Advance Residence Investment : Notice Concerning Signing of Interest Rate Swap Agreement

June 12, 2024

For Immediate Release

Real Estate Investment Trust Securities Issuer:

Advance Residence Investment Corporation

(Securities Code：3269)

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

Representative: Wataru Higuchi, Executive Director

Asset Management Company:

ITOCHU REIT Management Co., Ltd.

Representative: Junichi Shoji, Representative Director,

Inquiries:	President & CEO
Isao Kudo, Executive Officer
	(TEL. [phone])

Notice Concerning Signing of Interest Rate Swap Agreement

Advance Residence Investment Corporation announced today its decision to enter into interest rate swap agreements as detailed below.

1. Purpose for entering into interest rate swap agreements

To hedge the risk of interest rate fluctuations of 1,000 million yen loan ( Note1)borrowed on February 16, 2024, 1,500

million yen loan ( Note1) borrowed on March 29, 2024, 2,300 million yen loan ( Note1)

borrowed on April 18, 2024, and

1,500 million yen loan ( Note1) borrowed on April 25, 2024.

(Note1) Please refer to the "Notice Concerning Debt Financing and Repayment of Loan" dated February 6, 2024, "Notice Concerning Debt

Financing (Green Loan) and Repayment of Loan" dated March 19, 2024, "Notice Concerning Debt Financing" dated April 9, 2024 and

"Notice Concerning Debt Financing (Including Green Loan), Repayment of Loan and Redemption of Bond" dated April 15, 2024.

2. Details of interest rate swap agreements

Loan to be hedged: Long-term loan (6,300 million yen)

Notional

Contract

Contract

Repayme

Interest rate

Counterparty

principal

Pay

Receive

No

start date

end date

nt period

(million yen)

(Fixed rate)

(Floating-rate)

1

1,000

February

7.7 year

1.0996% (Note2)

16, 2032

2

1,500

March

4.8 year

0.8856% (Note2)

30, 2029

June

3 month yen

3

Sumitomo Mitsui Trust Bank,

2,300

April

8.8 year

1.1820%

(Note2)

Limited

14, 2024

18, 2033

TIBOR (Note3)

4

500

April

7.9 year

1.1121% (Note2)

23, 2032

5

1,000

April

4.9 year

0.8906% (Note2)

25, 2029

Total or Weighted Average

6,300

7.0 year

1.0465％

(Note2) Interest payment dates are the last business day of January, April, July, October, starting July 31, 2024 and contract end date.

(Note3) By entering the interest rate swap agreement, the interest rate for the loan above is to be basically fixed at 1.2696% for long-term loan (7.7 year 1,000 million yen), 1.0406% for long-term loan (4.8 year 1,500 million yen), 1.3620% for long-term loan (8.8 year 2,300 million yen), 1.2821% for long-term loan (7.9 year 500 million yen), 1.0456% for long-term loan (4.9 year 1,000 million yen).

[Provisional Translation Only]

English translation of the original Japanese document is provided solely for information purposes.

Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

3. Contract date of interest rate swap agreements June 12, 2024

About Advance Residence Investment Corporation

Advance Residence Investment Corporation is the largest J-REIT specializing in residential properties and is managed by ITOCHU REIT Management Co., Ltd. (IRM), the asset management company of the ITOCHU Group, investing in over 280 rental apartments located mostly in central Tokyo and in other major cities throughout Japan (AUM over 490 billion yen). ADR can be expected have a stable dividend in the long-term and can be considered as a defensive J-REIT, on back of the stable income from residential assets and with the largest dividend reserve among J-REITs.

"Advance" is the common brand name of the real estate investment corporation managed by ITOCHU REIT Management Co., Ltd.

ADR's website: https://www.adr-reit.com/en/

IRM's website :https://www.itc-rm.co.jp/en/

[Provisional Translation Only]

English translation of the original Japanese document is provided solely for information purposes.

Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.