Leopalace21 Records Solid Growth in Both Sales and Profits, in FY3/14, Growth Expected to Continue in FY3/15

  Leopalace21 Records Solid Growth in Both Sales and Profits, in FY3/14,
  Growth Expected to Continue in FY3/15

Business Wire

TOKYO -- June 17, 2014

Leopalace21 Corporation (TOKYO:8848), a company that conducts construction,
leasing, and sales of apartments, condominiums, and residential housing,
announced that its sales and operating, recurring and net incomes rose by
3.7%, 84.4%, 4.4%, and 14.2% year-over-year to JPY471.0, JPY 13.6, JPY11.5,
and JPY15.2 billion respectively during the fiscal year March 2014. This
strong earnings performance is attributed to gradual improvements in the
overall Japanese economy, a rush to purchase real estate and other high priced
items ahead of the hike in the consumption tax from April 2014, and subsequent
strength in the housing market which recorded its second consecutive year of
increases in new housing starts.

Due to these favorable business conditions, all of Leopalace21’s businesses
were able to record sales growth. In the main leasing business, sales and
operating income rose by 1.4% and 79.2% year-over-year to JPY388.7 and JPY15.5
billion respectively on the back of a rise in the average occupancy rates of
1.64% points year-over-year to 84.58%. A strategy of focusing upon major
metropolitan regions with high occupancy rates contributed to relatively
strong growth in sales and operating income of the construction business of
18.3% and 7.5% year-over-year to JPY63.1 and JPY2.9 billion respectively.

Total consolidated assets rose by JPY25.8 billion from the end of the previous
term to JPY287.4 billion at the end of the term just ended due primarily to
increases in cash and deposits, tangible fixed assets, and deferred tax assets
of JPY18.0, JPY13.5, and JPY5.4 billion respectively. At the same time, total
liabilities declined by JPY20.9 to JPY182.5 billion over the same period. The
main factors behind this decline included declines in interest bearing
liabilities, short and long term advances received, and vacancy loss reserves
of JPY11.7, JPY8.7, and JPY4.5 billion respectively. Over the same period, net
assets rose by a relatively large margin of JPY46.7 to JPY104.8 billion due in
part to increases in capital arising from the issuance of new shares and
retained earnings derived from net income. Consequently, equity ratio improved
by a large 14.3% points from the end of the previous term to 36.5%.

During the coming fiscal year March 2015, Leopalace21 calls for sales and
operating and recurring incomes to rise by 4.8%, 6.0% and 12.3% year-over-year
to JPY493.5, JPY14.5 and JPY13.0 billion respectively. At the same time, the
disappearance of deferred tax assets booked in the previous year is expected
to cause net income to decline by 21.2% year-over-year to JPY12.0 billion.

Leopalace21           FY3/12   FY3/13   FY3/14   yy chg  FY3/15E  yy chg
Corporation (8848)
Sales                 459,436  454,222  471,089  3.7%    493,500  4.8%
Operating Income      4,585    7,413    13,673   84.4%   14,500   6.0%
Margin                1.0%     1.6%     2.9%     na      2.9%     na
Recurring Income      2,349    11,091   11,574   4.4%    13,000   12.3%
Net Income            1,588    13,335   15,229   14.2%   12,000   -21.2%
Earnings Per Share    9.4      74.5     67.2     -9.8%   45.7     -32.0%
(Units: Million Yen, EPS and Dividend in Yen, E=estimates)

Sales and Operating Profit by segments
Sales             FY3/13   FY3/14   yy chg
Leasing           383,574  388,768  1.4%
Construction      53,369   63,135   18.3%
Hotel, Resort     6,657    7,571    13.7%
Silver (Senior)   9,482    10,171   7.3%
Others            1,137    1,442    26.8%
Adjustments       -        -        na
TOTAL             454,222  471,089  3.7%
Operating Profit                  
Leasing           8,687    15,567   79.2%
Construction      2,747    2,954    7.5%
Hotel, Resort     -1,005   -1,118   na
Silver (Senior)   -742     -610     na
Others            35       137      291.4%
Adjustments       -2,308   -3,256   na
TOTAL             7,413    13,673   84.4%
(Units: Million Yen)

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.


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