Leopalace21 (8848) investor relations material

Executive summary

• Achieved all FY2025 targets, with net sales of JPY 444.8 billion (0.2% above plan), up 3.0% year-over-year, driven by higher average unit rent and improved occupancy rates.

• Operating profit reached JPY 35.97 billion (3.4% above plan), up 23.0% year-over-year; EBITDA up 19.8% to JPY 39.2 billion.

• Net income attributable to shareholders was JPY 14.93 billion, down 16.4% year-over-year but 14.9% above plan, mainly due to a JPY 10.07 billion extraordinary loss and JPY 8.22 billion deferred tax expense.

• Leasing business driven by strong corporate contracts, high average unit rent, and improved occupancy rates.

• Development business met annual targets for new orders, marking successful business resumption.

Financial highlights

• Net sales increased 3.0% year-over-year to JPY 444.8 billion.

• Operating profit rose 23.0% to JPY 35.97 billion; EBITDA up 19.8% to JPY 39.2 billion.

• Net income decreased 16.4% year-over-year to JPY 14.93 billion, but exceeded plan by 14.9%.

• EPS was JPY 56.22, up 19.7% from plan; net income per share was JPY 45.14, down year-over-year.

• Free cash flow increased to JPY 37.65 billion, up JPY 12.36 billion year-over-year.

Outlook and guidance

• Plans to expand development activities into Osaka, Hiroshima, and Fukuoka in FY2026.

• FY2027 guidance: net sales JPY 465 billion (+4.5% YoY), operating profit JPY 38.5 billion (+7.0% YoY), net income JPY 22.2 billion (+48.7% YoY).

• Dividend per share planned to increase to JPY 15 for FY2027, up from JPY 10 in FY2026; target payout ratio of 30% by FY2028.