Leopalace21 (8848) Q3 2025 earnings summary

Executive summary

• Q1–Q3 FY2025 net sales were ¥332.710bn and operating profit ¥28.645bn; sales and all profit levels through net income exceeded the revised plan.

• Higher rents supported leasing, while development orders reached the full-year unit and value targets by Q3.

Financial highlights

• Net sales rose 2.7% YoY to ¥332.710bn; gross profit increased 13.9% to ¥67.742bn.

• Operating profit rose 12.5% to ¥28.645bn, EBITDA 10.4% to ¥31.054bn and recurring profit 11.8% to ¥27.813bn.

• Net income fell 34.9% to ¥10.014bn, but was ¥414mn above plan; EPS was ¥29.88 versus ¥48.45.

• SG&A increased 14.9% YoY to ¥39.097bn, including higher personnel costs and repair-related costs recorded as SG&A from FY2025.

• Total assets decreased ¥52.477bn to ¥164.147bn, mainly due to lower cash and deposits; net assets were ¥39.347bn.

Outlook and guidance

• FY2025 forecast: net sales ¥444.1bn, operating profit ¥34.8bn, recurring profit ¥33.0bn and net income ¥13.0bn; forecasts were unchanged.

• FY2025 development plan: 80 buildings, 1,100 units and ¥10.0bn in orders; Q3 progress was 98.8%, 103.6% and 104.5%, respectively.

• FY2025 annual dividend forecast remained ¥10 per share; FY2027 target payout ratio is 30%.