Message from the President
On behalf of Leopalace21, I would like to take this opportunity to convey my gratitude to our shareholders and investors for their continued support.
We recently announced the financial results for the nine months of our 44th term (fiscal year ending March 2017), recording a year-on-year increase in net sales of 1.0%. Operating profit decreased 0.8%, but net income increased 1.5%.
In the Leasing Business, due in part to the Company capturing corporate dormitory demand which increased as employment rates improved, the average occupancy rate was 88.00% (+0.59p year-on-year). We will continue to expand tenant services such as the introduction of IoT in our apartments, aiming for stable profits led by occupancy improvement.
In the Construction Business, we concentrated orders in metropolitan areas such as Tokyo, and orders received reached 66.3 billion yen (+8.7% year-on-year). Although orders did not meet forecasts because of the rough battles against competitors in the metropolitan areas, the favorable environment has not changed, such as the revision of the inheritance tax act, and we will aim to expand our construction orders.
Concerning the International Business, we have opened a subsidiary in Singapore as a center to collect information concerning investment projects in the ASEAN region, and started operation of a serviced apartment in Hanoi, Vietnam. In other businesses, we have acquired Life Living Co., Ltd., a company in the development of condominiums in urban areas. Also, we have entered into the real estate development business utilizing a development-type SPC, and we are planning our first project in Ginza to construct a hotel.
Concerning profit distribution to shareholders, in addition to the previous fiscal year's dividend paid for the first time in seven years, we have paid an interim dividend accordingly to our plan. The dividend ratio will be 13.5% for the first year, and we plan to pay 22 yen per share (interim 10 yen) in the subject term, targeting a dividend ratio of 31.3%.
Leopalace21 would like to request the continued support and encouragement of all our stakeholders.
President and CEO