Leopalace21 exceeds Q1 profit plan, boosts shareholder returns

Leopalace21 Corporation reported Q1 FY2025 net sales of JPY 111.7 billion and operating profit of JPY 12.2 billion, exceeding planned figures across all profit stages. Despite a temporary decrease in net income to JPY 0.5 billion due to an extraordinary loss, operating and recurring profits saw substantial year-over-year increases. The company's leasing business performed robustly, with average unit rent for new contracts reaching a record index of 112 in June and occupancy rates surpassing previous year levels.

Leopalace21 also announced key capital policies, including a tender offer for treasury stock of approximately JPY 71.6 billion and a repurchase of treasury stock acquisition rights for approximately JPY 10 billion. These actions aim to mitigate share dilution and enhance shareholder value. The company confirmed an annual dividend of JPY 10 per share for FY2025. Furthermore, the development business started strong with JPY 4.1 billion in orders in Q1, progressing towards its full-year target of JPY 10 billion.

The company highlighted an increase in units utilized by foreign nationals, reaching a record high of 55,475 units by the end of Q1 FY2025, representing 11.9% of total units. This growth is predominantly driven by corporate contracts in hospitality, wholesale/retail, and service industries. An agreement was concluded with Mizuho Bank, Ltd. for a commitment line of JPY 10 billion, enhancing financial flexibility for sustainable growth.