenantCategory(byno.ofunitsasofJan.31,2016)
Pass-throughcontracttenants76%
FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016
15.1%10.7%
29.3%
44.9%
15.2%10.5%
29.3%
44.9%
16.7%10.1%
28.8%
44.4%
19.8%
10.0%
30.8%
39.4%
19.1%
9.7%
31.5%
39.7%
19.3%
9.7%
31.3%
39.7%
85.0
90.0
95.0
100.0
%
96.5%
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
TheLargestPortfolioAmong
ResidentialJ-REITs
Topping425bnyen
MaintainingHigh
OccupancyRate
SolidTrackRecord,SolidGrowth
4
210 221 251249204
18,113 19,078 20,23120,12217,640
IncreasingEPSbyImplementingVariousMeasures
* NOIyield=annualizedNOI÷bookvalue.TheNOIareannualizedaccordingtothenumberofactualdaysofoperationforeachpropertiesduringtheperiods.* Yieldafterdepreciation=(annualizedNOI-depreciation)÷bookvalue.
Yield
AUM
TokyoCentral795.5%
MajorRegionalCities96.6%
CentralTokyoex797.1%
PeriodEndOccupancy
Portfolio96.7%
TokyoMetropolitan98.9%11thPeriod10thPeriod8thPeriod6thPeriod
417.6bn 424.1bn 425.8bn393.8bn
StableYieldLevels
7thPeriod
401.8bn
No.ofLeasableUnits
No.ofProperties
Occup
ancy
96.4% 96.6%96.6% 96.4%
71%
9thPeriod
96.1%
240
19,572
410.5bn
Assets
6thFP 7thFP 8thFP 9thFP 10thFP 11thFP
Portfolio Tokyo Central 7 Central Tokyo ex 7 Tokyo Metropolitan Major Regional Cities
FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016
4.3% 4.3% 4.4% 4.4% 4.5% 4.4%
5.5% 5.5% 5.6% 5.6% 5.7% 5.6%
Book-valueNOIYieldYieldafterDepreciation
TokyoCentral7CentralTokyoex7TokyoMetropolitanMajorRegionalCities
01-2013 07-2013 01-2014 07-2014 01-2015 07-2015 01-2016
FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016
4,5774,5725,070
4,5234,4154,267
4,500
50%
55%
GuidelineRange
FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016
©2016Advance Residence Investment CorporationAllRightsReserved
LoweredLTVRangetoMaintainFlexibilityinPreparationforFutureFinancialVolatility
AcquisitionCapacity(@TotalAssetsLTVof53%)
approx.
7.0bnyen(estimateforFPendingJuly2016)
LoweredInterestRateWhileMaintainingDurationandFixedInterestRateDebt
Ratio
SteadilyGrowingEPU
OutstandingDividendReserve
33.5bnyen(afterFPJan.2016)
IncreasingNAVperUnit
inyen/unit
Liab
ilitie
s LTV
Deb
ts
Equitie
sDividen
dsNetAssetValue
* Incalculatingtheaverageinterestrate,theeffectofinterestrateswapsarereflected.Ifthereareanydiscrepanciesbetweentheprincipalamountoftheswapandtheunderliningamountofdebt,theswap’sprincipalamountwillbecappedattheunderliningamountofdebtinthecalculation.
* AppraisalLTV=(Outstandingamountofloanatthefiscalperiodend+Outstandingamountofbond)÷Appraisedvalueofthefiscalperiodendpropertyholdings
5
Fortheforeseeablefuture,maximumleveragewillbe50%forappraisalLTV,53%forTotalAssetsLTV.
max53%
5,130
4,5784,597 4,5934,615
* NAV/Unitiscalculatedasfollows.(FPendnetasset+FPendunrealizedgainorloss-dividendamountfortheFP)÷FPendnumberofissuedandoutstandingunits.
45.9%
52.4%52.3%
50.1%
47.2%47.3%
51.6%50.1%51.0%
52.1%51.2%
51.4%
max50%
6thFP 7thFP 8thFP 9thFP 10thFP 11thFP
AssetReplacements
4thFollow-OnOffering TotalAssetsLTVAppraisalLTV
AverageInterestRate*
FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016
92.7% 93.5%94.8%
99.8% 98.7% 98.4%3.8yrs 3.8yrs
4.1yrs 4.1yrs 4.1yrs 3.9yrs
DebtDurationFixedInterestRatio
1.28% 1.26% 1.23% 1.21%1.16% 1.14%
DividendPaidfromNetIncomeDrawdownfromDividendReserve
4,572NetGainonSales
503
FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016
216,739207,281198,261182,367171,850164,311
inyen/unit
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
ExecutiveSummaryCommittedinDeliveringStrongandStableDividend
ResultsforFiscalPeriodendedJan.31,2016
FiscalHighlights
ExternalGrowth
MaintainingHighOccupancywhileSucceedingtoRaiseRents
InternalGrowth FundRaisingActivities
4,578yen +48yenDividendperUnit* +6yen
chg.frominitialforecast chg.fromlastperiod
IncreaseinRevenue,ProfitsandDividend
SucceededinRaisingRents,MaintainedHighOccupancywhileAcquiringTwoRecentlyBuiltProperties
LoweredFinancingCostWhileMaintainingDurationandFixedInterestRateDebtRatio
6
* DividendperUnitmightbeabbreviatedasDPUhereafter.
取得価格
AcquiredTwoRecentlyBuiltPropertiesUsingOwnSourcingNetwork
AveragePeriodOccupancy
PortfolioRentChange
fromTennantReplacementsfromContractRenewals
96.5% +0.2%pt
+0.13% +0.12%+1.75% +1.34%+0.53% +0.21%
increasefromforecast
previousFPactualNo.ofProperties
AcquisitionPrice
NOIYield
2properties1.7billionyen
5.3%
AverageInterestRate
AverageDuration
FixedInterestRateDebtRatio
1.14% -0.02%pt3.9years -0.2years98.4% -0.3%pt
chg.onperviousFP
DuetoRiseinOccupancyandLowerFundingCost
NegativeGoodwillDrawdownPolicy
Drawdownofatleast335millionyenperFP
startingFPJan.2017
Equivalenttocompletelydrawingdown33.5billionyenoutstandingin100FiscalPeriodsorin50years’time
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
ResultsforFiscalPeriodendedJan.2016inmillionyen
fromAugust1,2015toJanuary31,2016
* Funding costs include interest payments for loans and bonds as well as other finance fees.** “RetainedEarnings”means“DividendReserve”.
(1)11thFPForecast
(2)11thFPResults (2)-(1)
(3)10thFPResults (2)-(3)
InitialForecastasofSept.8,2015
ResultsforFPJanuary2016
Changes Notes ResultsforFPJuly2015
Changes Notes
Revenue
15,015(250properties)
Periodavg.occupancy
96.3%
15,082(251properties)
Periodavg.occupancy
96.5%+66
IncreaseinoccupancyIncomefrompenalty
Increasesinkeymoney&renewalfeeincome
+33+12+21
14,998(249properties)
Periodavg.occupancy
96.6%+83
Fullperiodcontributionfrom2015/7acquisitionContributionfrom2016/1acquisition
DecreaseindividendfromSPCOff-peakdecreasesinkeymoney&renewal
feeincome
+176+19-33
-77
OperatingIncome7,454
(Depreciation:2,529)(Propertytaxes:811)
7,489(Depreciation:2,531)(Propertytaxes:811)
+34LeasingExpenses
IncreaseduetoriseinoccupancyDecreaseinutilityexpenses
G&AExpensesIncreasesinmanagementfeesduetohigherprofits
-15+27
-39
7,501(Depreciation:2,501)(Propertytaxes:760)
-11LeasingExpenses
Off-peakdecreasesinleasingexpensesIncreaseinpropertytaxesfrom2014acquisitionsG&AExpensesIncreaseinconsumptiontaxsettlementloss
+109-51
-46
OrdinaryIncome 5,889(Fundingcost*:1,560)
5,951(Fundingcost*:1,539)
+62 Decreaseinfundingcostsduetorepaymentofloansandbonds +22
5,945(Fundingcost*:1,546)
+6 Decreaseinfundingcostsduetorefinancing +18
NetIncome 5,889 5,951 +62 5,944 +6
DrawdownofRetainedEarnings** 0 0 - Retainedearningsafterdividend:33.5bnyen33.5bnyen 0 - Retainedearningsafterdividend:33.5bnyen33.5bnyen
DividendAmount 5,889 5,951 +62 5,943 +7
EPU(yen) 4,530 4,577 +47 Unitsissuedandoutstanding1,300,000units
Unitsissuedandoutstanding 4,572 +5 Unitsissuedandoutstanding1,300,000units
Unitsissuedandoutstanding
Dividendperunit(yen) 4,530 4,578 +48 4,572 +6FFOperUnit(yen) 6,476 6,524 +48 6,497 +27
FFOPayoutRatio 70.0% 70.2% +0.2pt 70.4% -0.2pt
AppraisalLTV 47.4% 45.9% -1.5pt 47.3% -1.4pt
7
InternalGrowth
8
-0.6%
0%
0.6%
FP01-2013 FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016
-0.10% -0.20% -0.20% -0.10% +0.00%+0.20%
+0.53%
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
ThreeConsecutiveFiscalPeriodRiseinRent
RentRiseSeeninBothTenantReplacements&Renewals
Renewals*
9
No.ofUnits Ratio OldRent NewRent Difference %Change
Increase 608 units 54.7% 79 83 +3 +4.98%
Unchanged 172 units 15.5% 20 20 - -
Decrease 331 units 29.8% 37 35 -1 -4.18%
Total 1,111 units 100.0% 137 140 +2 +1.75%
No.ofUnits Ratio OldRent NewRent Difference %Change
Increase 451 units 22.4% 62 63 +1.3 +2.20%
Unchanged 1,552 units 77.1% 183 183 - -
Decrease 9 units 0.4% 1 1 -0.05 -3.35%
Total 2,012 units 100.0% 248 249 +1.3 +0.53%
inmillionyen inmillionyen
TokyoCentral7Wards+1.44% CentralTokyo+3.17% MetropolitanArea +0.65% MajorRegionalCities-0.04%
5thFP 6thFP 7thFP 8thFP 9thFP 10thFP 11thFP 5thFP 6thFP 7thFP 8thFP 9thFP 10thFP 11thFP
872units 1,169units 1,015units 1,221units 955units 1,460units 1,111unitsNo.ofreplacements 1,201units 1,952units 1,408units 2,251units 1,695units 2,646units 2,012unitsNo.ofrenewals
PortfolioRentChange**
0%
Threeconsecutivefiscalperiodriseinrent
FPJan.2016Results
ShareofRentChange(byno.ofunits)
RentChangesinTenantReplacements
FPJan.2016Results
ShareofRentChange(byno.ofunits)
RentChangesinTenantRenewals
-5%
0%
5%
FP01-2013 FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016
-3.70% -2.70%-1.00% -0.01% +0.30% +1.30% +1.75%
+1.75%
FP01-2013 FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016
54.7%56.1%43.8%47.4%32.3%28.1%26.4%
15.5%15.1%19.7%21.9%30.1%19.6%17.2%
29.8%28.8%36.5%30.7%37.5%52.4%56.4%DecreaseUnchangedIncrease
TenantReplacements*
+0.53%
FP01-2011 FP07-2011 FP01-2012 FP07-2012 FP01-2013 FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016
-0.97%
-0.53% -0.43% -0.55%-0.21% -0.30%
-0.12% -0.09% +0.05% +0.12% +0.13%+0.13%
* Rentchangeforpass-throughunitsthatarebothoccupiedatthebeginningandtheendoftheperiod.
TokyoCentral7Wards+0.78% CentralTokyo+0.54% MetropolitanArea +0.11% MajorRegionalCities+0.12%
**Rentchangeforallunitsthatarebothoccupiedatthebeginningandtheendoftheperiod.
0%
50%
100%
FP01-2013 FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016
22.4%8.4%1.8%0.4%
77.1%91.3%97.5%97.3%98.2%96.1%97.3%
0.4%0.3%0.6%2.3%1.8%3.9%2.7%
FP01-2011 FP07-2011 FP01-2012 FP07-2012 FP01-2013 FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016
1stFP 2ndFP 8thFP 9thFP 10thFP 11thFP
-1.56 -1.46-0.93 -0.98 -0.90 -1.00
Turnover&RenewalRate
FP01-2011 FP07-2011 FP07-2014 FP01-2015 FP07-2015 FP01-2016
85%86%87%86%79%74%
55mth41mth
56mth42mth40mth43mth
Inco
me
Expe
nse
100
100(93.8%)
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
RiseinNER
ImprovementinOccupancy
AchievingInternalGrowthintheResidentialSector
KeyMoneyIncomeGraduallyRisingYearonYear
Thefiguresarecalculatedbydividingmonthlykeymoneyandleasingexpensesbymonthlyrent.
LeasingRelatedIncomeandExpensesunit:monthrent
ChangesinNetEffectiveRent(NER)
101.3(95.0%)
101.4(95.0%) 101.0
(94.7%)
101.9(95.5%)
101.2(94.9%)
101.3
99.9100.6
100.4
99.0 IndexedPeriodAvg.Occupancy(Avg.Occupancyoftheincludedproperties)
×
AchievingInternalGrowth
‣ The 116propertiesthat are included in above chartsare propertiesheldsince the startof the FP01-2011.Followingproperties are excludedfromthe calculation.1) Propertieswithguaranteedrent or propertieswhere the whole buildingislet toone tenant.This is because fluctuationin“keymoney”and‘leasingrelatedexpensesdonoteffectADR’srentalincomefromthoseproperties.2)PropertiestargetedforExpats,wheretherearenokeymoneypractices.
‣ Numberofnewcontractsforeachfiscalperiodisasfollows,FP01-2011)1,754,FP07-2011)1,076,FP01-2012)872,FP07-2012)1,028,FP01-2013)981,FP07-2013)1,030,FP01-2014)796,FP07-2014)927,FP01-2015)837,FP07-2015)922,FP01-2016)792.‣ NetEffectiveRent Index iscalculatedasmonthly rentalofnew contractsandcommonfeespluskeyMoneyIncome dividedby 24 month,minusleasingrelated expensesdividedby24monthandweightedaveragedbyeach116propertiesrentable space foreachfiscal periodandindexedbyusing
theFP01-2011figureas100.
101.7
101.2(94.9%)
IndexedNetEffectiveRent
0
10
101.4
101.1(94.8%)
101.6(95.3%)
103.2
0.76
-1.87 -1.81
0.350.30
-1.66
0.58
-1.55 -1.67
0.73
FP1-2011 FP7-2011 FP7-2014 FP1-2016
-1.66
FP1-2015
0.66
FP7-2015>>>
>>>>>>
>>>
>>>
NER=MonthlyRent+(KeyMoney-LeasingExpense)÷24months
oneyearavg.47mth
PromotingInternalGrowthThroughImprovementinLeasingTermsandOccupancy
oneyearavg.86%
RenewalRate
TurnoverPeriod KeyMoney
LeasingExpenseExpensenetofkeymoney
100
102.2(95.9%)
104.7 104.0
101.8(95.5%)
85
90
95
100
03-2010
01-201107-20
1101-20
1207-20
1201-20
1307-20
1301-20
1407-20
1401-20
1507-20
1501-20
16
TokyoCentra
l7WardsCentra
lTokyo
MetropolitanAr
ea
MajorRegional
Cities Single Compact Family&LargePortfolio
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
ChangesinRents&RentGaps
RentsReboundEspeciallyinTokyoCentral7Wards
11
RentGapsfortheWholePortfolio+0.71%
* Rentchangeforpass-throughunitsheldatJan.31,2016.RentatMarch31,2010indexedas100.
95.5→95.7→95.8→95.9
RecentChangeinRentfortheWholePortfolio
2014/7 2015/1 2015/7 2016/1
RentChange*
byRegionRentChange*
byTypeofUnit
a) +0.1pt rise in rent index for the whole portfolio. ThirdconsecutiveFPriseinrent.
b) Therearemarked recovery in rents in TokyoCentral7Wardswhere it saw the largestrent declinein thepastespecially inareassuchasShibuya,Roppongi,Azabu,etc.
c) By being selective in the initial investments, rents for ADR’sregionalportfolio are stable as awhole.However, there arediscrepancies between cities, specifically, Sendai is boomingbutOsakaisweak.
UpwardRentChangesCanBeExpectedMainlyinTokyo23WardattheTimeofTenantReplacements
a) Rentsroseinalltypesofunits.b) Therewasalso rentrise in Single typeunits wherevolume in
demandislargestandrentsstable.c) AlthoughthenumberofunitsheldbyADRissmall,Largetype
units where the rent declined the most in the past, saw asignificantuptick.
ArentgapisagapbetweentheunitrentofnewtenantsofFPJan.2016(treatingthiscurrentrentasapproximationofmarketrent)andunitrentofexistingtenants,aggregatedforthewholeportfolioforleasingcontractsthatarepass-throughs.ThecalculationismadeoneachpropertyandbyeachunittypeforpropertiesheldattheendofFPJan.2016.A+0.71%gapmeansthat,ifthegapistobeclosedbyriseinexistingtenants’rents,thantheportfoliorentwillriseby+0.71%.
+0.53% +0.32%
-0.01% -0.12%MarketRent MarketRent+0.01%
+0.25%+0.45%
+0.71%
92
96
100
03-2010
01-201107-20
1101-20
1207-20
1201-20
1307-20
1301-20
1407-20
1401-20
1507-20
1501-20
16
PortfolioTokyoCentral7WardsCentralTokyoMetropolitanAreaMajorRegionalCities b)
c)PortfolioSingleCompactFamilyLarge
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
Large-ScaleRepairs&ConversionWorks
Large-scaleRenovationExecutedintheFPJan.2016
12
ExamplesofWorksCompletedinFPJuly2015
BeforeandAfterof“R-11RESIDIATenjinbashi”
C-18RESIDIAKami-Ikebukuro C-47RESIDIAKasai R-11RESIDIATenjinbashi
before
after
•Exteriorwallrepairs•Tilepeelingprevention•Entranceupgrades
•LEDlightingsincommonarea•Entrancehallupgrades
•Hallwayfloorsheetupgrades•Unitdoorrefurbishment
BuildingAge
14yrsBuildingAge
16yrsBuildingAge
16yrsTotalCost: 37,200thousandyen
TotalCost: 44,800thousandyen
TotalCost: 58,600thousandyen
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
EquipmentRenewalsandUpgrades
P-53RESIDIARoppongi-Hinokichokoen C-46RESIDIAMejiro
TotalCost: 5,080thousandyenUpgrades: 1,844thousandyenIncreaseinMonthlyRent: up28.2%ProjectedRecuperationPeriod: 6years
P-73RESIDIAShibaura
13
30unitsof9propertiesreceivedequipmentrenewalsandupgrades-AverageMonthlyRent+18.5%
BuildingAge
17yrsBuildingAge
16yrsBuildingAge
24yrs
TotalCost: 3,780thousandyenUpgrades: 1,075thousandyenIncreaseinMonthlyRent: up11.0%ProjectedRecuperationPeriod: 8years
*ProjectedRecuperationPeriodsareperiodsprojectedtorecuperatetheupgradecost.Thepercentageincreaseinmonthlyrentistheratioofrentagainsttheassumedaskingrentfornon-upgradedunits.
TotalCost: 3,310thousandyenUpgrades: 1,200thousandyenIncreaseinMonthlyRent: up22.0%ProjectedRecuperationPeriod: 9years
before
after
before
afterafter
before
ExamplesofWorksCompletedinFPJanuary2016
Openkitchenconversionmakingtheliving-dinningroomfeelmorespacious
Conversiontoamorecompactandmoderndesignkitchen
Convertedtoabetter2DKfloorplanbyJapanesetowesternstyleroomchange&kitchenrelocation
No.ofProperties: 18properties
TotalInvestment: 871millionyen
PerPropertyInvestment: 48millionyen
No.ofUpgradedUnits: 138units
No.ofUnitsLeased-out: 129units
%IncreaseinRent: 14.7%
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MaintainingtheCompetitivenessofProperties
14
10YearPlannedWorks:Maximum43billionYen<10YearTotalProjectedDepreciationmillionyen
BySchedulingandExecutingProperMeasuresProperty’sCompetitivenessCanbeMaintained
4thFP 5thFP 6thFP 7thFP 8thFP 9thFP 10thFP 11thFP 12thFP 13thFP 14thFP 15thFP 16thFP 17thFP
DailyMaintenance
Large-scaleRenovation
EquipmentRenewalsandUpgradeWorks
Workscarriedoutataround15yearsintervals
Restorationworkscarriedoutatthetimeofeverytenantreplacement
Upgradesconsideredatthetimeofkitchen&bathroomequipmentrenewals(ataround15yearsintervals)
TrackRecordSincetheMerger(excludingdisposedproperties)
TrackRecordSincetheMerger(excludingdisposedproperties)asofMar.7,2016
FirstREITmanagementcompanytoberegisteredasFirst-Class-ArchitectOffice
0
400
800
1,200
1,600
FP07-2012 FP01-2013 FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016 (FP07-2016) (FP01-2017) (FP07-2017) (FP01-2018) (FP07-2018) (FP01-2019)
390310296134189165145112
2601526595
2328516485469440365332313352
228212185237
176117 625630597606558592576522452451387478330356
ExpensedRepairsCapEx(OtherRenovations)CapEx(Large-scaleRenovations)
P ro j e c t i o n
ExternalGrowth
15
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
NewAcquisitionsExecuteorAnnounced
* Acquisitionpricesareroundeddowntothenearestmillion.Theappraisalpricesatthetimeofacquisitionsarelisted.* NOIyields=appraisalNOI÷acquisitionprice×100%* Listedbuildingagesareasofthedateoftheacquisitionofeachproperty.
16
AcquiredPropertiesThroughOurOwnSourcingNetworkandfromtheSponsor’sPipeline
TokyoCentral7Wards MajorRegionalCities TokyoCentral7Wards TokyoCentral7Wards CentralTokyoex7 CentralTokyoex7
RESIDIAYoyogiII RESIDIASakae RESIDIANakanobuII RESIDIAOchanomizuII RESIDIABunkyo-HongoIII RESIDIAShin-OkachimachiII
Location Shibuya-ku,Tokyo Naka-ku,Nagoya Shinagawa-ku,Tokyo Chiyoda-ku,Tokyo Bunkyo-ku,Tokyo Taito-ku,Tokyo
Access 9min.walkfromJRYamanoteLineShinjukuStation
8min.walkfromMeijoLineYabachoStation
1min.walkfromAsakusaLineNakanobuStation
5min.walkfromGinzaLineSuehirochoStation
5min.walkfromMarunouchiLineHongo-3chomeStation
3min.walkfromOedoLineShin-OkachimachiStation
AcquisitionPrice 839million 868million 917million 821million 1,655million 4,650million
NOIYield 4.8% 5.7% 4.8% 4.9% 4.7% 4.6%
BuildingAge 7.7years 8.1years 2.0years 1.1years 1.7years 1.1years
LeasableUnits 31units 77units 44units 28units 48units 100units
Seller Third-partyThird-party ItochuCorporationItochuCorporationItochuCorporationItochuCorporation
AcquisitionsUsingOwnSourcingNetwork RecentlyBuiltSponsorDevelopedPropertiesLocatedwithintheTokyo23Wards
AcquisitionsExecutedinFPJan.2016 AcquisitionstobeExecutedinFPJuly.2016
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
PreparingforFutureExternalGrowth
17
* “ItochuGroupDevelopment Examples”arerental apartment property developmentsbyItochuCorporationand ItochuPropertyDevelopment Ltd.asof Feb.15,2016andlistedabove asa reference.Assuch,ADRisundernoobligationtoacquiretheproperties.
ExternalGrowthAchievedMainlyThroughSponsor’sPipeline
(basedonacquisitionprice)
SourcingfromThirdparties
* Original sellersto the bridge fundare re-categorized toeither “Sponsor Group”or“ThirdParty”
72%fromthirdparties
ChangesinVolumeofTradingInformation
PropertySourcesincetheMerger
Total19properties 1,610plannedunits approx.30billionyen
CentralTokyoex.7CentralTokyoex.7CentralTokyoex.7
LocationLocation PlannedUnits
⑨Minami-Kamata,Ota-ku 110⑩ Kameido,Koto-ku 129⑪ Kamata,Ota-ku 149⑫ Koenji-minami,Suginami-ku 58⑬ Kamiogi,Suginami-ku 58⑭ Koishikawa,Bunkyo-ku 43⑮ Ikegami,Ota-ku 42
7properties 589
OsakaOsakaOsaka
LocationLocation PlannedUnits
⑱ Toyotsucho,Suita 137⑲ Toyotsucho,Suita 60⑳ Oyodo-minami,Kita-ku,Osaka 84
3properties 281
DevelopmentsmostlyintheTokyo23Wards
Total6properties+
TokyoCentral7TokyoCentral7TokyoCentral7
LocationLocation PlannedUnits
① Shimouma,Setagaya-ku 41②Minami-Shinagawa,Shinagawa-ku 83③ Kanda-Awajicho,Chiyoda-ku 28④ Sangenjaya,Setagaya-ku 70⑤Mita,Minato-ku 27⑥Meguro,Meguro-ku 51⑦ Soto-Kanda,Chiyoda-ku 35⑧ Shin-Ogawamachi,Shinjuku-ku 23
8properties 358
ItochuGroupDevelopmentExamples
Completedpropertiesareindicatedinredletters.
LandPlotsWaitingforBuildingPermit
no.ofprojects
(Basedonsigningdateoflandplottransactioncontract)
* FY:FiscalyearendingMarchinthefollowingcalendaryear.
CompletionPhotoof⑩Kameido,Koto-kuproject
TokyoMetropolitanTokyoMetropolitanTokyoMetropolitan
LocationLocation PlannedUnits
⑯ Nakahara-ku,Kawasaki 3911properties 391
BuildingCompletionScheduleandVolume RentalResidenceDevelopmentTrackRecord
Pipeline,Morethan20billionyenofCompletedDevelopments
TheSponsorisConsistentlyAcquiringLandplotsforDevelopment
12properties approx.20blnyen7properties approx.10blnyen6properties approx.10blnyen
ThirdParty72%
SponsorGroup28%
FP07-2013
FP01-2014
FP07-2014
FP01-2015
FP07-2015
FP01-2016
712765550948744
1,245
0
5
10
15
2010 2011 2012 2013 2014 2015
5
129
657
0
10
20
Completed FY2015 FY2016 FY2017
CompletedInDevelopmentPre-buildingPermit
billionyen
126 511
1H20082H2008
1H20092H2009
Mid-TermAug2010
FP01-2011
FP07-2011
FP01-2012
FP07-2012
FP01-2013
FP07-2013
FP01-2014
FP07-2014
FP01-2015
FP07-2015
FP01-2016
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
AppraisalValue
AppraisalDirectCapRate•UnrealizedProfitandLoss
SummaryofEndofFPJanuary2016Appraisal
* Book value NOI yield is calculated as follows. The total of actual NOI of properties at the end of eachperiodareannualized accordingtotheactualnumberofdaysofoperationdividedbythetotalbookvalueatendofeachperiods.
* Dotedlineexpressestheperiodsthatarebeforethemerger.
0
Unrealizedprofitof80billionyen
* ForAssetsacquiredduringtheFPJan.2016,appraisalvalueatthetimeofacquisitionisusedasthepreviousappraisalvalue.
4.8%4.9%
+=
19.4%ofPortfolioBook-value
18
5.6%
5.0%
NCFImpact +0.45billionyenRiseinAppraisalValue +10.22billionyen DCRImpact +9.77billionyen
5.6%
4.8%
inmillionyen
5.3%5.1%4.8%
4.6%4.6%
5.5% 5.5%
5.3% 5.3%
5.5%
5.4%
5.4%
5.3%
5.3% 5.4%
5.3%
5.3%
5.2%
5.5%
5.2%
5.5%
5.1%
5.7%
CapRateNowLowerthantheBottomBeforetheFinancialCrisis
Appraisal(inmillionyen)Appraisal(inmillionyen) AppraisalNCF(inmillionyen)AppraisalNCF(inmillionyen) DirectCapRate(%)DirectCapRate(%) ActualNOIYield(%) UnrealizedProfitandLoss(millionyen)UnrealizedProfitandLoss(millionyen)UnrealizedProfitandLoss(millionyen)
EndofFPJan.’16 diffvslastFP EndofFPJan.’16 diffvslastFP EndofFPJan.’16 diffvslastFP EndofFPJan.’16 BookValue(a)Differencefromtheappraisal
(b)(b)/(a)
TokyoCentral7Wards 189,263 +4,270 8,354 +13 4.35% -0.10pt 5.0% 163,655 +25,607 15.6%
CentralTokyoex.7Wards 158,394 +3,383 7,218 +15 4.49% -0.09pt 5.6% 129,983 +28,410 21.9%
Tokyo23WardsTotal 347,657 +7,653 15,573 +28 4.42% -0.09pt 5.3% 293,638 +54,018 18.4%
TokyoMetropolitan 47,298 +710 2,388 -7 5.02% -0.09pt 6.1% 39,020 +8,277 21.2%
MajorRegionalCities 98,290 +1,866 5,143 +1 5.18% -0.10pt 6.6% 80,534 +17,755 22.0%
PortfolioTotal 493,245 +10,229 23,105 +21 4.62% -0.10pt 5.6% 413,193 +80,051 19.4%
-Cap-rateCompression&IncreaseinUnrealizedProfit-
232propertiesoutof251properties(decreasedin8properties)
RiseinAppraisalValue
PropertieswithUnrealizedLoss
Totalunrealizedloss0.95billionyenin6properties
(Previousperiod1.24billionyenin10properties)
80,05167,75556,03135,29023,59614,0006,4603,604311
-2,144-6,678-8,053
UnrealizedProfit/Loss
Book-valueNOIYieldAppraisalDirectCapRate
5.6%
4.7% 4.6%
Finances
19
50%
55%
GuidelineRange
FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
BuildingAStableFinancialBaseKeyFiguresonDebts
FP07-2015 Loan/BondRatio FP01-2016 Loan/Bond
Ratio
Loans 191.9bnyen 83% 187.7bnyen 83%
(Short-termloans) - - - -
Bonds 35.5bnyen 17% 38.5bnyen 17%
DebtOutstanding 227.4bnyen 100% 226.2bnyen 100%
TotalAssetLTV 51.6% 51.4%
AppraisalLTV 47.3% 45.9%
20
CreditRatings
JCR AA(Stable)
R&I A+(Stable)
DebtFinancingFPJanuary2016
Repayments DebtFinancing
AverageInterestRate
AverageInitialDuration
TotalAmount
*AmortizeddebtrepaymentsareincludedintheTotalAmountofRepayments.
11.0yen
1.02%
3.8years
LoweredFinancingCostWhileFinancinginLongerDebts
9.8bnyen
0.63%
7.7years
LTVManagement
max53%
45.9%
52.4% 52.3%
50.1%
47.2%
47.3%
51.6%50.1%
51.0%52.1%
51.2%
51.4%
max50%
Fortheforeseeablefuture,maximumleveragewillbe50%forappraisalLTV,53%forTotalAssetsLTV.
TotalAssetsLTVAppraisalLTV
AssetReplacements
4thFollow-OnOffering
FP07-2016FP01-2017
FP07-2017FP01-2018
FP07-2018FP01-2019
FP07-2019FP01-2020
FP07-2020FP01-2021
FP07-2021FP01-2022
FP07-2022FP01-2023
FP07-2023FP01-2024
FP07-2024FP01-2025
FP07-2025FP01-2026
3.52.0
2.5
3.01.54.02.0
8.04.08.0
1.85.5
1.82.47.96.88.4
11.712.211.46.5
14.8
6.0
12.97.5
19.1
9.413.511.0
16.7
0.63%0.73%0.82%
1.02%1.11%
FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016
1.28% 1.26% 1.23% 1.21% 1.16% 1.14% 7.7yrs7.9yrs7.7yrs7.9yrs7.0yrs
FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016
3.8yrs 3.8yrs 4.1yrs 4.1yrs 4.1yrs 3.9yrs
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
DiversifyingDuration,SettingUpaCommittedLineofCredit
LengthenedDuration,IncreasedRatioofFixedInterestDebtsandDiversifiedMaturityWhileLoweringFinancingCost
bnyen
Roundeddowntothenearest100millionyen
* Debtsprocuredduringtheperiodwhichwererepaidduringthesameperiodareexcluded.
* In Calculating the average interest rate for financing during the periods, amount outstanding and interest rate applicable at the end of each period is used.
FP01-2015Financing
* In Calculating the average debt duration for financing during the periods, amount outstanding at the end of each period is used to calculate the weighted average.
* In calculating the years to maturity, amortization is not counted.
FP07-20
14
Fina
ncing
* Short-term loans are excluded.
21
FP01-2016Financing
FP01-2014Financing
FP07-2014Financing
AverageInterestRate DebtDuration RatioofFixedInterestRateDebts
FP01-20
14
Fina
ncing
FP01-20
16
Fina
ncing
FP01-20
15
Fina
ncing
FP07--2015Financing FP
07-20
15
Fina
ncing
15billionyenContinuetostrengthenthefinancialbasebyfurtherflatteningthematurityladder
CommittedLineofCredit20billionyen
Avg.InterestRate Avg.RemainingDuration
FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016
1.6%1.3%0.2%5.2%6.6%7.3%
98.4%98.7%99.8%94.8%93.5%92.7%
FixedInterestRate FloatingInterestRateAvg.FundingRateDuringtheFP Avg.InitialDurationDuringtheFP
asofendofFP2016/1
1.38%1.25%
1.48%
1.01%1.18%
1.51%
1.18%1.05%
0.81% 0.83%0.98%
1.33%
0.94%1.06% 1.12%
1.00% 1.07% 1.18%0.98% 1.06%
LoansBondsAvg.InterestRateofMaturingDebt
FP2016/1AverageFundingInterestRate0.63%
ManagementPolicies&EarningsGuidance
22
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
DrawdownofReserveAccount
TheactualdividendswillbedecidedbytheADR’sboardbasedonacomprehensiveconsiderationofsuchfactorsasincrease/decreaseinportfoliorentandoccupancy,levelofcashreserves,levelofLTV,debtcosts.
23
Maximum50years(100FiscalPeriod)Drawdown
- Tooffsetrentincomelossduetoredevelopments&repairs- Tooffsetrentincomelossduetolossonsalesorimpairments- Tooffsetdilutionduetoincreaseinnumberofunits- Tooffsetlossduetounforeseenevents
● Tostabilizedividendreservewillbeusedforsuchpurposeas,
● ScheduleFPJuly2016 DividendreservetransferredtoTemporary
DifferencesAdjustmentReserveAccountFPJanuary2017 DividendfortheFPwillstartincludingthe
additionaldividend
DrawdownPayoutofAtLeast
335millionyenperFP
equivalentto259yenperunits@1,300,000units(asofFPJan.2016)
DPUFloorof4,500yenToBeMaintained
4,500yen
EPU+DrawdownPayout≥4,500yen EPU+DrawdownPayout<4,500yen
DrawdownPayout
EPUEPU
DrawdownPayout
Increasedrawdowntooffsetdeficit
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
EarningsGuidanceforFPJuly2016&Jan.2017inmillionyen
* Fundingcostsincludeinterestpaymentsforloansandbondsaswellasotherfinancefees.** “RetainedEarnings”means“DividendReserve”orafterendofFP2016/7“TemporaryDifferencesAdjustmentReserve”
(1)11thFPResults
(2)12thFPForecast (2)-(1)
ResultsforFPJan.2016
ForecastforFPJuly2016
(announcedMar.11,2016)
Changes NotesForecastforFPJan.2017
(announcedMar.11,2016)
Changes Notes
Revenue
15,082(251properties)
Periodavg.occupancy
96.5%
15,363(255properties)
Periodavg.occupancy
96.5%+280
NewlyAcquiredAssetsFullperiodcontributionfromFP2016/1&2016/7acquisition
SameStorePeakseasonincreaseinrentalincome
Peakseasonincreaseinkeymoney&renewalfee
+181
+10+88
15,296(255properties)
Periodavg.occupancy
96.4%-66
NewlyAcquiredAssetsFullperiodcontributionfrom
FP2016/7acquisitionSameStore
Off-peakdecreaseinrentalincomePeakseasonincreaseinkeymoney&renewalfee
+71
-19-118
OperatingIncome7,489
(Depreciation:2,531)(Propertytaxes:811)
7,509(Depreciation:2,573)(Propertytaxes:825)
+20
LeasingExpensesIncreaseduetoassetsacquiredinFP2016/1&2016/7
PeakseasonincreaseIncreaseindepreciation
Expensingofpropertytaxesfrom2015acquisitionsGAExpenses
IncreaseinG&Aexpenses
-46-125-29-13
-44
7,493(Depreciation:2,595)(Propertytaxes:839)
-16
LeasingExpensesIncreaseduetoassetsacquiredinFP2016/7
Off-peakdecreaseIncreaseindepreciation
DecreaseinrepairsExpensingofpropertytaxesfrom2015acquisitionsGAExpenses
IncreaseinG&Aexpenses
-14+91-16+35-13
-31
OrdinaryIncome 5,951(Fundingcost*:1,539)
5,967(Fundingcost*:1,538)
+15 Decreaseinnon-operatingincome -4 5,980(Fundingcost*:1,510)
+13 Decreaseinfundingcosts +29
NetIncome 5,951 5,967 +15 5,980 +13
DrawdownofRetainedEarnings** 0 0 - Retainedearningsafterdividend:33.5bnyen33.5bnyen 336 - Retainedearningsafterdividend:33.2bnyen33.2bnyen
DividendAmount 5,951 5,967 +15 6,316 +349
EPU(yen) 4,577 4,590 +13 Unitsissuedandoutstanding1,300,000units
Unitsissuedandoutstanding 4,600 +10 Unitsissuedandoutstanding1,300,000units
Unitsissuedandoutstanding
Dividendperunit(yen) 4,578 4,590 +12 4,859 +269FFOperUnit(yen) 6,524 6,569 +45 6,596 +27
FFOPayoutRatio 70.2% 69.9% -0.3pt 73.7% +3.8pt
AppraisalLTV 45.9% 46.7% +0.8pt 46.7% -
24
(3)13thFPForecast (3)-(2)
FP07-2016(forecast) FP01-2017(forecast) >>> >>> >>>
4,600 yen4,590 yen
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
DPUGrowthDriver
25
DPUof4,900yento5,000yenThroughPropertyAcquisitions,RentIncreasesandInterestPaymentReduction
EmphasisonDPU&NAV/UnitGrowthWhileRespondingtoChangesinBusinessEnvironment
PursueRentIncreaseWhileControllingLeasingExpenses
InternalGrowthLong-termFixedInterestRate
Borrowing,MaturityDiversification&ReduceFundingCost
AcquisitionMainlybySponsorSourcingandNegotiatedTransactions,Thereby,AvoidingtheHeatedMarket
FinancePolicyExternalGrowth
TotalDPUgrowthofaround100yen
*1 BecauseforecastfiguresofFPJan.2016andotherassumptionssuchasthatthenumberofoutstandingunitsweretostayunchangedtocalculatethefigures,actualfiguresmaydiffer.DepreciationonrepairsandrestorationworkprojectedinFP2017/7toFP2019/1.*2 AcquisitioncapacityiscalculatedusingtotalassetLTVof53%asalimitwhereacquisitionsarefinancedsolelyondebts.CalculationismadeonforecastfiguresoftotalassetsandoutstandinginterestbearingdebtsforFPJan.2017.*3 InterestpaymentreductionisbasedontheassumptionthatdebtsmaturinginFP2017/7&FP2018/1willberefinancedwithaninterestrateequivalenttowhatwasachievedinFP2016/1.
Increaseintaxesapprox.-60yen*1
(consumptiontax≒-30yenincreaseindepreciation≒-20yen)
FulluseofAcquisitionCapacity*2
40to50yen
ClosingofRentGap
60to70yen
InterestPaymentReduction
40to50yen*3
259yen
4,859yen
4,590yen
4,900yen
5,000yen
Target
DividendfromEPUDividendfromDrawdownTARGET
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
Note
26
Appendix
27
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
BalanceSheet
FiscalPeriodEndingJanuary31,2016FiscalPeriodEndingJanuary31,2016FiscalPeriodEndingJanuary31,2016FiscalPeriodEndingJanuary31,2016FiscalPeriodEndingJanuary31,2016FiscalPeriodEndingJanuary31,2016FiscalPeriodEndingJanuary31,2016 AssetsAssetsAssetsAssets CurrentassetsCurrentassetsCurrentassetsCurrentassets
CashanddepositsCashanddepositsCashanddeposits 11,812,806CashanddepositsintrustCashanddepositsintrustCashanddepositsintrust 9,080,483OperatingaccountsreceivablesOperatingaccountsreceivablesOperatingaccountsreceivables 245,548Short-terminvestmentsecuritiesShort-terminvestmentsecuritiesShort-terminvestmentsecurities 3,000,000PrepaidexpensesPrepaidexpensesPrepaidexpenses 362,493OtherOther 8,847AllowancefordoubtfulaccountsAllowancefordoubtfulaccountsAllowancefordoubtfulaccounts △14,118CurrentassetsCurrentassetsCurrentassets 24,496,061
FixedassetsFixedassetsFixedassetsFixedassetsProperty,plantandequipmentProperty,plantandequipmentProperty,plantandequipment
BuildingsBuildings 65,059,399StructuresStructures 16,812MachineryandequipmentMachineryandequipment 38,473Tools,furnitureandfixturesTools,furnitureandfixtures 83,075LandLand 69,855,727BuildingsintrustBuildingsintrust 129,471,548StructuresintrustStructuresintrust 95,100MachineryandequipmentintrustMachineryandequipmentintrust 100,496Tools,furnitureandfixturesintrustTools,furnitureandfixturesintrust 217,176LandintrustLandintrust 145,036,252ConstructioninprogressConstructioninprogress -Property,plantandequipmentProperty,plantandequipment 409,974,062
IntangibleassetsIntangibleassetsIntangibleassetsLeaseholdrightLeaseholdright 1,071,902LeaseholdrightintrustLeaseholdrightintrust 2,147,139OtherOther 130IntangibleassetsIntangibleassets 3,219,173
InvestmentsandotherassetsInvestmentsandotherassetsInvestmentsandotherassetsSecuritiesinvestmentsSecuritiesinvestments -Long-termprepaidexpensesLong-termprepaidexpenses 765,499GuaranteedepositsGuaranteedeposits 511,275GuaranteedepositsintrustGuaranteedepositsintrust 1,026,585OtherOther 1,632InvestmentsandotherassetsInvestmentsandotherassets 2,304,993
FixedassetsFixedassetsFixedassets 415,498,228 DeferredassetsDeferredassetsDeferredassetsDeferredassets
InvestmentunitissuanceexpensesInvestmentunitissuanceexpensesInvestmentunitissuanceexpenses 2,719InvestmentcorporationbondissuancecostsInvestmentcorporationbondissuancecostsInvestmentcorporationbondissuancecosts 111,024DeferredassetsDeferredassetsDeferredassets 113,743
TotalAssetsTotalAssetsTotalAssetsTotalAssets 440,108,033
inthousandyen
inthousandyen
28
FiscalPeriodEndingJanuary31,2016FiscalPeriodEndingJanuary31,2016FiscalPeriodEndingJanuary31,2016FiscalPeriodEndingJanuary31,2016FiscalPeriodEndingJanuary31,2016FiscalPeriodEndingJanuary31,2016FiscalPeriodEndingJanuary31,2016
LiabilitiesLiabilitiesLiabilitiesLiabilities CurrentliabilitiesCurrentliabilitiesCurrentliabilitiesCurrentliabilities
OperatingaccountspayableOperatingaccountspayableOperatingaccountspayable 289,552
CurrentportionofinvestmentcorporationbondCurrentportionofinvestmentcorporationbondCurrentportionofinvestmentcorporationbond 8,000,000
Currentportionoflong-termloanspayableCurrentportionoflong-termloanspayableCurrentportionoflong-termloanspayable 27,725,822
Accountspayable-otherAccountspayable-otherAccountspayable-other 1,249,304
AccruedexpensesAccruedexpensesAccruedexpenses 193,799
AccruedconsumptiontaxesAccruedconsumptiontaxesAccruedconsumptiontaxes 40,690
AdvancesreceivedAdvancesreceivedAdvancesreceived 65,843
OtherOther 27,907
CurrentliabilitiesCurrentliabilitiesCurrentliabilities 37,592,920
Long-termliabilities Long-termliabilities Long-termliabilities Long-termliabilities InvestmentcorporationbondInvestmentcorporationbondInvestmentcorporationbond 30,500,000
Long-termloanspayableLong-termloanspayableLong-termloanspayable 160,054,329
TenantleaseholdandsecuritydepositsTenantleaseholdandsecuritydepositsTenantleaseholdandsecuritydeposits 1,220,344
TenantleaseholdandsecuritydepositsintrustTenantleaseholdandsecuritydepositsintrustTenantleaseholdandsecuritydepositsintrust 3,079,261
Long-termliabilitiesLong-termliabilitiesLong-termliabilities 194,853,935
LiabilitiesLiabilitiesLiabilitiesLiabilities 232,446,856
NetassetsNetassetsNetassetsNetassetsNetassets
Unitholders'equityUnitholders'equityUnitholders'equityUnitholders'equity
Unitholders'capital,grossUnitholders'capital,grossUnitholders'capital,gross 114,936,698
SurplusSurplusSurplus
CapitalsurplusCapitalsurplus 53,220,279
ReservefordividendReservefordividend 33,552,162
Unappropriatedretainedearnings(undisposedloss)Unappropriatedretainedearnings(undisposedloss) 5,952,037
SurplusSurplus 92,724,479
Unitholders'equityUnitholders'equityUnitholders'equity 207,661,177 NetassetsNetassetsNetassetsNetassets 207,661,177 LiabilitiesandnetassetsLiabilitiesandnetassetsLiabilitiesandnetassetsLiabilitiesandnetassetsLiabilitiesandnetassets 440,108,033
inthousandsyeninthousandsyen
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
FiscalPeriodEndingJanuary31,2016(fromAugust1,2015toJanuary31,2016)
FiscalPeriodEndingJanuary31,2016(fromAugust1,2015toJanuary31,2016)
FiscalPeriodEndingJanuary31,2016(fromAugust1,2015toJanuary31,2016)
FiscalPeriodEndingJanuary31,2016(fromAugust1,2015toJanuary31,2016)
A.RevenuefromPropertyLeasingA.RevenuefromPropertyLeasingA.RevenuefromPropertyLeasing
RentalRental
Rentincome 13,504,694Facilitycharge 654,669Parkingfee 446,853
Subtotal 14,606,218OtherrevenuesrelatedtopropertyleasingOtherrevenuesrelatedtopropertyleasing
Incomefromleasingrights,etc. 63,202Miscellaneousincome 413,073
Subtotal 476,275
Totalrevenuesfrompropertyleasing 15,082,493
B.RentalExpensesB.RentalExpensesB.RentalExpenses
TaxesandDuties 811,888Propertymanagementfees 1,024,528Utilities 252,971Repairsandmaintenance 576,129Insurance 24,828Trustfee 70,966Otherrentalexpenses 732,420Depreciationandamortization 2,531,022
Totalrentalexpenses 6,024,756
C.OperatingIncomefromPropertyLeasingActivities(A-B)C.OperatingIncomefromPropertyLeasingActivities(A-B)C.OperatingIncomefromPropertyLeasingActivities(A-B) 9,057,737
FiscalPeriodEndingJanuary31,2016(fromAugust1,2015toJanuary31,2016)
FiscalPeriodEndingJanuary31,2016(fromAugust1,2015toJanuary31,2016)
FiscalPeriodEndingJanuary31,2016(fromAugust1,2015toJanuary31,2016)
FiscalPeriodEndingJanuary31,2016(fromAugust1,2015toJanuary31,2016)
FiscalPeriodEndingJanuary31,2016(fromAugust1,2015toJanuary31,2016)
Operatingrevenue Operatingrevenue Operatingrevenue Rentrevenue-realestateRentrevenue-realestate 15,082,493DividendincomeDividendincome -GainonsalesofrealestatepropertiesGainonsalesofrealestateproperties -OperatingrevenueOperatingrevenue 15,082,493
Operatingexpenses Operatingexpenses Operatingexpenses ExpensesrelatedtorentbusinessExpensesrelatedtorentbusiness 6,024,756AssetmanagementfeeAssetmanagementfee 1,039,662AssetcustodyfeeAssetcustodyfee 9,609AdministrativeservicefeesAdministrativeservicefees 63,032Directors'compensationsDirectors'compensations 3,600TaxesandduesTaxesanddues 260,119ProvisionofallowancefordoubtfulaccountsProvisionofallowancefordoubtfulaccounts 1,205BaddebtsexpensesBaddebtsexpenses -OtheroperatingexpensesOtheroperatingexpenses 191,307OperatingexpensesOperatingexpenses 7,593,292
OperatingincomeOperatingincomeOperatingincome 7,489,201Non-operatingincomeNon-operatingincomeNon-operatingincome
InterestincomeInterestincome 11,066InterestonsecuritiesInterestonsecurities 1,552ClaimcompensationincomeClaimcompensationincome -ReversalofdistributionspayableReversalofdistributionspayable 2,912ReversalofallowancefordoubtfulaccountsReversalofallowancefordoubtfulaccounts 7,050Other 41Non-operatingincomeNon-operatingincome 22,623
Non-operatingexpensesNon-operatingexpensesNon-operatingexpensesInterestexpensesInterestexpenses 1,112,068InterestexpensesoninvestmentcorporationbondsInterestexpensesoninvestmentcorporationbonds 209,135AmortizationofinvestmentunitissuanceexpensesAmortizationofinvestmentunitissuanceexpenses 3,316InvestmentunitissuanceexpensesInvestmentunitissuanceexpenses 16,908BorrowingrelatedexpensesBorrowingrelatedexpenses 218,609OtherOther 133Non-operatingexpensesNon-operatingexpenses 1,560,172
Ordinaryincome Ordinaryincome Ordinaryincome 5,951,652 IncomebeforeincometaxesIncomebeforeincometaxesIncomebeforeincometaxes 5,951,652
Incometaxes-currentIncometaxes-currentIncometaxes-current 605IncometaxesIncometaxesIncometaxes 605
NetincomeNetincomeNetincome 5,951,047RetainedearningsbroughtforwardRetainedearningsbroughtforwardRetainedearningsbroughtforward 989
Unappropriatedretainedearnings(undisposedloss)Unappropriatedretainedearnings(undisposedloss)Unappropriatedretainedearnings(undisposedloss) 5,952,037
ProfitandLossStatement
inthousandsyeninthousandsyen
29
+24Samestorerentrevenueincrease
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
ResultsforFiscalPeriodendedJanuary2016
MaintainedHighOccupancy,DecreasedFundingCost
InternalGrowth
4,572 4,577
InitialDividendForecast
4,530ActualDividend
4,578
InitialGuidance
ActualDividend
4,572
+48
-4Increasein
restitutioncosts
FP2015/7Result
ChangesfromInitialEarningsGuidance(perunityen)
ChangesfromPreviousFiscalPeriodendedJuly2015Earnings(perunityen)
ExternalGrowth InternalGrowth Finance
inmillionyen
inmillionyen
EPU
Draw
down
perU
nit
+5
4,530
4,577
Increaseinrentrevenueduetoincreasein
occupancy
+51
No.ofProperties 250Occupancy 96.3%
No.ofProperties 249Occupancy 96.6%
One-offitem(Penaltyincome)
+14
Lowerfundingcost&increaseinnon-operating
profits
+14
30
FP2016/1Result
ActualDividend
4,578
fromAugust1,2015toJanuary31,2016
Decreaseininterestpaymentandincreaseinnon-operatingprofits
+15
No.ofProperties 251Occupancy 96.5%
FP2016/1Result
-32Increasein
managementfeeduetohigherprofit
-43Samestoreincreaseinrepairsanddepreciation
-39Fullperiod
expensingofpropertytaxesonproperties
acquiredin2014
-35Increasein
consumptiontaxsettlementloss,
etc.
FinanceNo.ofProperties 251
Occupancy 96.5%
InitialGuidance
FPJan.2016Results diff
Revenue
Operatingincome
Ordinaryincome
Netincome
Earningsperunit(yen)
Dividendperunit(yen)
15,015 15,082 +66
7,454 7,489 +34
5,889 5,951 +62
5,889 5,951 +62
4,530 4,577 +47
4,530 4,578 +48
FPJuly2015Results
FPJan.2016Results diff
Revenue
Operatingincome
Ordinaryincome
Netincome
Earningsperunit(yen)
Dividendperunit(yen)
14,998 15,082 +83
7,501 7,489 -11
5,945 5,951 +6
5,944 5,951 +6
4,572 4,577 +5
4,572 4,578 +6
+47
+84Rentrevenueincreaseduetonewlyacquired
properties
+6
4,6004,5904,577
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
EarningsGuidanceforFPJuly2016&Jan.2017
ExternalGrowth
AimingforEPUGrowth,DividendwithLowDownwardRisk
ActualDividend
4,578
DividendForecast
4,859DividendForecast
4,590
EPU+DrawdownPayout≥4,500yen
-10Expensingof
propertytaxesonproperties
acquiredin2015
Rentrevenueincreaseduetonewlyacquired
properties
+103
EPU+DrawdownPayout<4,500yenInternalGrowth
FP2017/1Result255properties
Occupancy96.4%
FP2016/1Result251properties
Occupancy96.5%
-43Declinein
operatingincomeduetooff-peak
season
inmillionyen FP2016/1Result(a) FP2016/7Forecast(b) diff(b-a) FP2017/1Forecast(b) diff(c-b)
Revenue 15,082 15,363 +280 15,296 -66
Operatingincome 7,489 7,509 +20 7,493 -16
Ordinaryincome 5,951 5,967 +15 5,980 +13
Netincome 5,951 5,967 +15 5,980 +13
Earningsperunit(yen) 4,577 4,590 +13 4,600 +10
Dividendperunit(yen) 4,578 4,590 +12 4,859 +269
31
-3Decreasein
non-operatingincome
4,500
Atleast335millionyenofretainedearningswillbedrawndowneveryFP
startingFP2017/1
FP2016/7Result255properties
Occupancy96.5%
-34Increasein
G&Aexpenses
259
inperunityen
EPU
DrawdownperUnit
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
PortfolioDiversificationPolicy
NumberofBedrooms ~30㎡ ~40㎡ ~50㎡ ~60㎡ ~70㎡ ~80㎡ ~90㎡ over90㎡
Studio S S C C L L L L
1Bedroom S C C C L L L L
2Bedroom - C C F F F F L
3Bedroom - - F F F F F L
4Bedroom~ - - - - F F F L
Unittypes Investmentratio*3
Single ~50%
Compact 20~40%Family 20~40%Large ~10%
Unittypes Investmentratio*3
Dormitory upto20%
InvestmentRegions*1InvestmentRegions*1Investmentratio*2Investmentratio*2
InvestmentRegions*1InvestmentRegions*1
Originally Revised
Tokyo23WardsTokyo23Wards70~
100%TokyoCentral7Wards 40~60%
70~
100%CentralTokyoex7Wards 20~40%
70~
100%
OtherRegionsOtherRegions
0~30%TokyoMetropolitan(ex.Tokyo23Wards) 5~20% 0~30%
MajorRegionalCities 5~20%
0~30%
Studio 1R,1K,STUDIO1Bedroom 1DK,1LDK2Bedroom 2DK,2LDK,1LDK+S3Bedroom 3DK,3LDK,2LDK+S
4Bedroom~ 4DK,4LDK,3LDK+S,orunitswithmorerooms
S = SingleTypeUnits mostlyforsingles C = CompactTypeUnits mostlyforsingles,couplesorsmallfamilies F = FamilyTypeUnits mostlyforfamilies L = LargeTypeUnits mostlyforforeignexecutives
DormitoryTypeUnits Theunitssharecommonbathroomsandlaundryspaceswithinintheproperty
■ In addition to theabove,weinvest in thefollowing unittype.
*Note
1. OftheTokyo23Wards,Chiyoda,Shibuya,Shinjuku,Meguro,SetagayaandShinagawawardsareclassifiedasTokyoCentral7WardsandtheremainingwardsareclassifiedasCentralTokyo.OtherRegionsareTokyoMetropolitanArea(TokyoMetropolisexcludingtheTokyo23Wards,prefecturesofKanagawa,SaitamaandChiba)andMajorRegionalCities.
2. Investmentratiosarecalculatedbasedonacquisitionprice.
3. Investmentratiosarecalculatedbasedonleasablearea.
Unit-typeDefinition
Floorplan Unittypes
Life&SeniorHouseKohoku2,CollegeCourtTanashiandCocofumpHiyoshiarecategorizedasDormitorytypeduetotheircharacteristics
32
* Revisedtheinvestmentregionbysimplifyingthecategorytojusttwo,Tokyo23WardsandOtherRegionsandsettheInvestmentratioguidelineforeachregion.
Single
5.2% 5.6%*4BookValueNOIYield
12.5yrs*5 10.1yrsBuildingAge
atthetimeofmerger afterthetransactions
ImprovingYieldandReducingAverageAge
ThefiguresinthisslideareallbasedondataasofApril14,2016.*1 WeightedaverageNOIyieldofacquisitions
=TotalannualNOIasenteredontheappraisalofacquisitions+Totaloftheacquisitionprices×100%*2 WeightedaverageNOIyieldofdispositions=TotalactualannualNOI÷Totalofthehistoricalacquisitionprices×100*3 Weightedaveragebuildingageisacquisitionpriceweightedaverageasofthetimeofacquisitionordisposition.*4 The followingfiguresareusedtocalculatedthe BookValueNOIYield.AnnualizedNOI÷FPJan.2016endbook value,wherethe
NOI isannualizedusingthe actual days inoperationduringtheFPJan.2016.For the asset acquiredafter endof FPJan.2016toApril14,2016,theappraisalNOIisusedforannualizedNOIandtheacquisitionpriceisusedforbookvalue.
*5 WeightedAverageageofbuildingsheldatthetimeofmergerasofApril14,2016.*6 The SponsorGroupappliesto Itochu Corporation,whoisthe parent companyofADR’sasset management company,andits
subsidiaries.*7 The assetsacquired from the Sponsor Groupincludes 16propertiesdevelopedby the Sponsor Groupand6propertieswhich
were not developed but warehousedaccording toAdvance Residence’srequest.The 16properties’acquisitionprice total is28.7billionyen.The6properties’acquisitionpricetotalis9.1billionyen.
*8 Bridge Funds are property funds which are often TK and where ADR has a right of first refusal on the assets undermanagement.
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
BuildingaHighQualityPortfolio
Single Compact Family Large Dormitory Others Total
TokyoCentral7Wards +813 +5 -37 -170 0 -2 +609CentralTokyoex7 +1,725 +704 +430 +13 0 +12 +2,884
Tokyo23Wards +2,538 +709 +393 -157 0 +10 +3,493TokyoMetropolitan +398 +10 -72 0 -748 +1 -411MajorRegionalCities +1,809 +1,006 +263 +55 0 0 +3,133
OtherRegions +2,207 +1,016 +191 +55 -748 +1 +2,722TotalTotal +4,745 +1,725 +584 -102 -748 +11 +6,215
innumberofresidentialunits
TransactionssincetheMerger
TheSponsorGroup•6•7 BridgeFunds•8
ThirdpartyandOthers Total
No.ofProperties 22 42 45 109TotalAcquisitionValue(bnyen) 37.8 52.4 66.3 156.6
ShareofSources 24.2% 33.5% 42.3% 100.0%
AcquisitionFocusedonSingle-typeUnits
BalancedandDiversifiedAcquisitionSources
Acquisitions Dispositions
No.ofProperties 109 42
TotalValue(AcquisitionPrice) 156.6bnyen 68.7bnyen
WeightedAverageNOIYield 5.9%*1 4.6%*2
WeightedAverageBuildingAge*3 4.8yrs 13.1yrs
AcquisitionsandDispositionsSincetheMerger
33
asofApril.14,2016
UnittypeInvestmentRatio(byleasablearea)
attimeofMerger
asofApril14,2016
0% 25% 50% 75% 100%
4%
3%
2%
3%
5%
9%
26%
29%
27%
26%
36%
30%
Single Compact Family Large Dormitory Offices&Stores
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
SeniorHousingMarket
34
GrowingSeniorHousingMarketInvestmentPolicy
SeniorHousingHoldings
Advantages Specifics
Location
Feature
RentContract
Size
Operator
Residentialarea8minwalkfromYokohamaSubwayGreenline,Hiyoshi-HonchoStation
Facilitiestoprovidemedicalcare
Dayservice,homenursing,pharmacy,nursingoffice,medicalclinic
Lowupfrontpayment,reasonablerent Payonly2mth.depositupfront
Largerthanminimum500millionyen Acquisitionprice:1,050millionyen
PartofTSE1stSect.listedGroup GakkenCocofumpCorporation*
S-22Life&SeniorHouseKohoku2FP01-2016ActualNOIYield7.3%
S-29CocofumpHiyoshiFP01-2016ActualNOIYield6.7%
GrowingSeniorHousingMarket
RiskPremiumConsiderationConsideringoperationalrisksandpossibilityofissuesarisingfromoperatorcollectingupfrontlump-sum payment from tenants, certainamountofriskpremiummustbeaccounted.
Withtherecentriseinprice,reasonablypricedpropertiesarecurrentlynon-existent.
PreferenceTowardsRSHSSBetweenprivatenursinghomeandRegisteredSenior Housing with Supportive Servises(RSHSS), RSHSS are the preferred type ofasset.
They are easier to convert to regular rentalmultifamily residence andaremore stable tooperate having an affordable move-in fee (2month deposit) and a relatively low rentburden.
100
125
150
175
200
2010 2015 2020 2025 2030 2035 2040NationTotal Sapporo Sendai Tokyo23Wards YokohamaNagoya Kyoto Osaka Fukuoka
Populationtrendof65yearsorolder(Indexedusing2010figureas100)
Healthytoweak MinorNursingNeeds MajorNursingNeeds
PrivateRetirement/NursingHomes
PublicNursingHomesPublic
RetirementHomes
RegisteredSeniorHousingwithSupportiveServices
Area TokyoMetropolitan
Location Yokohama,Kanagawa
Acquisitionprice 1,670millionyen
No.ofrentableunits 78units
Operator SeikatsuKagakuUn-EiCo.,Ltd.
LevelofOut-of-pocketMonthlyBurden
Dependency
500Kyenandabove
400Kto500Kyen
300Kto400Kyen
250Kto300Kyen
160Kto250Kyen
130Kto160Kyen
100Kto130Kyen
60Kto100Kyen
* GakkenCocofumpCorporationisaleadingoperatorofRegisteredSeniorHousingwithSupportiveServices(RSHSS),operating71RSHSSasofMar.9,2016.
High
Low
Medium
C-50RESIDIAShin-Itabashi
P-3RESIDIANakameguro
C-28RESIDIAOji
P-85RESIDIAKomazawa
ActualNOIyield6.0%
ActualNOIyield6.1%
ActualNOIyield6.3%
ActualNOIyield6.5%
Location Itabashi-ku,Tokyo
Noofunits 67units
Completion Aug.2009
Location Kita-ku,Tokyo
Noofunits 61units
Completion Feb.2005
Location Setagaya-ku,Tokyo
Noofunits 59units
Completion Oct.2008
Location Meguro-ku,Tokyo
Noofunits 88units
Completion Feb.2005
ActualNOIyield5.6%Location Itabashi-ku,Tokyo
Noofunits 45units
Completion Feb.2007
C-66RESIDIATakashimadaira
ActualNOIyield5.2%Location Itabashi-ku,Tokyo
Noofunits 44units
Completion Feb.2007
C-67RESIDIAShimurasakaue
Location Itabashi-ku,Tokyo
Noofunits 94units
Completion Mar.2007
C-68RESIDIAShimurasakaueIIActualNOIyield5.6%
ActualNOIyield5.4%Location Itabashi-ku,Tokyo
Noofunits 36units
Completion Mar.2007
C-69RESIDIAShimurasakaueIII
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
DormitoriesandStudentApartments
S-11TOKYOStudent-HouseWako
S-23CollegeCourtTanashi
ActualNOIyield
6.7%
* ActualNOIyield=FPJan.2016actualannualizedNOI÷bookvalue×100%.
Location Wako,Saitama
Noofunits 127unitsCompletionDate Apr.1990
Location Nishi-Tokyo,Tokyo
Noofunits 91unitsCompletionDate Feb.2010
No.ofproperties ActualNOIyield* Occupancy(Residentialportion) Noofrentableunits Totalofacquisitionprice Investmentratioof
portfolio
19properties 6.3% 100% 1,709units 18,099millionyen 4.2%*duetoguaranteedrentcontracts
35
asofApr.14,2016
ActualNOIyield
7.7%
No.ofdormitoriesservingbreakfast
anddinner 2properties
StudentapartmentsDormitories
S-30RESIDIASagamihara
C-74RESIDIANerima
S-15RESIDIAOkurayama
C-77RESIDIAOgikuboII
ActualNOIyield5.6%
ActualNOIyield5.0%
ActualNOIyield6.4%
ActualNOIyield6.4%
Location Sagamihara,Kanagawa
Noofunits 111units
Completion May2004
Location Yokohama,Kanagawa
Noofunits 64units
Completion Mar.1998
Location Suginami-ku,Tokyo
Noofunits 36units
Completion Mar.2007
Location Nerima-ku,Tokyo
Noofunits 34units
Completion Mar.2005
ActualNOIyield6.4%
Location Itabashi-ku,Tokyo
Noofunits 45units
Completion Feb.2007
R-8RESIDIAKobePortIsland
ActualNOIyield8.0%
Location Kobe,Hyogo
Noofunits 404units
Completion Mar.2007/Feb.2008
R-38RESIDIAHirosedori
Location Okayama,Okayama
Noofunits 108units
Completion Mar.2004
R-60RESIDIAOkayama-EkimaeActualNOIyield7.1%
ActualNOIyield5.9%Location Kyoto,Kyoto
Noofunits 23units
Completion Mar.2005
R-61RESIDIAKyoto-Okazaki
ActualNOIyield6.9%Location Kyoto,Kyoto
Noofunits 154units
Completion Feb.1999
R-2RESIDIAImadegawa
Location Sendai,Miyagi
Noofunits 63units
Completion Feb.2010
Studentapartmentsarenormalapartmentsbutwherethenewtenantsareonthewholeexclusivelystudents. 17properties
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
InternalMigrationStatistics
PopulationInflowtoCentralTokyoandMajorRegionalCitiesContinues NetInflowisPre-dominantlyYoungerGeneration
Tokyo23Wards
MajorRegionalCities
TokyoMetropolitanAreaCity
ADR’sInvestmentRatio71%
TokyoPrefecture
Tokyo’sPopulationInflowbyAgeGroup
Single&CompactTypeUnits
* TheratioisfornumberofsingleandcompacttypeunitsinTokyo23wards.
ADR’sInvestmentRatio10% ADR’sInvestmentRatio*47%
ResidentialNeedsofYoungerGeneration
MigrationStatisticsofMajorCitiesinJapan
36
no.ofpeople50,000
60,000
70,000
Tokyo23Wards0
3,000
6,000
Yokohama
0
6,000
12,000
Sapporo Sendai Nagoya Kyoto Osaka Fukuoka
ADR’sInvestmentRatio19%
no.ofpeople no.ofpeople
no.ofpeople
Source:“ReportonInternalMigrationinJapan”StatisticsBureau,MinistryofInternalAffairsandCommunications(2015);“ReportonInternalMigration”StatisticsDivision
-35,000
0
35,000
70,000
agesunder20
ages20tound
er30
ages30tound
er6060orolder
201320142015
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
HousingStarts
HousingStartsHalvedfromthePeaksinceLehmanShock
Source:MinistryofLand,Infrastructure,TransportationandTourism,PolicyBureau,InformationPolicyDivision,ConstructionStatisticsOffice“HousingStarts”(RCandSRCConstructionRentedCollectiveHousing)(2015)
Tokyo23Wards MajorRegionalCities
TokyoMetropolitanArea
ADR’sInvestmentRatiointheRegion71%
ADR’sInvestmentRatiointheRegion10%
ADR’sInvestmentRatiointheRegion19%
Units
Units
Units
Units
Units
Units
Units
Units
37
0
6,500
13,000
2000 2005 2010 2015
Sapporo
0
3,250
6,500
2000 2005 2010 2015
Sendai
0
8,000
16,000
2000 2005 2010 2015
Nagoya
0
2,500
5,000
2000 2005 2010 2015
Kyoto
0
10,000
20,000
2000 2005 2010 2015
Osaka
0
6,500
13,000
2000 2005 2010 2015
Fukuoka0
3,500
7,000
2000 2005 2010 2015
Yokohama
0
22,500
45,000
2000 2005 2010 2015
Tokyo23Wards
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
60
80
100
120
140
0 5 10 15 20 25
Theo
retica
lInd
exed
Ren
t
BuildingAge(years)
Single-typeRentCompact-typeRent
MeasurestoReduceRentDeclinesCausedbyAging
GradualdeclineinCompetitiveness
Large-scalerenovationsofcommonareasandexteriors
Renovationsofindividualapartmentunits
* FiguresareindexedtheoreticalrentcategorizedbyyearandbuildingageusingactualrentsprovidedbyAtHomeCo.,Ltd.,ofwhichSumitomoMitsuiTrustResearchInstituteCo.,Ltd.statisticallyprocessedusinghedonicmethod.* Analysiswasconductedseparatelybetweenrentdatafromsingle-typeunits(18m2to30m2)andcompact-typeunits(30m2to60m2)ofapartmentin23wardsofTokyo.
Byhavingalong-termmanagementplanREITsaimtomaintainorevenimprovecompetitivenessofits
propertiesundermanagement.
Providinglivingenvironmentmatchingthetenants’needs
Supplyofnewproperties Equipmentsbecomeobsolete
Qualitydeclineduetowearing Changeintenants’needs DailyRepairsEquipmentMaintenance
BuildingMaintenance TimelyCapitalExpenditures
RentsDeclineduetoAging Measurestakentopreventorreducerentdeclines
DailyCleaning
38
2001/01 2004/10 2008/07 2012/04 2016/01
80
90
100
110
120
2001/01 2004/10 2008/07 2012/04 2016/01
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
RenovationExamplesinADR’sProperties
Individualapartmentunitupgradingrenovations
Cost:3,490thousandyen/unit(ofwhich887thousandyen
isfortheupgrade)
P-73RESIDIAShibaura Buildingage24years
CommonarearenovationCost:128millionyen
Individualapartmentunitupgradingrenovations
Cost;3,680thousandyen/unit(ofwhich1,097thousandyenisfortheupgrade)
CommonarearenovationCost:32millionyen
before
before
Bytakingpropermeasurescompetitivenesscanbemaintained
before
before
buildingage10yrs.
* RentsforRESIDIAShibauraareindexedbybasingtheaverageperm2rentduring2001as100.
S-19RESIDIAKichijoji Buildingage21years
buildingage15yrs.
buildingage15yrs. buildingage20yrs.
* RentsforRESIDIAKichijojiareindexedbybasingtheaverageperm2rentduring2001as100.
39
120
110
100
90
80
AcquiredDec.2004
Large-scalerenovationFeb.2010
Impactofthemeasurestaken
AcquiredJan.2005
Large-scalerenovationDec.2011
buildingage20yrs.
after
after
ExamplesofMeasuresTaken
after
after
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
BrandStrategy
IfRESIDIAtenantsmovetootherRESIDIAapartments,tenantsdonothavetopaykeymoneynorbrokerfee.Thereforetenantscan
savemovingcostandADRcankeephighoccupancy.
24hours,7daysaweek,RESIDIAcustomersupportfortenants.Providinghousekeepingservices(ex.cleaning)andemergency
responses(ex.waterleak,keylost),etc.
RESIDIALeasingWebsitehttp://www.residia.jp/
RESIDIAShibuyaBuildingSign
RESIDIACustomerSupport
MovingSupportfromRESIDIAtoRESIDIA
TheBrand
BrandingthroughLeasingWebsite&BuildingSigns
TenantServices
40
as of March 11, 2016(including to be acquired properties that are scheduled
to have their names changed to RESIDIA)
+
RESIDENCE“Residence” connotes quality and stateliness
ARCADIAa greek word representing
pastoral paradise
Residia is composed from the following words
239 properties which are mainly located in central Tokyo
KOBE
OSAKA
KANAGAWA
SAPPORO
CHIBAKYOTO
SENDAI
FUKUOKA
TOKYO
NAGOYA
OKAYAMAKAMEYAMA
Handedouttoanytenantswhorequested,provisions,helmets,portabletoilet,etc.HandingoutEmergencyKits(onlyfortenantsinMetropolitanAreaproperties)
“KAJITAKU”provideshousekeepingservices.KAJITAKU~TenantService~
q
GRESBisanindustry-drivenorganizationcommittedtoassessingthesustainabilityperformanceofrealestateportfolios(public,privateanddirect)aroundtheglobe.Thedynamicbenchmarkisusedbyinstitutionalinvestorstoengagewiththeirinvestmentswiththeaimtoimprovethesustainabilityperformanceoftheirinvestmentportfolio,andtheglobalpropertysectoratlarge.
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
Sustainability
41
DBJGreenBuildingCertification
MidtoLong-termMeasurestoRetain&IncreaseAssetValue&RaiseUnitholdersValue
EnvironmentalConsiderations ContributiontotheCommunity
InstallationofLEDLightings
Large-ScaleRepairsandEquipmentRenewalsandUpgrades
InstallationofAEDs
AEDsthatareopentopublicuseareinstalledin31properties.EmergencyMapsEmergency maps showing evacuation routes, available incommonareaof250properties.
Participated in the GRESB Survey in 2015 afterbeing the first residential J-REIT toparticipateinthesurveyin2014.
Propertieswithexceptionallyhighenvironmental&socialawareness
ParticipatedinGRESBSurvey2015
Lightingsforcommonareaof4propertiesreplacedwithenergyconservingLED.(LEDlightingsinstalledin27propertiesattheendofJan.2016)
5propertiesAwarded
P-76ParkTowerShibauraBaywardUrbanWing
*BasedonmaterialspublishedbyDevelopmentBankofJapansasofDec.31,2015andconsolidatedbyADInvestmentManagementCo.,Ltd.
Retainassetvalue,extendeconomiclifeandreducecarbonfootprintthroughrepairs,renewalsandupgrades. DuringtheFiscalPeriodJan.2016large-scalerepairsdoneon3properties,upgradeson30unitsof9properties.
(Trackrecordsincethemerger:large-scalerepairson18properties,upgradeson16properties138units)
NO.1 HighestNumberofResidentialCertificateAwarded*
EmergencyKits
AED
EmergencyMap
DistributingEmergencyKits
Distributed1,034emergencykitstotenants.(thekitconsistsofemergencyrations,helmets,portabletoilets,etc.)
2015GRESBSurveyResult
NO.2AsiaResidentialSector
5つの認証スコアがありますが、表示する場合には、必ず貴社が日本政策投資銀行から通知を受けた「DBJ Green Building」ロゴマークを選択してください。下図の基本デザインから縮小または拡大して使用してください。.aiデータはCS3以下では使用しないでください。CS4以上が無い場合は必ず.jpgデータを使用してください。
●
●
●
※表示の表現については を参照してください。03
日本政策投資銀行が、環境・社会への配慮が優れた不動産を認証する「DBJ Green Building 認証」において、十分な「環境・社会への配慮」がなされたビルとして認証されました。
日本政策投資銀行が、環境・社会への配慮が優れた不動産を認証する「DBJ Green Building 認証」において、優れた「環境・社会への配慮」がなされたビルとして認証されました。
日本政策投資銀行が、環境・社会への配慮が優れた不動産を認証する「DBJ Green Building 認証」において、非常に優れた「環境・社会への配慮」がなされたビルとして認証されました。
日本政策投資銀行が、環境・社会への配慮が優れた不動産を認証する「DBJ Green Building 認証」において、極めて優れた「環境・社会への配慮」がなされたビルとして認証されました。
日本政策投資銀行が、環境・社会への配慮が優れた不動産を認証する「DBJ Green Building 認証」において、国内トップクラスの卓越した「環境・社会への配慮」がなされたビルとして認証されました。
DBJ Green Building2015
DBJ Green Building2015
DBJ Green Building2015
DBJ Green Building2015
2015DBJ Green Building
基 本デザイン_ 1
01
1 2
3 4
5
!
InstallationofVendingMachinew/DonationFunctionality
Thevendingmachinesareinstalledin26properties.VendingMachine
FourStarP-76ParkTowerShibauraBaywardUrbanWing
ThreeStarP-50RESIDIANishi-Azabu
P-55RESIDIATowerMeguro-FudomaeS-20PacificRoyalCourtMinatoMiraiOceanTower
TwoStarC-65RESIDIATowerKami-Ikebukuro
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
CostReductionsincetheMerger
PropertyManagement
Fees
Others
ElectricityBillforShared
Spaces
CustodialFees
BuildingManagement
Fees
AppraisalFees
20
LoweringCoststhroughEconomyofScale
42total
■BuildingManagementFees
60
70
total
total
51
84
totaltotal
total
■LEDLighting■AppraisalFees
■PropertyManagementFees ■CustodialFees
■PropertyInsuranceFees
■ElectricityBillforSharedSpaces
Totalcostreductionsincethemerger 329millionyen/annumFPJuly2015costreduction 14millionyen/annum
■InternetProvider
inmillionyen/annum
*Allun-showndecimalsareroundeddown
42
FP01-2016 6PreviousFPs 77
FP01-2016 -PreviousFPs 51
FP01-2016 -PreviousFPs 60
FP01-2016 0.1PreviousFPs 42
FP01-2016 7PreviousFPs 63
FP01-2016 -PreviousFPs 20
LendersLoan
Outstanding(bnyen)
%share
SumitomoMitsuiTrustBank
TheBankofTokyo-MitsubishiUFJ
MizuhoBank
SumitomoMitsuiBankingCorporation
MitsubishiUFJTrust&Banking
DevelopmentBankofJapan
AozoraBank
MIzuhoTrust&Banking
ResonaBank
TheNorinchukinBank
ShinseiBank
TheBankofFukuoka
TaiyoLifeInsurance
TheNishi-NipponCityBank
TheYamaguchiBank
TokioMarine&NichidoFireInsurance
MitsuiSumitomoInsurance
TheTokyoTominBank
TheGunmaBank
TheKagawaBank
TheIyoBank
The77Bank
NipponLifeInsurance
TheHiroshimaBank
28.9 15.428.9 15.418.8 10.117.4 9.315.6 8.313.9 7.410.6 5.710.3 5.59.1 4.97.0 3.75.1 2.85.0 2.73.0 1.62.6 1.42.5 1.31.0 0.51.0 0.51.0 0.51.0 0.51.0 0.51.0 0.51.0 0.51.0 0.50.5 0.3
Total 187.7 100.0
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
LenderLine-up
TheLineupof24LendersIncludes3megabanks,3majortrustbanks
TotalInterestBearingDebt
226.2billionyen
Lenders TermOutstandingAmount(bnyen)
SumitomoMitsuiTrustBank,TheBankofTokyo-MitsubishiUFJ
MizuhoBank3y 20.0
InvestmentCorporationBonds Loans
CommittedLinesofCredit
43
IssueDateMaturity
Sept.2011
Apr.2012
Sept.2012
Apr.2013
Nov.2013
Apr.2014
Apr.2015
Oct.2015
3yrs #15*4bnyen0.86%
5yrs #138bnyen1.27%
#164bnyen1.08%
#178bnyen0.87%
#231.5bnyen0.326%
7yrs #142bnyen1.68%
#184bnyen1.23%
10yrs #193bnyen1.32%
#212.5bnyen1.04%
#222bnyen0.726%
#241.5bnyen0.846%
12yrs #202bnyen1.41%
FirstresidentialJ-REITtoissue10and12yearbonds
* #15hasbeenredeemedonApril2015.
asofJan.31,2016
InvestmentCorporationBonds17%
InsuranceCo.s3%
CentralCo-opBanks3%
RegionalBanks7%
OtherMajorBanks17% TrustBanks
24%
MegaBanks29%
0
100,000
200,000
300,000
400,000
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
UnitPriceChart
yen
2ndPublicOfferinglaunchedJanuary12,2012
closing@144,000
*NAVandBPSareex-dividendfigures
BankofJapanannouncesassetpurchaseprogram
October5,2010
TSEListingMarch2,2010
1stPublicOfferinglaunched
June4,2010closing@120,600
3rdPublicOfferinglaunchedJanuary8,2013
closing@180,000
* TOPIX, TSE REIT Index and TSE REIT Residential Index are re-indexed by using Advance Residence’s March 2, 2010 closing price of 112,500 yen as base price.
KeyFigures FP01-2011 FP07-2011 FP01-2012 FP07-2012 FP01-2013 FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016
Marketcapitalization 168.8bnyenclosing@172,300
158.9bnyen
closing@162,200134.7bnyen
closing@137,500168.1bnyen
closing@152,900209.1bnyen
closing@190,100245.6bnyen
closing@198,100269.3bnyen
closing@217,200319.1bnyen
closing@245,500391.9bnyen
closing@301,500351.6bnyen
closing@270,500338.6bnyen
closing@260,500
DailyAverageTradingvolume 0.44bnyen3,247units
0.31bnyen1,917units
0.27bnyen1,907units
0.46bnyen3,160units
0.54bnyen3,208units
1.29bnyen6,055units
0.68bnyen3,174units
0.62bnyen2,684units
0.81bnyen2,922units
0.92bnyen3,181units
0.85bnyen3,344units
LTV(Totalassetsbase) 52.4% 53.5% 54.6% 53.7% 53.8% 51.2% 52.1% 51.0% 50.1% 51.6% 51.4%
NAVperUnit(yen) 152,749 154,360 156,459 155,966 158,313 164,311 171,850 182,367 198,261 207,281 216,739
exDividendPaymentReserve(yen) 113,307 117,984 120,504 124,465 127,061 136,917 144,656 156,497 172,452 181,686 190,929
BPS(yen) 159,564 156,548 156,140 152,689 152,440 153,020 152,821 155,220 155,160 155,161 155,161
exDividendPaymentReserve(yen) 120,122 120,172 120,185 121,188 121,188 125,626 125,626 129,351 129,351 129,351 129,351
ImpliedCAPrate 5.3% 5.5% 5.6% 5.4% 4.8% 4.7% 4.5% 4.3% 3.8% 4.1% 4.2%
4thPublicOfferinglaunchedJanuary9,2014
closing@224,800
FP01-2016EndJan.31,2016
closing@260,500
44
AnnouncedthereleaseofallcollateralJune15,2011
AcquiredcreditratingofAA-fromJCRJuly26,2011
IncludedintheFTSEEPRA/NAREITIndex
June7,2012
Proposedanintroductionofmanagementfeestructurelinkedtounit-holders’interest
Sept.9,2013
Themanagementco.becomesan100%subsidiaryofItochuGroup
June25,2015
CreditratingfromJCRupgradedtoAAfromAA-
January13,2015
ADRunitpriceTSEREITResidentialIndexTSEREITIndexTOPIX
2010/3 2010/7 2011/1 2011/7 2012/1 2012/7 2013/1 2013/7 2014/1 2014/7 2015/1 2015/7 2016/1
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
MajorUnitholders
IncreaseinOverseasOwnership asofJanuary31,2016
45
0%
25%
50%
75%
100%
FP07-2013 FP01-2014 FP07-2014 FP01-2015 FP07-2015 FP01-2016
8.9%9.2%9.9%11.1%12.0%13.4%15.1%14.7%15.0%18.3%19.6%23.2% 5.0%5.0%5.0%
5.5%5.6%6.0%
71.1%71.1%70.0%65.1%62.8%57.4%
JapaneseFinancialInstitutionsOtherJapaneseInstitutionsForeignInstitutionsandIndividualsDomesticIndividualsandOthers
Name of Unitholders Holdings (units) % share of issued and outstanding
JapanTrusteeServicesBank,Ltd.(Tr.Acc.) 375,004 28.8%
TheMasterTrustBankofJapan,Ltd(Tr.Acc.) 125,511 9.7%
Trust&CustodyServicesBank,Ltd.(SecuritiesInv.Tr.Acc.) 74,721 5.7%
TheNomuraTrustandBankingCo.,Ltd.(Inv.Tr.Acc.) 45,758 3.5%
ITOCHUCorporation 34,800 2.7%
Trust&CustodyServicesBank,Ltd.(CashinTr.TaxableAcc.) 15,812 1.2%
NomuraSecuritiesCo.,Ltd.(ProprietaryAccount) 15,030 1.2%
StateStreetBank-WestPensionFundClients-Exempt 14,888 1.1%
TheFujiFireandMarineInsuranceCo.,Ltd. 13,278 1.0%
MizuhoTrust&BankingCo.,Ltd. 11,528 0.9%
Number of UnitsNumber of Units Number of UnitholdersNumber of Unitholders
Units (%) Unit-holders (%)
Japanese Financial Institutions 924,015 71.1% 181 1.0%
TrustBanks 669,845 51.5% 14 0.1%RegionalBanks 126,760 9.8% 54 0.3%LifeInsurance 53,327 4.1% 11 0.1%
SecuritiesCompanies 30,537 2.3% 23 0.1%CasualtyInsurance 15,909 1.2% 6 0.0%
CreditUnions&Co-ops 11,068 0.9% 31 0.2%ShinkinBanks 13,830 1.1% 41 0.2%
CityBanks 2,739 0.2% 1 0.0%Other Japanese Corporations 65,031 5.0% 276 1.5%
Foreign Corporations andIndividuals 195,850 15.1% 264 1.4%
Domestic Individuals andOthers 115,104 8.9% 17,918 96.1%Total 1,300,000 100.0% 18,639 100.0%
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved 46
RentLevelsAreStableinCentralTokyoandMajorRegionalCitiesCap-RatesAreStableinTokyo23Wards
AppraisalValue(Indexed)
InvertedCap-rate(Indexed)
Cashflow(Indexed)
PortfolioAppraisalValueAnalyzedbyComponents
* Aboveindicesarecalculatedusingappraisalvalue,cashflowfiguresusedinthedirectcapitalizationmethodandtheinvertedcapitalizationratefrom145assetsheldfrom1sthalfof2008toendofJanuary2016.
Rent&CapRatebyRegion
TheCashflowofAssetsinCentralTokyoex7andMajorRegionalCitiesAreMoreStable
Aimingtohaveahighqualityportfoliothatrealizesstableprofitdistributionin
thelong-termbyformingbalancedportfoliowithassetsfromeachregion
withdifferentcharacteristics
VolatilityinCap-ratesofAssetsinTokyo23WardsAreSmallerComparedtoAssetsinTokyoMetropolitanAreaandMajorRegionalCities
70
80
90
100
110
1H2008
1H2009
02-2010 01-2
01101-2
01201-2
01301-2
01401-2
01501-2
016
Portfolio TokyoCentral7 CentralTokyoex7TokyoMetropolitan MajorRegionalCities
70
80
90
100
110
1H2008
1H2009
02-2010 01-2
01101-2
01201-2
01301-2
01401-2
01501-2
016
Portfolio TokyoCentral7 CentralTokyoex7TokyoMetropolitan MajorRegionalCities
70
80
90
100
110
1H2008
1H2009
02-2010 01-2
01101-2
01201-2
01301-2
01401-2
01501-2
016
Portfolio TokyoCentral7 CentralTokyoex7TokyoMetropolitan MajorRegionalCities
19 1020
4269
66
64
67
68Hakata
Hakata Ward Office
Fukuoka Prefectural Government Office
Chuo-ku
Hakata-ku
Sawara-ku
Fukuoka City Botanical Garden
Sanyo
Shinkansen Line
Kagoshima
Main Line
Chiyoda-ku
Chuo-ku
Minato-ku
Shinjuku-ku
Bunkyo-kuTaito-ku
Sumida-ku
Koto-ku
Shinagawa-ku
Meguro-ku
Ota-ku
Setagaya-ku
Shibuya-ku
Nakano-ku
Suginami-ku
Toshima-ku
Kita-ku
Arakawa-ku
Itabashi-ku
Nerima-ku
Adachi-ku
Katsushika-ku
Edogawa-ku
Ikebukuro
Shinjuku
Shibuya
ShinagawaMeguro
Kamata
Ueno
Kinshicho
Tokyo
5365
24
6260 66
263991
25
70
298151
389
75
45
31
92
4
6885
88
13
34
7
6319
90
15
21
96 7237
22 16 5267
2359
124 12
39 42
1745
4834
6371
51
47
159543
41
16
55
215826
1865
6867
69
66
28
50
70
56
60 36
36
5340
46 3562
29
7
1022 27
3361
32
2
38
6425
44 135981
414793
9
4287
32
33
69
84
10
56
79
6136
14
38
94
7455
4335
64
2
76
7386
95
3040
50
58 48
4998
99
97
19
23
49
3154
57
77
76
78
75
74
73
79
72
80
82 83
100
101
102
103
104105
106
108
37 524 8 84109 85
60
OkayamaOkayama
Tsuy
ama
Line
Kibi Line
Sanyo
Shinkansen Line
Uno Line
Okayama University
Okayama Prefectural Government
Okayama ity Office
Kounan Airport
Office
Fukuoka
Okayama
: Tokyo Central 7 Wards
: Tokyo 23 Wards
154950
29 2
111455 12
44
8
39
6
35
41
40
46
51
59
61
Mt. Maya
Osaka
Kyoto
Tokaido Main Line
Osaka
Kyoto
Kobe
Mt. Rokko
Mt. Myoken
Mt. Kenpi
Tokaido Main Line
Nara Line
Katamachi
Line
KansaiMain Line
Sanyo
Shinkansen Line
Sanin Main Line
13
38
37
56 54
52
57
62
Tohoku Shinkansen Line
Tohoku Main Line
Senzan Line
Taihaku-ku Wakabayashi-ku
Aoba-ku
SendaiAobayama Park
Tohoku University
Sendai City Athletic Stadium
2648
2531
34 24 5863
6545
Hakodate Main Line
Nishi-ku
Chuo-ku
Shiroishi-kuSapporo
JRA Sapporo Racecourse
Yanaga Hokkaido Museum
Clock Tower
Kita-ku
14
26
25 27
24
17
42
11
19
7
16
1528
5
22 29
12
23
3120
30
32
Kawaguchi
Kashiwa
Higashi-Matsudo
Musashikosugi
Kichijyoji
Tachikawa
Hachioji
Shin-Yokohama
Yokohama
Kawasaki
Tokyo
Chiba
Kanagawa
4
17
43
16
3027 32
362147
70
53Nagoya
Nagoya Castle
International Hotel Nagoya
Nagoya Dome
Higashi-ku
Naka-ku Chuo M
ain Li
ne
Tokaido Main Line
Tokaido
Shinkansen Line
Kansai
Main Line
Tsu
Yokkaichi
Kansai Main Line
5
KameyamaSuzuka Circuit
Kisei Main Line
Osaka
Kameyama
Nagoya
Sendai
Sapporo
:Major Regional Cities
:Tokyo Metropolitan Area
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
PortfolioMapasofApril.14,2016
47
No.ofProperties
255(includingassets-to-be-acquired)
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
Portfolio(asofJanuary31,2016)
48
No. PropertyName Location CompletionDate
RentableUnits
AcquisitionPrice
(milyen)
ShareofInvestment
(%)
AppraisalPrice
(milyen)
BookValue
(milyen)
UnrealizedProfitandLoss(%)
PML PeriodEndOccupancy
P-2 RESIDIAShimazuyama Shinagawa-ku,Tokyo 12-2004 115 2,860 0.7% 3,060 2,432 25.8% 4.3% 93.8%
P-3 RESIDIANakameguro Meguro-ku,Tokyo 2-2005 88 1,730 0.4% 1,990 1,464 35.9% 2.6% 100.0%
P-4 RESIDIASetagaya-Tsurumaki Setagaya-ku,Tokyo 3-2002 28 1,229 0.3% 1,190 1,152 3.2% 7.3% 96.8%
P-7 RESIDIAIkejiriohashi Setagaya-ku,Tokyo 8-2005 42 1,230 0.3% 1,350 1,182 14.2% 3.1% 100.0%
P-9 RESIDIAKudanshita Chiyoda-ku,Tokyo 3-2004 86 2,270 0.5% 2,490 2,078 19.8% 2.9% 100.0%
P-10 RESIDIAHatagaya Shibuya-ku,Tokyo 2-2006 35 1,130 0.3% 1,190 1,082 9.9% 7.3% 91.0%
P-13 RESIDIASakurajosui Setagaya-ku,Tokyo 7-2006 39 1,120 0.3% 1,250 1,077 16.0% 7.0% 97.9%
P-14 RESIDIAKita-Shinagawa Shinagawa-ku,Tokyo 2-2007 120 2,720 0.6% 2,920 2,589 12.8% 4.3% 100.0%
P-15 RESIDIAYoyoginomori Shibuya-ku,Tokyo 3-2007 22 732 0.2% 718 715 0.3% 4.4% 94.1%
P-16 RESIDIAShinjuku-EastIII Shinjuku-ku,Tokyo 2-2009 39 750 0.2% 850 735 15.5% 4.3% 100.0%
P-19 LeopalaceUdagawachoMansion Shibuya-ku,Tokyo 8-2001 30 588 0.1% 695 569 22.0% 8.2% 100.0%
P-21 RESIDIAShinjuku-EastII Shinjuku-ku,Tokyo 2-2004 54 1,380 0.3% 1,600 1,325 20.7% 4.8% 95.3%
P-22 RESIDIAShinjuku-East Shinjuku-ku,Tokyo 8-2000 48 941 0.2% 1,080 936 15.3% 5.3% 98.0%
P-23 RESIDIAKanda-Iwamotocho Chiyoda-ku,Tokyo 2-2004 65 1,520 0.4% 1,930 1,430 34.9% 4.1% 100.0%
P-24 RESIDIAAzabujubanII Minato-ku,Tokyo 2-2001 37 874 0.2% 974 887 9.8% 3.1% 97.1%
P-25 RESIDIAEbisu Shibuya-ku,Tokyo 1-2001 26 554 0.1% 631 567 11.2% 3.0% 93.9%
P-26 RESIDIAMeguro Shinagawa-ku,Tokyo 10-1999 20 722 0.2% 713 732 -2.7% 6.2% 83.8%
P-29 RESIDIAHirooII Shibuya-ku,Tokyo 11-2005 76 1,660 0.4% 1,980 1,560 26.9% 2.9% 94.1%
P-30 PianettaShiodome Minato-ku,Tokyo 2-2005 67 1,950 0.5% 2,130 1,835 16.0% 5.3% 98.7%
P-31 RESIDIAKomazawadaigaku Setagaya-ku,Tokyo 10-2004 18 333 0.1% 377 315 19.5% 8.5% 83.9%
P-32 RESIDIAYoyogi Shibuya-ku,Tokyo 2-2005 16 326 0.1% 382 313 21.9% 11.0% 100.0%
P-33 RESIDIANishi-Shinjuku Shinjuku-ku,Tokyo 2-2005 19 363 0.1% 410 349 17.2% 9.9% 100.0%
P-34 RESIDIAKyodo Setagaya-ku,Tokyo 2-2005 15 286 0.1% 327 271 20.5% 10.6% 100.0%
P-35 RESIDIAOimachi Shinagawa-ku,Tokyo 12-2005 48 947 0.2% 1,080 889 21.4% 4.3% 97.8%
P-36 RESIDIAEbisuII Shibuya-ku,Tokyo 1-2006 61 2,280 0.5% 2,680 2,238 19.7% 3.4% 97.7%
P-37 RESIDIAKamiochiai Shinjuku-ku,Tokyo 9-2006 70 1,180 0.3% 1,370 1,117 22.6% 4.8% 89.1%
P-38 RESIDIAHigashi-Shinagawa Shinagawa-ku,Tokyo 8-2006 122 2,040 0.5% 2,320 1,948 19.1% 4.0% 92.6%
P-39 RESIDIAMeguroII Meguro-ku,Tokyo 1-2006 34 1,190 0.3% 1,300 1,155 12.5% 6.5% 95.9%
P-40 RESIDIAToranomon Minato-ku,Tokyo 9-2006 63 1,320 0.3% 1,510 1,262 19.6% 3.3% 100.0%
P-41 RESIDIAShin-Ochanomizu Chiyoda-ku,Tokyo 3-2006 52 1,160 0.3% 1,420 1,116 27.2% 2.8% 100.0%
P-42 RESIDIAKagurazaka Shinjuku-ku,Tokyo 8-2006 52 918 0.2% 1,030 881 16.8% 2.1% 96.3%
P-43 RESIDIAOimachiII Shinagawa-ku,Tokyo 7-2007 40 1,050 0.2% 1,260 1,005 25.4% 4.8% 95.2%
P-45 RESIDIAJiyugaoka Meguro-ku,Tokyo 3-2002 28 1,050 0.2% 1,170 995 17.6% 7.3% 85.5%
P-47 RESIDIASuidobashi Chiyoda-ku,Tokyo 12-2004 65 2,310 0.5% 2,580 2,190 17.8% 2.3% 92.8%
P-48 RESIDIATOWERNogizaka Minato-ku,Tokyo 8-2004 68 3,660 0.9% 3,690 3,493 5.6% 3.5% 95.4%
P-49 RESIDIAAkasaka Minato-ku,Tokyo 5-2004 37 1,180 0.3% 1,300 1,123 15.7% 8.3% 97.7%
P-50 RESIDIANishi-Azabu Minato-ku,Tokyo 7-2004 125 6,780 1.6% 7,390 6,484 14.0% 2.8% 97.7%
P-51 RESIDIADaikanyama Shibuya-ku,Tokyo 7-2004 42 2,150 0.5% 2,050 2,025 1.2% 4.0% 93.6%
P-52 RESIDIAIchigaya Shinjuku-ku,Tokyo 8-2004 85 2,500 0.6% 2,850 2,373 20.1% 3.6% 100.0%
P-53 RESIDIARoppongi-Hinokichokoen Minato-ku,Tokyo 9-1999 89 3,570 0.8% 3,980 3,571 11.4% 6.8% 85.0%
P-55 RESIDIATOWERMeguro-Fudomae Shinagawa-ku,Tokyo 1-2007 358 16,500 3.9% 17,700 15,383 15.1% 1.8% 100.0%
P-56 RESIDIASangenjaya Setagaya-ku,Tokyo 1-2005 78 2,760 0.6% 3,310 2,586 28.0% 2.7% 98.2%
P-58 RESIDIAMinami-Aoyama Minato-ku,Tokyo 3-2005 13 728 0.2% 491 712 -31.1% 2.0% 100.0%
P-59 RESIDIAKanda-Higashi Chiyoda-ku,Tokyo 10-2003 64 1,620 0.4% 2,000 1,526 31.0% 3.4% 98.5%
P-60 RESIDIAHigashi-Azabu Minato-ku,Tokyo 4-2006 31 1,430 0.3% 1,430 1,364 4.8% 3.2% 90.7%
P-61 RESIDIAEbisu-Minami Shibuya-ku,Tokyo 3-2007 39 2,020 0.5% 2,080 1,960 6.1% 7.1% 97.9%
P-62 RESIDIATOWERAzabujuban Minato-ku,Tokyo 1-2003 113 6,190 1.5% 5,940 6,027 -1.4% 0.7% 90.4%
No. PropertyName Location CompletionDate
RentableUnits
AcquisitionPrice
(milyen)
ShareofInvestment
(%)
AppraisalPrice
(milyen)
BookValue
(milyen)
UnrealizedProfitandLoss(%)
PML PeriodEndOccupancy
P-63 RESIDIAShibuya Shibuya-ku,Tokyo 6-2006 40 1,250 0.3% 1,470 1,215 20.9% 3.5% 97.4%P-64 RESIDIANakanobu Shinagawa-ku,Tokyo 11-2005 65 1,880 0.4% 2,280 1,790 27.3% 3.4% 96.9%
P-65 RESIDIAAzabudai Minato-ku,Tokyo 2-2006 47 1,610 0.4% 1,720 1,559 10.3% 4.6% 90.9%
P-66 RESIDIAShibadaimonII Minato-ku,Tokyo 8-2006 48 1,740 0.4% 1,800 1,695 6.2% 3.3% 97.9%
P-67 RESIDIAKanda Chiyoda-ku,Tokyo 6-2006 43 1,140 0.3% 1,340 1,100 21.7% 4.9% 97.9%
P-68 RESIDIASangenjayaII Setagaya-ku,Tokyo 3-2006 34 1,280 0.3% 1,450 1,232 17.6% 4.4% 94.3%
P-69 RESIDIANishi-ShinjukuII Shinjuku-ku,Tokyo 5-2007 74 1,830 0.4% 2,130 1,740 22.4% 10.9% 97.1%P-70 RESIDIAHiroo-Minami Shibuya-ku,Tokyo 8-2007 26 923 0.2% 987 884 11.6% 2.8% 100.0%P-72 RESIDIAMejiro-Otomeyama Shinjuku-ku,Tokyo 12-2002 19 974 0.2% 1,060 931 13.8% 4.9% 89.9%P-73 RESIDIAShibaura Minato-ku,Tokyo 9-1991 153 4,670 1.1% 5,450 4,470 21.9% 2.8% 94.7%P-74 RESIDIAGotenyama Shinagawa-ku,Tokyo 1-2007 16 930 0.2% 880 892 -1.4% 7.9% 86.6%P-75 RESIDIAYutenji Meguro-ku,Tokyo 8-2006 118 5,260 1.2% 5,700 5,097 11.8% 7.8% 91.2%
P-76 ParkTowerShibauraBaywardUrbanWing Minato-ku,Tokyo 5-2005 191 9,570 2.2% 10,800 9,089 18.8% 3.6% 95.0%
P-79 RESIDIAKamimeguro Meguro-ku,Tokyo 1-1993 16 878 0.2% 962 858 12.1% 7.7% 100.0%P-81 WindsorHouseHiroo Shibuya-ku,Tokyo 6-2003 12 1,750 0.4% 1,420 1,664 -14.7% 4.8% 100.0%P-84 RESIDIAKita-Shinjuku Shinjuku-ku,Tokyo 2-1997 26 1,460 0.3% 1,590 1,395 13.9% 8.8% 88.5%P-85 RESIDIAKomazawa Setagaya-ku,Tokyo 10-2008 59 870 0.2% 1,170 849 37.7% 10.0% 100.0%P-86 RESIDIAShibauraKAIGAN Minato-ku,Tokyo 1-2010 72 2,400 0.6% 2,920 2,380 22.7% 4.4% 95.1%P-87 RESIDIAIchigaya-Yakuoji Shinjuku-ku,Tokyo 8-2008 98 2,070 0.5% 2,480 2,040 21.5% 3.0% 100.0%P-88 RESIDIAYoga Setagaya-ku,Tokyo 6-2008 66 1,523 0.4% 1,820 1,579 15.2% 10.3% 93.1%P-89 RESIDIATOWERNakameguro Meguro-ku,Tokyo 3-2007 70 3,300 0.8% 4,190 3,389 23.6% 2.4% 90.4%P-90 RESIDIASasazukaII Shibuya-ku,Tokyo 1-2011 167 3,760 0.9% 4,430 3,771 17.5% 4.2% 96.4%P-91 RESIDIAMeguroIII Meguro-ku,Tokyo 1-2010 31 950 0.2% 1,230 972 26.5% 2.6% 100.0%P-92 RESIDIAJiyugaokaII Setagaya-ku,Tokyo 10-2007 17 778 0.2% 966 789 22.3% 5.4% 77.9%P-93 RESIDIAKudanshitaII Chiyoda-ku,Tokyo 1-2012 48 1,240 0.3% 1,600 1,255 27.4% 2.6% 98.4%P-94 RESIDIAOmoriII Shinagawa-ku,Tokyo 3-2012 90 1,620 0.4% 2,040 1,639 24.4% 2.2% 94.9%P-95 RESIDIAShirokane-Takanawa Minato-ku,Tokyo 3-2012 53 1,480 0.3% 1,920 1,499 28.1% 6.7% 93.0%
P-96 RESIDIANakaochiai Shinjuku-ku,Tokyo 3-2008 187 3,656 0.9% 4,240 3,815 11.1%A2.9%B2.9%C3.0%
94.8%
P-97 RESIDIANakameguroII Meguro-ku,Tokyo 8-2006 50 1,119 0.3% 1,350 1,137 18.6% 2.7% 95.8%P-98 ARTISCOURTMinamiaoyama Minato-ku,Tokyo 7-2008 23 1,720 0.4% 1,850 1,747 5.9% 3.9% 97.0%P-99 RESIDIAYotsuya-Sanchome Shinjuku-ku,Tokyo 5-2009 90 2,090 0.5% 2,630 2,127 23.6% 3.8% 96.1%P-100 RESIDIATakanawa-Katsurazaka Minato-ku,Tokyo 3-2006 45 900 0.2% 1,020 955 6.8% 5.4% 95.8%P-101 RESIDIAEbisuIII Shibuya-ku,Tokyo 3-2006 26 611 0.1% 729 655 11.2% 3.3% 96.7%P-102 RESIDIAShinjukugyoen Shinjuku-ku,Tokyo 10-2006 38 687 0.2% 807 731 10.4% 5.2% 97.5%P-103 RESIDIAMinami-Shinagawa Shinagawa-ku,Tokyo 10-2013 50 1,177 0.3% 1,320 1,221 8.0% 8.7% 95.9%P-104 ChesterCourtOchanomizu Chiyoda-ku,Tokyo 3-2007 118 3,117 0.7% 3,760 3,191 17.8% 2.4% 92.8%P-105 RESIDIAKanda-IwamotochoII Chiyoda-ku,Tokyo 4-2007 48 1,280 0.3% 1,520 1,321 15.0% 2.8% 98.3%P-106 RESIDIAShinagawa Shinagawa-ku,Tokyo 6-2007 36 980 0.2% 1,140 1,013 12.4% 4.0% 87.9%P-107 RESIDIAYoyogiII Shibuya-ku,Tokyo 1-2008 31 839 0.2% 924 905 2.0% 8.4% 93.4%C-1 RESIDIAMitsukoshimae Chuo-ku,Tokyo 2-2005 105 1,920 0.5% 2,370 1,627 45.7% 3.3% 99.3%C-2 RESIDIAKamata Ota-ku,Tokyo 3-2005 166 2,640 0.6% 3,420 2,207 55.0% 4.7% 97.6%C-3 RESIDIAIkebukuro Toshima-ku,Tokyo 3-2005 60 1,520 0.4% 1,730 1,421 21.7% 7.1% 100.0%C-4 RESIDIABunkyo-Hongo Bunkyo-ku,Tokyo 7-2005 65 1,680 0.4% 2,070 1,583 30.7% 4.6% 100.0%C-5 RESIDIAAsakusabashi Taito-ku,Tokyo 8-2005 47 1,060 0.2% 1,350 959 40.7% 2.9% 97.0%C-6 MaisonEclaireeEkoda Nerima-ku,Tokyo 3-1993 94 953 0.2% 1,060 926 14.4% 9.2% 94.7%C-7 RESIDIAUeno-Okachimachi Taito-ku,Tokyo 2-2006 127 3,160 0.7% 3,570 2,922 22.1% 2.1% 94.1%C-8 RESIDIABunkyo-HongoII Bunkyo-ku,Tokyo 1-2006 70 1,623 0.4% 1,750 1,569 11.5% 3.6% 97.8%C-9 RESIDIARyogoku Sumida-ku,Tokyo 2-2006 48 913 0.2% 1,110 866 28.1% 9.1% 100.0%
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
Portfolio
49
No. PropertyName Location CompletionDate
RentableUnits
AcquisitionPrice
(milyen)
ShareofInvestment
(%)
AppraisalPrice
(milyen)
BookValue(milyen)
UnrealizedProfitandLoss(%)
PML PeriodEndOccupancy
C-10 RESIDIAHigashi-Ginza Chuo-ku,Tokyo 9-2006 169 5,251 1.2% 5,430 5,095 6.6% 4.3% 100.0%C-12 RESIDIANihonbashi-NingyochoII Chuo-ku,Tokyo 1-2007 137 3,180 0.7% 3,590 3,019 18.9% 4.6% 97.1%C-13 RESIDIAOmori-Higashi Ota-ku,Tokyo 8-2007 81 1,980 0.5% 1,980 1,877 5.5% 3.8% 97.9%C-15 RESIDIAKinshicho Sumida-ku,Tokyo 11-2007 157 4,200 1.0% 4,430 4,072 8.8% 7.2% 94.9%C-16 RESIDIANegishi Taito-ku,Tokyo 12-2005 28 856 0.2% 899 834 7.8% 7.7% 96.5%C-17 RESIDIAShinkawa Chuo-ku,Tokyo 2-2003 83 1,880 0.4% 2,160 1,788 20.8% 5.3% 90.9%C-18 RESIDIAKamiikebukuro Toshima-ku,Tokyo 12-2001 44 558 0.1% 683 555 22.9% 6.4% 92.9%C-19 RESIDIAShin-nakano Nakano-ku,Tokyo 6-2002 24 352 0.1% 466 329 41.6% 3.8% 96.7%C-21 RESIDIABunkyo-YushimaII Bunkyo-ku,Tokyo 3-2004 63 1,010 0.2% 1,140 947 20.3% 5.3% 98.4%C-22 RESIDIATsukiji Chuo-ku,Tokyo 12-2005 54 1,460 0.3% 1,760 1,358 29.6% 3.4% 100.0%C-23 RESIDIASasazuka Suginami-ku,Tokyo 3-2000 96 1,800 0.4% 2,040 1,813 12.5% 6.9% 93.7%C-24 RESIDIAKyobashi Chuo-ku,Tokyo 1-2005 52 1,220 0.3% 1,430 1,144 25.0% 3.4% 100.0%C-25 RESIDIATamagawa Ota-ku,Tokyo 9-2004 98 1,300 0.3% 1,570 1,206 30.2% 5.9% 100.0%C-26 RESIDIAKorakuen Bunkyo-ku,Tokyo 10-2004 31 603 0.1% 715 561 27.3% 3.5% 97.2%C-27 RESIDIAGinza-Higashi Chuo-ku,Tokyo 9-2004 94 2,000 0.5% 2,400 1,879 27.7% 4.0% 100.0%C-28 RESIDIAOji Kita-ku,Tokyo 2-2005 61 867 0.2% 1,000 799 25.0% 3.2% 100.0%C-29 RESIDIAMejiroII Toshima-ku,Tokyo 7-2005 63 1,050 0.2% 1,180 994 18.6% 2.3% 95.3%C-31 RESIDIATsukishima Chuo-ku,Tokyo 2-2006 40 1,100 0.3% 1,230 1,039 18.4% 6.8% 100.0%C-32 RESIDIAKamataII Ota-ku,Tokyo 9-2006 78 1,360 0.3% 1,590 1,295 22.7% 4.0% 96.5%C-33 RESIDIATsukishimaII Chuo-ku,Tokyo 9-2006 105 2,440 0.6% 2,790 2,332 19.6% 3.8% 95.4%C-34 RESIDIAKinshichoII Sumida-ku,Tokyo 1-2008 99 2,380 0.6% 2,580 2,272 13.6% 4.7% 94.0%C-35 RESIDIABunkyo-Otowa Bunkyo-ku,Tokyo 8-2003 104 3,380 0.8% 3,780 3,112 21.4% 4.7% 94.2%C-36 RESIDIABunkyo-Sengoku Bunkyo-ku,Tokyo 2-2003 33 707 0.2% 846 650 30.0% 5.0% 96.6%C-37 RESIDIABunkyo-Yushima Bunkyo-ku,Tokyo 2-2003 39 1,050 0.2% 1,270 975 30.2% 6.9% 100.0%C-38 RESIDIAIkegami Ota-ku,Tokyo 7-2003 19 378 0.1% 404 353 14.3% 8.5% 93.9%C-39 RESIDIANihonbashi-Ningyocho Chuo-ku,Tokyo 3-2004 25 557 0.1% 720 516 39.4% 5.6% 100.0%C-40 RESIDIABunkyo-SengokuII Bunkyo-ku,Tokyo 4-2005 45 1,440 0.3% 1,600 1,370 16.8% 4.1% 97.5%C-41 RESIDIAIriya Taito-ku,Tokyo 12-2004 49 990 0.2% 1,100 906 21.3% 5.4% 96.0%C-42 RESIDIANihonbashi-Hamacho Chuo-ku,Tokyo 8-2006 45 1,310 0.3% 1,480 1,264 17.0% 4.5% 93.4%C-43 RESIDIAShin-Okachimachi Taito-ku,Tokyo 3-2007 69 1,860 0.4% 2,070 1,780 16.2% 3.0% 96.7%C-44 RESIDIAChidoricho Ota-ku,Tokyo 9-2006 60 1,290 0.3% 1,380 1,227 12.4% 5.0% 96.7%C-45 RESIDIAShinkawaII Chuo-ku,Tokyo 2-2003 36 1,320 0.3% 1,470 1,225 19.9% 3.9% 95.1%C-46 RESIDIAMejiro Toshima-ku,Tokyo 1-1999 162 6,280 1.5% 7,170 6,171 16.2% 2.6% 95.4%C-47 RESIDIAKasai Edogawa-ku,Tokyo 1-2000 29 683 0.2% 789 680 16.0% 7.0% 93.4%C-48 RESIDIANihonbashi-Bakurocho Chuo-ku,Tokyo 2-2007 132 5,500 1.3% 6,580 5,193 26.7% 2.4% 100.0%C-49 RESIDIASuginami-Honancho Suginami-ku,Tokyo 2-2009 194 3,834 0.9% 5,140 3,714 38.4% 4.3% 100.0%C-50 RESIDIAShinItabashi Itabashi-ku,Tokyo 8-2009 67 888 0.2% 1,190 869 36.8% 8.6% 100.0%C-51 RESIDIAKiba Koto-ku,Tokyo 3-2008 155 1,950 0.5% 2,850 1,946 46.4% 7.2% 97.4%C-52 RESIDIABunkyo-Yushima Bunkyo-ku,Tokyo 12-2008 52 1,129 0.3% 1,450 1,115 30.0% 4.4% 96.9%C-53 RESIDIABunkyo-Honkomagome Bunkyo-ku,Tokyo 3-2008 98 2,340 0.5% 2,840 2,338 21.5% 3.5% 100.0%C-54 RESIDIATsukishimaIII Chuo-ku,Tokyo 2-2008 119 2,570 0.6% 3,500 2,534 38.1% 4.0% 94.1%C-55 RESIDIAMinamisenju Arakawa-ku,Tokyo 3-2007 175 2,580 0.6% 3,490 2,544 37.2% 5.3% 100.0%C-56 RESIDIAOgikubo Suginami-ku,Tokyo 3-2003 101 1,710 0.4% 2,170 1,778 22.0% 4.5% 97.0%C-57 RESIDIAMonzennakacho Koto-ku,Tokyo 2-2005 68 970 0.2% 1,270 994 27.8% 7.6% 98.5%C-58 RESIDIAOchanomizu Bunkyo-ku,Tokyo 9-2005 80 2,090 0.5% 2,730 2,089 30.7% 4.2% 95.4%C-59 RESIDIAOmori Ota-ku,Tokyo 3-2006 75 1,150 0.3% 1,420 1,148 23.6% 1.8% 97.4%C-60 RESIDIANakamurabashi Nerima-ku,Tokyo 2-2008 66 1,075 0.3% 1,340 1,067 25.5% 4.5% 90.5%C-61 RESIDIAKachidoki Chuo-ku,Tokyo 2-2008 55 1,805 0.4% 2,370 1,797 31.9% 4.9% 92.8%
No. PropertyName Location CompletionDate
RentableUnits
AcquisitionPrice
(milyen)
ShareofInvestment
(%)
AppraisalPrice
(milyen)
BookValue
(milyen)
UnrealizedProfitandLoss(%)
PML PeriodEndOccupancy
C-62 RESIDIABunkyo-OtowaII Bunkyo-ku,Tokyo 2-2008 89 2,268 0.5% 2,880 2,328 23.7% 4.0% 96.4%C-63 RESIDIAKinshichoIII Koto-ku,Tokyo 2-2005 51 651 0.2% 823 669 22.9% 9.6% 100.0%C-64 RESIDIAKamataIII Ota-ku,Tokyo 3-2007 53 948 0.2% 1,210 950 27.4% 3.5% 95.2%
C-65 RESIDIATowerKami-Ikebukuro Toshima-ku,Tokyo 3-2009 472 8,250 1.9% 10,600 8,368 26.7%Twr5.7%Prk5.4%Anx2.9%
97.5%
C-66 RESIDIATakashimadaira Itabashi-ku,Tokyo 2-2007 45 502 0.1% 596 532 12.0% 4.8% 100.0%C-67 RESIDIAShimurasakaue Itabashi-ku,Tokyo 2-2007 44 580 0.1% 671 613 9.4% 3.4% 100.0%C-68 RESIDIAShimurasakaueII Itabashi-ku,Tokyo 3-2007 94 1,093 0.3% 1,310 1,142 14.6% 5.6% 100.0%C-69 RESIDIAShimurasakaueIII Itabashi-ku,Tokyo 3-2007 36 411 0.1% 481 436 10.1% 5.4% 100.0%C-70 RESIDIAIkebukuroWest Itabshi-ku,Tokyo 10-2007 72 1,115 0.3% 1,310 1,136 15.2% 3.0% 89.4%C-71 RESIDIAOjima Koto-ku,Tokyo 11-2007 87 1,282 0.3% 1,500 1,306 14.8% 6.1% 98.9%C-72 RESIDIAMachiya Arakawa-ku,Tokyo 8-2009 55 1,168 0.3% 1,260 1,206 4.4% 3.2% 98.1%C-73 RESIDIAUeno-Ikenohata Taito-ku,Tokyo 2-2004 71 1,700 0.4% 1,860 1,800 3.3% 3.8% 98.3%C-74 RESIDIANerima Nerima-ku,Tokyo 3-2005 34 502 0.1% 610 523 16.5% 3.9% 100.0%C-75 RESIDIAHigashi-Nihonbashi Chuo-ku,Tokyo 4-2006 22 378 0.1% 456 404 12.7% 5.8% 100.0%C-76 RESIDIANakano Nakano-ku,Tokyo 11-2006 30 652 0.2% 743 699 6.2% 4.1% 100.0%C-77 RESIDIAOgikuboII Suginami-ku,Tokyo 3-2007 36 460 0.1% 542 497 8.9% 5.1% 100.0%C-78 RESIDIAMinamiyukigaya Ota-ku,Tokyo 3-2008 58 1,299 0.3% 1,500 1,379 8.7% 4.4% 93.6%C-79 RESIDIAAkihabara Taito-ku,Tokyo 4-2007 40 977 0.2% 1,130 1,014 11.3% 5.1% 94.8%C-80 RESIDIAAsakusa-Azumabashi Sumida-ku,Tokyo 9-2007 60 876 0.2% 1,070 913 17.1% 3.5% 96.7%C-81 RESIDIAOomoriIII Ota-ku,Tokyo 12-2012 65 1,395 0.3% 1,560 1,441 8.2% 3.1% 88.1%C-82 RESIDIANihonbashi-BakurochoII Chuo-ku,Tokyo 4-2014 77 1,975 0.5% 2,260 2,043 10.6% 3.8% 98.3%C-83 RESIDIANihonbashi-BakurochoIII Chuo-ku,Tokyo 3-2008 55 1,833 0.4% 2,110 1,902 10.9% 3.7% 100.0%S-2 ChesterHouseKawaguchi Kawaguchi,Saitama 3-1991 39 770 0.2% 734 722 1.6% 5.5% 92.3%S-4 RESIDIAHigashi-Matsudo Matsudo,Chiba 4-2007 44 1,100 0.3% 1,180 1,054 11.9% 4.6% 97.7%S-5 RESIDIAShin-Yokohama Yokohama,Kanagawa 1-2007 131 1,920 0.5% 1,940 1,808 7.3% 5.6% 100.0%S-7 RESIDIAChofu Chofu,Tokyo 3-2007 41 1,143 0.3% 1,170 1,093 7.0% 5.0% 97.5%S-11 TOKYOStudent-HouseWako Wako,Saitama 4-1990 127 675 0.2% 731 695 5.1% 10.2% 100.0%S-12 RESIDIAKokubunji Kokubunji,Tokyo 2-2003 33 518 0.1% 572 515 10.9% 2.9% 97.0%S-14 RESIDIAYokohama-Kannai Yokohama,Kanagawa 8-2004 102 1,700 0.4% 1,770 1,562 13.3% 8.4% 95.6%S-15 RESIDIAOkurayama Yokohama,Kanagawa 3-1998 64 755 0.2% 878 730 20.2% 5.3% 100.0%S-16 RESIDIAMusashikosugi Kawasaki,Kanagawa 2-2007 68 1,580 0.4% 1,790 1,511 18.4% 7.2% 97.8%
S-17 RESIDIAFunabashiIandII Funabashi,Chiba 3-2007 172 2,730 0.6% 2,940 2,582 13.9% I3.6%Ⅱ3.4% 100.0%
S-19 RESIDIAKichijoji Musashino,Tokyo 3-1995 48 1,380 0.3% 1,550 1,431 8.3% 9.1% 98.0%
S-20 PacificRoyalCourtMinatoMiraiOceanTower Yokohama,Kanagawa 11-2007 416 14,000 3.3% 15,900 12,301 29.3% 4.5% 100.0%
S-21 MaisonYachiyodai Yachiyo,Chiba 8-1989 39 882 0.2% 822 821 0.1% 5.4% 100.0%S-22 Life&SeniorHouseKohokuII Yokohama,Kanagawa 10-2003 78 1,670 0.4% 2,200 1,574 39.7% 6.4% 100.0%S-23 CollegeCourtTanashi Nishi-Tokyo,Tokyo 2-2010 91 810 0.2% 1,090 786 38.5% 7.7% 100.0%S-24 RESIDIAUrayasu Urayasu,Chiba 9-2009 146 2,115 0.5% 2,750 2,126 29.3% 6.7% 95.5%S-25 RESIDIAMinami-Gyotoku Ichikawa,Chiba 2-2005 85 823 0.2% 1,040 840 23.7% 6.6% 96.5%S-26 RESIDIAUrayasuII Urayasu,Chiba 2-2005 74 802 0.2% 1,010 821 23.0% 7.5% 93.2%S-27 RESIDIAGyotoku Ichikawa,Chiba 2-2005 75 761 0.2% 958 776 23.3% 6.1% 97.3%S-28 RESIDIAKawasaki Kawasaki,Kanagawa 3-2007 104 1,670 0.4% 2,150 1,665 29.1% 4.7% 91.1%S-29 CocofumpHiyoshi Yokohama,Kanagawa 1-2010 85 1,050 0.2% 1,190 1,045 13.9% 7.5% 100.0%S-30 RESIDIASagamihara Sagamihara,Kanagawa 3-2005 111 1,050 0.2% 1,210 1,104 9.5% 6.8% 100.0%S-31 RESIDIAYokohama-Bashamichi Yokohama,Kanagawa 5-2004 28 735 0.2% 1,040 785 32.3% 11.5% 94.5%S-32 RESIDIAHon-Atugi Atugi,Kanagawa 1-2008 49 606 0.1% 683 660 3.4% 11.0% 96.2%
(asofJanuary31,2016)
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
Portfolio
PortfolioafterIncludingthePropertyAcquiredAftertheFP01-2016End
AreaAreaNo.of
PropertiesRentableUnits
AcquisitionPrice
(milyen)
ShareofInvestment
(%)AppraisalPrice
(milyen)BookValue(milyen)
UnrealizedProfitandLoss
(%)P TokyoCentral7Wards 86 5,323 169,113 39.7% 189,263 163,655 15.6%C CentralTokyoex7wards 79 6,237 133,469 31.3% 158,394 129,983 21.9%S TokyoMetropolitan 24 2,250 41,246 9.7% 47,298 39,020 21.2%R MajorRegionalCities 62 6,421 82,024 19.3% 98,290 80,534 22.0%
TotalTotal 251 20,231 425,854 100.0% 493,245 413,193 19.4%
AreaArea No.ofProperties RentableUnits AcquisitionPrice(milyen)
ShareofInvestment(%)
P TokyoCentral7Wards 88 5,395 170,851 39.4%C CentralTokyoex7wards 81 6,385 139,774 32.2%S TokyoMetropolitan 24 2,250 41,246 9.5%R MajorRegionalCities 62 6,421 82,024 18.9%
TotalTotal 255 20,451 433,897 100.0%
No. PropertyName LocationCompletion
DateRentableUnits
AcquisitionPrice(milyen)
AppraisalPrice(milyen)
P-108 RESIDIANakanobuII Shinagawa-ku,Tokyo 4-2014 44 917 980P-109 RESIDIAOchanomizuII Chiyoda-ku,Tokyo 3-2015 28 821 885C-84 RESIDIABunkyo-HongoIII Bunkyo-ku,Tokyo 7-2014 48 1,655 1,740C-85 RESIDIAShin-OkachimachiII Taito-ku,Tokyo 3-2015 100 4,650 4,980
220 8,043 8,585
(asofApril.14,2016)
50
No. PropertyName Location CompletionDate
RentableUnits
AcquisitionPrice
(milyen)
ShareofInvestment
(%)
AppraisalPrice
(milyen)BookValue(milyen)
UnrealizedProfitandLoss(%)
PML PeriodEndOccupancy
R-2 RESIDIAImadegawa Kyoto,Kyoto 2-1999 154 1,671 0.4% 1,690 1,523 10.9% 10.9% 100.0%R-4 RESIDIAHigashi-Sakura Nagoya,Aichi 2-2006 91 1,290 0.3% 1,390 1,085 28.0% 3.4% 89.9%R-5 RESIDIAKameyama Kameyama,Mie 2-2007 182 1,610 0.4% 1,190 1,559 -23.7% 4.2% 97.1%R-6 RESIDIARyokuchiKoen Toyonaka,Osaka 5-2007 44 979 0.2% 963 913 5.5% 5.7% 86.0%
R-8 RESIDIAKobePortIsland Kobe,Hyogo 9-2007 404 3,740 0.9% 4,070 3,523 15.5%South&Center
6.8%North6.7%
100.0%
R-10 RESIDIAHakata Fukuoka,Fukuoka 3-2002 155 1,220 0.3% 1,340 1,159 15.5% 3.4% 98.8%R-11 RESIDIATenjinbashi Osaka,Osaka 2-2000 78 871 0.2% 1,060 869 21.8% 8.3% 96.3%R-12 RESIDIASannomiya-Higashi Kobe,Hyogo 11-2005 161 2,220 0.5% 2,710 2,018 34.3% 3.2% 98.4%R-13 KC21Building Sendai,Miyagi 3-1997 79 900 0.2% 1,010 897 12.5% 2.4% 91.8%R-14 RESIDIAUtubokoen Osaka,Osaka 1-2006 94 1,170 0.3% 1,420 1,078 31.6% 6.6% 100.0%R-15 RESIDIAKyoto-ekimae Kyoto,Kyoto 2-2006 116 1,970 0.5% 2,310 1,826 26.5% 9.9% 99.4%R-16 RESIDIATakaoka Nagoya,Aichi 8-2007 198 2,330 0.5% 3,020 2,185 38.2% 3.5% 98.0%R-17 RESIDIAHibino Nagoya,Aichi 4-1992 124 1,340 0.3% 1,470 1,190 23.5% 3.9% 98.4%R-19 RESIDIATenjin-Minami Fukuoka,Fukuoka 1-2004 56 936 0.2% 1,110 859 29.2% 4.9% 94.6%R-20 RESIDIAHakataeki-Minami Fukuoka,Fukuoka 1-2003 39 324 0.1% 375 291 28.8% 2.7% 92.6%R-21 RESIDIAHisaya-OdoriII Nagoya,Aichi 2-2005 38 685 0.2% 781 622 25.4% 5.0% 94.8%R-24 RESIDIAMinami-Ichijo Sapporo,Hokkaido 12-2006 179 1,640 0.4% 1,890 1,506 25.4% 0.9% 98.4%R-25 RESIDIAOdori-Nishi Sapporo,Hokkaido 12-2006 103 1,320 0.3% 1,370 1,234 11.0% 1.1% 100.0%R-26 RESIDIAKita-Sanjo Sapporo,Hokkaido 1-2007 100 1,130 0.3% 1,300 1,033 25.8% 1.4% 100.0%R-27 RESIDIAShirakabe-Higashi Nagoya,Aichi 5-2005 33 831 0.2% 857 775 10.4% 4.1% 97.2%R-29 RESIDIAUzumasa Kyoto,Kyoto 1-2000 48 701 0.2% 722 661 9.1% 13.5% 94.0%R-30 RESIDIAIzumi Nagoya,Aichi 11-2005 122 3,700 0.9% 4,120 3,424 20.3% 3.1% 93.4%R-31 RESIDIAMaruyamaKita-Gojo Sapporo,Hokkaido 2-2007 56 1,050 0.2% 1,160 978 18.5% 1.2% 91.3%R-32 RESIDIATokugawa Nagoya,Aichi 12-2006 27 751 0.2% 835 706 18.2% 3.9% 92.6%R-34 RESIDIAOdori-Koen Sapporo,Hokkaido 8-2007 109 2,010 0.5% 2,450 1,874 30.7% 0.9% 96.9%R-35 RESIDIATanimachi Osaka,Osaka 8-2008 108 1,100 0.3% 1,520 1,128 34.6% 7.5% 90.3%R-36 RESIDIAHisaya-Odori Nagoya,Aichi 2-2007 57 652 0.2% 885 649 36.3% 4.8% 90.9%R-37 RESIDIASendai-Miyamachi Sendai,Miyagi 1-2008 67 529 0.1% 715 523 36.7% 2.5% 100.0%R-38 RESIDIAHirosedori Sendai,Miyagi 2-2010 63 494 0.1% 630 490 28.4% 2.8% 100.0%R-39 RESIDIAEdobori Osaka,Osaka 2-2007 127 1,400 0.3% 1,840 1,434 28.2% 8.7% 95.4%R-40 RESIDIAKyomachibori Osaka,Osaka 3-2007 84 1,000 0.2% 1,340 1,030 30.0% 7.8% 97.8%R-41 RESIDIAEsaka Suita,Osaka 7-2007 68 989 0.2% 1,290 990 30.3% 4.8% 93.0%R-42 RESIDIANishijin Fukuoka,Fukuoka 1-2008 173 2,380 0.6% 2,950 2,349 25.5% 2.6% 96.3%R-43 RESIDIATsurumai Nagoya,Aichi 2-2008 122 1,206 0.3% 1,620 1,194 35.6% 3.6% 96.9%R-44 RESIDIAKobe-Isogami Kobe,Hyogo 3-2008 196 2,740 0.6% 3,710 2,704 37.2% 3.6% 97.7%R-45 RESIDIAKita-Nijyo-East Sapporo,Hokkaido 3-2006 56 894 0.2% 1,070 897 19.2% 1.1% 98.3%R-46 RESIDIAShinsaibashiWest Osaka,Osaka 2-2007 97 1,921 0.5% 2,320 1,931 20.1% 9.1% 97.0%R-47 RESIDIAMarunouchi Nagoya,Aichi 1-2007 86 972 0.2% 1,170 979 19.5% 2.8% 93.1%R-48 RESIDIASapporo-Ekimae Sapporo,Hokkaido 2-2007 168 1,483 0.3% 2,010 1,490 34.8% 0.7% 97.1%R-49 RESIDIAGosyo-Higashi Kyoto,Kyoto 9-2007 57 1,227 0.3% 1,530 1,235 23.8% 8.9% 96.1%R-50 RESIDIARakuhoku Kyoto,Kyoto 3-2008 75 874 0.2% 1,010 881 14.6% 12.4% 93.0%R-51 RESIDIAMiyakojimaI&II Osaka,Osaka 9-2006 178 3,232 0.8% 4,430 3,333 32.9% 7.1% 97.7%R-52 RESIDIATOWERSendai Sendai,Miyagi 1-2008 67 1,705 0.4% 1,990 1,780 11.7% 2.3% 97.0%R-53 RESIDIAHigashizakuraII Nagoya,Aichi 2-2006 127 2,862 0.7% 3,550 2,914 21.8% 3.1% 93.5%
R-54 RESIDIATsutsujigaoka Sendai,Miyagi 11-2006 168 1,796 0.4% 2,290 1,828 25.2% EAST2.6%WEST2.7% 98.1%
R-55 RESIDIAKobe-Motomachi Kobe,Hyogo 1-2007 85 1,052 0.2% 1,340 1,073 24.8% 5.8% 97.8%
No. PropertyName Location CompletionDate
RentableUnits
AcquisitionPrice
(milyen)
ShareofInvestment
(%)
AppraisalPrice
(milyen)
BookValue(milyen)
UnrealizedProfitandLoss(%)
PML PeriodEndOccupancy
R-56 RESIDIASendai-Honcho Sendai,Miyagi 6-2007 105 1,117 0.3% 1,580 1,139 38.7% 2.3% 100.0%R-57 RESIDIASendai-Haranomachi Sendai,Miyagi 9-2007 72 593 0.1% 854 606 40.8% 2.1% 100.0%R-58 RESIDIAMinami-IchijoEast Sapporo,Hokkaido 1-2008 85 1,062 0.2% 1,310 1,088 20.3% 1.1% 100.0%R-59 RESIDIAShin-Osaka Osaka,Osaka 2-2014 208 2,644 0.6% 3,290 2,829 16.3% 6.2% 100.0%R-60 RESIDIAOkayama-ekimae Okayama,Okayama 3-2004 108 772 0.2% 929 813 14.2% 1.7% 100.0%R-61 RESIDIAKyoto-Okazaki Kyoto,Kyoto 3-2005 23 227 0.1% 295 240 22.7% 14.1% 100.0%R-62 RESIDIASendai-Ichibancho Sendai,Miyagi 3-2006 103 1,083 0.3% 1,310 1,132 15.7% 2.4% 100.0%R-63 RESIDIAKita-NijyoEastII Sapporo,Hokkaido 2-2007 51 538 0.1% 688 572 20.2% 1.2% 100.0%R-64 RESIDIATakamiya Fukuoka,Fukuoka 2-2007 51 488 0.1% 548 511 7.2% 6.1% 97.7%R-65 RESIDIASoen Sapporo,Hokkaido 2-2007 60 384 0.1% 506 411 23.0% 1.4% 100.0%R-66 RESIDIATenjin Fukuoka,Fukuoka 5-2007 88 1,122 0.3% 1,290 1,166 10.6% 3.4% 93.2%R-67 RESIDIAYakuin-Odori Fukuoka,Fukuoka 6-2007 91 1,123 0.3% 1,310 1,162 12.7% 4.5% 97.8%R-68 RESIDIAHakataII Fukuoka,Fukuoka 9-2007 124 1,358 0.3% 1,520 1,408 7.9% 1.8% 93.8%R-69 RESIDIAKego Fukuoka,Fukuoka 1-2008 86 834 0.2% 1,030 879 17.2% 2.3% 90.2%R-70 RESIDIAShirakabe Nagoya,Aichi 3-2008 70 907 0.2% 1,050 975 7.7% 4.4% 86.9%R-71 RESIDIASakae Nagoya,Aichi 12-2007 77 868 0.2% 957 948 0.9% 4.2% 92.2%
Total251propertiesTotal251properties 20,231 425,854 100.0% 493,245 413,193 19.4% 2.4% 96.7%
(asofJanuary31,2016)
General Meeting of Unitholders
Board of Directors
Representative Director and President
Statutory Corporate Auditor
Investment Commitee
Internal Auditor
Compliance Commitee
Compliance and Risk Management Department
Administrations Division
Investment and Asset Management Division
Asset Management Department
Engineering Department
Corporate Management Department
Accounting Department
Compliance Officer
Financial Department
Investment Department
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
AssetManagementCompanyProfile
ADInvestmentManagementCo.,Ltd. http://www.adim.co.jp/AdvanceResidenceInvestmentCorporation http://www.adr-reit.com/en/
Organizational Chart
CompanyProfileName: ADInvestmentManagementCo.,Ltd.Address: 17FJimbochoMitsuiBldg.,1-105Kanda-Jimbocho,Chiyoda-ku,TokyoCompanyRepresentative: KenjiKousaka,RepresentativeDirectorandPresidentAmountofCapital: 300millionyenTypeofBusiness: AssetManagement
History: March1,2010 MergeswithPacificResidentialCorporation May17,2005 CompanynameischangedtoADInvestmentManagementCo.,Ltd.
February2,2005 EstablishedasJapanResidentialManagementCo.,Ltd.
RegistrationsandLicenses: Realestateagent'slicense(TheGovernorofTokyo(2)No.84325) Approvalforadiscretionarytransactionagent(MinisterofLand,Infrastructure,TransportandTourismApproval,No.37) Registeredforafinancialinstrumentsbusiness(KantoLocalFinanceBureauregistrationNo.309)
RegisteredasFirst-Class-ArchitectOffice(TheGovernorofTokyoNo.58856)
1
1
74 8161014
2
30incl.theDivisionHead 32incl.theDivisionHead
Total68excludingoutsidedirectors
Thenumberdenotesthenumberofpeopleworkingin
thesectionordivision
1
1
asofJanuary31,2016
asofJanuary31,2016
51
ImperialEastGarden
JimbochoStationToeiShinjukuLine
YasukuniDori
HakusanDori
ToeiMitaLine
MetropolitanHighway
TakebashiStation
TokyoParkTower
HitotsubashiSIBldg.
JapanMeteorological
Agency
MarubeniTokyoHeadquarterBldg.
TokyoMetroHanzom
onLine
UchiboriDori
TokyoMetroTozaiLine
KyoritsuWomen’sUniversity
Kowa
Hitotsubashi
Bldg.
KandaPoliceStation
JimbochoTaxOffice
GakushiKaikan
TerraceSquare
Nishikicho
TradSquare
JimbochoMitsuiBldg.
Fees FeeBase MaximumFeeRate
AMFeeI TotalAsset(Previousfiscalend) ×0.20%
AMFeeII NOI*1 ×3.00%
AMFeeIII (AMFeesI+II)×AdjustedEPU*2 ×0.008%
AcquisitionFee AcquisitionPrice ×1.00%
DispositionFee DispositionPrice ×0.50%
MergerFee AcquiredAssetValue ×0.50%
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
AssetManagementFeeStructureAnAssetManagementFeeStructureMoreInlinewithUnitholders’Interest
※1NOI=GrossOperatingIncomeminusGrossOperatingExpense(excludingdepreciationandlossfromfixedassetretirement.)※2AdjustedEPU=NetIncomeexcludingAMFeeIIIdividedbynumberofoutstandingassetatthefiscalperiodend.
IntroducinganAssetManagementFeethatisCoupledtoNOI*1andAdjustedEPU*2
52
moreinlinewithunitholders’interest
FeeLinkedtoNOI*1FeeLinkedtoTotalAssetSize FeeLinkedAdjustedEPU*2AMFeeI AMFeeIIIAMFeeII
(Previousfiscalend)
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
SponsorSupport
SupportfromITOCHUGroup
ShareholdersoftheADInvestmentManagementCo.,Ltd.
Being a member of a major conglomeratetrading house, the ITOCHU Group, ADInvestmentManagementCo.,Ltd.,theassetmanagement company, utilizes the supportof ITOCHUGroupto maximize theasset ofAdvance Residence through external andinternalgrowth.
ADInvestmentManagementCo.,Ltd.is100%heldbyITOCHUGroup.
AD Investment Management Co., Ltd
InternalGrowth
ExternalGrowth
Advance Residence Investment Corporation
SupplyofProperty,MarketInformation,andProperty
Warehousing
ITOCHUCorporation
ITOCHUPropertyDevelopment
Propertymanagement,BuildingManagement&
Leasing
Century21RealEstateofJapan
ITOCHUUrbanCommunity
Asset Management
ITOCHUCorporation ITOCHUPropertyDevelopment
Shareholding 80.6%
53
Shareholding 19.4%
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
JapaneseRealEstateLeasingContractPractices
InitialFeesandPayments
FeesandPaymentsatRenewal
PaymentsatTermination
KeyMoney Non-refundablepaymentwhichissometimescalled“thankyou”money.
generallyone-month’srent
Deposit Refundablepaymentwhichwillbeusedtocoverdelinquencyandrestorationcost.
generallyone-totwo-month’srent
Rent Paidmonthlyinadvance.Initialmaximumpaymentwillbeone-month’sand30days’rent. one-month’srent
RenewalFee Non-refundablefeetobepaidwhentenantsrenewtheleasecontracts.
generallyone-month’srent
AgentFeeNon-refundablefeetobepaidtotherealestateagent.
Industrystandardone-month’srent
Deposit Depositsarerefundedminusrestoration. generallyone-totwo-month’srent
AdvertisementFee
Feetobepaidtotherealestateagent.
generallyone-month’srent
ForRent
Real Estate Agent
Tenants
AdministrationFee
Feetobepaidtothepropertymanager.
generallyone-month’srent
• StandardleasetermsinJapanaremostlytwoyears.• Tenantsareabletoleavetheleasedspacebeforecontractexpirationwithoutpayingfortheremainingcontractperiod.• Japan’sLeaseLandandHouseLawmakesraisingrentsofexistingcontractsalmostimpossible.
Property Manager
54
A
dvan
ce
Inve
stm
ent C
orpo
ratio
nR
esid
ence
Advance Residence Investment Corporation
©2016Advance Residence Investment CorporationAllRightsReserved
Note
55
Advance Residence Investment Corporation20140619
Thismaterialcontainforward-lookingstatementsonfutureoperatingresults,plans,businessobjectivesandstrategiesofthecompany.
Forward-lookingstatementsprovidecurrentexpectationsoffutureeventsbasedonnumberofassumptionsandincludestatementsthatdonotdirectlyrelatetoanyhistoricalorcurrentfacts.Forward-lookingstatementsarenotguaranteesoffutureperformanceandtheCompany'sactualresultsmaydiffersignificantlyfromtheresultsdiscussedintheforward-lookingstatements.
ThismaterialisbasedonJapaneseGAAPunlessotherwisestated.
Thismaterialwasnotcreatedforthepurposeofsolicitinginvestmentinthecompany.Investmentsshouldbebasedonyourownjudgmentandresponsibility.