Lead Real Estate Co., LTD. Reports Higher Revenues and Net Income, on the Strength of Rising Real Estate Sales, for the Fiscal Year ended on June 30, 2024
Lead Real Estate (Nasdaq: LRE) reported financial results for FY2024 ended June 30, showing revenue growth to JPY18.9 billion from JPY17.4 billion year-over-year. Real Estate Sales, the main revenue component, increased 8.1% to JPY18.5 billion. Despite higher delivery volumes in condominiums and single-family homes, average sale prices decreased across all categories. Net income grew 2.5% to JPY626.9 million, while operating income declined 4.3% to JPY898.5 million. The company's hotel business showed strong growth with a 46.3% revenue increase. Gross margin slightly decreased to 15.6% due to increased construction costs.
Lead Real Estate (Nasdaq: LRE) ha riportato i risultati finanziari per l'anno fiscale 2024 conclusosi il 30 giugno, mostrando una crescita dei ricavi a JPY18,9 miliardi rispetto a JPY17,4 miliardi nell'anno precedente. Le vendite immobiliari, il principale componente dei ricavi, sono aumentate dell'8,1% a JPY18,5 miliardi. Nonostante il volume di consegne più elevato di condomini e case unifamiliari, i prezzi medi di vendita sono diminuiti in tutte le categorie. L'utile netto è cresciuto del 2,5% raggiungendo JPY626,9 milioni, mentre l'utile operativo è diminuito del 4,3% a JPY898,5 milioni. L'attività alberghiera dell'azienda ha mostrato una forte crescita con un incremento dei ricavi del 46,3%. Il margine lordo è leggermente diminuito al 15,6% a causa dell'aumento dei costi di costruzione.
Lead Real Estate (Nasdaq: LRE) reportó resultados financieros para el año fiscal 2024 finalizado el 30 de junio, mostrando un crecimiento de ingresos a JPY18,9 mil millones desde JPY17,4 mil millones en comparación con el año anterior. Las ventas de bienes raíces, el principal componente de ingresos, aumentaron un 8,1% a JPY18,5 mil millones. A pesar de un mayor volumen de entregas de condominios y casas unifamiliares, los precios de venta promedio disminuyeron en todas las categorías. La utilidad neta creció un 2,5% alcanzando JPY626,9 millones, mientras que la utilidad operativa disminuyó un 4,3% a JPY898,5 millones. El negocio hotelero de la compañía mostró un fuerte crecimiento con un aumento de ingresos del 46,3%. El margen bruto disminuyó ligeramente al 15,6% debido al aumento de los costos de construcción.
리드 리얼 에스테이트 (Nasdaq: LRE)는 6월 30일 종료된 2024 회계연도의 재무 결과를 보고하며, 연간 수익이 JPY18.9억에서 JPY17.4억으로 성장했음을 보여주었습니다. 주요 수익 구성 요소인 부동산 판매는 8.1% 증가하여 JPY18.5억에 이르렀습니다. 콘도미니엄과 단독주택의 높은 인도 물량에도 불구하고, 모든 카테고리에서 평균 판매 가격이 감소했습니다. 순이익은 2.5% 증가하여 JPY626.9백만에 도달했으며, 운영 이익은 4.3% 감소하여 JPY898.5백만으로 떨어졌습니다. 회사의 호텔 사업은 46.3%의 수익 증가로 강력한 성장을 보여주었습니다. 건설 비용 증가로 인해 총 마진은 15.6%로 약간 감소했습니다.
Lead Real Estate (Nasdaq: LRE) a annoncé ses résultats financiers pour l'exercice 2024 se terminant le 30 juin, montrant une croissance des revenus à JPY18,9 milliards contre JPY17,4 milliards l'année précédente. Les ventes immobilières, le principal composant des revenus, ont augmenté de 8,1% pour atteindre JPY18,5 milliards. Malgré des volumes de livraison plus élevés de condominiums et de maisons individuelles, les prix de vente moyens ont diminué dans toutes les catégories. Le bénéfice net a augmenté de 2,5% pour atteindre JPY626,9 millions, tandis que le bénéfice d'exploitation a diminué de 4,3% à JPY898,5 millions. L'activité hôtelière de l'entreprise a connu une forte croissance avec une augmentation des revenus de 46,3%. La marge brute a légèrement diminué à 15,6% en raison de l'augmentation des coûts de construction.
Lead Real Estate (Nasdaq: LRE) berichtete über die Finanzergebnisse für das Geschäftsjahr 2024, das am 30. Juni endete, und zeigte ein Umsatzwachstum auf JPY18,9 Milliarden im Vergleich zu JPY17,4 Milliarden im Vorjahr. Der Immobilienverkauf, der Hauptbestandteil der Einnahmen, stieg um 8,1% auf JPY18,5 Milliarden. Trotz höherer Liefermengen bei Eigentumswohnungen und Einfamilienhäusern sanken die durchschnittlichen Verkaufspreise in allen Kategorien. Der Nettogewinn stieg um 2,5% auf JPY626,9 Millionen, während der operative Gewinn um 4,3% auf JPY898,5 Millionen fiel. Das Hotelgeschäft des Unternehmens verzeichnete ein starkes Wachstum mit einem Umsatzanstieg von 46,3%. Die Brutto-Marge ging leicht auf 15,6% zurück, was auf gestiegene Baukosten zurückzuführen ist.
- Total revenue increased by 8.6% YoY to JPY18.9 billion
- Real Estate Sales grew 8.1% to JPY18.5 billion
- Net income rose 2.5% to JPY626.9 million
- Hotel revenue increased 46.3% to JPY463.6 million
- Cash and cash equivalents grew to JPY1.3 billion from JPY786.3 million
- Operating income decreased 4.3% to JPY898.5 million
- Operating profit margin declined to 5.0% from 5.3%
- Gross margin decreased to 15.6% from 15.8%
- Average sale prices decreased across all property categories (7.2% to 21.2%)
- Interest expenses increased due to rising rates
Insights
Lead Real Estate's fiscal 2024 results show mixed performance with some concerning trends. While total revenue grew by
The shift towards condominium development could be strategic given market conditions, but the company's low operating margins compared to industry standards raise concerns about long-term profitability. The hotel segment shows promise, contributing to a
The company's strategic pivot towards Tokyo's luxury residential market presents both opportunities and challenges. The decreasing average sale prices across all property types, particularly in condominiums (down
The comparison to mature markets like Hong Kong and New York is ambitious given Tokyo's different market dynamics and lower price points. The hotel business's performance is encouraging, but its
TOKYO, Nov. 21, 2024 (GLOBE NEWSWIRE) -- Lead Real Estate Co., LTD. (Nasdaq: LRE), (“LRE” or the “Company”), a Japanese real estate developer of luxury residential properties, including single-family homes and condominiums across Tokyo, Kanagawa prefecture and Sapporo, and which develops and operates the ENT TERRACE brand of extended-stay hotels, today announced financial results demonstrating top line and bottom line year-over-year growth for the fiscal year ended June 30, 2024.
Total Revenue was JPY18.9 billion for the fiscal year ended June 30, 2024, from JPY17.4 billion for the fiscal year ended June 30, 2023.
The major revenue component, Real Estate Sales, increased to JPY18.5 billion from JPY17.1 billion,
Significant revenue developments in the fiscal year ended June 30, 2024, include:
- Units of land deliveries for condominiums more than doubled to 33 from 16. However, the Average Sale Price decreased by
21.2% year-over-year to JPY353 million because the number of units sold with low prices increased. - Units of condominium building deliveries increased to four units delivered from one unit delivered. Average Sale Price decreased by
7.2% year-over-year to JPY33.3 million because the number of units of condominiums with low prices increased. - Units of single-family home building deliveries increased to 41 units from 39 units. Average Sale Price decreased by
11.2% year-over-year to JPY30.3 million because the single-family homes were in areas with low market value. - Units of land deliveries for single-family homes decreased to 71 from 88. The average Sale Price decreased by
21.1% year-over-year to JPY76.8 million because the sales were mainly in low-price areas. - Other revenue increased by
46.3% to JPY463.6 million from JPY316.9 million. This was primarily driven by two hotels, which opened during the previous fiscal year and were in full operation for the most recent fiscal year.
The cost of revenue for real estate sales increased by
Gross margin slightly decreased to
Selling, general, and administrative expenses were to JPY2.05 billion from JPY1.81 billion in the fiscal year ended June 30, 2024.
As a result of the foregoing, operating income decreased by
Interest expenses increased to JPY18.2 million in the fiscal year ended June 30, 2024, from JPY16.7 million in the fiscal year ended June 30, 2023, reflecting a gradual increase in interest rates.
Other income was JPY73.7 million in the fiscal year ended June 30, 2024, compared to other income of JPY6.2 million in the fiscal year ended June 30, 2023, primarily due to the cancellation penalties.
As a result of the foregoing, our net income attributable to ordinary shareholders increased by
Cash and cash equivalents were JPY1.3 billion in the fiscal year ended June 30, 2024, compared to JPY786.3 million for the fiscal year ended June 30, 2023.
The number of total ordinary shares outstanding was 13,641,900 and 12,498,900 as of June 30, 2024, and 2023, respectively.
Going forward, the Company feels that its increasing focus on condominium development, rather than single-family home development, will help drive growth.
“It's great that we were able to grow Revenues and Profits in Fiscal Year 2024,” said Mr. Eiji Nagahara, Lead Real Estate Chief Executive Officer. “Looking ahead, we anticipate exciting developments in Fiscal 2025. It is only recently that developers have focused on the high-end residential market, bringing Tokyo closer to more mature cities like Hong Kong, New York, and London. Also, I believe that our hotel business has been a great success, so I hope to continue growing it. We encourage investors to stay tuned for announcements in the near future.”
For further information on LRE’s Fiscal Year 2024 results, please see the Company’s annual report on Form 20-F filed with the U.S. Securities and Exchange Commission at:
https://www.sec.gov/Archives/edgar/data/1888980/000110465924113122/lre-20240630x20f.htm
About Lead Real Estate Co., Ltd
Lead Real Estate Co., Ltd is a Japanese developer of luxury residential properties, including single-family homes and condominiums, across Tokyo, Kanagawa prefecture, and Sapporo. In addition, the Company operates hotels in Tokyo and leases apartment building units to individual customers in Japan and Dallas, Texas.
The Company’s mission is to serve its customers by offering stylish, safe, and luxurious living. The Company’s vision is to adopt the Kaizen (continuous improvement) approach to seek to improve its operations, and to leverage its nationally recognized, award-winning luxury homes and strong market position in the luxury residential property market in Tokyo, Kanagawa prefecture, and Sapporo to create a global transaction platform allowing access to prime Japanese condominiums as well as overseas condominiums, including in the U.S. and Hong Kong.
For more information, please visit the Company’s website at https://www.lead-real.co.jp/en/.
About “ENT TERRACE”
“ENT TERRACE” Series is an extended-stay hotel brand operated by Lead Real Estate Co., Ltd. In 2024, ENT TERRACE AKIHABARA received a 9.5 out of 10 customer rating on Booking.com and won the “Traveller Review Awards,” and all of our properties have been certified as Super Hosts on Airbnb. We will continue to develop our hotels with the aim of providing a space where guests can relax as if they were at home while ensuring privacy and easing the burden of long-term stays.
Learn more at https://ent-terrace.com/en/ and follow us on Instagram, Facebook, and X.
Forward-Looking Statements
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and other factors that may affect its future results in the Company's registration statement and in its other filings with the U.S. Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
Contact Information:
For Media and Investor Relations:
Daisuke Takahashi
Chief Financial Officer
Lead Real Estate Co., Ltd
d-takahashi@lead-real.co.jp
+81 3-5784-5127
Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5th Floor
New York, New York 10036
Office: (646) 893-5835
Email: info@skylineccg.com
| LEAD REAL ESTATE CO., LTD | ||||||
| CONSOLIDATED BALANCE SHEETS | ||||||
| AS OF JUNE 30, 2024 AND 2023 | ||||||
| (Japanese yen in thousands, except share data) | ||||||
| June 30, | ||||||
| 2024 | 2023 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | ¥ | 1,300,684 | ¥ | 786,373 | ||
| Accounts receivable, net | 22,859 | 6,613 | ||||
| Real estate inventory | 9,267,825 | 10,390,231 | ||||
| Contract assets | 236,499 | 436,021 | ||||
| Prepaid and other current assets | 493,819 | 299,343 | ||||
| Total current assets | 11,321,686 | 11,918,581 | ||||
| Property and equipment, net | 5,449,101 | 3,302,912 | ||||
| Intangible asset, net | 54,138 | 71,730 | ||||
| Investments in marketable securities | 20,844 | 7,867 | ||||
| Right-of-use assets, operating lease, net | 154,613 | 204,029 | ||||
| Investments | 46,394 | 44,525 | ||||
| Other assets | 170,588 | 186,478 | ||||
| Total assets | ¥ | 17,217,364 | ¥ | 15,736,122 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | ¥ | 602,013 | ¥ | 732,722 | ||
| Current portion of notes payable | 6,815,181 | 5,706,786 | ||||
| Contract liabilities | 130,259 | 260,530 | ||||
| Current portion of operating lease liabilities | 67,938 | 68,771 | ||||
| Accrued expenses and other current liabilities | 356,856 | 355,164 | ||||
| Total current liabilities | 7,972,247 | 7,123,973 | ||||
| Notes payable, net of current portion | 4,598,151 | 5,437,668 | ||||
| Deferred tax liabilities, net | 85,018 | 33,988 | ||||
| Operating lease liabilities, net of current portion | 91,471 | 137,399 | ||||
| Other liabilities | 233,109 | 240,030 | ||||
| Total liabilities | 12,979,996 | 12,973,058 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||
| SHAREHOLDERS’ EQUITY | ||||||
| Common stock, 50,000,000 shares authorized, 15,628,000 shares issued and 13,641,900 shares outstanding as of June 30, 2024, and 14,485,000 shares issued and 12,498,900 shares outstanding as of June 30, 2023 with no stated par value | 1,206,765 | 344,145 | ||||
| Retained earnings | 3,159,815 | 2,557,854 | ||||
| Treasury stock, at cost, 1,986,100 shares as of June 30, 2024 and June 30, 2023 | -154,121 | -154,121 | ||||
| Non-controlling interest | -7,558 | -6,769 | ||||
| Accumulated translation gain | 32,467 | 21,955 | ||||
| Total shareholders' equity | 4,237,368 | 2,763,064 | ||||
| Total liabilities and shareholders' equity | ¥ | 17,217,364 | ¥ | 15,736,122 | ||
| LEAD REAL ESTATE CO., LTD | |||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||
| FOR THE FISCAL YEARS ENDED JUNE 30, 2024, 2023 AND 2022 | |||||||||
| (Japanese yen in thousands, except share and per share data) | |||||||||
| For the Fiscal Years Ended June 30, | |||||||||
| 2024 | 2023 | 2022 | |||||||
| Revenue: | |||||||||
| Real estate sales | ¥ | 18,487,074 | ¥ | 17,098,308 | ¥ | 14,478,498 | |||
| Other revenue | 463,609 | 316,940 | 208,516 | ||||||
| Total revenue | 18,950,683 | 17,415,248 | 14,687,014 | ||||||
| Expenses: | |||||||||
| Cost of sales - real estate | 15,721,271 | 14,466,459 | 12,023,652 | ||||||
| Cost of sales – other | 279,806 | 191,544 | 72,220 | ||||||
| Selling, general and administrative | 2,051,040 | 1,817,970 | 1,704,042 | ||||||
| Total expenses | 18,052,117 | 16,475,973 | 13,799,914 | ||||||
| Operating income | 898,566 | 939,275 | 887,100 | ||||||
| Other income (expense): | |||||||||
| Interest expenses | -18,286 | -16,731 | -23,333 | ||||||
| Other, net | 73,759 | 6,268 | -25,596 | ||||||
| Total other income (expense), net | 55,473 | -10,463 | -48,929 | ||||||
| Income before income taxes | 954,039 | 928,812 | 838,171 | ||||||
| Income taxes | 327,869 | 317,418 | 286,919 | ||||||
| Net income | 626,170 | 611,394 | 551,252 | ||||||
| Net loss attributable to the noncontrolling interests | -789 | -524 | -370 | ||||||
| Net income attributable to common stockholders | 626,959 | 611,918 | 551,622 | ||||||
| Foreign currency translation gain | 10,512 | 5,241 | 19,055 | ||||||
| Total Comprehensive income | ¥ | 637,471 | ¥ | 617,159 | ¥ | 570,677 | |||
| Earnings per share: | |||||||||
| Basic | ¥ | 46.93 | ¥ | 48.96 | ¥ | 44.15 | |||
| Diluted | ¥ | 46.93 | ¥ | 48.96 | ¥ | 44.15 | |||
| Weighted average shares outstanding: | |||||||||
| Basic | 13,360,834 | 12,498,900 | 12,495,486 | ||||||
| Diluted | 13,360,834 | 12,498,900 | 12,495,486 | ||||||
FAQ
What was Lead Real Estate's (LRE) total revenue for FY2024?
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