Corporate Results

The following is Leopalace21's corporate results.

Leasing Business

By increase in employment and promoting corporate sales in all industries, the average occupancy rate increased 2.11 points to 92.56 %.

The occupancy rate at the end of the first quarter was 92.10% (up 1.55 points from the end of the same quarter last year), and the average occupancy rate was 92.56% (up 2.11 points year-on-year). On the other hand, vacancies have increased since May, because we have suspended new tenant recruitment on properties subject to top-priority investigations (210 thousand managed units) concerning parting wall construction deficiencies. We implemented measures such as tenant recruitment utilizing direct leasing offices, franchises, and local real estate brokers, as well as expanding tenant services including "my DIY" and security system installations. In addition, the Group further strengthened sales against corporate and foreign clients. "my DIY" contracts have exceeded 40 thousand. Apartments with security systems installed increased, and accounted for 300 thousand rooms (52.5% of the total units) at the end of June 2018.
The number of units under management at the end of the first quarter was 571,927 (up 1,255 from the end of the previous fiscal year), and the number of direct offices was 189 (no change from the end of the previous fiscal year). The number of franchise offices was 116 (decreasing 2 from the end of the previous fiscal year).

Occupancy Rate

Occupancy rate

Related information

Development Business

We are promoting apartment supply in urban areas and expanding construction variations.

Orders received during the first quarter was 16,397 million yen (down 14.7% year-on-year), and orders received outstanding was 65,641 million yen (down 5.9% year-on-year).
In the Development Business, the Group focused on supplying apartments to urban areas with high occupancy demand, offering high-quality and strategic products with earthquake protection and sound insulation, and developing products targeting females and young tenants. Also, the Group expanded construction variations such as elderly care facilities, stores, and built-to-order houses, as well as advanced initiatives to boost profit margins via reassessments of product prices, procurement routes. Subsidiary Life Living Co., Ltd. provides development business of condominiums and apartments and subsidiary Morizou Co.,Ltd., provides luxury custom-built homes made with Kiso-hinoki. The number of offices was 59 (decreasing 1 from the end of the previous fiscal year).

Orders Received

Order results


Consolidated net sales were 129,268 million yen, due to the improvement of occupancy rates which led to the improvement of leasing sales.

Consolidated net sales during the first quarter were 129,268 million yen (up 0.6% year-on-year). Net sales in the Leasing Business were 111,847 million yen (up 2.5% year-on-year), and 12,450 million yen in the Development Business (down 14.0% year-on-year).

Sales by segment

Sales by segment


Operating profit was 4,120 million yen (down 40.8% year-on-year)

Gross profit was 23,860 million yen (down 3.9% year-on-year), operating profit was 4,120 million yen (down 40.8% year-on-year), recurring profit was 4,138 million yen (down 40.2% year-on-year). An extraordinary loss of 5 billion yen was recorded as a reserve for losses related to parting wall deficiencies confirmed in certain apartments constructed by the Company, resulting in net loss attributable to shareholders of the parent of 957 million yen (compared to a net income of 5,559 million yen in the same period of the previous year).

In the Leasing Business, operating profit was 7,214 million yen (down 12.1% year-on-year). In the Development Business, operating loss was 891 million yen (compared to an operating profit of 84 million yen in the same period of the previous year).



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