To Our Unitholders

Advance Residence Investment Corporation (ADR, securities code: 3269) is the largest residential J-REITs based on AUM. It invests in multi-family residential properties mainly located in central Tokyo but also throughout the country. The unit-types that ADR invests are in all types including senior housing, student dormitories, but mostly in single and compact types. ADR diversifies its investments with the aim of realizing a stable distribution of earnings over the long term.

In managing its properties, ADR actively perform value enhancing renovations to individual units, timely repairs as well as making daily maintenances to maintain and improve asset value as well as competitiveness in the rental market.

In addition, ADR holds largest reserve among the J-REITs. The reserve originally derived from the gain on negative goodwill that resulted from the merger is used to stabilize distributions.

We therefore believe that, with our management of properties and the above reserve, investors will be able to enjoy a long-term stable profit distribution in accordance with our basic policy.

In recent years, companies are expected to give greater consideration to environment, society, and governance (ESG). ITOCHU Corporation, the originator of ADR, established itself on a mission statement which the concept can be interpreted as being same as the concept of ESG. It is "Sampo-yoshi” which the direct translation would be “Three-way Good” (meaning, be good for the seller, be good for the buyer, and be good for the society). Hence, the concept of ESG is part of ADR’s DNA. We would therefore, continue to operate to meet society's expectations and endeavor to be an integral and indispensable part of society.

We humbly ask for your continued support.

Sincerely yours,

Wataru Higuchi, Executive Director
Advance Residence Investment Corporation