SYLA Technologies Announces FY2024 Financial Guidance and Upward Revision of FY2023 Dividend Forecast
- Expected revenue growth of 22.2% to 33.3% for FY2024 compared to FY2023
- Increase in full-year dividends for FY2023 to 250 yen per common share
- Commitment to delivering robust and sustainable financial performance
- Expansion of business reach and capabilities through recent acquisitions and business collaborations
- Projected decrease in income from continuing operations for FY2024 by 24.1% to 51.7% compared to FY2023
- Rising costs associated with the company’s M&A strategy for future growth
Insights
The projected revenue growth for SYLA Technologies Co., Ltd. indicates a positive outlook for the company's financial year 2024. The anticipated increase of 22.2% to 33.3% suggests a robust expansion strategy, likely bolstered by the strategic partnership with BlackRock's Real Estate division. This collaboration could potentially enhance SYLA's market share and diversify its revenue streams, contributing to the higher end of the revenue forecast.
However, it is crucial to scrutinize the projected decrease in income from continuing operations, which is expected to fall between 24.1% and 51.7%. This decline is attributed to the costs associated with mergers and acquisitions, a common strategy for growth that can lead to increased market presence and long-term value creation. Investors should weigh the short-term impact on profitability against the potential for these investments to drive future earnings.
The upward revision of the FY2023 dividend forecast is a strong signal of confidence from the management. The proposed year-end dividend increase to 180 yen per share, resulting in a total of 250 yen per share for FY2023, represents a substantial rise from the previous year and underscores the company's commitment to shareholder returns. This move could attract income-focused investors and support the stock price, assuming the company maintains its dividend payout ratio within a sustainable range.
SYLA's focus on real estate crowdfunding through its Rimawari-kun platform is indicative of the growing trend in alternative investment platforms. The real estate sector in Japan has been increasingly accessible to retail investors through such platforms, democratizing investment opportunities that were traditionally limited to institutional investors. The company's collaboration with BlackRock and the acquisition of RIBERESUTE suggest a strategic move to consolidate its position in this niche market.
Understanding the market dynamics, the increased dividend payout could be a strategic move to retain investor loyalty and attract new shareholders in a competitive market. The impact on the stock market will likely be positive, as higher dividends are often interpreted as a sign of financial health and management's confidence in the company's cash flow stability.
It is also important to consider the broader economic environment, including interest rate movements and real estate market trends, as these factors can influence the performance of real estate crowdfunding platforms and, by extension, SYLA's financial outcomes.
The financial guidance provided by SYLA Technologies must be contextualized within the macroeconomic environment. Japan's economic policies, particularly those affecting the real estate sector, could influence the company's growth trajectory. For instance, if the Bank of Japan adjusts interest rates, it could alter the attractiveness of real estate investments, thereby impacting SYLA's operations.
The company's M&A strategy, while potentially dilutive to earnings in the short term, could be a response to anticipated shifts in the economic landscape, aiming to position SYLA for resilience and growth. The decrease in income from continuing operations may reflect these strategic investments, which could lead to greater market consolidation and improved economies of scale.
The proposed increase in dividends may also be seen as a hedge against inflationary pressures, providing shareholders with a return that may outpace inflation, thus preserving the real value of their investments. This approach could be particularly appealing in a low-interest-rate environment, where traditional fixed-income investments offer limited returns.
Company expects FY2024 revenues to grow by
compared to 22.5 billion forecasted for FY2023
TOKYO, Jan. 25, 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, announced its financial guidance for the fiscal year ending December 31, 2024, and upward revision of its full-year dividend forecast announced on May 17, 2023.
Guidance for FY2024
- Revenues are expected to be in the range of 27.5 - 30.0 billion yen
- Income from continuing operations is expected to be in the range of 0.75 - 1.10 billion yen
In contrast to the revised FY2023 revenues forecast of 22.5 billion yen announced together with other updated guidance for FY2023 on December 13, 2023 (the “Revised FY2023 Financial Guidance”), the Company anticipates that FY2024 revenues will increase by
FY2024 income from continuing operations is projected to decrease by
Dividend Forecast for FY2023
On May 17, 2023, SYLA announced a FY2023 full-year dividend forecast of 140 yen per common share*1, doubling from FY2022. An interim dividend payment of 70 yen per share was announced on August 16, 2023. Following the announcement of the Revised FY2023 Financial Guidance and today’s new FY2024 guidance, the Company intends to pay a FY2023 year-end dividend of 180 yen per common share, thereby increasing the total full-year dividends for FY2023 to 250 yen per common share*2. The Company intends to propose such FY2023 year-end dividend at the 15th Annual General Meeting of Shareholders scheduled for March 29, 2024.
*1 1 common share = 100 ADSs (American Depositary Shares)
*2 Full-year dividends of 2.5 yen per ADS (interim dividend of 0.7 yen, year-end dividend of 1.8 yen)
“We are pleased to announce our FY2024 financial guidance and our intention to increase our total full-year FY2023 dividends, which will be more than triple what we distributed in FY2022,” said Chairman, Founder, and CEO Hiroyuki Sugimoto. “These announcements reflect our commitment and confidence in delivering robust and sustainable financial performance, aiming to provide meaningful and dependable value through increased dividends for our valued shareholders. The significant progress achieved in expanding our business reach and capabilities, driven by recent acquisitions of real estate businesses and business collaborations, including our impactful collaboration with BlackRock, continues to fuel our overall financial growth and operational capabilities. With the recent share acquisition in and business alliance with RIBERESUTE, we are poised to leverage their real estate expertise to grow and expand our real estate development business, especially our condominium brand, SYFORME series, in addition to enhancing our Rimawari-kun platform. We express our gratitude to all our stakeholders for their unwavering support as we look forward to sustaining this growth throughout 2024.”
Overview of the Upward Revision of the Full-Year Dividend Forecast for the Fiscal Year Ended December 31, 2023
(Dividend per share; 1 share = 100 ADSs)
| Interim dividend | Year-end dividend | Total | |
| Previous forecast announced on May 17, 2023 | - | - | 140.00 yen |
| Actual results to date for FY2023 | 70.00 yen | - | - |
| Revised forecast for FY2023 | - | 180.00 yen | 250.00 yen |
| Record date for FY2023 dividend for ADS holders | September 11, 2023 | December 31, 2023 | - |
| (Reference) Actual results for FY2022 | - | 70.00 yen | 70.00 yen |
* There can be no assurance that a dividend will be declared, regardless of the Company’s business performance and results of operations, or that a dividend, if declared, will be in a certain amount.
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
Gateway Group, Inc.
John Yi and Steven Shinmachi
SYLA@gateway-grp.com
Tel +1 (949) 574-3860
SYLA Technologies Company Contact:
Hajime Sugino
Head of SYLA USA
h_sugino@syla.jp
FAQ
What is the expected revenue growth for SYLA Technologies Co., Ltd. for FY2024?
What is the full-year dividend forecast for FY2023 for SYLA Technologies Co., Ltd.?
Why is there a projected decrease in income from continuing operations for FY2024 for SYLA Technologies Co., Ltd.?
