Financial Results

The following is Leopalace21's corporate results.

Leasing Business

Mainly due to the suspension of new tenant recruitment into apartments subject to priority investigations, the average occupancy rate was 79.26% (down 1.85p yoy).

Since new tenant recruitments on properties were delayed because of prioritization on priority investigations and belated organizational response to support repair works, as well as restricted demand for new hires and relocations because of COVID-19 impact, the occupancy rate at the end of the subject fiscal year was 78.09% (down 1.98p yoy) and the average occupancy rate was 79.26% (down 1.85p yoy). We implemented measures such as propulsion of smart apartments, the industry-first electronic rental agreement service and expanding tenant services including "my DIY" and security system installations. In addition, we further strengthened sales to corporate and enhanced support to foreign tenants in order to expand foreign clients. Cumulative number of users for "my DIY" exceeded 49 thousand. Apartments with security systems installed increased, and accounted for 310 thousand rooms (54.7% of total units) at the end of FY21/3 Q2.
The number of units under management at the end of FY21/3 Q2 was 574,452 (down 1,346 from of the end of the previous year) and the number of directly-managed stores was 142 (decreasing 47 from the end of the previous year). The number of franchised stores was 104 (increasing 2 from the end of the previous year).

Occupancy Rate

Occupancy rate

Related information

Development Business(Leasing Segment)

New construction subcontracting operations are suspended because of construction defects issues.

Wealth Management Department was established and the functions of apartment construction sub-contracting sales department, under former Development Business, were shifted to Wealth Management Department to strengthen relationship with apartment owners and restore their trust. Leasing Segment and Development Segment were integrated to (New) Leasing Segment in the reorganization. Orders decreased due to the suspension of new construction subcontracting operations because of construction defects issues in addition to the financial institutions' more cautious loan approval policy for apartment constructions and the intensified competition in the metropolitan areas. Orders received during FY21/3 1H was 3,872 million yen (down 24.0% yoy), and orders received outstanding was 14,963 million yen (down 61.9% yoy). We changed Development Offices into Wealth Management Offices and we will take care of the existing apartment owners by providing follow-up support from the offices in the regions. The number of offices was 65 (increased 35 from the end of the previous fiscal year).
Morizou Co.,Ltd., a subsidiary, provides luxury custom-built homes made of Japanese cypress.

Sales

Consolidated net sales were 208,647 million yen.

Consolidated net sales during FY21/3 1H were 208,647 million yen (down 5.8% yoy). Net sales in the Leasing Business were 199,742 million yen (down 5.3 yoy) and 7,244 million yen (down 0.7% yoy) in the Elderly Care Business.

Sales by segment

Sales by segment
  • *Actual numbers for FY20/3 represent the result of change in segmentation retrospectively in line with the drastic business strategies reconstruction.

Profits

Operating loss was 12,616 million yen (a reduced loss of 4,510 million yen yoy)

Operating loss was 12,616 million yen (a reduced loss of 4,510 million yen yoy) due mainly to a decrease in rent revenues by stagnant occupancy rates, despite a decrease in cost of sales and SG&A expenses of 17,380 million yen yoy, which resulted in recurring loss of 12,854 million yen (a reduced loss of 3,643 million yen yoy). Net loss attributable to shareholders of the parent was 17,571 million yen (a reduced loss of 6,864 million yen year on year) due to impairment loss on non-current assets and goodwill of 3,741 million yen, special severance allowance of 2,460 million yen associated with the voluntary retirement program, and loss related to repairs concerning construction defects such as parting walls of 1,780 million yen in the extraordinary losses.

Profits

Profits

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FY March 2020



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    February 2021
    Announcement of business results for the nine months ended December 31, 2020



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