Advance Residence Investment CorporationTSE: 3269

Uploaded Presentation Materials for January-2026 Fiscal Period

· Issued by Advance Residence Investment Corporation

31 st

Financial Results Summary

Fiscal period ended January 31, 2026 (August 1, 2025 - January 31, 2026)

Advance Residence Investment Corporation

Security code 3269





INDEX

01 Strategy & Policy

Management Policy Going Forward 3

04 Internal Growth

Living Room Remodeling Project Results 19

07 Appendix

Advance Residence's Strength 34

Building a High-quality Portfolio 51

4

Introduction of a Mid- to Long-Term Core KPI and a Growth Targets

Before and After Examples 20

One of the Largest Portfolio Among Residential Specialized J-REITs

35 Debt Structure 52

Asset Replacement and the

Generation and Distribution of Gains 5

on Sales

Occupancy Rate Trends 21

Replacement Rent Trends 22

Portfolio Construction Policy 36

37

Rate of Change in Net Income Compared to the Previous Period (Excluding Gain on Sales)

Senior Housing 53

Student Housing 54

02 Financial Highlights

7

Analysis of Earnings Structure Centered on FFO per Unit

8

NOI Growth and Cost Absorption Capacity

Replacement Rent Change Rate by Area and Type

23

24

Trends in Occupancy Rate and Replacement Rent Change Rate by City

Renewal Rent Trends, etc. 25

Rent Revision Results Boosting Profitability 26

Rate of Change in Earnings Per Unit

Compared to the Previous Period (Excluding 38

Gain on Sales)

FP 01-2026, Compared to the Previous Period 39

FP 01-2026, Compared to the Forecast 40

41

Earnings Forecast for FP 07-2026, Compared with FP 01-2026

Effectiveness of Measures Addressing Asset Aging

55

Unitholder Composition 56

57

58

Environmental Initiatives and Disaster Risk Response Tokyo 23 Wards Household

Income and Population Inflow

Actual and Forecast DPU 9

10

Composition of Distributions and Additional Utilization of Negative Goodwill

11

Capital Allocation Framework Based on AFFO

05 Finance

Finance 28

Earnings Forecast for FP 01-2027, Compared with FP 07-2026

42

Solid Growth, Solid Track Record 43

45

Projected Profit and Loss for the Living Room Remodeling Project

Large-scale Repairs 46

Demand Supply Stats 59

60

Changes in Unit Price and Market

Capitalization

61

Changes in Key Management

Indicators, etc.

63

Balance Sheet and Statement of

Income

03

Property Acquisitions

and Dispositions

Changes in Portfolio Composition 14

Acquired Properties 15

Disposed Properties 16

Financial Indicators 29

06 Sustainability

31

External Evaluations and Certifications/Supported Initiatives

Publication of the ESG Report 2025 32

Real Estate Acquisition Status and Appraisal Trends

47

Pipeline 48

Rent and Revenue Trends 49

50

Breakdown of Replacement and Renewal Rent Change Rate by Area and Type

Portfolio Map 65

Portfolio List 67

73

Asset Management Company Overview

* Unless, otherwise indicated, monetary amounts are rounded down to the nearest unit; and all other amounts are rounded to the nearest indicated digit.

1



S E C T I O N 1

Strategy & Policy

2

01 Strategy & Policy



Accurately Capturing the Current Market Environment to Achieve "Stable and Sustainable Distributions"

Our View of the Current Market Environment Management Policy Going Forward

Internal Growth

  • Supply constraints driven by rising new development costs are contributing to a tightening demand-supply environment.



    Ongoing enhancement of earnings power centered on rent growth

    • Pursuit of revenue growth through rent increases at lease-up and renewal, while maintaining stable occupancy

    • Value creation through unit remodeling led by specialized department

    • Continuation of asset value enhancement initiatives incorporating ESG perspectives

  • Against the backdrop of wage growth, the environment is conducive to rent revisions.

  • In a rising interest rate environment, earnings growth that exceeds increases in financing costs is required.

    External Growth

  • Transaction markets remain active, with cap rates maintaining tight levels.



    Promotion of selective acquisitions through asset replacement

    • Leveraging diverse acquisition opportunities, including pipeline assets and exchange transactions

    • Investment in assets with potential for value creation through unit remodeling

    • Investment decisions based on identified rent revision potential relative to market rent levels

  • Amid heightened focus on capital efficiency, asset disposals by operating companies are gaining momentum.

  • As acquisitions and dispositions intersect, the environment creates acquisition opportunities, including exchange transactions.



    Financial and Capital Strategy

  • Bank lending in Japan continues to expand, and the overall financing environment remains stable.

    Balancing stability and flexibility

    • Containing debt costs by shortening debt maturities and optimizing the balance between fixed and variable interest rates

    • Flexibly considering funding in light of growth opportunities and investment unit price levels

  • Meanwhile, against the backdrop of policy rate hikes, financing costs are

    trending upward, making careful evaluation of terms increasingly important.

    3

    01 Strategy & Policy



    Introduction of a Mid- to Long-Term Core KPI and a Growth Targets

    The mid- to long-term target for FFO *1 per Unit (FFOPU) growth is set at +2.0% per annum, with a growth strategy primarily driven by internal growth.

    FFOPU Trend and Growth Outlook





    FFOPU is positioned as the core metric for mid- to long-term performance evaluation, as it eliminates volatility arising from accounting factors and more accurately reflects underlying cash generation capability.

    FFO per Unit = (Net Income + Depreciation and Amortization - Gain or Loss on Property Sales) ÷ Number of Units Outstanding

    Unit: yen

    FFOPU

    Depreciation per unit

    Key Growth Driver

    ① Rent Growth

    Breakdown of Targeted FFOPU Growth

    ＋6.0％ + per year

    Earnings (excluding gains on sales) per unit

    4,004

    4,026

    • Replacement Rent Change Rate +15.0％～

      3,763*2

      3,804*2

      3,900

      3,948

      (FP 1-26 → FP 1-27)

      （ Restored Units (Excluding remodeled units)：+12.0％～ Remodeled units：+28.0％～）

    • Renewal Rent Change Rate +4.0％～

(FP 1-25 → FP 1-26)

Actual Growth Rate

+3.8%

Forecast Growth Rate

+2.0%

Disciplined Cost Management

② Financial cost

③ Others

Approximately -2.0％ per year Approximately -2.0％ per year

FP ７-24 FP 1-25 FP ７-25 FP 1-26 FP ７-26 FP 1-27

（Forecast） （Forecast）

*1 FFO is calculated by adding depreciation to net income (excluding gain or loss on sales) for the relevant fiscal period.

4

*2 Following the investment unit split on February 1, 2025, figures for the fiscal period ended January 2025 and earlier are presented on a post-split per-unit basis.