-- Net income attributable to common shareholders increased by 35.1% to
JPY846.8 million, or $5.9 million
TOKYO, Nov. 03, 2025 (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 for the fiscal year ended June 30, 2025.
Total revenue was JPY18.8 billion ($130.7 million) for the fiscal year ended June 30, 2025, compared to JPY19.0 billion for the fiscal year ended June 30, 2024, a decrease of 0.6%.
The primary revenue component, real estate sales, was JPY18.3 billion ($127 million), compared to JPY18.5 billion in the prior fiscal year, representing a 1.0% year-over-year decline in the fiscal year ended June 30, 2025. This reflects the Company's strategic initiative to build out its hotel business as well as a stable performance amid fewer unit deliveries and higher average selling prices for single-family homes and condominiums. Real estate sales included the following.
Units Units FY2025 Average FY2025 Average
Delivered Delivered Sale Price (USD Sale Price (JPY % Change
(FY2025) (FY2024) thousands) thousands) Y-Y
---------------- --------- --------- --------------- --------------- ----------
Single-Family
Home (Land) 70 71 $618 Yen89,108 16.0%
---------------- --------- --------- --------------- --------------- --------
Single-Family
Home
(Building) 24 41 $233 Yen33,574 10.7%
---------------- --------- --------- --------------- --------------- --------
Condominium
(Land) 20 33 $2,225 Yen320,736 -9.2%
---------------- --------- --------- --------------- --------------- --------
Condominium
(Building) 5 4 $364 Yen52,460 57.4%
---------------- --------- --------- --------------- --------------- --------
Hotels (Land) 4 -- $7,817 Yen1,126,984 n/m
---------------- --------- --------- --------------- --------------- ----------
Hotels
(Building) 1 -- $549 Yen79,120 n/m
---------------- --------- --------- --------------- --------------- ----------
Other revenue increased by 15.5% to JPY535.3 million ($3.7 million), compared to JPY463.6 million in the prior fiscal year, primarily driven by the continued ramp-up of the Company's hotel operations and an increase in average daily rates.
The cost of revenue for real estate sales declined by 6.1% to JPY14.8 billion ($102.4 million), from JPY15.7 billion for the fiscal year ended June 30, 2024.
Gross margin increased to 19.8% from 15.6% in the prior year, reflecting a more favorable sales mix and higher-margin hotel transactions.
Selling, general, and administrative expenses were JPY2.3 billion ($15.6 million), an increase of 9.9% from JPY2.1 billion in the prior fiscal year. As a percentage of revenue, these expenses increased to 12.0% from 10.8% in fiscal year 2024.
Operating income increased by 64.1% year over year to JPY1,475 million ($10.2 million), compared to JPY898.6 million in the fiscal year ended June 30, 2024. The operating profit margin was 7.8%, compared to 4.7% in the prior fiscal year.
Interest expenses were JPY44.5 million ($309 thousand), compared to JPY18.3 million in the fiscal year ended June 30, 2024, reflecting higher market interest rates.
Other expense was JPY35.9 million ($249 thousand), compared to other income of JPY73.8 million in the prior year, primarily due to a non-recurring impairment loss on equity securities of JPY23.5 million.
Total other income (expense) was a net expense of JPY80.4 million ($558 thousand), compared to net income of JPY55.5 million in the prior year.
Net income attributable to common shareholders increased by 35.1% to JPY846.8 million ($5.9 million), or earnings per ADS of JPY62.07 ($0.43), compared to JPY627 million, or earnings per ADS of JPY46.93, in the fiscal year ended June 30, 2024.
Cash and cash equivalents were JPY2.7 billion ($18.4 million) as of June 30, 2025, compared to JPY1.3 billion as of June 30, 2024.
"We are pleased with the improved profitability we were able to achieve in 2025, which reflected Lead Real Estate's strong positioning in the Japanese real estate market, sustained demand from both individual and institutional buyers, and our increased focus on high-value locations and stylish, luxury designs and finishes," said Mr. Eiji Nagahara, Chief Executive Officer of LRE. "We are committed to delivering quality products to our customers and generating long-term value for our shareholders, as demonstrated by our recent payment of our third consecutive annual dividend."
Business Outlook
"Building on another year of solid revenue and continued improvement in our bottom line, we enter fiscal year 2026 with confidence and focus," said Mr. Nagahara. "Market conditions remain favorable -- inbound tourism has reached record levels, and housing demand in Tokyo's core wards continues to strengthen amid rising land values."
"We will continue to target prime real estate opportunities, leveraging our strong brand and trusted relationships with local partners to drive growth. In Japan, our strategy centers on expanding hotel operations nationwide, extending beyond our flagship ENT TERRACE brand with two new concepts and the continued rollout of our Master Lease model."
"This fiscal year we also expect to make progress in expanding our presence internationally. We plan to acquire condominium units in the Philippines and Malta as part of our risk-hedging strategy and our commitment to identifying high-value opportunities both locally and globally. We continue to evaluate opportunities for expansion in the United States as well."
"Supported by strong market fundamentals, we expect to deliver renewed revenue growth in fiscal 2026, and further enhance profitability while maintaining disciplined execution and a commitment to delivering long-term shareholder value through sustained earnings growth and continued dividend payments."
Conference Call Details
The Company will host a conference call to discuss its financial results for the fiscal year ended June 30, 2025, and business outlook on Monday, November 3, 2025, at 8:30 a.m. Eastern Time (10:30 p.m. Japan Standard Time).
To access the live call, participants in the United States should dial 1-877-407-9208, and international participants should dial 1-201-493-6784, approximately 15 minutes prior to the start time and use conference ID:13756898. The call will also be broadcast live over the Internet at https://viavid.webcasts.com/starthere.jsp?ei=1741003&tp_key=2c0fb29124.
For those unable to participate in the live event, a telephone replay will be available approximately three hours after the call concludes and will remain accessible until 11:59 p.m. Eastern Time on November 17, 2025, by dialing 1-844-512-2921 (U.S.) or 1-412-317-6671 (International) and entering the conference ID: 13756898.
The fiscal year 2025 earnings release will be available on the Company's website prior to the event: https://www.lead-real.co.jp/en/.
Exchange Rate Information
The Company's functional currency and reporting currency are the Japanese yen. Convenience translations included in this press release of Japanese yen into U.S. dollars have been made at the exchange rate of JPY144.1700 = $1.00, which was the foreign exchange rate on June 30, 2025, as reported by the Board of Governors of the Federal Reserve System in its weekly release on July 1, 2025.
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. The Company will continue to develop its 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/.
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
AUM Advisors
Crocker Coulson
Email: crocker.coulson@aummedia.org
Tel: (646) 652-7185
Summary Financial Tables
LEAD REAL ESTATE CO., LTD
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2025 AND 2024
(Japanese yen in thousands, except share data)
June 30,
--------------------------------------
2025 2024
----------------- ----------------
ASSETS
Current assets:
Cash and cash
equivalents Yen 2,656,860 Yen 1,300,684
Accounts receivable, net 38,523 22,859
Real estate inventory 10,134,739 9,267,825
Contract assets 141,418 236,499
Prepaid and other current
assets 381,581 493,819
---------- ---- ----------
Total current assets 13,353,121 11,321,686
Property and equipment, net 5,796,381 5,449,101
Intangible asset, net 35,396 54,138
Investments in marketable
securities 25,303 20,844
Right-of-use assets,
operating lease, net 820,786 154,613
Investments 122,101 46,394
Other assets 326,746 170,588
---------- ---- ----------
Total assets Yen 20,479,834 Yen 17,217,364
==== ========== ==== ==========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts payable Yen 1,035,712 Yen 602,013
Current portion of notes
payable 7,599,606 6,815,181
Contract liabilities 337,483 130,259
Current portion of
operating lease
liabilities 201,313 67,938
Accrued expenses and
other current
liabilities 764,920 356,856
---------- ---- ----------
Total current
liabilities 9,939,034 7,972,247
Notes payable, net of
current portion 4,557,855 4,598,151
Deferred tax liabilities,
net 89,638 85,018
Operating lease liabilities,
net of current portion 621,962 91,471
Other liabilities 240,632 233,109
---------- ---- ----------
Total liabilities 15,449,121 12,979,996
---------- ---- ----------
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,
2025 and 2024 with no
stated par value 1,207,055 1,206,765
Retained earnings 3,965,673 3,159,815
Treasury stock, at cost,
1,986,100 shares as of June
30, 2025 and 2024 (154,121) (154,121)
Non-controlling interest (8,456) (7,558)
Accumulated translation gain 20,562 32,467
---------- ---- ----------
Total shareholders'
equity 5,030,713 4,237,368
---------- ---- ----------
Total liabilities and
shareholders'
equity Yen 20,479,834 Yen 17,217,364
==== ========== ==== ==========
LEAD REAL ESTATE CO., LTD
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE FISCAL YEARS ENDED JUNE 30, 2025, 2024, AND
2023
(Japanese yen in thousands, except share and per share
data)
For the Fiscal Years Ended June 30,
-------------------------------------------------------
2025 2024 2023
---------------- --------------- ---------------
(as restated)
Revenue:
Real estate
sales Yen 18,307,409 Yen 18,487,074 Yen 17,098,308
Other revenue 535,254 463,609 316,940
---------- --- ---------- --- ----------
Total revenue 18,842,663 18,950,683 17,415,248
Expenses:
Cost of sales -- real
estate 14,756,750 15,721,271 14,466,459
Cost of sales -- other 357,279 279,806 191,544
Selling, general and
administrative 2,253,653 2,051,040 1,817,970
---------- --- ---------- --- ----------
Total expenses 17,367,682 18,052,117 16,475,973
Operating income 1,474,981 898,566 939,275
Other income
(expense):
Interest expenses (44,544) (18,286) (16,731)
Other, net (35,881) 73,759 6,268
---------- --- ---------- --- ----------
Total other income
(expense), net (80,425) 55,473 (10,463)
Income before income
taxes 1,394,556 954,039 928,812
Income taxes 548,331 327,869 317,418
---------- --- ---------- --- ----------
Net income 846,225 626,170 611,394
---------- --- ---------- --- ----------
Net loss attributable to
the noncontrolling
interests (559) (789) (524)
Net income attributable
to common stockholders 846,784 626,959 611,918
Foreign currency
translation gain (loss) (11,905) 10,512 5,241
---------- --- ---------- --- ----------
Total Comprehensive
income Yen 834,879 Yen 637,471 Yen 617,159
=== ========== === ========== === ==========
Earnings per
share:
Basic Yen 62.07 Yen 46.93 Yen 48.96
Diluted Yen 62.07 Yen 46.93 Yen 48.96
Weighted average
shares
outstanding:
Basic 13,641,900 13,360,834 12,498,900
Diluted 13,641,900 13,360,834 12,498,900
LEAD REAL ESTATE CO., LTD
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE FISCAL YEARS ENDED JUNE 30, 2025, 2024, AND
2023
(Japanese yen in thousands)
For the Fiscal Years Ended June 30,
----------------------------------------------------------
2025 2024 2023
----------------- ---------------- ----------------
(as restated)
Cash flows from
operating
activities:
Net income Yen 846,225 Yen 626,170 Yen 611,394
Adjustments to
reconcile net
income to net
cash used in
operating
activities:
Depreciation and
amortization 110,448 102,713 82,865
Loss on disposal of
assets 320 5,852 --
Gain on sales of
assets (1,000) -- --
Impairment loss
on property and
equipment 14,741 -- --
Impairment loss
on real estate
inventories 6,013 -- --
Non-cash finance lease
expense 28,503 23,847 20,523
Investment revaluation
(gain) loss (4,459) 1,965 96
Impairment loss
on equity
securities
without readily
determinable
fair values 23,509 -- --
Deferred income taxes,
net 4,418 50,993 3,334
Changes in
assets and
liabilities:
Accounts receivable,
net (15,664) (16,246) (3,302)
Real estate
inventory 1,204,545 1,122,406 (1,569,350)
Contract assets 95,081 199,522 (178,305)
Prepaid and other
current assets 112,238 (290,238) 47,429
Operating lease, net (2,307) 2,655 (805)
Other assets (156,158) 15,890 11,963
Accounts payable 433,699 (130,709) 50,699
Contract liabilities 207,224 (130,271) 4,552
Accrued expenses and
other current
liabilities 405,722 (12,654) (730)
----------- --- ----------- --- -----------
Net cash provided
by (used in)
operating
activities 3,313,098 1,571,895 (919,637)
Cash flows from
investing
activities:
Purchases of
property and
equipment (2,521,787) (2,221,499) (1,250,451)
Proceeds from
sale of
property and
equipment 3,182 -- --
Purchases of
intangible assets (2,351) (6,359) (2,438)
Purchase of
investments and
investments in
marketable
securities (100,841) (15,203) (8,150)
Proceeds from sale
of investments in
marketable
securities -- -- 5,000
----------- --- ----------- --- -----------
Net cash used in
investing
activities (2,621,797) (2,243,061) (1,256,039)
Cash flows from
financing
activities:
Proceeds from notes
payable 14,734,600 15,014,801 14,580,822
Payments on notes
payable (13,969,871) (14,745,923) (11,944,327)
Payments on IPO costs -- (229,046) (63,702)
Proceeds from
common stock
issuance -- 1,187,428 --
Dividend payments (40,926) (24,998) --
Purchases of
noncontrolling
interest (49) -- --
Repayments of
principal portion of
finance lease
liability (27,999) (25,689) (18,262)
----------- --- ----------- --- -----------
Net cash provided
by financing
activities 695,755 1,176,573 2,554,531
----------- --- ----------- --- -----------
Effect of exchange rate
change on cash and cash
equivalents (30,880) 8,904 4,410
Net increase in cash and
cash equivalents 1,356,176 514,311 383,265
Cash and cash
equivalents, beginning
of year 1,300,684 786,373 403,108
----------- --- ----------- --- -----------
Cash and cash
equivalents, end
of year Yen 2,656,860 Yen 1,300,684 Yen 786,373
=== =========== === =========== === ===========
Supplemental
disclosures of
cash flow
information:
Cash paid during
the year for
Interest Yen 44,544 Yen 352,355 Yen 292,581
Income taxes Yen 309,482 Yen 316,050 Yen 396,669
Non-cash
investing and
financing
activities
Operating lease
right-of-use
assets obtained
in exchange for
operating lease
liabilities Yen 747,616 Yen 2,613 Yen 103,771
Finance lease
right - of -
use assets
obtained in
exchange for
finance lease
liabilities Yen 38,066 Yen 38,673 Yen 50,685
(END) Dow Jones Newswires
November 03, 2025 06:00 ET (11:00 GMT)
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