Leopalace21 raises full-year forecast on strong H1 performance

Leopalace21 Corporation announced a significant upward revision to its full-year earnings forecast for FY2025, after exceeding H1 targets for the fiscal year ending March 31, 2026. Net sales for H1 reached JPY222.0 bn, operating profit JPY20.0 bn, recurring profit JPY19.0 bn, and net income JPY4.6 bn, all ahead of plan. The company now projects full-year net sales of JPY444.1 bn (+0.6%), operating profit of JPY34.8 bn (+7.4%), recurring profit of JPY33.0 bn (+6.8%), and net income of JPY13.0 bn (+12.1%).

The leasing business was a key driver, with the average unit rent for new contracts reaching a record high index of 114 in September (115 in October), fueled by corporate demand and an occupancy rate of 85.38% at the end of Q2. The development business received orders for 56 buildings, 826 units, totaling JPY7.5 bn in H1, progressing steadily towards its JPY10.0 bn full-year target. These orders primarily involve reconstructions of existing properties, with over 50% for inheritance tax measures and approximately 30% for aging properties.

Leopalace21 also implemented key financial strategies in H1, including the cancellation of all acquired stock acquisition rights in June 2025 and the cancellation of 132,046,640 shares of treasury stock in September 2025. An interim dividend of JPY5 per share is planned, with a year-end dividend of JPY5 per share, totaling JPY10 for the year. The company introduced a new apartment model, ArLk, designed for single living with enhanced spatial performance and reduced construction costs.