Message from the President

Our business is to provide solutions to people and housing related problems

I would like to thank our stakeholders for their daily support.

We sincerely apologize to all of our stakeholders, including tenants and owners, for causing serious concerns and inconvenience by the construction defects problem in the properties we built.
As the spread of COVID-19 had a major impact on our business in the fiscal year ended March 31, 2021, we also apologize for the third consecutive year of net loss and excessive liabilities per the Tokyo Stock Exchange definition*.

  • *The Tokyo Stock Exchange defines the "net assets" as subtracting the share subscription rights and non-controlling interests from the total net assets in the consolidated balance sheet.

In order to realize the basic policy of "for society as a whole" set forth in the Mission Statement, we promoted corporate culture reform and announced on May 14, 2021 concrete measures to eliminate excessive liabilities. In the current fiscal year ending March 2022, we will focus on the following items in the business operations.
・Continue drastic structural reforms
・Improve occupancy rates

With regard to the continuation of drastic structural reforms, we will continue to implement the initiatives that we have been pursuing since the previous fiscal year, such as transfer of or withdrawal from non-core and unprofitable businesses, reduction of SG&A expenses, and control of operating costs and administrative costs in Leasing Business, in our efforts of improving our earnings structure.
We determined to employ three main strategies to improve occupancy rates. We are focusing on area intensive strategies; promoting customer-by-customer sales strategies aimed at recovering the number of rooms used by corporate customers; and strengthening ties with real-estate agents.

By implementing the above efforts, we will strive to eliminate negative total shareholders' equity combined with total accumulated other comprehensive income by the end of the period ending March 2023, on the basis that no stock acquisition rights are exercised.

At the same time as we announced the financial results, we released the notice concerning reduction of common stock and the notice concerning partial amendment to articles of incorporation including increase in authorized number of shares.
These financial strategies require resolutions at the General Shareholders' Meeting. We intend to improve our financial position by reducing common stock from the current JPY81,282 million to JPY100 million, to enable flexible fundraising in the future by increasing the authorization limit.

The business environment remains unpredictable, but the entire company will make concerted efforts to achieve a turnaround in business performance.
We look forward to your continued understanding and support of our management in the future.

Bunya Miyao, President and CEO
May, 2021

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