Tokyo, Nov. 21, 2023 (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, today announced its financial results for the fiscal year ended June 30, 2023.
Highlights for Fiscal 2023:
For fiscal 2023, the Company reported total revenue of JPY17,442,248,000, representing an increase of 22% compared to total revenue of JPY14,321,186,000 for fiscal 2022.
For fiscal 2023, the Company had net income of JPY536,482,000, or JPY43.39 per share, representing an increase of 2% compared to net income of JPY528,383,000, or JPY43.83 per share, for fiscal 2022.
The increase in revenue was primarily due to a 21% increase in the sale price of land deliveries for single family homes, a 19% increase in the sale price of land deliveries for condominiums, and a 119% increase in the sale price of condominium building deliveries in fiscal 2023 compared to fiscal 2022.
During fiscal 2023, the increase in net income was mainly attributable to the increase in total revenue, offset by a 23% increase in the cost of revenue for real estate sales. The increase in the cost of revenue was primarily due to increases in construction costs, such as labor and material costs, compared to the prior fiscal year.
Selling, general and administrative expenses in fiscal 2023 increased by 1% compared to fiscal 2022.
As of June 30, 2023, the Company had cash and cash equivalents of JPY786,373,000 and long-term debt of JPY5,437,668,000, compared to JPY403,108,000 and JPY2,231,544,000, respectively, as of June 30, 2022.
The number of ordinary shares outstanding as of June 30, 2023 and 2022 was 12,498,900.
“We are happy with our progress in fiscal 2023,” said Mr. Eiji Nagahara, Chief Executive Officer of the Company. “During this period, we are proud to have significantly increased our total revenue, which resulted from strong growth in sale prices of land deliveries for single-family homes and condominiums, as well as in sale prices of condominium building deliveries, while maintaining modest growth in our selling, general and administrative expenses compared to fiscal 2022. In addition, we continued to be involved in the planning, development, ownership, and operations of hotels in Tokyo, and our hotels are highly regarded by international guests.
“In the U.S., our corporate rental properties in Dallas and Los Angeles continue to grow, as does our high-end real estate. We are also committed to the development and operations of GLOCALY, our interactive media platform, enabling us to offer quality services to customers worldwide. Looking forward, we anticipate developing new rental properties in Las Vegas and other U.S. cities.”
On September 29, 2023, LRE announced the closing of its initial public offering of 1,143,000 American depositary shares at a price of $7.00 per American depositary share to the public for a total of $8,001,000 of gross proceeds to the Company, before deducting underwriting discounts and offering expenses.
For further information on LRE’s fiscal 2023 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/ix?doc=/Archives/edgar/data/0001888980/000110465923118675/lre-20230630x20f.htm#Item18FINANCIALSTATEMENTS_148278.
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/.
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
One Rockefeller Plaza, 11th Floor
New York, NY 10020
Office: (646) 893-5835
Email: info@skylineccg.com
