Corporate Results

The following is Leopalace21's corporate results.

Leasing Business

Due to the suspension of new tenant recruitment into apartments subject to top-priority investigations, the average occupancy rate was 88.34% (down 2.25p year-on-year) and the occupancy rate at the end of FY19/3 was 84.33% (down 9.39p year-on-year).

In the Leasing Business, both occupancy rates and profits decreased because we suspended recruitment of new tenants into buildings subject to top-priority investigations which impacts tenant matching. The average occupancy rate was 88.34% (down 2.25p year-on-year) and the occupancy rate at the end of FY19/3 was 84.33% (down 9.39p year-on-year). 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 44 thousand. Apartments with security systems installed increased, and accounted for 308 thousand rooms (53.7% of total units) at the end of March 2019.
The number of units under management at the end of FY19/3 was 574,798 (up 4,126 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 113 (decreasing 5 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 decreased under the negative environment surrounding the apartment construction industry. Orders received during FY19/3 was 64,495 million yen (down 15.0% year-on-year), and orders received outstanding was 62,367 million yen (down 2.5% 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 50 (decreasing 10 from the end of the previous fiscal year).

Orders Received

Order results

Sales

Consolidated net sales were 505,223 million yen.

Consolidated net sales during FY19/3 were 505,223 million yen (down 4.8% year-on-year). Net sales in the Leasing Business were 426,388 million yen (down 2.1% year-on-year) and 58,992 million yen in the Development Business (down 23.0% year-on-year).

Sales by segment

Sales by segment

Profits

Operating profit was 7,390 million yen (down 67.8% year-on-year)

Gross profit was 76,235 million yen (down 20.7% year-on-year), operating profit was 7,390 million yen (down 67.8% year-on-year), and recurring profit was 7,063 million yen (down 68.4% year-on-year). Net loss attributable to shareholders of the parent of 68,662 million yen (compared to a net income of 14,819 million yen in the same period of the previous year). This was due to extraordinary losses of 54,786 million yen recorded as a reserve for repairs and other incidental expenses related to construction defects, 9,684 million yen recorded as a reserve for apartment vacancy loss, as well as 7,560 million yen recorded as an impairment loss for company-owned apartments. Company-owned apartments were sold as part of the financial strategy set in our Medium-term Management Plan.

In the Leasing Business, operating profit was 14,987 million yen (down 42.5% year-on-year). In the Development Business, operating loss was 995 million yen (compared to an operating profit of 3,663 million yen in the same period of the previous year).

Profits

Profits

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FY March 2019



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    9 August, 2019
    Announcement of business results for the three months ended June 30, 2019



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