Leopalace21 (8848) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2025, rose 2.7% year-over-year to JPY 332,710 million, driven by higher average unit rent and stable occupancy rates.

• Operating profit increased 12.5% year-over-year to JPY 28,645 million, with EBITDA up 10.4% to JPY 31,054 million.

• Net income attributable to shareholders fell 34.9% year-over-year to JPY 10,014 million, mainly due to a JPY 10,068 million extraordinary loss from cancellation of treasury stock acquisition rights.

Financial highlights

• Gross profit margin improved to 20.4% from 18.4% year-over-year.

• Equity ratio declined to 20.6% from 37.5% at the previous fiscal year-end.

• Total assets decreased by JPY 52,477 million to JPY 164,147 million, mainly due to lower cash and deposits.

• Dividend forecast maintained at JPY 10.00 per share for the full year.

Outlook and guidance

• Full-year net sales forecast at JPY 444,100 million (+2.8% year-over-year), operating profit at JPY 34,800 million (+19.1%), and net income at JPY 13,000 million (-27.2%).

• No changes to previously announced earnings forecasts.

• Forward-looking statements caution that actual results may differ due to various factors.