Leopalace21 (8848) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 4.7% YoY to ¥232,549 million; operating profit increased 19.7% to ¥24,022 million and parent-attributable net income rose 164.3% to ¥12,388 million.

• H1 results exceeded revised plan; higher average rents and occupancy supported Leasing Business growth.

• K891’s tender offer passed its minimum threshold, making K891 and K892 new parent companies; delisting is expected during 2027, subject to required procedures.

Financial highlights

• Gross profit increased 11.4% YoY to ¥51,881 million; SG&A rose 5.2% to ¥27,859 million, reflecting human-capital investment.

• EBITDA increased 18.1% to ¥26,064 million; recurring profit rose 25.7% to ¥23,943 million.

• Parent-attributable net income was ¥12,388 million versus ¥4,687 million; H1 included ¥1,642 million provision for loss on sale and ¥1,816 million loss on transfer of subsidiary shares.

• H1 actuals exceeded revised plan by ¥0.6bn in sales, ¥2.6bn in operating profit, ¥2.7bn in recurring profit and ¥1.2bn in net income.

• Operating cash flow was ¥22,663 million, investing outflow ¥2,466 million and financing outflow ¥2,883 million; free cash flow was ¥20,197 million.

Outlook and guidance

• FY ending March 2027 guidance remains unchanged: net sales ¥461,600 million, operating profit ¥38,800 million, recurring profit ¥38,400 million and parent-attributable net income ¥21,400 million.

• FY2027 forecast EPS is ¥67.34; forecast YoY increases are 3.8% for sales, 7.1% for operating profit, 9.4% for recurring profit and 41.7% for parent-attributable net income.

• FY2026 development order targets: 140 buildings, 1,900 units and ¥13.4bn in order value; H1 orders were 71 buildings, 1,084 units and ¥10.491bn.