1. About Leopalace21

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After the Lehman Collapse in 2008, decrease in occupancy rates and stringent loan screening at financial institutions led to a decrease in apartment construction, and Leopalace21 reported operating losses for two consecutive years. However, through structural reform measures such as leasing cost cuts, operating profit was achieved for the fiscal years ended March 31, 2012 - 2016. Operating profit forecast for this fiscal year is 22.5 billion yen, due to improvements in occupancy rates, etc.

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