Leopalace21 (8848) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2026 rose 2.6% year-over-year to JPY 111,717 million, driven by higher average unit rent despite a slight decline in occupancy rate.

• Operating profit increased 18.6% year-over-year to JPY 12,206 million, with gross profit up 17.1% due to improved revenue and cost control.

• Net income attributable to shareholders dropped 91.4% year-over-year to JPY 525 million, mainly due to a JPY 10,013 million extraordinary loss from cancellation of treasury stock acquisition rights.

• EBITDA for Q1 FY2026 was JPY 13,018 million, up 16.1% year-over-year.

Financial highlights

• Gross margin improved to 22.4% from 19.6% year-over-year.

• Equity ratio increased to 42.9% from 37.5% at the end of the previous fiscal year.

• Total assets grew to JPY 229,047 million, up JPY 12,422 million from March 2025, mainly due to new share issuance.

• Dividend forecast for FY2026 is unchanged at JPY 10.00 per share.

Outlook and guidance

• Full-year FY2026 guidance maintained: net sales JPY 441,400 million (+2.2%), operating profit JPY 32,400 million (+10.8%), net income JPY 11,600 million (-35.1%).

• Six-month forecast: net sales JPY 219,500 million (+1.5%), net income JPY 3,400 million (-67.9%).

• Guidance reflects impact of treasury stock repurchase.