Leopalace21 Records Strong First Half Earnings, Estimates for Full Year Earnings Call for Strong Gains in Sales and Operating Income

Leopalace21 Corporation (TOKYO:8848), a company that conducts construction, leasing, and sales of apartments, condominiums, and residential housing, announced strong earnings results for the first half of the fiscal year March 2014, with sales and operating income rising by 5.3% and 183.0% year-over-year to JPY231.6 and JPY5.3 billion respectively. Recurring and net incomes also recorded strong gains improving from losses of JPY1.7 and JPY2.2 billion during the previous first half to profits of JPY4.3 and JPY3.9 billion respectively during the current first half. This strong performance is attributed to the efforts to maximize earnings through strengthening the competitiveness of its various products and services, coupled with the easing of monetary policies, weakening of the yen, strong stock market, and subsequent recovery in consumer confidence within Japan.

By business segments, gains in sales were recorded by all of the Company’s business segments including the leasing, construction, hotels and resort, elderly care and other businesses. At the same time, a large increase in operating income of JPY2.0 billion from the previous first half to JPY6.2 billion was recorded in the main leasing business, and a large improvement of JPY1.5 billion from the loss of JPY0.59 billion in the previous first half to a profit of JPY0.97 billion was recorded in the construction business.

In the second year of its new midterm business plan during the current term, LEOPALACE21 remains focused upon raising the competitive standing of its various products and services as a means of maximizing its earnings. Based upon the various measures called for by this business plan and given the strong earnings performance during the first half, Leopalace21 has left its outstanding earnings estimates unchanged. Consequently, sales, and operating and recurring incomes are expected to rise by 2.9%, 90.2%, and 10.0% year-over-year respectively to JPY467.4, JPY14.1, and JPY12.2 billion respectively, while net income is expected to decline by 17.5% year-over-year to JPY11.0 billion in the full fiscal year March 2014.

About Leopalace21 Corporation

Leopalace21 Corporation was established in August 1973 and conducts construction, leasing, and sales of apartments, condominiums, and residential housing, in addition to development and operation of resort facilities, and the operation of hotel business, broadband business, and elderly care business. The Company was first listed on the JASDAQ Market in February 1989, and moved its shares to the First Section of the Tokyo Stock Exchange in March 2004. Its headquarters are currently located in Tokyo.