Notice Concerning Acquisition of Real Estate and Real Estate Trust Beneficiary Interest in Japan (RESIDIA Shoin-jinja-mae and RESIDIA Tokiwadai)

For Immediate Release

Real Estate Investment Trust Securities Issuer: Advance Residence Investment Corporation (Securities Code：3269)

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

May 19, 2026

Representative: Wataru Higuchi, Executive Director

Asset Management Company:

ITOCHU REIT Management Co., Ltd.

Representative: Junichi Shoji, Representative Director,

President & CEO

Inquiries: Isao Kudo, Managing Executive Officer

(TEL. +81-3-6821-5483)

ITOCHU REIT Management Co., Ltd. (IRM), the asset management company to which Advance Residence Investment Corporation (ADR) entrusts the management of its assets, announced today its decision to acquire assets (hereafter, the "Acquisition") as detailed below.

1. Summary of the Acquisition

   Property Name (Note 1) (Type of asset)	RESIDIA Shoin-jinja-mae (Real estate)	RESIDIA Tokiwadai (Beneficiary Interest in Trust)
   Acquisition Price (Note 2) (Price / Appraisal ratio)	2,843 million yen (94.8%)	1,221 million yen (94.7%)
   Appraisal Value (Note 3)	3,000 million yen	1,290 million yen
   NOI Yield (Note 4)	3.7%	3.9%
   Yield after Depreciation (Note 5)	3.2%	3.1%
   Building Age (Note 6)	8.4 years	2.6 years
   Seller	ITOCHU Property Development, Ltd.	Not disclosed
   Broker Availability	None	Yes
   Scheduled Contract Date	May 19, 2026
   Scheduled Acquisition Date	May 27, 2026 or a date to be separately agreed upon with the seller	May 28, 2026 or a date to be separately agreed upon with the seller
   Acquisition Financing (Payment Method)	Borrowings and cash on hand (Lump-sum payment on delivery)

   (Note 1) The name of the asset-to-be-acquired is scheduled to be changed after acquisition by ADR, and the names after the change are stated. As of today, the names are "CREVIA RXE Setagaya Shoin-jinja-mae" for RESIDIA Shoin-jinja-mae and "URBANLINK Tokiwadai" for RESIDIA Tokiwadai.

   (Note 2) "Acquisition Price" is the amount stated in the real estate transaction contract and beneficiary transfer agreement for the acquired asset (excluding various expenses required for acquisition (brokerage fees, taxes and public dues, etc.)).

   (Note 3) "Appraisal Value" of the asset-to-be-acquired is as of April 1, 2026 for RESIDIA Shoin-jinja-mae, and as of April 20, 2026 for RESIDIA Tokiwadai.

   (Note 4) "NOI Yield" is calculated as follows: annualized NOI written in the appraisal document at the time of the acquisition of the asset-to-be acquired and calculated using direct capitalization method / acquisition price x 100. The calculated yield is rounded at the second decimal point.

   (Note 5) "Yield after Deprecation" is calculated as follows: (annualized NOI written in the appraisal document at the time of the acquisition of the asset-to-be-acquired and calculated using direct capitalization method - annual depreciation cost) / acquisition price x 100. The calculated yield is rounded at the second decimal point. As in the case with the existing portfolio of ADR, the depreciation cost of the assets-to-be-acquired is calculated by ADR, using the straight-line method under certain assumptions and estimated at 14,794 thousand yen a year for RESIDIA Shoin-jinja-mae and 9,886 thousand yen a year for RESIDIA Tokiwadai.

   (Note 6) "Building Age" represents the age of the building as of the acquisition date and is rounded at the second decimal point.

2. Reason for the Acquisition

   IRM decided on the following acquisition pursuant to the target and policy of asset management as stipulated in the Articles of Incorporation of ADR, for steady increase in asset size and diversification and enhancement of the portfolio. The decision to acquire this property was based on an evaluation of Features of the Property, etc., as stated in "3. Summary of the Asset-To-Be-Acquired".

   Additionally, ITOCHU Property Development, Ltd. (Note 7), the seller in this transaction, is not currently a major shareholder of the IRM, but was granted preferential negotiation rights with respect to the property.

   (Note 7) ITOCHU Property Development, Ltd. no longer qualified as a major shareholder of the IRM as of April 1, 2026.

   Please refer to the "Notice Concerning Changes in Major Shareholders of the Asset Management Company" dated March 31, 2026 for details.

3. Summary of the Asset-To-Be-Acquired

   1. RESIDIA Shoin-jinja-mae

      Property Name		RESIDIA Shoin-jinja-mae	Property Number	T-195
      Type of asset		Real estate
      Address		4-14-27 Setagaya, Setagaya-ku, Tokyo
      Land	Type of Ownership	Ownership	Zoning	category 2 residential districts
      	Land Area	606.00 ㎡	FAR / Building Coverage Ratio	300%/60%
      Building	Structure / Floors	Reinforced concrete structure with a flat roof, 9 stories
      	Type of Ownership	Ownership	Use	Apartment, store
      	Total Floor Space	2,136.25 ㎡	Construction Completion Date	January 2018
      	Building Designer	KAWAMURA KOUEI Architects & Engineers Co., Ltd.
      	Structural Engineer	T & A Associates Co., Ltd.
      	Construction Contractor	KAWAMURA KOUEI Co.,Ltd
      	Building Certification Agency	Kakunin Service Inc.
      	Building Inspection Agency	Kakunin Service Inc.
      Collateral		None
      Appraisal value		3,000,000 thousand yen	Appraisal date	as of April 1, 2026
      Appraiser		Japan Real Estate Institute
      Property Management Company		ITOCHU Urban Community Co., Ltd. (planned)
      Master Lessee		ITOCHU Urban Community Co., Ltd. (planned)	Master Lease type	Pass-through
      Lease Conditions
      	Total Tenants	1	Point in Time	As of March 31, 2026
      	Leasable Units	51
      	Leased Units	51
      	Leasable Floor Area	1,764.19 ㎡	Occupancy Rate (based on floor area)	100%
      	Leased Area	1,764.19 ㎡

      	Total Monthly Rent	9,493 thousand yen
      	Deposits, Guarantees, etc.	27,474 thousand yen
      Number of Units by Type （Excluding Operated Rental Residence）	Single	Compact	Family	Large	Other
      	43	1	6	0	1
      Number of Operated Rental Residence	0
      Features of the Property
      	・This property is located within a 3-minute walk from Shoin-jinja-mae Station on the Tokyu Setagaya Line and 7 minutes to Sangenjaya Station from the nearest station, and with excellent transportation convenience at approximately 20 minutes to Shibuya Station, steady rental demand can be expected, particularly among those who prioritize living close to their workplaces. ・The area surrounding the property is well equipped with convenient daily amenities such as supermarkets and clinics, providing an excellent living environment.
      Special affairs
      	None
      Summary of Building Conditions Investigation Report
      	Investigator	Tokio Marine dR Co., Ltd.		Investigation Report Date	April 3, 2026
      	Emergency Repair Costs	-
      	Short-term Repair Costs (within 1 year)	-
      	Long-term Repair Costs (within 12 years)	45,468 thousand yen
      	Building Replacement Price	645,000thousand yen
      Summary of Earthquake Risk Analysis
      	Investigator	Tokio Marine dR Co., Ltd.		Investigation Report Date	April 3, 2026
      	Probable Maximum Loss Ratio（PML)	4.3%
      Matters concerning Earthquake Resistance, etc.
      	This property has received notification of structural calculation conformity assessment from a designated structural calculation inspection body (the Public Interest Incorporated Foundation for Disaster Prevention and Building and Urban Development Center of Tokyo) in accordance with the revision of the Building Standard Act that came into effect in June 2007.

   2. RESIDIA Tokiwadai

Please refer to "Notes and definitions on items on the tables in the press releases for asset acquisition" on ADR`s website for details on items on the above table. (https://www.adr-reit.com/en/ir/news/)