Financial Highlights

Consolidated Statement of Income

Leopalace21 Group has to stabilize its earnings structure and financial base by focusing on optimizing costs through selective concentration, while strengthening profitability by increasing occupancy rates and average unit rent.
As a result, net sales for FY2023 amounted to JPY 422,671 million, up 4.0% year on year. Operating profit was JPY 23,313 million, up 136.0% year on year, due to improved profitability from declined cost of rent payment to the apartment owners resulting from contractual adjustments of master-lease rent, despite higher restoration cost of the rental properties and increased maintenance cost. Recurring profit was JPY 19,476 million, up 198.4% year on year, mainly due to interest expenses and funding costs.
Net income attributable to shareholders of the parent was JPY 42,062 million, up 112.3% year on year, achieving the second consecutive year of growth in both revenue and profit, mainly due to the recording of JPY 26,564 million in income taxes-deferred (profit) because of an increase in deferred tax assets, despite recording of JPY 2,730 million in loss related to repairs due to soaring material prices and an increase in the ratio of subcontracted work to eliminate obvious defects by the end of 2024.
EBITDA for the FY2023 was JPY 27,974 million, an increase of 70.1% year on year.

Consolidated Balance Sheets

Assets at the end of March 2024 were JPY 205,000 million, an increase of JPY 38,451 million from the end of FY2022. This was mainly due to decreases of JPY 845 million in machinery, equipment and vehicles (net), JPY 1,623 million in other non-current assets (net), and JPY 1,254 million in other intangible fixed assets, while cash and deposits and deferred tax assets increased by JPY 15,066 million and JPY 26,577 million, respectively.
Total liabilities amounted to JPY 133,320 million, a reduction of JPY 305 million from the end of FY2022. This was mainly due to increases of JPY 560 million in current portion of long-term debt, JPY 2,363 million in accounts payable-other and JPY 1,093 million in provision for apartment vacancy loss, while decreases of JPY 1,016 million in advances received and long-term advances received, JPY 2,243 million in provision for losses related to repairs, and JPY 1,134 million in long-term debt were recorded, respectively.
Total net assets increased by JPY 38,757 million from the end of FY2022 to JPY 71,679 million. This was mainly due to an increase of 4,153 million in treasury stock due partly to treasury stock purchase that began in July 2023, a reduction of JPY 989 million in non-controlling interests due to payment of treasury stock purchase and dividend to non-controlling shareholder of a consolidated subsidiary, whereas foreign currency transaction adjustments increased by JPY 1,212 million due to depreciating JPY and JPY 42,062 million was recorded as net income attributable to shareholders of the parent.
The equity ratio increased to 31.2%, a 16.7-point increase from the end of FY2022.

Consolidated Cash Flows

Net cash provided by operating activities amounted to JPY 21,422 million, an increase of JPY 10,876 million from FY2022. This was mainly due to a decrease of JPY 1,016 million in advances received, interest paid of JPY 4,080 million, and payment related to repairs of JPY 5,000 million, while income before taxes and other adjustments was JPY 17,005 million, depreciation was JPY 4,660 million, loss related to repairs was JPY 2,730 million yen, and an increase in provision for apartment vacancy loss was JPY 1,093 million.
Net cash provided by investing activities totaled JPY 851 million, a decrease of JPY 55 million from FY2022. This was mainly due to a net outflow of JPY 295 million for payment for deposit of fixed deposits and proceeds from withdrawal of fixed deposits, while there were JPY 1,165 million in proceeds from sale of shares in subsidiaries pertaining to change in scope of consolidation.
Net cash used in financing activities totaled JPY 7,119 million, an increase of JPY 4,300 million from FY2022. This was mainly due to repayment of long-term debt of JPY 30,185 million, repayment of finance lease obligations of JPY 654 million, purchase of treasury stock of JPY 3,466 million, payments for funding costs of JPY 962 million, payment for purchased treasury stock of a consolidated subsidiary from non-controlling shareholders of JPY 940 million, and payment of dividend to a non-controlling shareholder of JPY 910 million, whereas proceeds from long-term debt of JPY 30,000 million.
As a result, cash and cash equivalents at the end March 2024 became JPY 68,143 million, an increase of JPY 15,282 million from the end of FY2022. Free cash flow at the end of March 2024 was JPY 22,273 million, an increase of JPY 10,821 million from the end of FY2022.

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  April 1-30, 2024

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  Sustainability

  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."

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