Leopalace21 (8848) investor relations material

Executive summary

• Net sales for Q1 FY2026 reached JPY 115.9 billion, up 3.7% year-over-year, driven by higher average unit rent and improved occupancy rates.

• Operating profit was JPY 12.1 billion, broadly in line with plan but declined 1.1% year-over-year due to increased SG&A expenses from human capital investments.

• Net income attributable to shareholders surged to JPY 7.0 billion, up 1,166.2% year-over-year, mainly due to a partial reversal of deferred tax assets.

• Average unit rent for new contracts hit a record high index of 123 in June, up 11 points year-over-year.

• Average occupancy rate for Q1 FY2026 was 87.23%, up 0.98 points year-over-year.

Financial highlights

• Gross profit increased by 5.6% year-over-year to JPY 26.5 billion, with a gross margin of 22.9%.

• EBITDA for Q1 FY2026 was JPY 13.1 billion, down 1.6% year-over-year.

• Recurring profit rose 6.2% year-over-year to JPY 12.2 billion.

• Net income per share was JPY 22.14, up from JPY 1.60 in the prior year.

• Equity ratio improved to 26.3% from 23.8% at the end of the previous fiscal year.

Outlook and guidance

• Full-year FY2026/FY ending March 2027 guidance: net sales JPY 465.0 billion (+4.3%/+4.5%), operating profit JPY 38.5 billion (+6.3%), net income JPY 22.2 billion (+32%/+47%).

• Dividend per share is forecast to rise to JPY 15 for FY2026/FY ending March 2027, up from JPY 10 in the prior year.