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 during the nine months was 89.42% (down 0.59p year-on-year) and the occupancy rate at the end of December was 85.26% (down 4.18p 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 during the nine months was 89.42% (down 0.59p year-on-year) and the occupancy rate at the end of December was 85.26% (down 4.18p 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 42 thousand. Apartments with security systems installed increased, and accounted for 305 thousand rooms (53.3% of total units) at the end of December 2018.
The number of units under management at the end of the third quarter was 573,671 (up 2,999 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 114 (decreasing 4 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 the third quarter was 53,089 million yen (down 4.4% year-on-year), and orders received outstanding was 71,195 million yen (up 3.5% 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), of which 7 offices are real estate development only.

Orders Received

Order results

Sales

Consolidated net sales were 376,366 million yen.

Consolidated net sales during the third quarter were 376,366 million yen (down 2.4% year-on-year). Net sales in the Leasing Business were 323,351 million yen (down 0.5% year-on-year) and 38,252 million yen in the Development Business (down 17.9% year-on-year).

Sales by segment

Sales by segment

Profits

Operating profit was 6,502 million yen (down 65.3% year-on-year)

Gross profit was 60,720 million yen (down 15.8% year-on-year), operating profit was 6,502 million yen (down 65.3% year-on-year), and recurring profit was 6,246 million yen (down 66.4% year-on-year). Net loss attributable to shareholders of the parent of 43,989 million yen (compared to a net income of 12,863 million yen in the same period of the previous year). This was due to extraordinary losses of 43,453 million yen recorded as a reserve for repairs and other incidental expenses related to construction defects, as well as 7,560 million yen recorded as an impairment loss for company-owned apartments.

In the Leasing Business, operating profit was 14,313 million yen (down 37.1% year-on-year). In the Development Business, operating loss was 2,619 million yen (compared to an operating profit of 888 million yen in the same period of the previous year).

Profits

Profits

More information about Leopalace21's growth strategy

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FY March 2019



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    June 27,2019(Plan)
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