Leopalace21 Records Strong Profit Growth on Lower Sales in FY3/13, Continued Growth in FY3/14 Sales

Leopalace21 Records Strong Profit Growth on Lower Sales in FY3/13, Continued Growth in FY3/14 Sales and Profits Expected

TOKYO--(BUSINESS WIRE)-- Leopalace21 Corporation (TOKYO:8848), a company that conducts construction, leasing, and sales of apartments, condominiums, and residential housing, announced that its sales declined by 1.1% year-over-year to JPY454.2 billion during the current fiscal year. At the same time operating, recurring and net incomes grew by 61.7%, 372.1% and 739.2% year-over-year to JPY7.4, JPY11.0, and JPY13.3 billion yen respectively, due in part to strength in the new housing construction market and to Leopalace21 Group's measures to establish stable profitability.

Leopalace21's main leasing business sales and operating income grew by 0.9% and 65.5% year-over-year to JPY383.5 and JPY8.6 billion on the back of 1.41% and 1.78% point increases in year-end and full year average occupancy rates to 84.81% and 82.94% respectively. At the same time, the construction business sales and operating income declined by 15.2% and 36.2% year-over-year to JPY53.3 and JPY2.7 billion respectively due to the Company's focus upon construction of facilities in regions where high occupancy rates can be maintained.


Total assets fell by JPY3.1 billion from the end of the previous fiscal year to JPY261.6 billion due to declines of JPY6.2, JPY2.9, and JPY10.1 billion in prepaid expenses, other current assets, and long term prepayments respectively. Total liabilities fell by JPY27.4 billion from the end of the previous fiscal year to JPY203.4 billion due in part to declines of JPY2.6, JPY19.5, and JPY5.2 billion in interest bearing liabilities, short and long term advances received, and the reserve for apartment vacancy loss respectively. Net assets grew by a large margin of JPY24.3 billion from the end of the previous fiscal year to JPY58.1 billion due to increases in retained capital resulting from the exercise of stock options and strong growth in net income. Consequently, equity ratio rose by 9.4% points from the end of the previous fiscal year to 22.2%.

During fiscal year March 2014, Leopalace21 calls for sales and operating and recurring incomes to rise by 2.9%, 90.2% and 10.0% year-over-year to JPY467.4, JPY14.1 and JPY12.2 billion respectively. At the same time net income is expected to decline by 17.5% year-over-year to JPY11.0 billion.

 
Leopalace21 Corporation (8848)   FY3/12   FY3/13   yy chg   FY3/14E   yy chg
Sales 459,436 454,222 -1.1% 467,400 2.9%
Operating Income 4,585 7,413 61.7% 14,100 90.2%
Margin 1.0% 1.6% na 3.0% na
Recurring Income 2,349 11,091 372.1 12,200 10.0%
Net Income 1,588 13,335 739.2 11,000 -17.5%
Earnings Per Share 9.40 74.50 na 52.00 na
Dividend Per Share   0.00   0.00   na   0.00   na

(Units: Million Yen, EPS and Dividend in Yen, E=estimates)

 

About Leopalace21 Corporation

Leopalace21 Corporation was established in August 1973 and conducts construction, leasing, and sales of apartments, condominiums, and residential housing, in addition to development and operation of resort facilities, and the operation of hotel business, broadband business, and elderly care business. The Company was first listed on the JASDAQ Market in February 1989, and moved its shares to the First Section of the Tokyo Stock Exchange in March 2004. Its headquarters are currently located in Tokyo.



Kaoru Hosaka for Leopalace21 Corporation
Investment Bridge Co., Ltd.
+81-3-5842-5765 (Japanese correspondence only)
leopalace21@cyber-ir.co.jp (English and Japanese correspondence)

KEYWORDS:   United Kingdom  United States  Europe  Asia Pacific  North America  New York  Ireland  Japan

INDUSTRY KEYWORDS:

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