Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
For Immediate Release
February 24, 2026
Real Estate Investment Trust Securities Issuer: Advance Residence Investment Corporation (Securities Code：3269)
1-105 Kanda-Jinbocho, Chiyoda-ku, Tokyo 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)
Notice Concerning Disposition of Domestic Real Estate Trust Beneficiary Interest(RESIDIA Bunkyo-Yushima II)ITOCHU REIT Management Co., Ltd. (IRM), the asset management company to which Advance Residence Investment Corporation (ADR) entrusts the management of its assets, today announced its decision to dispose of assets (hereafter, the "Disposition") as detailed below.
Summary of the Disposition
Property Name
RESIDIA Bunkyo-Yushima II
Type of Specified Asset
Beneficiary interests in trust
Disposition Price
1,617 million yen
Appraisal value or survey price(Note1)
1,560 million yen
Book Value(Note2)
868 million yen
Difference between Disposition Price and Book Value
748 million yen
Counterparty
Taisei-Yuraku Real Estate Co., Ltd
Broker Availability
None
Scheduled Contract Date
February 24, 2026
Scheduled Disposition Date
July 1, 2026
Payment Method
Full payment on delivery
(Note 1) "Appraisal values or survey prices" is as of January 31, 2026.
(Note 2) "Book value" is the estimated amount as of each anticipated disposition date.
Reason for the Disposition
ADR is promoting a capital policy aimed at optimizing capital efficiency and enhancing unitholder returns, taking into consideration the current capital market environment, such as capital costs and investment unit prices.
This disposition is intended to realize profits through the strategic sale of assets with unrealized gains and to enhance unitholder returns by allocating a portion of such profits to distributions.
The disposition price is 1,617 million yen, which exceeds the book value (868 million yen). Accordingly, this disposition is expected to generate a gain on sale of approximately 736 million yen (Note 3).
The funds obtained from this disposition will be flexibly utilized for initiatives aimed at enhancing unitholder value, including allocation to future property acquisitions and repayment of borrowings.
(Note 3) Gain on sale is a reference figure calculated at the present time as the difference between the planned disposition price and the book value plus disposal-related expenses, and may differ from the actual gain on sale.
Details of Assets to be Disposed
Property Number
T-108
Property Name
RESIDIA Bunkyo-Yushima II
Location
3-33-8 Yushima, Bunkyo-ku, Tokyo
Land
Type of Ownership
Ownership
Land Area
246.30 ㎡
Zoning
Commercial Districts
FAR/Building Coverage Ratio
600%/80%
Building
Type of Ownership
Ownership
Total Floor Space
1,752.45 ㎡
Structure / Floors
Steel-framed reinforced concrete (SRC) structure with a flat roof; 12 stories.
Use
Residential
Construction Completion Date
March 2004
Trustee
Sumitomo Mitsui Trust Bank, Limited
Trust Contract Period
Until March 31, 2031
Lease Conditions
Point in Time
As of January 31, 2026
Total Tenants
1
Leasable Units
63
Leased Units
62
Leasable Floor Area
1,368.01 ㎡
Leased Area
1,346.72 ㎡
Occupancy Rate (based on floor area)
98.4%
Total Monthly Rent
6,416 thousand yen
Deposits, Guarantees, etc.
4,096 thousand yen
Number of Units by Type（Excluding
Operated Rental Residence）
Single
63
Compact
-
Family
-
Large
-
Other
-
Number of Operated Rental Residences
-
Special affairs
None
Financial Impact on ADR in the Event of Failure to Fulfill Forward Commitment, etc.
The Beneficiary Interests in Trust Sales and Purchase Agreement pertaining to this transaction (hereafter, the "Agreement") constitutes a forward commitment, etc(Note4). by an investment corporation defined in the Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc. published by the Financial Services Agency. The Agreement provides that if this Investment Corporation or the counterparty violates a provision of the Agreement, the non-breaching party has the right to terminate the Agreement and claim an amount equivalent to 20% of the transaction price of the beneficiary interest for which the agreement was terminated as a penalty. Furthermore, even if damages exceeding such penalty arise due to the termination of the Agreement, neither party can claim any amount beyond the penalty from the other. Likewise, if the damages are less than the penalty amount, neither party can claim a reduction of
the penalty.
However, this Investment Corporation is not obliged to pay penalties to the counterparty for the expiration or cancellation of the Agreement except where this Investment Corporation is at fault.
(Note 4) Refers to a postdated sales agreement under which payment and property delivery shall be made at least one month after the conclusion of the agreement, or any other agreement similar thereto.
Summary of the Counterparty
Name
Taisei-Yuraku Real Estate Co., Ltd
Address
3-13-1, Kyobashi, Chuo-ku, Tokyo
Representative
Takeshi Uekusa, President and Representative Director
Principal business
Businesses related to Real estate development, leasing, brokerage, appraisal, and consulting, as well as building maintenance and management.
Capital
10,000 million yen (as of March 31, 2025)
Data of establishment
October 1971
Total assets
200,285 million yen (as of March 31, 2025)
Total capital
113,776 million yen (as of March 31, 2025)
Major shareholders and Shareholding ratio
TAISEI CORPORATION (100%)
Relationship with ADR and IRM
Capital relations
None
Personnel relations
None
Business relations
None
Related parties' status
None
Outlook
The impact of this transfer on the forecast of operating results for the 32nd fiscal period (from February 1, 2026 to July 31, 2026), as announced in the Brief Summary of Financial Results for the fiscal period ended July 2025 dated September 16, 2025, will be negligible, and no changes will be made to this forecast.
Summary of Appraisal Report or Survey Report
Property name | RESIDIA Bunkyo-Yushima II |
Appraisal value or survey price, etc | 1,560,000 thousand yen |
Appraiser | Japan Real Estate Institute |
Appraisal date | as of January 31, 2026 |
（thousand yen）
Items | Value | Summary | ||||
Income Capitalization Approach Value | 1,560,000 | Estimated the income value of the subject property by relating the income value obtained by the DCF method to the income value obtained by the direct capitalization method. | ||||
Direct Capitalization Price ((6)/(7)) | 1,570,000 | |||||
(1) Total Potential Income | 75,365 | |||||
Total Potential Income | 78,476 | |||||
Calculated the standardized estimated rental income and common area fee income of the subject | ||||||
Rental income | 75,489 | property based on the rent level of the current contract, the new rent level of similar properties in the same demand/supply zone and its trend and taking into account the subject property's | ||||
Other income | 2,987 | competitiveness in the medium to long term. After assessing, for each tenant, the number of months collected as well as the tenant's average annual turnover rate and average contract term, we recorded the resulting key money and renewal fee income, and also recorded vending machine placement fee income and the like as other income. | ||||
Losses from Vacancies, etc. | 3,111 | Based on the occupancy conditions and supply-demand trends of comparable properties that are in a substitute/competitive relationship in similar areas within the same demand/supply zone, as well as the subject property's past occupancy performance and expected future trends, we assessed a medium- to long-term stable occupancy rate and recorded vacancy and other losses based on that | ||||
assessment. | ||||||
Losses from Delinquencies | 0 | Considering the situation of the lessee and other factors, the Company decided not to record a bad debt loss. | ||||
(2) Expenses from rental business | 18,732 | |||||
Maintenance and Management Fees | 3,497 | Maintenance and Management Fees are recorded with reference to actual amounts from previous years and similar properties, and taking into consideration the individual characteristics of the subject property. | ||||
Utilities Costs | 700 | Utilities Costs are recorded with reference to actual amounts from previous years and similar properties, and taking into consideration the individual characteristics of the subject property. | ||||
Repair Costs | 3,789 | Restoration and repair costs were estimated and recorded based on typical tenant-turnover costs, the landlord's share and timing, historical results, comparable property benchmarks, and the engineering report's average annual repair and replacement estimates. | ||||
Property Manager Fees | 2,174 | Recorded in consideration of the individual characteristics of the subject property with reference to the remuneration rates based on the contract terms and conditions, etc., and with reference to the remuneration rates at similar properties. | ||||
Leasing Expenses | 3,774 | Administrative fees related to marketing and leasing to new tenants, lease execution, and renewals were recorded with reference to contract terms and leasing conditions for comparable nearby properties. Leasing-related costs include brokerage commissions required for tenant acquisition and advertising and promotion expenses estimated based on prior-year actuals. Renewal fees were | ||||
recorded by taking into account the remuneration paid to outsourced service providers for renewal contract execution, as well as the average annual tenant turnover rate and occupancy rate. | ||||||
Land: Taxes and Public Dues are recorded by taking into consideration the data related to taxes and public dues, etc., and the details of the burden adjustment measures. | ||||||
Taxes and Public Dues | 4,148 | Building: Taxes and Public Dues are recorded by taking into consideration the data related to taxes and public dues, etc., and factors such as the age-related depreciation adjustment rate. | ||||
Depreciable Assets: Taxes and Public Dues are recorded based on the data related to taxes and public dues. | ||||||
Insurance Premium | 84 | Recorded in consideration of premiums based on insurance policies and premium rates for similar properties. | ||||
Other Expense | 566 | Neighborhood association fees and internet usage fees are recorded as other expenses. | ||||
(3) Net Operating Income (NOI, (1)-(2)) | 56,633 | |||||
Recordedthe number of months of stable deposit over the medium term based on the number of | ||||||
(4) Earnings from Deposits | 55 | months of deposit under the current lease terms, and multiply this amount by the Occupancy rate, and then multiply the result by the investment yield to assess and appraise the investment income on the lump-sum payment. | ||||
(5) Capital Expenditures | 4,978 | Appraised and recorded, taking into account the level of Capital Expenditures of similar properties, Building Age, and the average annual amount of repair and renewal expenses in the engineering report, etc. | ||||
(6) Net Cash Flow DCF Price ((3)+(4)-(5)) | 51,710 | |||||
(7) Cap Rate | 3.3% | Appraised by adding/subtracting the spread that attributes to the subject property's location, | ||||
building conditions, and other conditions to the standard yield, and also by taking into account | ||||||
future uncertainties and transaction yields on similar properties, etc. | ||||||
DCF price | 1,540,000 | |||||
Discount Rate | 3.1% | Appraised by comprehensively taking into account the individual characteristics of the subject | ||||
property, etc., with reference to the investment cap rate, etc. of similar properties. | ||||||