Leopalace21 (8848) Q4 2024 earnings summary

Executive summary

• Net sales rose 2.2% to JPY 431,831 million, driven by higher average unit rent despite a slight occupancy decline.

• Operating profit increased 25.4% to JPY 29,231 million, the highest since the global financial crisis.

• Recurring profit rose 38.3% to JPY 26,936 million, aided by lower interest expenses following refinancing.

• Net income fell 57.5% to JPY 17,861 million, mainly due to a partial reversal of deferred tax assets.

• Equity ratio improved 6.3 points to 37.5%; cash and cash equivalents reached JPY 87,075 million, up JPY 18,931 million YoY.

Financial highlights

• Gross profit rose 12.3% to JPY 77,293 million; gross margin increased 1.6 points to 17.9%.

• EBITDA grew 17.0% to JPY 32,734 million.

• Total assets increased 5.7% to JPY 216,625 million and net assets rose 23.1% to JPY 88,268 million.

• Free cash flow reached JPY 25,295 million, up JPY 3,022 million YoY.

Outlook and guidance

• FY2026 guidance: net sales JPY 441,400 million (+2.2%), operating profit JPY 32,400 million (+10.8%), recurring profit JPY 30,900 million (+14.7%) and net income JPY 18,100 million (+1.3%).

• FY2026 annual dividend forecast is JPY 10 per share; payout ratio target is 30% by FY2028.

• FY2024 year-end dividend of JPY 5 per share was planned, bringing the annual dividend to JPY 10 including the JPY 5 interim payment.