Advance Residence Investment : 9.72 MB

FP 01-2024

Financial Highlights

4

FP 01-2024

Financial Results

5

DPU Details for FP 01-2024

6

Asset Acquisitions and Sales

8

Sponsor Pipeline

9

(After acquisition of asset-to-be-acquired)

Real Estate Acquisition Status

10

Occupancy Rate Trends

12

Replacement Rent Increase Trends

13

Replacement Rent Increase by Area and Type

14

Renewal Rent Increase etc.

15

Rental Market Overview

16

Rent and Revenue Trends

17

Living Room Remodeling Project Planning Results

19

Maintain and Improve Competitiveness

20

Finance

22

Financial Indicators

23

External Sustainability Evaluation and Initiatives

25

Sustainability Initiatives (Environment)

26

Earnings Guidance

28

Dividend Per Unit Forecast

29

08 Appendix

32

Advance Residence's Strength

The Largest Portfolio Among Residential J-REITs

33

Solid growth, Solid Track Record

34

New Initiatives for Reinforcement of the Revenue Base, etc.

36

Portfolio Construction Policy

37

Building a High Quality Portfolio

38

Breakdown of Replacement and Renewal Rent Increase

39

Senior Housing and Student Housing

41

Examples of Rents Maintained by Renovation

43

Appraisal Value

44

Debt Structure

45

Unitholder Composition

46

Sustainability Policy and Sustainability Promotion Framework

47

Materiality and KPIs

48

Environmental Initiatives and Disaster Risk Response

49

ITOCHU Group Advance

50

Japanese Real Estate Leasing Contract Practices

51

Tokyo 23 Wards Household Income and Population Inflow

52

Demand Supply Stats

53

FFO Payout Ratio Details

54

Changes in Major Indicators

55

Balance Sheet and Statement of Income

56

Portfolio Map and List

57

Organization Structure

66

18,623

18,689

▷Existing properties

Increase in rental revenue

+8

Operating revenue

(based on 283 properties*1)

(based on 283 properties*1)

+66

Average Occupancy rate

Average Occupancy rate

Increase in key money

+44

during the period

during the period

96.5%

96.7%

and renewal fee revenues

▷Remodeling project

▷Acquisitions and sales

18,523

Increase in rental revenue +9

Upside of gain on sales

+3

(based on 277 properties*1)

Average Occupancy rate

Increase in rental revenue

+2

during the period

96.5%

Decrease in other income

-3

▷Existing properties

▷Remodeling project

▷Acquisitions and sales

Increase in renewal fee, etc.

-26

Decrease in

Decrease in repair costs,

+2

operating expences +9

etc

8,861

8,925

+64

Increase in advertising expenses

-16

Operating income

(NOI 13,440)

(NOI 13,478)

Increase in repair costs

-54

(NOI +38)

(Depreciation 3,458)

(Depreciation 3,457)

(Property tax 946)

(Property tax 946)

Increase in utilities costs, etc

+61

▷General Management Fee

Decrease in other fees

+21

Ordinary income

7,944

8,029

+85

▷Financial costs

+20

Decrease in interest expenses, etc

Net income

7,944

8,029

+85

Retained earnings/unit

-608

yen

Distributions from

339

Retained earnings/unit

yen

Reversal of reserve/unit

234

(Fixed-amount reversal)

yen

Reversal of reserve/unit

360

(Additional reversal)

yen

-3yen

Gain on sales generated FP under review 0.87B yen (611 yen/unit)

Retained earnings

-14yen

Retained earnings of 1.28B yen after the previous FP distribution, of which 0.46B yen (325 yen/unit) will be

distributed

Retained earnings after distribution 1.68B yen (1,179 yen/unit)

-

-12yen

Reserves*2 Balance 27.5B yen

Adjusted

5,431yen

EPU

Existing Properties

306yen

+31yen

Non-operating

income/loss, etc.

General

ー25yen

Management Fee

EPU

5,125yen

+15yen

Reserve for Repairs

ー15yen

(Exc. gain on

Financial costs, etc. ー10yen

sales)

Rental revenue

+67yen

Occupancy rate

Repair cost, Property tax, etc. -36yen

96.5％

Dilution by

5,340yen

Public Offering

FP 07-23, FP 01-24

ー185yen

348yen

Transactions

+73yen

Profit/loss on remodeling 55yen

The Revision of the Depreciation Method

292yen

4,992yen

Distribution from Retained earnings (Per unit)

(Exc. gain on

sales)

Fixed-amount reversal of reserve*1 (Per unit)

Additional reversal of reserve (Per unit) *2

Occupancy rate

Distribution from FP under review (Per Unit)

96.7％

360yen

4,935yen

(Exc. gain on

sales)

Occupancy rate

96.5％

Location

Acquisition Price

Appraisal Value

NOI Yield*1

Yield after

Building Age*2

(M yen)

(M yen)

Depreciation*1

Minato-ku, Tokyo

1,009

1,140

4.2%

3.6%

8.1years

Meguro-ku, Tokyo

1,853

2,090

4.2%

3.7%

7.7years

Sourcing from

Bunkyo-ku, Tokyo

1,772

2,000

4.2%

3.6%

7.0years

sponsor pipeline

Shinagawa-ku, Tokyo

3,315

3,660

4.2%

3.5%

5.5years

Operated rental

*3

Setagaya-ku, Tokyo

694

780

4.7%

3.9%

2.0years

residence

Operated rental

Fukuoka City, Fukuoka

1,048

1,210

5.1%

3.8%

3.5years

residence

Operated rental

Fukuoka City, Fukuoka

806

918

5.2%

3.6%

1.6years

residence

7properties

10,497

11,798

4.4%

3.7%

5.7years

Location

(Planned)Acquisition Price

Appraisal Value

NOI Yield*1

Yield after

Building Age

(M yen)

(M yen)

Depreciation*1

T-187

RESIDIA Ochanomizu III

Chiyoda-ku, Tokyo

T-188

RESIDIA Sangenjaya III

Setagaya-ku, Tokyo

T-189

RESIDIA Sendagi

Sourcing from

Taito-ku, Tokyo

sponsor pipeline

T-190

RESIDIA Bunkyo-HongoⅣ

Excluded from 7th PO

Bunkyo-ku, Tokyo

S-036

Tokyo Student House

Operated rental

Kawasaki City,

Musashi Kosugi

residence

Kanagawa

5properties

Asset Sales

Sales of redevelopment area properties

1,279

1,460

4.2%

3.6%

6.8years

2,016

2,300

4.2%

3.6%

6.4years

2,912

3,270

4.2%

3.5%

5.9years

2,252

2,480

4.1%

3.4%

6.1years

5,835

6,320

4.5%

3.6%

6.6years

14,294

15,830

4.3%

3.5%

6.4years

6.2%6.0%

5.4%5.3%

4.8%

5.0%

4.9%

5.2%

4.9%

4.9%

4.8%

4.7%

4.3%

4.6% 4.4%

4.3% 4.1%

3.5%

Sourcing Record Since listing

4.0%

3.9%

3.7%

(After acquisition of asset-to-be-acquired)

3.6%