Advance Residence Investment : Notice Concerning ADR’s GRESB Real Estate Assessment Designation (Asia Sector Leader)

October 17, 2023

For Immediate Release

Advance Residence Investment Corporation

Securities Code：3269

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

Wataru Higuchi, Executive Director

Asset Management Company:

ITOCHU REIT Management Co., Ltd.

Junichi Shoji, Representative Director,

President & CEO

Inquiries:

Isao Kudo, Executive Officer

TEL. +81-3-6821-5483

Notice Concerning ADR's GRESB Real Estate Assessment Designation

(As "Asia Sector Leader", Awarded "4 Stars" for the Second Consecutive Year)

Advance Residence Investment Corporation ("ADR") announced that it has been selected as a "Sector Leader" in the Listed Residential sector in Asia for the fourth consecutive year and and first time selected as "Asia Sector Leader" for all listed and unlisted participant and received a high "4 Stars" rating for the second consecutive year in the 2023 GRESB Real Estate Assessment.

1. FY2023 Evaluation Results

In the FY2023 GRESB Real Estate Assessment, ADR has been selected as a "Sector Leader" in the Listed Residential sector in Asia for the fourth consecutive year and first time selected as "Asia Sector Leader" for all listed and unlisted participant.

In addition, ADR received a high "4 Stars" rating for second consecutive years, the higher rank out of five levels in the GRESB rating which indicates a relative evaluation based on the global ranking of the overall score,and has been awarded the "Green Star" rating, which is given to operators that are evaluated as excellent in both the "Management Component," which evaluates ESG promotion policies and organizational structure, and the "Performance Component," which evaluates the environmental performance of properties owned and initiatives for tenants, for the eighth consecutive year.

In these results, the acquisition of third-party guarantees for environmental performance data and the acquisition of green building certifications were recognized as relatively high, and the efforts to realize a decarbonized society, such as the 100% conversion to renewable energy for energy (electricity and heat) in common areas of the properties by procuring non-fossil certificates and green heat certificates, and the offsetting of all GHGScope2 associated with this, were mainly evaluated.

Furthermore, ADR received the highest rating of "A" in the ESG disclosure component ("GRESB Disclosure Assessment") for sixth consecutive years for its efforts in ESG information disclosure.

2. Outline of GRESB

GRESB is the name of the annual benchmark assessment that measures the environmental, social and governance (ESG) considerations of real estate companies and funds and the organization that administers them. It was established in 2009, primarily by a group of major European pension funds.

The GRESB is unique in that it does not focus on individual properties, but rather evaluates the sustainability efforts of real estate companies, REITs, and funds at the individual level.

Please refer to the website below for outline of GRESB. https://gresb.com/nl-en/

3. Future Initiatives of the Investment Corporation and Asset Management Company

ADR and ITOCHU REIT Management Co., Ltd, (IRM) the asset management company to which ADR entrusts the management of its assets recognizes the importance of sustainability through environmental consideration, social contributions and improving its tenants' satisfaction to maintain and add value to ADR's assets in the medium to long-term. We will continue to promote these activities to further raise our unitholder's value going forward.

Please refer to the website below for details on the sustainability initiatives.

ADR ：https://www.adr-reit.com/en/sustain/

IRM ：https://www.itc-rm.co.jp/en/sustain/

• For further information on the "GRESB", please refer to their website.https://gresb.com/

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 480 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/