Name of Company Listed: Leopalace21 Corporation Stock Listing: Tokyo Stock Exchange Code Number: 8848 URL: http://eg.leopalace21.com/ Location of Head Office: Tokyo Representative: Position: President and CEO Name: Eisei Miyama
Name of Contact Person: Position: Executive Officer Name: Bunya Miyao Telephone: +81-3-5350-0216 Scheduled Date of Filing of Securities Report (Japanese only): February 15, 2016
Scheduled Date of Commencement of Dividend Payments: - Supplemental Explanatory Material Prepared: Yes
Results Briefing Held: No
-
Results for the Nine months ended December 31, 2015 (April 1, 2015 through December 31, 2015)
Consolidated financial results (Amounts less than one million yen are omitted) (The percentage figures indicate rate of gain or loss compared with the same period last year)
Net sales
Operating profit
Recurring profit
Net income attributable to shareholders of the parent
Nine months ended December 31, 2015
Million yen
%
Million yen
15,609
9,513
%
Million yen
14,664
8,637
%
Million yen
12,462
7,856
%
376,541
7.4
64.1
69.8
58.6
Nine months ended December 31, 2014
350,756
2.1
8.7
20.3
22.7
(Note) Comprehensive income As of December 31, 2015: 12,497 million yen (32.4 %); As of December 31, 2014: 9,442 million yen (-9.0 %)
Net income per share
Diluted net income per share
Nine months ended December 31, 2015
Nine months ended December 31, 2014
Yen
47.41
29.89
Yen
―
―
Consolidated financial position
-
Dividend Status
Dividend per share
End of Q1
End of Q2
End of Q3
End of Q4
Annual
FY ended March 31, 2015
Yen
―
―
Yen
Yen
―
―
Yen
Yen
0.00
0.00
0.00
FY ending March 31, 2016
0.00
FY ending March 31, 2016 (Estimate)
10.00
10.00
(Note) Restatement of most recent dividend forecast: No
-
Estimation of Business Results for the Fiscal Year ending March 31, 2016 (April 1, 2015 through March 31, 2016)
(The percentage figures for full year indicate rate of gain or loss compared with the previous FY, while those for the interim
period indicate rate of gain or loss compared with the same term in the previous FY)
Net Sales
Operating profit
Recurring profit
Net income attributable to shareholders of the parent
Net income per share
FY ending March 31, 2016
Million yen
525,000
%
8.7
Million yen
19,500
%
32.1
Million yen
18,000
%
34.1
Million yen
16,000
%
10.3
Yen
60.87
(Note) Restatement of most recent consolidated business results forecast: None
- Other
Changes in major subsidiaries during the subject period (change in specific subsidiaries resulting in a change in the scope of consolidation): None
Use of accounting procedures specific to the preparation of quarterly financial statements: Yes
(Note) For details, please refer to P.6 "2. Matters Relating to Summary Information (2) Application of Accounting Methods Specific to the Preparation of Quarterly Consolidated Financial Statements."
Changes in accounting principles, procedures or reporting methods used in preparation of financial statements (changes in important items concerning preparation of financial statements)
Changes in accounting policies accompanying revision of accounting standards, etc.: Yes
Changes in accounting policies other than (i) above: None
Changes in accounting estimates: None
Restatements: None
Total number of outstanding shares (common stock)
Total number of outstanding shares at term end (including treasury stock)
As of December 31, 2015: 267,443,915 shares, As of March 31, 2015: 267,443,915 shares
Total treasury stock at term end
As of December 31, 2015: 4,569,430 shares, As of March 31, 2015: 4,569,430 shares
Average number of outstanding shares during the period
-
Business Results 4
Analysis of Business Results 4
Analysis of Consolidated Financial Position 5
Explanation Concerning Business Forecasts and Other Forward-looking Statements 5
-
Matters Relating to Summary Information 6
Changes in Significant Subsidiaries during the First Nine Months under Review 6
Application of Accounting Methods Specific to the Preparation of Quarterly Consolidated Financial Statements 6
Changes in Accounting Policy, Changes in Accounting Estimates, and Restatements 6
-
Consolidated Financial Statements 7
Consolidated Balance Sheets 7
Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income 9
Consolidated Statements of Operations 9
Consolidated Statements of Comprehensive Income 10
Notes Regarding Consolidated Financial Statements 11
Total assets | Net assets | Equity ratio | Equity per share | ||
As of December 31, 2015 | Million yen | Million yen | % | Yen | |
313,236 | 138,991 | 44.4 | 528.54 | ||
As of March 31, 2015 | 308,274 | 126,473 | 41.0 | 481.05 |
(Reference) Shareholders' equity As of December 31, 2015: 138,939 million yen; As of March 31, 2015: 126,455 million yen
(Note) For details, please refer to P.6 "2. Matters Relating to Summary Information (3) Changes in Accounting Policy, Changes in Accounting Estimates, and Restatements."
As of December 31, 2015: 262,874,485 shares, As of December 31, 2014: 262,874,609 shares
*Indication regarding the status of auditing:
These financial statements are not subject to auditing under the Financial Instruments and Exchange Act. The review of these financial statements in accordance with the Financial Instruments and Exchange Act completed at the time of disclosure.
*Explanation on the proper use of the business forecasts, and other special notices: (Note on the business forecasts and other forward-looking statements)
The business forecasts and other forward-looking statements contained in this report are based on information currently available to the Company and on certain assumptions that Leopalace21 has judged to be reasonable. Readers should be aware that a variety of factors might cause actual results to differ significantly from these forecasts.
For assumptions of business forecasts and notes on the proper use of these forecasts, please refer to P.5 "1. Business Results (3) Explanation Concerning Business Forecasts and Other Forward-looking Statements."
(Method for the acquisition of supplemental explanatory material)
Supplemental Explanatory Material on quarterly financial statements is scheduled to be posted on the Company's web site on February 12, 2016.
【Table of Contents】
(Notes Regarding the Premise of the Company as a Going Concern) 11
(Note Regarding Significant Changes in Shareholders' Equity) 11
(Segment Information) 12
1. Business Results (1) Analysis of Business Results(Million yen)
Net sales | Operating profit | Recurring profit | Net income attributable to shareholders of the parent | |
Nine months ended December 31, 2015 | 376,541 | 15,609 | 14,664 | 12,462 |
Nine months ended December 31, 2014 | 350,756 | 9,513 | 8,637 | 7,856 |
Difference | 25,785 | 6,095 | 6,026 | 4,606 |
During the subject nine months, the domestic economy showed gradual progression, such as signs of recovery in individual consumption, due to an improvement in corporate earnings, employment, and income.
In the rental housing industry, negative effects of the rush demand from the increase in consumption tax began to fade, and as apartment construction continues to be an ideal inheritance tax-reduction strategy, new housing starts of leased units trended at a steady pace. On the other hand, as the number of vacant houses increases due to oversupply, achieving stable occupancy rates requires constructing apartments in areas with high demand, as well as providing high-quality housing and services.
Under these conditions, the Leopalace21 Group (the "Group") aims to achieve targets of the Medium-term Management Plan "EXPANDING VALUE," which is in its second year, by building a solid management structure focusing on the core businesses, made up of Leasing and Construction. In addition, the Group aims to establish new businesses that will contribute to future growth.
As a result, net sales for the first nine months were 376,541 million yen (up 7.4% year-on-year). Operating profit was 15,609 million yen (up 64.1% year-on-year), recurring profit was 14,664 million yen (up 69.8% year-on-year), and net income attributable to shareholders of the parent was 12,462 million yen (up 58.6% year-on-year).
The Group's Construction Business has many building construction contracts stipulating completion in the fourth quarter, which is when demand for apartments is highest. In the Leasing Business, the number of apartments under management will increase as apartments are completed, so seasonal fluctuations put a preponderance of earnings into the fourth quarter.
(Actual figures by segment) (Million yen)
Net sales | Operating profit | |||||
Nine months ended December 31, 2014 | Nine months ended December 31, 2015 | Difference | Nine months ended December 31, 2014 | Nine months ended December 31, 2015 | Difference | |
Leasing Business | 296,353 | 304,987 | 8,633 | 15,146 | 18,155 | 3,009 |
Construction Business | 37,694 | 51,494 | 13,799 | (1,855) | 852 | 2,708 |
Elderly Care Business | 7,978 | 8,072 | 93 | (380) | (934) | (554) |
Hotels & Resort Business | 6,546 | 8,518 | 1,972 | (690) | (389) | 301 |
Others | 2,182 | 3,468 | 1,286 | 280 | 530 | 249 |
Adjustments | - | - | - | (2,987) | (2,605) | 381 |
Total | 350,756 | 376,541 | 25,785 | 9,513 | 15,609 | 6,095 |
(i) Leasing Business
The occupancy rate at the end of the third quarter was 86.89% (up 1.20 points from the end of the same quarter last year) and the average occupancy rate for the period was 87.41% (up 1.45 points year-on-year).
In the Leasing Business, to establish stable profits led by occupancy improvement, the Group implemented measures such as expanding tenant services including "Room Customize" and website for tenants "MY PAGE", as well as further strengthening sales for female and corporate customers by security system installations. In addition, the Group aims to increase foreign tenants by refining customer support.
The number of units under management at the end of the third quarter was 560,000 (increasing 5,000 from the end of the last fiscal year), the number of direct offices was 189 (increasing 1 from the end of the last fiscal year), and the number of franchise offices was 130 (decreasing 11 from the end of the last fiscal year).
As a result, net sales amounted to 304,987 million yen (up 2.9% year-on-year), and operating profit was 18,155 million yen (up 19.9% year-on-year).
Leopalace21 Corporation issued this content on 12 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 12 February 2016 05:24:16 UTC
Original Document: http://eg.leopalace21.com/ir/library/pdf/2016/3Q/en_daisan_tanshin.pdf