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Presentation materials for financial results8848LEOPALACE21 CORPORATIONReal estate

Presentation Materials for the Fiscal Year Ending March 2026

For the fiscal year ending March 2026, results from revenue through net income exceeded the revised November plan, achieving the full-year plan. Rent per unit rose, mainly under corporate leases, occupancy improved, and orders expanded in the development business, while net income declined year on year.

Worth reading
88Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
35966
¥ millions (operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFiscal year ending March 202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥444,820 million+3.0%
Operating profit¥35,966 million+23.0%
Ordinary income¥34,842 million+29.4%
Net income¥14,933 million-16.4%
Gross Profit Margin20.1%
Operating profit margin8.1%
Selling, general and administrative expenses¥53,242 million
Results for the three months of the current quarter
Net Sales
¥112,109 million
Cost of sales
¥90,643 million
Gross profit
¥21,466 million
Selling, general and administrative expenses
¥14,144 million
Operating profit
¥7,321 million
Ordinary income
¥7,029 million
Net income
¥4,919 million
Full-year earnings forecast
Net Sales
¥444,100 million
Operating profit
¥34,800 million
Ordinary income
¥33,000 million
Net income
¥13,000 million
Earnings per Share
¥37.8
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。For the development business, the figures shown are 133.8% for buildings ordered, 138.5% for units ordered, and 142.0% for order value. For consolidated revenue and profit, the variance from plan is shown.
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Achieved the plan from revenue through net income
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Net sales
    FactorsRent per unit remained at a high level, mainly under corporate leases
  • Cost of sales+¥700 million
    FactorsExpansion of the development business
  • Rental management costs+¥4.2 billion
    FactorsEnhanced maintenance
  • Rental operating costs−¥3.9 billion
    FactorsProvision for vacancy losses, a decrease in the number of units under management, and other factors
  • Selling, general and administrative expenses+¥3.1 billion
    FactorsImproved employee compensation and an increase in headcount
  • Selling, general and administrative expenses+¥1.9 billion
    FactorsChange in the accounting classification of repair and construction costs
  • SG&A variance from plan-¥0.7 billion
    FactorsControl of various expenses, including commission fees
  • SG&A variance from plan-¥400 million
    FactorsSlight decrease in the number of brokerage agreements versus plan
  • Extraordinary Losses¥10 billion
    FactorsLoss on cancellation of treasury stock acquisition rights
New initiatives
  • Expand development business locations to Osaka, Hiroshima, and Fukuoka prefectures from the fiscal year ending March 2027
  • Launch the new product “ArLk”
  • Establish and operate a Well-being Management Division
Key KPIsA metric the company considers important as a management benchmark.
  • Full-year average contracted rent per unit index114 Index
    Year on year against the same period last year+6
  • Average occupancy rate85.78 %
    Year on year against the same period last year+0.22 percentage points
  • Occupancy at period-end88.78 %
    Year on year against the same period last year+1.21 percentage points
  • Corporate-use ratio66.5 %
    Year on year against the same period last year+1.9 percentage points
  • Number of units used by foreign nationals65,858 units
    Year on year against the same period last year+20.5%
  • Share of total units used by foreign nationals13.7 %
  • Operating cash flow384 Hundreds of millions of yen
  • Free cash flow376 Hundreds of millions of yen
    Year on year against the same period last year+¥12.3 billion
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Contracted rent per unit114 Index
  • Number of units used479,523 units
  • Units used by corporate customers318,956 units
  • Units used by individual customers130,177 units
  • Units used by students30,390 units
  • Number of units used by foreign nationals65,858 units
Market Size / Share
72% of listed companies nationwide have used the service. Market size and market share: not disclosed.
Orders received and order backlog
Orders received
¥14,198 million
Number of employees
Consolidated4,150 People
Change during the period+241 people year on year
Capital expenditures
¥8 100 million expenditures for the acquisition of property, plant and equipment
Annual Dividend
Fiscal year ending March 2026
Annual¥10
Interim¥5
End of period¥5
Fiscal year ending March 2027
Annual¥15
Interim¥5
End of period¥10
Payout ratio
Fiscal year ending March 202517.8 %
Fiscal year ending March 202622.2 %
Target for the fiscal year ending March 202830 %
Acquisition of treasury shares
Amount under the acquisition limitApproximately ¥71.6 billion
Number of shares acquired137,072,803 shares
Period2025
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥444,820 million (YoY +3.0%)
Operating profit¥35,966 million (YoY +23.0%)
Ordinary income¥34,842 million (YoY +29.4%)
Net income¥14,933 million (YoY -16.4%)
Gross Profit Margin20.1%
Operating profit margin8.1%
Selling, general and administrative expenses¥53,242 million
Results for the three months of the current quarterNet Sales ¥112,109 million / Cost of sales ¥90,643 million / Gross profit ¥21,466 million / Selling, general and administrative expenses ¥14,144 million / Operating profit ¥7,321 million / Ordinary income ¥7,029 million / Net income ¥4,919 million
Full-year earnings forecastNet Sales ¥444,100 million / Operating profit ¥34,800 million / Ordinary income ¥33,000 million / Net income ¥13,000 million / Earnings per Share ¥37.8
Progress against full-year forecastFor the development business, the figures shown are 133.8% for buildings ordered, 138.5% for units ordered, and 142.0% for order value. For consolidated revenue and profit, the variance from plan is shown.
Self-assessment against the planAchieved the plan from revenue through net income
Breakdown of Factors Affecting the ChangeFactors Rent per unit remained at a high level, mainly under corporate leases / Subject Net sales, Factors Expansion of the development business / Amount +¥700 million / Subject Cost of sales, Factors Enhanced maintenance / Amount +¥4.2 billion / Subject Rental management costs, Factors Provision for vacancy losses, a decrease in the number of units under management, and other factors / Amount −¥3.9 billion / Subject Rental operating costs, Factors Improved employee compensation and an increase in headcount / Amount +¥3.1 billion / Subject Selling, general and administrative expenses, Factors Change in the accounting classification of repair and construction costs / Amount +¥1.9 billion / Subject Selling, general and administrative expenses, Factors Control of various expenses, including commission fees / Amount -¥0.7 billion / Subject SG&A variance from plan, Factors Slight decrease in the number of brokerage agreements versus plan / Amount -¥400 million / Subject SG&A variance from plan, Factors Loss on cancellation of treasury stock acquisition rights / Amount ¥10 billion / Subject Extraordinary Losses
Key KPIsIndicator name Full-year average contracted rent per unit index / Value 114 Index / Year on year against the same period last year +6 Index, Indicator name Average occupancy rate / Value 85.78 % / Year on year against the same period last year +0.22 percentage points, Indicator name Occupancy at period-end / Value 88.78 % / Year on year against the same period last year +1.21 percentage points, Indicator name Corporate-use ratio / Value 66.5 % / Year on year against the same period last year +1.9 percentage points, Indicator name Number of units used by foreign nationals / Value 65,858 units / Year on year against the same period last year +20.5%, Indicator name Share of total units used by foreign nationals / Value 13.7 % / Year on year against the same period last year Not disclosed, Indicator name Operating cash flow / Value 384 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name Free cash flow / Value 376 Hundreds of millions of yen / Year on year against the same period last year +¥12.3 billion
Unit price and quantity metricsIndicator name Contracted rent per unit / Value 114 Index, Indicator name Number of units used / Value 479,523 units, Indicator name Units used by corporate customers / Value 318,956 units, Indicator name Units used by individual customers / Value 130,177 units, Indicator name Units used by students / Value 30,390 units, Indicator name Number of units used by foreign nationals / Value 65,858 units
Number of employeesConsolidated 4,150 People / Change during the period +241 people year on year
Annual DividendFiscal year ending March 2026 Annual ¥10 / Interim ¥5 / End of period ¥5 / Fiscal year ending March 2027 Annual ¥15 / Interim ¥5 / End of period ¥10
Payout ratioFiscal year ending March 2025 17.8 % / Fiscal year ending March 2026 22.2 % / Target for the fiscal year ending March 2028 30 %
Acquisition of treasury sharesAmount under the acquisition limit Approximately ¥71.6 billion / Number of shares acquired 137,072,803 shares / Period 2025
Capital expenditures¥8 100 million (expenditures for the acquisition of property, plant and equipment)
Orders received and order backlogOrders received ¥14,198 million / Order backlog Not disclosed
Market Size / Share72% of listed companies nationwide have used the service. Market size and market share: not disclosed.
New initiativesExpand development business locations to Osaka, Hiroshima, and Fukuoka prefectures from the fiscal year ending March 2027, Launch the new product “ArLk”, Establish and operate a Well-being Management Division
Items this document does not state (7)
Segment resultsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Revenue benefited from rent per unit remaining at a high level, mainly under corporate leases. Cost of sales increased due to enhanced maintenance, while SG&A expenses rose year on year due to improved employee compensation and an increase in headcount, but remained below plan as various expenses, including commission fees, were controlled. Non-operating expenses included ¥900 million in interest expense. Extraordinary losses included a ¥10 billion loss on the cancellation of treasury stock acquisition rights in the first quarter. Net income included ¥8.2 billion in income taxes—deferred. In the rental business, corporate leases, particularly leases involving foreign nationals, pushed up occupancy and rent per unit. In the development business, expanded orders in the first year since the full-scale resumption enabled the company to achieve its plan for the number of buildings ordered, number of units ordered, and order value.

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Presentation Materials for the Fiscal Year Ending March 2026 | LEOPALACE21 CORPORATION (8848) timely disclosure | Komori