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 81.90% (down 10.66p from the end of the same period of the previous 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 occupancy rate at the end of first quarter was 81.40% (down 10.70p from the end of the same period of the previous year) and the average occupancy rate was 81.90% (down 10.66p from the same period of the previous 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 45 thousand. Apartments with security systems installed increased, and accounted for 310 thousand rooms (54.0% of total units) at the end of June 2019.
The number of units under management at the end of the first quarter was 575,196 (up 398 from the end of the previous year) and the number of direct offices was 189 (no change from the end of the previous year). The number of franchise offices was 108 (decreasing 5 from the end of the previous 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 first quarter was 3,226 million yen (down 80.3% from the same period of the previous year ), and orders received outstanding was 49,265 million yen (down 24.9% from the end of the same period of the previous year).
In the Development Business, the Group focused on supplying apartments to urban areas with high occupancy demand, offering high-quality and strategic products. 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 35 (decreasing 15 from the end of the previous year).

Orders Received

Order results

Sales

Consolidated net sales were 113,324 million yen.

Consolidated net sales for the subject first quarter were 113,324 million yen (down 12.3% from the same period of the previous year). Net sales in the Leasing Business were 100,380 million yen (down 10.3% from the same period of the previous year) and 7,330 million yen in the Development Business (down 41.1% from the same period of the previous year).

Sales by segment

Sales by segment

Profits

Operating loss was 4,235 million yen (operating profit was 4,120million yen in the same period of the previous year)

Gross profit was 11,282 million yen (down 52.7% from the same period of the previous year), operating loss was 4,235 million yen (operating profit was 4,120 million yen in the same period of the previous year), and recurring loss was 3,529 million yen (recurring profit was 4,138 million yen in the same period of the previous year). Net loss attributable to owners of parent was 5,736 million yen (Increased loss of 4,778 million yen from the same period of the previous year). This was due to extraordinary losses of 4,505 million yen recorded as a reserve for repairs and other incidental expenses related to construction defects.

In the Leasing Business, operating loss was 1,735 million yen (operating profit was 7,214 million in the same period of the previous year). In the Development Business, operating loss was 1,515 million yen (Increased loss of 624 million yen from the same period of the previous year).

Profits

Profits

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FY March 2019



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    November, 2019
    Announcement of business results for the six months ended September 30, 2019



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