【Advance Residence】Conclusion of Interest Rate Swap Contract ｜ May 2026

Overview of Asset Management and Interest Rate Hedge

Advance Residence Investment Corporation operates rental housing nationwide, primarily in the 23 wards of Tokyo, aiming for stable distributions. This time, on May 29, 2026, the company concluded an interest rate swap contract with MUFG Bank, Ltd. to hedge the interest rate risk of long-term borrowings of 1,560 million yen. The contract period is approximately 6.9 years, with an interest rate fixed at 2.69875% (effectively 2.85875%). This is part of measures to suppress interest rate fluctuation risks and enhance asset stability.

Impact on Investors and Future Outlook

The conclusion of this interest rate swap contract aims to improve asset stability and strengthen risk management. By fixing the interest rate on long-term borrowings, the company can control costs even during interest rate increase phases and stabilize distributions. Going forward, the company will continue to enhance asset management efficiency and risk hedging, maintaining an attractive REIT operation for investors.