Note: The accompanying consolidated financial statements were not audited since they have been prepared only for reference purposes only. All statements are based on "Kessan Tanshin" report prepared in accordance with the provisions set forth in the accounting regulations and principals generally accepted in Japan.
Summary of Consolidated Financial Results for the First Quarter ended March 31, 2021 [Based on Japanese GAAP]
Listed company name: MUGEN ESTATE Co., Ltd | Listed Stock Exchange: | May 14, 2021 | |
Tokyo Stock Exchange | |||
Securities code: | 3299 | URL https://www.mugen-estate.co.jp/en/ | |
Representative: | Shinichi Fujita, President | ||
Contact: | Akira Okubo, Director, General Manager of Administrative Division | ir@mugen-estate.co.jp |
Scheduled date of quarterly securities report filing: | May 14, 2021 | Scheduled date of dividend payment: - | |
Supplementary material for financial results: | Yes | ||
Quarterly financial results briefing: | No |
(fractions of one million yen are rounded off)
1. Consolidated financial results for the first quarter ended March 31, 2021 (January 1 to March 31, 2021)
(1) Consolidated financial results (cumulative) | (Percentages represent changes from the previous year) | |||||||
Net sales | Operating income | Ordinary income | Profit attributable to | |||||
owners of parent | ||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
1Q ended March 31, 2021 | 10,241 | 10.1 | 657 | 18.8 | 516 | 36.8 | 348 | 38.5 |
1Q ended March 31, 2020 | 9,298 | 5.4 | 553 | (23.9) | 377 | (32.9) | 251 | (34.8) |
(Note) Comprehensive income: | 1Q ended March 31, 2021 | 348 | million yen ( | 38.5%) | ||||
1Q ended March 31, 2020 | 251 | million yen ( | -34.8%) | |||||
Net Income | Diluted net income | |||||||
per share | per share | |||||||
Yen | Yen | |||||||
1Q ended March 31, 2021 | 14.55 | 14.47 | ||||||
1Q ended March 31, 2020 | 10.49 | 10.45 |
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | |||||
Million yen | Million yen | % | |||||
As of March 31, 2021 | 57,774 | 22,714 | 39.2 | ||||
As of December 31, 2020 | 62,487 | 22,605 | 36.0 | ||||
(Reference) Shareholders' equity: | As of March 31, 2021 | 22,627 | million yen | ||||
As of December 31, 2020 22,518 | million yen |
2. Dividends
Annual dividends per share | |||||||
End of 1st | End of 2nd | End of 3rd | Year-end | Total | |||
quarter | quarter | quarter | |||||
Yen | Yen | Yen | Yen | Yen | |||
Year ended December 31, 2020 | - | 0.00 | - | 10.00 | 10.00 | ||
Year ending December 31, 2021 | - | ||||||
Year ending December 31, 2021 | 0.00 | - | 10.00 | 10.00 | |||
(forecast) | |||||||
(Note) Revision of the latest dividend | forecast: | None |
3. Forecast of consolidated financial results for the fiscal year ending December 31, 2021
(January 1, 2021 to December 31, 2021) | (Percentages represent changes from the previous year) | |||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | Net income per | ||||||
owners of parent | share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
FY2021 (Full year) | 35,412 | 1.6 | 1,916 | (22.3) | 1,315 | (26.3) | 651 | 8.8 | 27.17 | |
(Note) Revision of the latest consolidated financial results forecast: | None |
* Notes
- Changes in significant subsidiaries during the period: None
- Application of any accounting procedures specific to preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates, and restatement
(i) | Changes in accounting policies due to revisions to accounting standards and other regulations | : None |
(ii) | Changes in accounting policies other than (i) | : None |
(iii) | Changes in accounting estimates | : None |
(iv) | Restatement of prior period financial statements after error corrections | : None |
- Number of shares issued (common stock)
- Number of shares outstanding at end of the period (including treasury stock)
As of March 31, 2021 | 24,361,000 shares |
As of December 31, 2020 | 24,361,000 shares |
(ii) Number of treasury stock held at end of the period | |
As of March 31, 2021 | 382,309 shares |
As of December 31, 2020 | 382,309 shares |
(iii) Average number of shares outstanding during the period (cumulative)
As of March 31, 2021 | 23,978,691 shares |
As of March 31, 2020 | 23,995,155 shares |
*The current quarterly financial results are not subject to the quarterly review procedures.
* Explanation of the proper use of financial forecasts and other important notes
(1) Financial forecasts
The statements about the future included in this report, including financial forecasts, are based on information currently available to the Company and certain assumptions that are considered reasonable, which do not guarantee the achievement of such projected results. Actual results may vary considerably from these projections due to a range of factors. See "(3) Information on future forecasts including consolidated financial forecasts" under "1. Operating Results and Financial Position" on page 1 of the Accompanying Materials for the assumptions of the financial forecasts and points to note in the use of financial forecasts
(2) Access to presentation materials for financial results
Presentation materials are disclosed through TDnet and on the Company's website on the day on which the presentation is made.
1. Qualitative Information on Operating Results for the First Quarter Ended March 31, 2021
(1) Analysis of Operating Results
During the first quarter of the consolidated fiscal year under review (January 1, 2021 through March 31, 2021), in the real estate industry where the MUGEN ESTATE Group operates, the average price of land for all purposes in Japan as of January 1, 2021 announced by the Ministry of Land, Infrastructure, Transport and Tourism fell 0.5%, which was the first decrease in six years. In the Tokyo metropolitan area, the appraised value of land, especially that of commercial area, declined significantly due to the COVID-19 pandemic. Meanwhile, the fluctuation of land prices in residential areas was more moderate than in commercial areas, and steady transactions were observed primarily for residential-type properties in the real estate market.
Because of the resurgence of COVID-19 infections which triggered another state of emergency, the outlook is still uncertain. However, it is projected that the inflow of funds into the real estate market will continue due to global financial and monetary easing policies. As a result, firm demand from real estate investors in Japan and abroad is expected to continue. Because the ways that people live and work have been drastically changing in association with new lifestyles during the COVID-19 pandemic, demand has been increasing for properties in areas other than urban centers and properties with wider exclusive spaces. According to the Real Estate Information Network for East Japan (East Japan REINS), strong demand has continued and there was a 16.1% year-on-year increase in the number of contracts concluded for used condominium units in the metropolitan area in the fiscal year ended March 31, 2021, a record high since the establishment of the organization. Due to these strong sales, the number of inventory properties continued to decrease, 24.9% year on year.
In this business environment, the MUGEN ESTATE Group has endeavored in its core Real Estate Trading Business to increase the occupancy rates of investment type properties and improve inventory turnover by boosting sales with the measures such as increasing the added value provided by properties. Competition for purchasing residential type properties increased while steady demand was maintained, so we committed ourselves to enhance purchase and sales activities strictly considering profitability.
As a result, consolidated net sales increased 10.1% year on year, to 10,241 million yen, consolidated operating income rose 18.8% year on year, to 657 million yen, consolidated ordinary income climbed 36.8% year on year, to 516 million yen, and consolidated profit attributable to owners of parent grew 38.5% year on year, to 348 million yen in the first three months under review.
The following is an overview of the results by segment. [Real Estate Trading Business]
In the Real Estate Trading Business, the number of units sold in investment-type properties came to 45 (up 6 units year on year) and the average unit selling price was 171 million yen (up 1.5% year on year), registering net sales of 7,701 million yen (up 17.1% year on year). Meanwhile, the number of units sold in residential-type properties came to 49 (0 units year on year) and the average unit selling price was 39 million yen (up 1.5% year on year), registering net sales of 1,939 million yen (up 1.5% year on year).
As a result, net sales for the segment increased 13.4% year on year, to 9,668 million yen, and the segment profit (operating income for the segment) increased 13.3% year on year, to 771 million yen.
[Real Estate Leasing and Other Business]
In the Real Estate Leasing and Other Business, revenue from real estate leasing came to 546 million yen (down 27.4% year on year). As a result, net sales for the segment decreased 25.9% year on year, to 573 million yen, and segment profit (operating income for
the segment) down 15.0% year on year, to 207 million yen.
Note: The "investment-type properties" are classified as real estate generating rental income, including rental condominiums, and office blocks, which are used by buyers for the purpose of investment. The "residential-type properties" are classified as real estate used by buyers as their housing units, most of which are owned condominiums.
(2) Analysis of Financial Position
The financial position at the end of the first quarter of the consolidated fiscal year under review included assets of 57,774 million yen (down 7.5% from the end of the previous fiscal year), liabilities of 35,059 million yen (down 12.1% from the end of the previous fiscal year), and net assets of 22,714 million yen (up 0.5% from the end of the previous fiscal year).
Principal factors contributing to the decrease in assets included a decrease of 6,425 million yen in real estate properties for sale. The decrease in liabilities was attributable primarily to the decrease of 4,328 million yen in long-term debt.
The increase in net assets resulted in large part from a decrease of 239 million yen in retained earnings attributable to dividends paid, and a rise of 348 million yen in retained earnings due to the recording of profit attributable to owners of parent.
(3) Information on future forecasts including consolidated financial forecasts
No changes have been made to the full-year forecasts of the consolidated results for the fiscal year ending December 31, 2021, as announced on February 15, 2021. However, if the COVID-19 pandemic or other factors affect the real estate trading market, it is possible that the MUGEN ESTATE Group's performance may worsen.
The descriptions of business forecasts presented in this document are based on the future assumptions, outlook, and plans as of the date of the publication of this document, which include risks and uncertain factors. Actual results may vary significantly from the forecasts presented in this document due to the economic environment, market trends, and other factors that affect the business of the Group.
―1―
2. Quarterly Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheets
(Million yen) | ||||
FY2020 | FY2021 1Q | |||
(As of December 31, 2020) | (As of March 31, 2020) | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 16,065 | 17,371 | ||
Accounts receivable - trade | 16 | 12 | ||
Real estate for sale | 41,337 | 34,912 | ||
Real estate for sale in process | 283 | 405 | ||
Other | 242 | 551 | ||
Allowance for doubtful accounts | (8) | (5) | ||
Total current assets | 57,937 | 53,247 | ||
Non-current assets | ||||
Property, plant and equipment | ||||
Buildings | 2,292 | 2,302 | ||
Accumulated depreciation | (397) | (420) | ||
Buildings, net | 1,895 | 1,881 | ||
Land | 1,908 | 1,908 | ||
Other | 114 | 140 | ||
Accumulated depreciation | (79) | (74) | ||
Other, net | 34 | 65 | ||
Total property, plant and equipment | 3,838 | 3,856 | ||
Intangible assets | 83 | 81 | ||
Investments and other assets | ||||
Deferred tax assets | 241 | 208 | ||
Other | 342 | 336 | ||
Total investments and other assets | 583 | 544 | ||
Total non-current assets | 4,504 | 4,482 | ||
Deferred assets | 45 | 43 | ||
Total assets | 62,487 | 57,774 | ||
―2―
(Million yen) | ||||
FY2020 | FY2021 1Q | |||
(As of December 31, 2020) | (As of March 31, 2021) | |||
Liabilities | ||||
Current liabilities | ||||
Accounts payable - trade | 216 | 223 | ||
Short-term borrowings | 2,050 | 2,236 | ||
Current portion of bonds payable | 860 | 780 | ||
Current portion of long-term borrowings | 6,192 | 5,484 | ||
Income taxes payable | 573 | 152 | ||
Provision for bonuses | 23 | 52 | ||
Construction warranty reserve | 42 | 46 | ||
Other | 1,178 | 1,160 | ||
Total current liabilities | 11,137 | 10,135 | ||
Non-current liabilities | ||||
Bonds payable | 3,307 | 3,172 | ||
Long-term borrowings | 24,713 | 21,092 | ||
Retirement benefit liability | 101 | 100 | ||
Other | 622 | 558 | ||
Total non-current liabilities | 28,744 | 24,924 | ||
Total liabilities | 39,882 | 35,059 | ||
Net assets | ||||
Shareholders' equity | ||||
Share capital | 2,552 | 2,552 | ||
Capital surplus | 2,475 | 2,475 | ||
Retained earnings | 17,790 | 17,899 | ||
Treasury shares | (300) | (300) | ||
Total shareholders' equity | 22,518 | 22,627 | ||
Share acquisition rights | 86 | 86 | ||
Total net assets | 22,605 | 22,714 | ||
Total liabilities and net assets | 62,487 | 57,774 |
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Mugen Estate Co. Ltd. published this content on 01 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 June 2021 06:31:04 UTC.