Leopalace21 Records Strong Profit Growth on Lower Sales in FY3/13, Continued Growth in FY3/14 Sales and Profits Expected

  Leopalace21 Records Strong Profit Growth on Lower Sales in FY3/13, Continued
  Growth in FY3/14 Sales and Profits Expected

Business Wire

TOKYO -- May 15, 2013

Leopalace21 Corporation (TOKYO:8848), a company that conducts construction,
leasing, and sales of apartments, condominiums, and residential housing,
announced that its sales declined by 1.1% year-over-year to JPY454.2 billion
during the current fiscal year. At the same time operating, recurring and net
incomes grew by 61.7%, 372.1% and 739.2% year-over-year to JPY7.4, JPY11.0,
and JPY13.3 billion yen respectively, due in part to strength in the new
housing construction market and to Leopalace21 Group's measures to establish
stable profitability.

Leopalace21's main leasing business sales and operating income grew by 0.9%
and 65.5% year-over-year to JPY383.5 and JPY8.6 billion on the back of 1.41%
and 1.78% point increases in year-end and full year average occupancy rates to
84.81% and 82.94% respectively. At the same time, the construction business
sales and operating income declined by 15.2% and 36.2% year-over-year to
JPY53.3 and JPY2.7 billion respectively due to the Company's focus upon
construction of facilities in regions where high occupancy rates can be
maintained.

Total assets fell by JPY3.1 billion from the end of the previous fiscal year
to JPY261.6 billion due to declines of JPY6.2, JPY2.9, and JPY10.1 billion in
prepaid expenses, other current assets, and long term prepayments
respectively. Total liabilities fell by JPY27.4 billion from the end of the
previous fiscal year to JPY203.4 billion due in part to declines of JPY2.6,
JPY19.5, and JPY5.2 billion in interest bearing liabilities, short and long
term advances received, and the reserve for apartment vacancy loss
respectively. Net assets grew by a large margin of JPY24.3 billion from the
end of the previous fiscal year to JPY58.1 billion due to increases in
retained capital resulting from the exercise of stock options and strong
growth in net income. Consequently, equity ratio rose by 9.4% points from the
end of the previous fiscal year to 22.2%.

During fiscal year March 2014, Leopalace21 calls for sales and operating and
recurring incomes to rise by 2.9%, 90.2% and 10.0% year-over-year to JPY467.4,
JPY14.1 and JPY12.2 billion respectively. At the same time net income is
expected to decline by 17.5% year-over-year to JPY11.0 billion.


Leopalace21 Corporation (8848)  FY3/12   FY3/13   yy chg  FY3/14E  yy chg
Sales                            459,436   454,222   -1.1%    467,400   2.9%
Operating Income                 4,585     7,413     61.7%    14,100    90.2%
Margin                           1.0%      1.6%      na       3.0%      na
Recurring Income                 2,349     11,091    372.1    12,200    10.0%
Net Income                       1,588     13,335    739.2    11,000    -17.5%
Earnings Per Share               9.40      74.50     na       52.00     na
Dividend Per Share              0.00     0.00     na      0.00     na
(Units: Million Yen, EPS and Dividend in Yen, E=estimates)


About Leopalace21 Corporation

Leopalace21 Corporation was established in August 1973 and conducts
construction, leasing, and sales of apartments, condominiums, and residential
housing, in addition to development and operation of resort facilities, and
the operation of hotel business, broadband business, and elderly care
business. The Company was first listed on the JASDAQ Market in February 1989,
and moved its shares to the First Section of the Tokyo Stock Exchange in March
2004. Its headquarters are currently located in Tokyo.

Contact:

Kaoru Hosaka for Leopalace21 Corporation
Investment Bridge Co., Ltd.
+81-3-5842-5765 (Japanese correspondence only)
leopalace21@cyber-ir.co.jp (English and Japanese correspondence)
 
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