Business as a whole
When was Leopalace21 established?
Leopalace21 was established on August 17, 1973.
Please see the Corporate Outline section.
When were shares made available to the public?
Shares in Leopalace21 were listed on the over-the-counter market (now JASDAQ) on February 3, 1989, and on the 1st Section of the Tokyo Stock Exchange on March 25, 2004.
Please see the "Corporate History" section for an overview of the company's history to date.
What is Leopalace21's securities code?
Our securities code is 8848.
Please see our Share Quote for details of our current share price.
When does your accounting year end?
Leopalace21's accounting year ends on March 31.
When does Leopalace21 announce its business results?
The schedule of the announcements of our quarterly and full-year business results are as follows.
The first quarter Early August
The second quarter Early November
The third quarter Early February
The full-year Mid-May
When is the Ordinary General Shareholders' Meeting held?
Ordinary General Shareholders' Meeting is held within three months after the end of each fiscal year.
The information regarding the meeting including its date will be sent to shareholders, whose name are recorded on the Register of Shareholders on March 31 of each fiscal year, early June every year.
Who is Leopalace21's shareholder registry administrator?
Our shareholder registry administrator is Sumitomo Mitsui Trust Bank, Limited.
In fact, we outsource all operations relating to shares in Leopalace21 to Sumitomo Mitsui Trust Bank, Limited. Please see the "Share Procedures" section for contact details.
What is your policy on profit distribution to shareholders?
Distribution of profit to shareholders is an important management issue. However, in consideration of recent performance, the Company regrettably decided not to pay dividends. For the fiscal year ended March 2022, the Company recorded net income for the first time in four fiscal years and eliminated the excessive liabilities per the Tokyo Stock Exchange's definition at the end of March 2022. The Company aims to strengthen capital by recording net income through increasing occupancy rate and starts to consider implementing shareholder return such as payment of dividends and share buybacks.
Please explain the outline of the business.
We have three business segments: Leasing Business, Elderly Care Business, and Other Businesses which include operation of resort facility in Guam, finance business and others. After the Lehman collapse we adopted business diversification strategy to improve the financial position and we have been making efforts in increasing profitability for the Leasing Business in line with the drastic business strategy restructuring since FY2020.
What is the current occupancy rate?
Please check "Monthly Data" to find the occupancy rate for previous months.
We disclose the information at the beginning of each month.
What is the number of rooms under management?
We manage approximately 560,000 apartment units nationwide.
Please find more information at "Monthly Data" disclosed at the beginning of each month.
What is the master leasing system? What is the risk of the master leasing system?
The master leasing system is a system to support the apartment management of owners, from construction to management operations, for a maximum of 30 years. The system involves rent payment to the owners, as well as management operation and repair to take the burden off of the owners, contributing to a flow of steady income.
The biggest risk in the lease housing management is the incurrence of vacancies. In our case, with the 30-year master leasing contract, a fixed rent is paid to the owners for a certain period regardless of the possibility of vacancies. Therefore, our biggest possible risk is having larger number of vacancies than the one envisaged in each master leasing contract during this period.
In addition, in the Leasing Business, to control vacancies, or to raise occupancy rate, as well as the appropriate adjustment of room rent will also become important to increase profitability.
How to determine rent to apartment owners under master lease system?
We consider the surrounding market conditions, and whether or not rooms are equipped with furniture and home appliances, internet connection services, and security equipment such as security cameras for determining rent payment to the owners. Then we consider vacancy risks and propose appropriate rent from a comprehensive perspective.
The apartment business plan shown at the beginning of the contract is based on the assumption that a certain economic situation will continue, but it is difficult to predict economic fluctuations for the next 30 years. We would like the apartment owners to understand that a review of the rent would be required because of the surrounding market rent and economics changes.
About the method of renewal for rent payment to apartment owners under master lease system
There is an opportunity to review the rent payment to the owners every two years after the fixed rent period.
If there is a discrepancy between the rent under master lease system and the neighboring market rent at the time of rent renewal, we will consult for rent renewal by explaining the situation for each property. We will be consulting the apartment owners, in accordance with the law enforcing sublessors' proper operation of rental property management in effect from June 2021, for increase of the rent under master lease system if the neighboring market rent is rising, and vice versa.
Please note that the details of contract (contract period, building age, layout, location, market rent) differ for each property, so we will discuss rent renewal individually and the rent will be renewed under a mutual agreement between the apartment owners and Leopalace21.
How do we maintain the apartments under our management?
We operate apartment building maintenance package service to take care of repairing requirements in the future for the convenience of apartment owners. A deduction of fixed monthly fee payment calculated from the number of rooms and square measure per apartment building out of the monthly rent payment under the master lease system enables the apartment owners to be free from sporadic repairing costs which cover damages to the interior items such as wall papers and wooden floors and others as well as exterior items such as roofs and parking lots counting more than 70 items in total.
The package service, however, does not cover the damages caused by earthquakes, winds and floods and the owners are responsible for such damages.
In addition to the weekly cleaning service, we conduct periodic building check and report the result to the owners.
About maintenance of furniture and home appliances
We have contracted with each owner for "Furniture and Home Appliances Comprehensive Maintenance Service" in order to keep the furniture and home appliances installed in the rooms in good condition at all times and to make sure that the tenants can move in with peace of mind. By paying a monthly service charge of a certain fixed amount per room during the master lease period, Leopalace21 will be responsible for any maintenance and replacement. The apartment owners can make yearly operating cost predictable by having the comprehensive maintenance service.
Please note that there is also a case that we cannot replace the home appliances immediately even during the rental contract period because tenants remain occupying the room, or some of the furniture cannot be physically replaced such as built-in furniture. Please be assured that items that need to be replaced are replaced at any time.
Leopalace21 will continue our attentive management services in providing our tenants with comfortable rooms, and keeping apartments, which are our owners' important assets, always in good conditions.
Leopalace21 is working to solve a wide variety of social issues with the aim of creating a sustainable society under the sustainability vision of "We go on creating new value for society today and in the future."