Leopalace21 (8848) Q3 2024 earnings summary

Executive summary

• Q1–Q3 cumulative profit reached its highest level since the global financial crisis; recurring profit rose 50.2% YoY.

• Net sales and net income attributable to shareholders of the parent grew for a third consecutive year.

• Higher average unit rents and strong corporate demand supported an upward revision to full-year forecasts.

Financial highlights

• Q1–Q3 net sales were ¥323.970B, up 2.3% YoY and ¥4.170B above plan; gross profit was ¥59.488B, up 12.5%.

• Operating profit was ¥25.456B, up 27.2% YoY and 21.2% above plan; EBITDA was ¥28.131B, up 19.1%.

• Recurring profit was ¥24.880B, up 50.2% YoY and 25.7% above plan; net income was ¥15.391B, up 3.4% and 33.8% above plan.

Outlook and guidance

• FY2024 revised forecasts: net sales ¥433.3B, operating profit ¥31.0B, recurring profit ¥29.8B and net income ¥17.3B.

• FY2024 occupancy plan is 85.64% average and 88.15% at year-end; new-contract average rent target is +5.9% YoY and occupied-unit average rent target is +4.7%.

• FY2024 year-end dividend of ¥5 per share is planned, bringing the annual dividend to ¥10 per share.

• Full-year net income per share is projected at ¥54.45.