SYLA Reports Full Year 2023 Financial and Operational Results
SYLA Technologies (NASDAQ: SYT) reported a 53.66% increase in gross profit and a 141.14% rise in net income from continuing operations for the full year 2023 compared to 2022. Their Rimawari-kun membership grew by 17.7% to 279,029 members, with the platform's gross merchandise value surpassing 5 billion yen. The company achieved a 3.12% increase in revenues, reaching ¥22,743,410 thousand (US $161.4 million), despite selling fewer real estate units. Operating expenses rose significantly due to IPO-related costs, while net income from continuing operations reached ¥749,361 thousand (US $5.3 million). SYLA also announced strategic acquisitions, partnerships, and an upward revision of the FY2023 year-end dividend to ¥180 per share. For FY2024, the company projects revenue between ¥27.5 billion and ¥30.0 billion and income from continuing operations between ¥750 million and ¥1.10 billion.
- Gross profit increased by 53.66% to ¥5,537,444 thousand ($39.3 million).
- Net income from continuing operations rose by 141.14% to ¥749,361 thousand ($5.3 million).
- Rimawari-kun membership grew by 17.7% to 279,029 members.
- Rimawari-kun platform gross merchandise value surpassed 5 billion yen.
- Strategic partnerships and acquisitions with BlackRock and RIBERESUTE.
- Upward revision of FY2023 year-end dividend to ¥180 per share.
- Authorized ¥200 million ($1.385 million) ADS repurchase program.
- Sale of SYFORME brand condominiums to BlackRock’s private fund.
- Robust balance sheet with ¥4,017,311 thousand ($28.5 million) in cash and equivalents.
- Total net assets increased to ¥40,084,427 thousand ($285 million).
- Total operating expenses increased to ¥4,096,346 thousand ($29.1 million), mainly due to IPO-related costs.
- Revenue growth was modest at 3.12%, reaching ¥22,743,410 thousand ($161.4 million).
- Decrease in total real estate sales due to fewer units sold in 2023 (446 units) compared to 2022 (588 units).
- Increased legal and professional expenses related to NASDAQ listing.
- Higher salaries and welfare expenses due to increased personnel for management system development.
Insights
The full-year financial results for SYLA Technologies Co., Ltd. present significant positive indicators for investors. First and foremost, the reported 141.14% increase in net income from continuing operations signals strong profitability, driven by high-margin transactions and strategic sales of large-scale development sites. This suggests that SYLA has effectively managed its costs and capitalized on lucrative opportunities. Additionally, the 3.12% rise in revenues despite a decrease in the number of units sold highlights SYLA's ability to enhance profit margins and optimize operations.
Moreover, the company's gross profit surged by 53.66%, indicating a healthier bottom line and efficient cost management. It's important to note the substantial jump in total operating expenses, primarily due to IPO-related costs and increased personnel expenses. This could be a point of concern if the costs do not translate into proportional revenue growth in the future.
Investors should also consider the company's strong cash position, with ¥4,017,311 thousand (US $28.5 million) in cash and equivalents, which provides a cushion for further investments and operational costs. The guidance for 2024 shows an optimistic revenue projection between ¥27.5 billion and ¥30.0 billion, suggesting management's confidence in sustaining growth.
Overall, the financial outlook seems robust, with substantial growth in profitability and a strategic focus on high-margin transactions.
From a market perspective, SYLA Technologies’ continued growth in its Rimawari-kun membership and platform performance is noteworthy. The increase to 279,029 members and a 17.7% rise from 2022 reflects sustained user interest and platform trust. Additionally, the gross merchandise value surpassing ¥5 billion is a testament to the platform's robust performance and market appeal, which can be significant for both attracting and retaining investors.
The company’s growth strategy centered on mergers and acquisitions (M&A) also promises potential synergies and market expansion. The strategic acquisitions and alliances, such as becoming the largest shareholder of RIBERESUTE CORPORATION and collaborations with BlackRock, showcase a proactive approach to bolster market presence and operational capabilities. These moves are likely to enhance platform offerings and competitiveness.
Additionally, the integration of energy-saving technology in condominium projects enhances the company’s brand image and appeal, tapping into the growing demand for sustainable real estate solutions.
In summary, the market outlook for SYLA appears promising, buoyed by strategic partnerships, platform growth and an emphasis on sustainable development.
SYLA’s integration of energy-saving technology and the receipt of the Excellent Business Award for ZEH-M Oriented Certification stands out in their operational highlights. This achievement not only underscores their commitment to sustainability but also aligns with global trends toward green building practices. This could position SYLA favorably in the market, attracting environmentally conscious investors and providing a competitive edge.
Furthermore, the use of technology in their Rimawari-kun platform is important for scalability and efficiency. As the largest membership real estate crowdfunding platform in Japan, maintaining technological robustness and enhancing user experience are key to sustaining growth and managing increasing transaction volumes.
The issuance of unsecured bonds by SYLA Solar and strategic partnerships in the tech and real estate sectors suggest a focus on innovation and diversification. These steps can drive new revenue streams and enhance technological capabilities, ensuring the company remains competitive in an evolving market.
Overall, SYLA’s tech-driven initiatives and sustainable practices are likely to provide long-term benefits and enhance shareholder value.
Rimawari-kun Members Reached 279,029 as of December 31, 2023, a
Rimawari-kun Platform Gross Merchandise Value Surpasses 5 Billion Yen as of December 31, 2023
TOKYO, May 16, 2024 (GLOBE NEWSWIRE) -- SYLA Technologies Co., Ltd. (NASDAQ: SYT) (“SYLA” or “the Company”), operator of the largest membership real estate crowd-funding platform in Japan, Rimawari-kun, reported its financial results for the full year ended December 31, 2023.
Full Year 2023 Operational Highlights:
- Awarded the Excellent business Award for ZEH-M Oriented Certification and Integration of Energy-Saving Technology for its SYFORME MOTOMACHI-CHUKAGAI brand condominium
- Sold the SYFORME SUMIYOSHI II brand condominium
- Announced gain on sales of investment securities, resulting in a profit of 96 million yen
- As of May 8, 2024, ietty membership surpassed 400,000, a 100,000 increase in membership since March 2024
- Subsidiary SYLA Solar announced issuance of series 1 unsecured bonds of
¥50 million and announced comprehensive business alliance with LIVE THE CREATIVE Inc. - Announced growth strategy centered on mergers and acquisitions
- Announced FY2024 financial guidance and upward revision of FY2023 year-end dividend to
¥180 Per Share - Entered into capital and business alliance and became largest shareholder of RIBERESUTE CORPORATION
- Sold four SYFORME brand condominiums to a private fund managed by BlackRock’s real estate business
- Rimawari-kun platform gross merchandise value surpasses
¥5 billion - Announced business collaboration with a private fund managed by BlackRock’s real estate business
- Announced definitive agreement for a business transfer from ietty, Inc.
- Began the sale of SYFORME NAKANO condominium units for investors
- Initiated Employee Stock Purchase Plan
- Sold a condominium development site in Shimo-Meguro, Tokyo
- Announced Interim Dividend of
¥70 Per Share - Authorized
¥200.0 Million ($1,385,000) ADS Repurchase Program - Rimawari-kun ranked as the top real estate crowdfunding platform in Japan for two consecutive years
Management Commentary
“This past year was a pivotal one full of advancement for SYLA across our various business sectors,” said Chairman, Founder, and CEO Hiroyuki Sugimoto. “We achieved record highs in our real estate development and sales, real estate crowdfunding, asset management, solar power businesses, and we achieved significant increases in both gross profit and net income.”
“Throughout the latter half of the year, the company strategically pursued acquisitions to bolster our real estate development and sales, and crowdfunding businesses. The acquisition of ietty, becoming the largest shareholder and forming a strategic business alliance with RIBERESUTE, and the supply of properties to BlackRock are all strategic moves that have positioned SYLA for significant growth in 2024 and beyond. The favorable Japanese macroeconomic environment, characterized by low interest rate policies, increased inbound investments, and population growth in the central Tokyo area are all factors that position our top-line growth.”
“Looking ahead, I would like to reiterate and emphasize our growth strategy centered around M&A. The successes of the past year on this front have strengthened our confidence in maximizing the potential of ventures that have synergies with our company. We anticipate reasonable, short-term integration costs which we believe will yield substantial returns for our shareholders in the medium to long-term. With a robust balance sheet and ample cash reserves, we are well positioned to explore and execute on this initiative.”
Full Year 2023 Financial Results:
Results compare the full year ended December 31, 2023, to the full year ended December 31, 2022, unless otherwise indicated. Results below are for SYLA Technologies Co., Ltd. on a consolidated basis.
- Revenues increased
3.12% to¥22,743,410 thousand (US$161.4 million ) for the year ended December 31, 2023 from¥22,055,785 thousand for the year ended December 31, 2022. The increase was mainly attributable to an increase in land sales due to a sale of large development sites, offset by a decrease in total real estate sales due to the number of units sold decreased from 588 units in full year 2022 to 446 units in full year 2023.
- Gross profit increased
53.66% to¥5,537,444 thousand (US$39.3 million ) for the year ended December 31, 2023 from¥3,603,816 thousand for the year ended December 31, 2022. The increase was mainly attributable to high-margin transactions, such as the sale of land for large-scale development and the sale of one building for sale.
- Total operating expenses increased to
¥4,096,346 thousand (US$29.1 million ) for the year ended December 31, 2023 from¥2,825,104 thousand for the year ended December 31, 2022. The increase was mainly attributable to an increase in legal and professional expenses due to increase in IPO-related costs such as share-based payment costs and legal fees due to listing on the NASDAQ market, and an increase in salaries and welfare expenses due to increase in personnel for management system development, etc.
- Net income from continuing operations increased by
141.14% to¥749,361 thousand (US$5.3 million ) for the year ended December 31, 2023 from¥310,761 thousand for the year ended December 31, 2022. The increase was mainly attributable to the significant increase in gross profit.
- As of December 31, 2023, SYLA Technologies Co., Ltd. had
¥4,017,311 , thousand (US$28.5 million ) cash and cash equivalents.
- Total net assets increased to
¥40,084,427 thousand ($285 million ) as of December 31, 2023 from¥29,792,974 thousand ($211 million ) as of December 31, 2022.
*(Conversion rate:
Fiscal Year 2024 Guidance
SYLA is providing the following guidance for fiscal year 2024:
| Low (JPY) | High (JPY) | |
| Fiscal Year 2024 Revenue | 27.5 billion yen | 30.0 billion yen |
| Fiscal Year 2024 Income from Continuing Operations | 750 million yen | 1.10 billion yen |
About SYLA Technologies Co., Ltd.
Headquartered in Tokyo, Japan, SYLA Technologies Co., Ltd. (NASDAQ: SYT) (“SYLA” or “the Company”) owns and operates the largest membership real estate crowd-funding platform in Japan, Rimawari-kun, which targets individuals, corporate and institutional investors, as well as high net worth individuals. SYLA’s mission is to democratize real estate investment around the world through technology and asset management through the Rimawari-kun platform. SYLA is engaged in the overall investment condominium business, including planning, development, construction, sales, rental management, building management, repair work, and the sale of properties. Additional information about the Company’s products and services is available at https://syla-tech.jp/en.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, the Company is using forward-looking statements when it discusses the expected gross proceeds and the closing of the offering. Forward-looking statements are not historical facts, and are based upon management’s current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission (“SEC”), including, but not limited to, the risks detailed in the Company’s annual report on Form 20-F, filed with the SEC on April 18, 2023. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.
Contact Information
SYLA Technologies Investor Relations Contact:
Gateway Group, Inc.
John Yi and Steven Shinmachi
SYLA@gateway-grp.com
(949) 574-3860
SYLA Technologies Company Contact
Takeshi Fuchiwaki
Director, Chief Growth Officer
irpr@syla.jp
| SYLA TECHNOLOGIES CO., LTD. | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (Amounts in thousands of Japanese Yen (“JPY”), except for share data) | |||||||
| As of December 31, | |||||||
| 2023 | 2022 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | 4,017,311 | 2,542,795 | |||||
| Restricted cash | 569,469 | 168,630 | |||||
| Term deposits | 233,505 | 160,089 | |||||
| Short-term investments | 89,482 | - | |||||
| Accounts receivable, net | 162,690 | 67,776 | |||||
| Inventories | 16,849,935 | 10,517,193 | |||||
| Prepaid expenses, net | 357,104 | 647,534 | |||||
| Other current assets, net | 304,271 | 185,350 | |||||
| Current assets of discontinued operations | - | 10,600 | |||||
| Total current assets | 22,583,767 | 14,299,967 | |||||
| Non-current assets | |||||||
| Restricted cash, non-current | 25,180 | 76,578 | |||||
| Long-term deposits | 9,300 | 30,511 | |||||
| Long-term investments, net | 490,437 | 413,805 | |||||
| Property, plant and equipment, net | 11,889,701 | 10,231,057 | |||||
| Solar power systems, net | 476,778 | 361,422 | |||||
| Intangible assets, net | 133,226 | 194,361 | |||||
| Goodwill | 730,776 | 727,701 | |||||
| Operating lease right-of-use assets | 2,409,255 | 2,597,500 | |||||
| Finance lease right-of-use assets | 11,980 | 11,396 | |||||
| Other assets, net | 1,324,027 | 848,676 | |||||
| Total non-current assets | 17,500,660 | 15,493,007 | |||||
| TOTAL ASSETS | 40,084,427 | 29,792,974 | |||||
| LIABILITIES AND EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | 559,420 | 419,058 | |||||
| Accrued liabilities | 277,425 | 159,533 | |||||
| Short-term loans | 1,692,599 | 697,179 | |||||
| Current portion of long-term loans | 7,243,022 | 1,030,850 | |||||
| Current portion of long-term bonds | 107,601 | 126,525 | |||||
| Deferred revenue | 165,262 | 228,426 | |||||
| Income tax payables | 466,872 | 431,418 | |||||
| Operating lease liabilities, current | 433,725 | 427,856 | |||||
| Finance lease liabilities, current | 4,158 | 4,821 | |||||
| Other current liabilities | 1,047,016 | 1,603,498 | |||||
| Current liabilities of discontinued operations | - | 3,308 | |||||
| Total current liabilities | 11,997,100 | 5,132,472 | |||||
| Non-current liabilities | |||||||
| Long-term loans | 14,308,136 | 15,257,106 | |||||
| Long-term bonds | 97,549 | 205,769 | |||||
| Operating lease liabilities, non-current | 1,958,689 | 2,175,786 | |||||
| Finance lease liabilities, non-current | 8,040 | 6,795 | |||||
| Other liabilities | 534,228 | 448,356 | |||||
| Total non-current liabilities | 16,906,642 | 18,093,812 | |||||
| TOTAL LIABILITIES | 28,903,742 | 23,226,284 | |||||
| EQUITY | |||||||
| Capital stock (900,000 shares authorized, 260,891 and 239,489 shares issued and outstanding as of December 31, 2023 and 2022, respectively, with no stated value) | 100,000 | 161,580 | |||||
| Capital surplus | 4,988,126 | 2,987,795 | |||||
| Treasury stock, at cost (142 and nil shares as of December 31, 2023 and 2022, respectively) | (13,631 | ) | - | ||||
| Retained earnings | 3,413,644 | 2,767,001 | |||||
| Total SYLA Technologies Co., Ltd.’s equity | 8,488,139 | 5,916,376 | |||||
| Noncontrolling interests | 2,692,546 | 650,314 | |||||
| TOTAL EQUITY | 11,180,685 | 6,566,690 | |||||
| TOTAL LIABILITIES AND EQUITY | 40,084,427 | 29,792,974 | |||||
| SYLA TECHNOLOGIES CO., LTD. | ||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||
| (Amounts in thousands of JPY, except for share and per share data) | ||||||||||||
| For the Years Ended December 31, | ||||||||||||
| 2023 | 2022 | 2021 | ||||||||||
| Revenues, net | 22,743,410 | 22,055,785 | 16,665,382 | |||||||||
| Cost of revenues | (17,205,966 | ) | (18,451,969 | ) | (13,516,293 | ) | ||||||
| Gross profit | 5,537,444 | 3,603,816 | 3,149,089 | |||||||||
| Operating expenses | ||||||||||||
| Selling, general and administrative expenses | (4,096,346 | ) | (2,825,104 | ) | (2,466,731 | ) | ||||||
| Total operating expenses | (4,096,346 | ) | (2,825,104 | ) | (2,466,731 | ) | ||||||
| Income from continuing operations | 1,441,098 | 778,712 | 682,358 | |||||||||
| Other income (expenses) | ||||||||||||
| Other income | 146,787 | 201,954 | 43,951 | |||||||||
| Income (loss) from equity method investments | (1,689 | ) | (748 | ) | 109 | |||||||
| Other expenses | (570,856 | ) | (323,977 | ) | (226,346 | ) | ||||||
| Total other expenses | (425,758 | ) | (122,771 | ) | (182,286 | ) | ||||||
| Income from continuing operations before income taxes | 1,015,340 | 655,941 | 500,072 | |||||||||
| Income tax expense | (265,979 | ) | (345,180 | ) | (221,384 | ) | ||||||
| Net income from continuing operations | 749,361 | 310,761 | 278,688 | |||||||||
| Income (loss) from discontinued operations, net of income taxes | (6,742 | ) | 78,628 | - | ||||||||
| Net income | 742,619 | 389,389 | 278,688 | |||||||||
| Net income from continuing operations attributable to noncontrolling interests | 61,187 | 4,329 | 1,199 | |||||||||
| Net loss from discontinued operations attributable to noncontrolling interests | - | (9,895 | ) | - | ||||||||
| Less: net income (loss) attributable to noncontrolling interests | 61,187 | (5,566 | ) | 1,199 | ||||||||
| Net income attributable to SYLA Technologies Co., Ltd. | 681,432 | 394,955 | 277,489 | |||||||||
| Net income from continuing operations per share | ||||||||||||
| - Basic | 2,698.42 | 1,280.25 | 1,201.09 | |||||||||
| - Diluted | 2,263.36 | 1,081.45 | 1,022.40 | |||||||||
| Income (loss) from discontinued operations per share | ||||||||||||
| - Basic | (26.44 | ) | 369.84 | - | ||||||||
| - Diluted | (22.17 | ) | 312.41 | - | ||||||||
| Net income attributable to SYLA Technologies Co., Ltd. per share | ||||||||||||
| - Basic | 2,671.99 | 1,650.09 | 1,201.09 | |||||||||
| - Diluted | 2,241.19 | 1,393.86 | 1,022.40 | |||||||||
| Weighted average shares used in calculating basic and diluted net income per share | ||||||||||||
| - Basic | 255,028 | 239,353 | 231,031 | |||||||||
| - Diluted | 304,049 | 283,354 | 271,409 | |||||||||
| Comprehensive income | ||||||||||||
| Net income | 742,619 | 389,389 | 278,688 | |||||||||
| Other comprehensive income, net of tax | ||||||||||||
| Reclassification of unrealized loss on available-for-sale debt securities to net income when realized, net of tax effect of nil, nil, and 175 for the years ended December 31, 2023, 2022 and 2021, respectively | - | - | 396 | |||||||||
| Other comprehensive income, net of tax | - | - | 396 | |||||||||
| Comprehensive income | 742,619 | 389,389 | 279,084 | |||||||||
| Comprehensive income (loss) attributable to noncontrolling interests | 61,187 | (5,566 | ) | 1,199 | ||||||||
| Comprehensive income attributable to SYLA Technologies Co., Ltd. | 681,432 | 394,955 | 277,885 | |||||||||
FAQ
What was SYLA Technologies' gross profit increase for 2023?
What was SYLA Technologies' net income from continuing operations in 2023?
How much did SYLA Technologies' revenues increase in 2023?
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What is SYLA Technologies' financial guidance for FY2024?
What strategic partnerships were announced by SYLA Technologies in 2023?
