-1-1. About Leopalace21
1-1 Business Model 4
1-2-1 Results Trend 5
1-2-2 Highlights of Results Trend 6
2. FY14/3 Q1 Results
2-1 Highlights of Results 8
2-2-1 Summary of Results (Sales & Gross Profit) 9 2-2-2 Summary of Results (Operating Profit & Net Income) 10
2-3 Results of Business Segments 11
3. FY14/3 Q1 Overview of Business (Leasing)
3-1 Overview of Leasing Business 13
3-2-1 Indicator (Occupancy Rate) 14 3-2-2 Indicator (Occupancy by Group) 15
3-2-3 Indicator (Shares of Occupied Units by Group) 16 3-2-4 Indicator (Shares of Occupied Units by Industry) 17 3-2-5 Indicator (Foreign Tenants) 18
3-3-1 Acquiring Individual Tenants (Office Expansion) 19 3-3-2 Acquiring Individual Tenants (Room-Customize) 20
3-3-3 Enhancing Property Value(Security Systems) 21
4. FY14/3 Q1 Overview of Business (Construction)
4-1 Overview of Construction Business 23
4-2-1 Indicator (Orders and Sales) 24 4-2-2 Indicator (Offices and Sales by Area) 25
4-3-1 Example (New Products “Dual-L” and “Arma-L”) 26 4-3-2 Example (New Products “Smaio”) 27 4-3-3 Example (Non-sound System) 28 4-3-4 Example (Elderly Care Facilities and Stores) 29 4-4-1 Solar Power Systems (Installment Sales) 30
4-4-2 Solar Power Systems(Roof-lease) 31
5. FY14/3 Q1 Overview of Businesses (Others and New)
5-1 Others (Domestic Hotels Business) 33 5-2 Others (Resort Business) 34 5-3 Others (Elderly Care Business) 35
-2-Appendix 1. Corporate Data
App.1-1 Corporate Profile 38
App.1-2-1 Quarter Comparison 39 App.1-2-2 Results of Leopalace21 Group 40 App.1-3-1 Indicator (Occupancy by Group) 41 App.1-3-2 Indicator (Occupancy by Industry) 42 App.1-3-3 Indicator (Foreign Tenants) 43 App.1-3-4 Indicator (Occupancy Rates by Building Age) 44 App.1-3-5 Indicator (Contract Type and Usage Pattern) 45 App.1-3-6 Indicator (Leopalace Partners Offices and Contracts)46 App.1-3-7 Indicator (Reserve for Apartment Vacancy Loss) 47 App.1-4-1 Finance (Balance Sheets) 48 App.1-4-2 Finance (Cash / Deposits and Interest-bearing Debt)49 App.1-4-3 Finance (Cash Flows) 50
App.1-4-4 Finance (Shareholder Composition) 51
Appendix 2. New Medium-term Management Plan
App.2-1 Action Plan 53
App.2-2 Numerical Targets (Total) 54
App.2-3 Numerical Targets (Leasing / Earnings Growth from
Decreasing Vacant Units) 55
Appendix 3. Market Trends
-4-Leopalace21 is a real estate company with two core businesses: a Construction Business which constructs apartments mainly for single persons, and a Leasing Business which manages these apartments. By strengthening the profitability of the Leasing Business, we are moving forward to establish a stock-based business model capable of generating stable profits.
Business model
1. Construction
Propose construction of apartments to land owners.
2. Master lease
Leopalace21 master leases the constructed apartments and pays a fixed rent to owners, regardless of vacancies.
3. Rent
Leopalace21 attracts tenants for leased apartments.
4. Rental income
Rent received from tenants.
⇒ Prior to the Lehman Collapse (2008), apartment
construction increased supported by rising occupancy demand from the booming secondary industry, especially in rural areas. Growth was led by the Construction Business.
⇒ After the Lehman Collapse, corporations laid off personnel,
and tenant leave increased in cities near corporate factories, deteriorating Leopalace21’s earnings.
⇒ Leopalace21 is shifting to a “Leasing Business-based”
business model, limiting apartment construction to areas of high occupancy demand and cutting leasing costs, as well as implementing property value enhancement measures such as installation of security systems.
Owners
Leopalace21
Leasing
Construction
Tenants
2.
Master
Lease
1.
Construction
4.
Rental
Income
-5-277.1 302.7 334.5 342.3 356.6
380.3 383.5 389.0 391.5
316.1 327.5
359.1
237.0
107.8 62.9 53.3 61.1 67.4
38.3 42.7
19.9
16.2 17.2 17.2 17.5 631.6 672.9
733.2
620.3
484.3
459.4 454.2 467.4 476.5 39.5 40.9 4.5 7.4 16.9 14.1 76.0 71.4 50.1 -29.7 -23.6 -200 0 200 400 600 800 FY07/3 (Actual) FY08/3 (Actual) FY09/3 (Actual) FY10/3 (Actual) FY11/3 (Actual) FY12/3 (Actual) FY13/3 (Actual) FY14/3 (Plan) FY15/3 (Plan) -20 0 20 40 60 80
Leasing Construction Others Operating profit
Sales (Billion yen) Operating profit (Billion yen)
Results Trend
-40
After the Lehman Collapse in 2008, decrease in occupancy rates and stringent loan screening at financial institutions led to a decrease in apartment construction, and Leopalace21 reported operating losses for two consecutive years. However, through structural reform measures such as leasing cost cuts, operating profit was achieved for the fiscal years ending March 31, 2012 and 2013. Operating profit forecast for this fiscal year is 14.1 billion yen, due to improvements in occupancy rates, etc.
-6-Highlights of Results Trend
80.1 85.0% 556 11.0 3.5 15.0 14.1 61.1 389.0 467.4 FY14/3 Plan 73.0 82.9% 546 13.3 2.7 8.6 7.4 53.3 383.5 454.2 FY13/3 362.4 92.8% 388 37.3 74.6 7.0 76.0 316.1 277.1 631.6 FY07/3 463.0 92.4% 442 0.3 73.2 3.0 71.4 327.5 302.7 672.9 FY08/3 337.8 88.5% 506 9.9 70.1 -1.5 50.1 359.1 334.5 733.2 FY09/3 250.2 82.3% 551 -79.0 29.7 -47.8 -29.7 237.0 342.3 620.3 FY10/3 80.3 80.1% 571 -40.8 11.9 -30.0 -23.6 107.8 356.6 484.3 FY11/3 FY15/3 Plan FY12/3 (Billion yen)
Net sales 459.4 476.5
Leasing 380.3 391.5
Construction 62.9 67.4
Operating profit 4.5 16.9
Leasing 5.2 16.1
Construction 4.3 5.1
Net income 1.5 13.5
Managed units*
(1,000 units) 556 562
Occupancy rate* 81.2% 85.8%
Orders received 50.0 78.9
Before the Lehman Collapse in 2008, Leopalace21’s main profit driver was the Construction Business. After the Lehman Collapse, we shifted our business model through structural reforms, generating profit from the Leasing Business.
*Figures for managed units are as of the end of the final month for each fiscal year *Occupancy rate is the average value for each fiscal year
*See p.53-55 for details on the Medium-term Management Plan
-8-Both sales and profits increased, achieving net income in the first quarter for the first time in six years.
+2,671
+2.3p
+2,541
+2.2p
+2,509
+310
+1.7p
+2,920
+8,376
Compared to Plan (Million yen) FY13/3 Q1
Actual
FY14/3 Q1 Plan
FY14/3 Q1
Actual YoY
FY14/3 Full-year Plan
Sales
106,449
106,500
114,876
+8,426
467,400
Gross profit
10,655
12,500
15,420
+4,764
69,000
% 10.0% 11.7% 13.4% +3.4p 14.8%
SGAE
12,076
13,100
13,410
+1,333
54,900
Operating profit
-1,421
-500
2,009
+3,430
14,100
% -1.3% -0.5% 1.7% +3.1p 3.0%
Recurring profit
-3,683
-1,000
1,541
+5,225
12,200
% -3.5% -0.9% 1.3% +4.8p 2.6%
Net income
-4,009
-1,300
1,371
+5,380
11,000
-9-Q1 Actual
10.6
Q1 Plan 12.5
Q1 Actual
15.4
FY Plan 69.0 FY
Actual 57.7
0 20 40 60 80
Q1 Actual
106.4
FY Actual
454.2
Q1 Plan 106.5
FY Plan 467.4
Q1 Actual
114.8
0 200 400 600 (Billion yen)
Sales
Gross Profit
FY13/3 FY14/3
(Billion yen)
Sales
+8.3 billion yen
compared to plan
Leasing
+0.2 billion yen
Construction
+7.6 billion yen
Gross profit
+2.9 billion yen
compared to plan
Leasing
+0.6 billion yen
Construction
+2.2 billion yen
-10-FY Plan 11.0
Q1 Actual
1.3 FY
Actual 13.3
Q1 Actual
-4.0
Q1 Plan
-1.3
-5 0 5 10 15 FY
Plan 14.1
Q1 Actual
2.0 FY
Actual 7.4
Q1 Actual
-1.4
Q1 Plan
-0.5
-5 0 5 10 15
Net income
+2.6 billion yen
compared to plan
Income tax adjustments
+0.1 billion yen
Operating profit
+2.5 billion yen
compared to plan
Leasing
+0.3 billion yen
Construction
+1.8 billion yen
Operating Profit
Net Income
(Billion yen) (Billion yen)
FY13/3 FY14/3
-11-Results of Business Segments
-14 -11 +206 +221 +166 +302 +337 +1,889 +2,245 +7,674 +380 +602 +242 Compared to
Plan (Million yen) FY13/3 Q1
Actual
FY14/3 Q1 Plan
FY14/3 Q1
Actual YoY
FY14/3 Full-year Plan
Sales 96,097 95,900 96,142 +45 389,000
Gross profit 9,343 11,300 11,902 +2,559 51,600
Operating profit 922 2,300 2,680 +1,758 15,000
Sales 5,910 6,200 13,874 +7,964 61,100
Gross profit 789 700 2,945 +2,155 15,700
Operating profit -1,551 -1,800 89 +1,640 3,500
Sales 1,816 1,700 2,037 +221 6,700
Gross profit 632 600 902 +269 2,400
Operating profit -116 -100 66 +182 -700
Sales 2,625 2,600 2,821 +195 10,500
Gross profit 328 200 406 +77 1,300
Operating profit -120 -100 -111 +8 -600
Elimination or Corporate
-13-
Indicator
Occupancy Rate
Occupancy by Group
Shares of Occupied Units by Groups
Occupied Units by Industry
Foreign Tenants
Measures
Office Expansion (for individuals)
Room Customize (for individuals)
Security Systems (enhancing property value)
Owners
Leopalace21
Leasing
Construction
Tenants
Master
Lease
Rental
Income
Rent
Leasing Business
-14-78% 80% 82% 84% 86%
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
FY 2011/3 FY 2012/3 FY 2013/3 FY 2014/3
Occupancy Rate
※
Target average occupancy rate for FY14/3: 85.0%
83.55 83.50
83.69 83.67
83.32 FY 2014/3
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Avg.
FY 2011/3 80.72 79.83 79.09 78.43 78.87 79.78 78.80 79.22 79.71 80.93 81.89 83.69 80.08
FY 2012/3 81.09 80.64 80.87 80.45 80.50 81.05 80.43 80.69 80.54 81.65 82.73 83.40 81.16
-15-0 50 100 150 200 250
Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun
FY09/3 FY10/3 FY11/3 FY12/3 FY13/3 FY14/3
200 300 400 500 600
Managed units (right axis)
Occupied units (right axis)
70% 80% 90% 100%
Corporate tenants are steadily rising, but increasing the number of individual and student tenants still remains an issue.
Occupancy rate
Occupied units by Group (Thousand units)
Managed and occupied units (Thousand units)
Occupancy rate Individuals (left axis)
Corporate (left axis)
Students (left axis)
*Figures are as of the end of each month *Reference of p.41
-16-40.3% 40.9% 40.7% 42.3% 43.2% 44.1% 45.2% 47.3% 47.3% 47.4% 47.7% 49.4% 49.5% 44.3% 43.8% 43.7% 42.5% 42.2% 41.6% 40.3% 38.8% 39.3% 39.4% 38.9%
38.0% 38.2%
15.4% 15.3% 15.6% 15.1% 14.6% 14.3% 14.5% 13.9% 13.4% 13.3% 13.4% 12.6% 12.3% 449,745 463,222 457,683 460,231
463,877 451,925
463,509 461,846
478,438 453,411
449,085
442,292 458,264
0% 20% 40% 60% 80% 100%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
FY11/3 FY12/3 FY13/3 FY14/3
(Units)
Corporate-occupied units Individual-occupied units Student-occupied units
Both occupied units and shares of corporate tenants are steadily increasing due to reinforcement of corporate sales.
*Figures are as of the end of each quarter *Reference of p.41
-17-21.0% 19.5% 18.8% 10.1% 11.5% 10.9%
13.3% 12.8% 13.0%
15.7% 16.0% 16.2% 6.3% 6.2% 6.4% 13.9% 14.6% 15.1% 19.8% 19.4% 19.7% 199,441 217,517 226,474
2011/6 2012/6 2013/6 21.5% 21.5% 20.0% 19.0%
8.2% 9.7% 11.2% 10.7%
13.8% 13.8% 13.2% 13.2%
16.2% 15.9% 16.2% 16.3%
6.7% 6.4% 6.1% 6.4%
13.2% 13.9% 14.7% 15.3% 20.4% 18.9% 18.5% 18.9% 183,743 202,584 219,239 228,708
0% 20% 40% 60% 80% 100%
2010/3 2011/3 2012/3 2013/3
(Units)
Other
Construction
Food service
Services
Staffing, outsourcing
Manufacturing Retail
Shares of Occupied Units by Industry
Leopalace21 will pursue strategies of “expanding major business connections” and “cultivating ‘low-use’ business connections” while diversifying industry types of corporate tenants. Approximately 78.5% of listed companies* in Japan use Leopalace21.
*2,793 out of 3,563 companies listed on the 1stand 2ndsections of the Tokyo Stock Exchange, regional stock exchanges, JASDAQ, Mothers, and Hercules
*Reference of p.42
-18-0 2,000 4,000 6,000 8,000 10,000 12,000
Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun
FY11/3 FY12/3 FY13/3 FY
14/3
China S. Korea Taiwan Southeast Asia Other
Leased Units by Foreign Nationals (Excluding Corporate Contracts)
China 4
offices
Beijing, Dalian, Shanghai, Guangzhou South
Korea
3 offices
Busan, Seoul Gangnam, Seoul Jongno Taiwan 1
office Taipei
*Reference of p.43
(Units)
In addition to overseas offices, foreign students can make lease contracts through our “LAM (Leopalace Alliance Members) school.” Foreign tenants recovered to the level before the Great East Japan Earthquake.
Other
Taiwan
S. Korea
China
-19-0 50 100 150 200 250 300 350 400
Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun
FY11/3 FY12/3 FY13/3 FY14/3
(Offices)
Direct Partners
Leopalace21 will aim for 400 leasing offices including direct offices with 8 overseas. Concerning Leopalace Partners, we will aim for “quality over quantity” and increase contracts through training.
Leasing Offices
*Reference of p.46
(YoY -13) 179
Partners (franchise)
363 8 176 184
Direct offices (YoY +2)
of which, domestic (YoY +2)
of which, overseas (YoY ±0)
Total offices (YoY -11)
As of June 30, 2013
-20-4 57 172 342
719 1,108
1,622 2,264
2,869 4,302
5,874
6,544
5,714
6,079
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
FY13/3 FY14/3
1. “My-Collection Plan”
Custom wallpaper for free on 1 wall. Thumbtacks, shelves, and scribbling on the wall is OK
More than 100 types of wallpaper to choose from, including patterns
Change wallpaper on all 4 walls and ceiling with “My-Collection Plus,” starting from November 2012 (fee-charging)
2. “Comfort Plan”
Choose from 4 types of wallpaper with functions such as deodorizing, humidity controlling, and photocatalyst self-cleaning (fee-charging)
Plans of “Room-Customize”
Leopalace21 has started “Room-Customize” as a strategy for acquiring individual tenants, and is bringing a new wave into the rental housing industry. 6,544 contracts as of June 30, 2013.
Contracts (Cumulative total)
-21-Orders and Sales of Security Systems
Business alliances with two major security companies
The standard equipment includes fire sensing systems and emergency systems, in addition to sensors that detect intruders
We anticipate an increase in the percentage of female tenants
We are seeking to meet demand for security in corporate housing
(Large companies emphasize security) センターセンター
Problem detected
Call subscriber, alert emergency services if necessary
3. Dispatch 2. Assign dispatch
Control Center Emergency
response
personnel dispatched
1. Telephone circuit alert
Security systems have been installed in 150,504 rooms as of June 30, 2013, equivalent to 27.5% of Leopalace21 apartments. By the fiscal year ending March 2015 (final year of our medium-term management plan), we plan to install 190,000 security systems (35% installment rate).
2.9 12,400 2.8 12,000 FY14/3 Q1
Plan
23.6 150,504 25.6 166,958 Cumulative
total
2.7 14,397 2.4 13,346 FY14/3 Q1
Actual FY13/3 Q1
Actual
FY14/3 Full-year Plan
Orders
Units 20,933 47,100
Billion yen 3.1 11.3
Sales
Units 20,279 47,500
-23-Owners
Leopalace 21
Leasing
Construction
Tenants
Master
Lease
Rental
Income
Rent
Construction Business
Indicators
Orders and Sales
Offices and Sales by Area
Construction Examples
New Products “Dual-L”, “Arma-L”
New Products “Smaio”
Non-sound System
Elderly Care Facilities and Stores
Solar Power Systems
Installment Sales
-24-13.1 15.7 12.3 15.9 11.6 12.8
17.9
23.3 24.0
0 10 20 30
Q1 Q2 Q3 Q4
FY12/3 FY13/3 FY14/3
Gross orders (Billion yen)
Orders and Sales (Including Solar Power Systems)
Q1
13.8 50.0 24.0 230
FY14/3
53.1 47.4 73.0 822
Full-year
5.8 58.6 15.7 208
Q1
22.5 47.4 23.3 237
Q4
FY14/3 Full-year
Plan (Billion yen)
FY12/3 FY13/3
Q1 Q2 Q3 Q4 Full-year Q2 Q3
Gross orders received
(Buildings*) 160 115 152 139 566 179 198 1,100
(Billion yen) 13.1 12.3 11.6 12.8 50.0 15.9 17.9 80.1
Orders outstanding
(Billion yen) 115.3 94.8 85.4 54.4 54.4 54.5 53.9 －
Sales
(Billion yen) 7.8 20.8 9.9 21.7 60.5 14.0 10.6 61.1
The environment for Leopalace21’s construction orders have improved since our return to profit in FY2012/3. Orders expected to grow from increasing sales personnel and implementing area strategy (building in areas with high occupancy demand).
-25-Tokyo Metropolitan
5,070
Kinki 990 Chubu
170 Kyushu, Okinawa
850 Chugoku
690
Other 1,140
Total 54 offices
(As of Jun. 2013) (+2 from Mar. 2013, Kohriyama, Toyota)Tokyo
metropolitan: 33 offices
Tohoku: 3 offices
Chubu: 4 offices Kinki:
7 offices Chugoku:
2 offices
Kyushu, Okinawa: 4 offices
Shikoku: 0 offices
Hokuriku, Koshinetsu: 0 offices
Hokkaido: 0 offices
North Kanto: 1 office Osaka 4 offices
Kyoto 1 office Hyogo 2 offices
Tokyo 17 offices Kanagawa 6 offices Saitama 8 offices Chiba 2 offices
Construction Offices
Apartment Construction Sales (FY14/3 Q1)
(Million yen, excludes solar power systems, completion of construction method)
Tokyo metropolitan area makes up 57% of construction sales
Due to narrowing down areas, the three metropolitan areas (Tokyo, Kinki, and Chubu) make up 70% of construction sales
-26-Apartment with “Double-Lofts”: “DUAL-L”
Apartment for women: “Arma-L”
To celebrate our 40th anniversary, Leopalace21 has announced “Dual-L” in May 2012, an apartment with “lofts,” one of our strong points. Also, to address the needs of female tenants, “Arma-L” was announced in December 2012, with built-in furniture to increase storage space.
Equipped with hotel-like wall storage (TV cabinet and closet)
A counter-type kitchen is set up by the window, creating a “bright kitchen”
A dresser with a large mirror is placed in the living space so makeup can be done in a more well-lit environment
The two lofts, combined with the closet, make up a storage area equal to the living space
-27-A steel-frame house with rooms for rent, “Smaio,” was announced in -27-April 2013.
House with Rooms for Rent: “Smaio”
*Figures are images
House with free-design
＋
Rent income from attached apartment
“Smaio” is a combination of a house and an apartment, and rent income can be earned to pay the loans on the house
House section built to the owner’s wishes using a free-design plan, and the apartment section is built based on our products “PROFEED” or “Arma-L”
Wide spaces without pillars possible with “AH method”
AH method is a steel-brace construction method with high-performance powder coating applied to the surface
Maximum 5.4 m (17 feet) of wide-open space without pillars
High sound-insulation High quality noise reduction walls installed between the house and apartment sections
-28-From April 2013, Leopalace21 apartments are standardly equipped with sound-insulating “non-sound system,” including noise reduction walls, soundproof drains, and “non-sound floors” which reduce noise levels by two ranks compared to conventional wooden structures.
Upgraded Sound Insulation with “Non-sound System”
Installed as a measure against drainage noise. Decreases noise by 15 dB compared to conventional models, providing
environments similar to “libraries or midnight suburbs.”
Reduces noise from upper floors. Insulation improved two to three ranks compared to conventional models.
Improved sound-insulation quality of walls, providing TDL-45 for wooden structures and TDL-50 for steel frame structures.
Down
15dB
Construction example Cross section Wooden
TLD-45
Wooden structures
Steel
TLD-50
Steel frame structures Wooden
V-model
Down
1/3
Wooden structures V-model (option)
Steel
Down
1/2
Steel frame structures
-29-Orders and Sales of Elderly Care Facilities and Stores
Since the latter half of the fiscal year ended March 2012, Leopalace21 has started receiving orders and constructing buildings other than apartments (ie. elderly care facilities, stores).
Private residential home (Setagaya-ku, Tokyo)
Convenience store
(Koshigaya City, Saitama)
0 0 0.08 2 0.12 1 0.74 7 FY13/3 Q1 Actual Sales Orders Sales Orders 3.8 0.20 0.20 Billion yen 32 2 2 Buildings 0.8 0.21 0.21 Billion yen 24 5 6 Buildings Stores 0.6 18 3.2 32 FY14/3 Full-year Plan FY14/3 Q1 Plan 0.14 4 1.19 12 FY14/3 Q1 Actual Elderly care facilities Buildings 8
Billion yen 0.80
Buildings 4
-30-Orders and Sales of Solar Power Systems
*Reduction in CO2emissions per year
achieved by solar power systems installed:
24,911
t-CO2 per year
1,780,000
Japanese cedars
10.83 million liters of gasoline
= =
Due to the feed-in-tariff scheme for renewable energy taking effect
from July 1, 2012, orders for large solar power systems (capacity
over 10 kW) have increased.
Subsidies of J-PEC (Japan Photovoltaic Expansion Center) will
continue for fiscal year 2013 (for capacity under 10 kW).
Solar power systems installed with owners’ burden on 6,011 apartments (27.3% installment rate), generating capacity 66 MW (equivalent to the energy consumption of 20,000 households) as of June 30, 2013. By the fiscal year ending March 2015 (final year of our medium-term management plan), we plan to install 7,000 solar power systems (30% installment rate).
－
0.5 60 0.7 110 FY14/3 Q1
Plan
66,318 kW 34.6 6,011 36.5 6,184 Cumulative
total
－
1,393 kW 3,453 kW
Generating capacity
FY14/3 Q1 Actual FY13/3 Q1
Actual
FY14/3 Full-year Plan
Orders
Buildings 438 144 400
Billion yen 2.4 1.1 2.5
Sales
Buildings 414 80 430
-31-Leopalace21 Corporation
Mitsubishi UFJ Lease & Finance Co. Ltd.
Omron Field Engineering Co.,
Ltd. Apartment owners
Special Purpose Company（SPC）
（Project implementing body） Electric Power
Company
Plan and install Pay rent
Lend roof Monitoring, reporting, maintenance
Secure installment location Install solar power systems
Provide funds
Sell power Revenue
Sell power Revenue
Roof Mega-solar Project
Mitsubishi UFJ Lease & Finance will provide leases on equipment necessary for solar power generation, Omron Field Engineering will carry out routine maintenance of the systems as well as monitor power generation, and Leopalace21 will install the systems.
SPC (project implementing body) will rent rooftops of apartments under Leopalace21 management from owners, and the power generated will be sold to electric power companies.
Leopalace21 will carry out nationwide expansion of solar power system installments on apartments utilizing “roof-leases*,” and plan to install systems on 7,000 apartments (100 MW, equivalent to the energy consumption of 30,000 households). First stage implemented together with Mitsubishi UFJ Lease & Finance Co. Ltd. and Omron Field Engineering Co., Ltd., with 861 installments as of June 30, 2013.
Fukushima Pilot Project
Roof Mega-solar Project scheme
*”Roof-lease”: renting rooftops and installing solar power systems, paying rent to building owners and selling generated power to electric power companies Before the nationwide expansion of the “Roof
Mega-solar Project,” Leopalace21 installed solar power systems on 67 buildings (1.2 MW) in Fukushima through “roof-leases.”
In collaboration with Fujitsu Ltd., data such as power generation capacity, sunlight, and temperature will be gathered and analyzed for future solar power projects.
Public disclosure of gathered data through a “solar map” will promote the spread of solar power.
©2013 ZENRIN CO., LTD.（Z13LE第390号 ）
発電容量 ： １６．００kW 前日の発電量： １５．７８kWh 先月の発電量：１ ,５１０．８６kWh 月別年間グラフ
発電容量 ： １６．００kW 前日の発電量： １５．７８kWh 先月の発電量：１ ,５１０．８６kWh 月別年間グラフ
-33-*Domestic Hotel Business includes 8 hotels (Asahikawa, Sapporo, Sendai, Niigata, Nagoya, Yokkaichi, Okayama, and Hakata)
Domestic Hotels Business
Both occupancy rates and earnings are progressing favorably.
Hotel Leopalace Sendai
Hotel Leopalace Sapporo
Hotel Leopalace Hakata
+2.9p -15 +23 +11 YoY
71.9% 90 -30 530 FY14/3 Q1
Plan
(Million yen) FY13/3 Q1
Actual
FY14/3 Q1
Actual Compared
to Plan
FY14/3 Full-year Plan
Sales 545 556 +26 2,300
Operating profit -21 1 +31 -15
Depreciation and amortization 108 93 +3 370
-34-Resort Business (Leopalace Guam)
*Non-consolidated figures for Leopalace Guam *Q1of Leopalace Guam is from January to March
Due to an increase in Guam tourists (+5.1% YoY), both occupancy and earnings are progressing favorably.
Westin Resort Guam Leopalace Resort Leopalace Resort Country Club
-0.3p +3.0p -137 +1,808 +2,488 YoY
87.4% 77.5% 4,002 1,878 19,739 FY2012/12
Q1 Actual
74.5% +11.2p
87.1% 75.9%
Occupancy rate (Westin Resort Guam)
(Thousand U.S. dollars) FY2013/12
Q1 Plan
FY2013/12
Q1 Actual Compared
to Plan
FY2013/12 Full-year
Plan
Sales 18,900 22,227 +3,327 66,000
Operating profit 1,900 3,686 +1,786 2,000
Depreciation and amortization 1,900 3,865 +1,965 13,000
-35-*Elderly Care Business includes 59 “Azumi-en” facilities in Tokyo and 6 prefectures *Private residential homes include Group homes
Elderly Care Business
Occupancy rates are progressing favorably. For further profit growth, new facility openings are planned in the latter half of this fiscal year (July 1: Nakano, October 1: Ichihara).
+10.4p +0.0p +6.0p -8 18 136 YoY
82.4% 96.6% 67.7% -187 24 2,340 FY13/3 Q1
Actual
89.1% +4.8p
92.8% 88.0%
Occupancy rate
(Private residential homes, etc.)
96.7% +1.9p
96.6% 94.7%
Occupancy rate (Short-stay)
(Million yen) FY14/3 Q1
Plan
FY14/3 Q1
Actual Compared
to Plan
FY14/3 Full-year
Plan
Sales 2,320 2,477 157 9,400
Gross profit 0 43 43 200
Operating profit -230 -196 34 -700
-36-South Korean Joint Venture “Woori & Leo PMC”
Leopalace21：50%
Woori：50%
Ownership
Management of leased housing
Operations
Established November 22, 2012
Address Anyang, Gyeonggi Province, South Korea
Capital stock 200 million won
Real Estate Brokerage Services in South Korea and Taiwan
Leopalace21 will expand its leasing business overseas. We will enter the South Korean leased housing market through an establishment of a joint venture with South Korea’s largest residential property management company, as well as start real estate brokerage services in South Korea and Taiwan, targeting Japanese companies.
Establishment of “Woori & Leo PMC”
“Woori & Leo PMC” established with South Korea’s largest residential property management company.
“Exportation” of leasing management know-how
Leopalace21 will enter the South Korean leased housing market, which is expected to experience growth from an increase in 1-2 person households and a shift from “chonse” to “wolse” due to decline in real estate values.
Woori & Leo PMC will provide South Korea’s first systematic leasing management services.
*Chonse: residents pay a large deposit to the property owner in lieu of paying monthly rent, which is returned at the end of the contract term
*Wolse: similar to leasing agreements found within Japan, where monthly rent paid in addition to a deposit
Woori & Leo PMC Company Profile
Real estate brokerage services for Japanese companies
Leopalace21 will provide support before and after rental contracts for Japanese people and companies looking for housing in South Korea and Taiwan.
Leopalace21 has provided services of referring Japanese properties to foreign tenants, but needs of foreign property brokerage increased from Japanese companies.
Nov. 2012: Services starts in Leopalace Seoul Jongno office
-38-Individuals and Other 27.47%
Business Corporations and Other Legal Entities
7.76% Foreign Corporations 42.79% Financial Institutions 16.40% Financial Instruments Business Operations (Securities Companies) 3.47% Treasury Stocks 2.10%
Company Name Leopalace21 Corporation
Head Office 2-54-11 Honcho, Nakano-ku, Tokyo TEL. +81-3-5350-0001 (Main Line) Established August 17, 1973
Paid-in Capital ¥62,867 million
President President and CEO Eisei Miyama
Operations
Construction, leasing and sales of apartments, condominiums, and residential housing; development and operation of resort facilities; hotel business; broadband business; and elderly care business, etc. Number of
Employees
6,660 (consolidated basis, as of June 30, 2013) 5,767 (non-consolidated basis, as of June 30, 2013)
Corporate Data*
1Shareholder Composition*
1*1: As of March 31, 2013
*2: Increase due to exercise of stock acquisition rights
Stock Information*
1 Number of Authorized Shares 500,000,000 Number of Outstanding Shares 217,443,915*2 Number of Shareholders 35,586Listing Tokyo Stock Exchange First Section Transfer Agent Mitsubishi UFJ Trust and Banking
Corporation
Group Companies*
1Leopalace Leasing Corporation (Leasing Business) LEOPALACE SSI (Small-claims and short-term insurance) (Other business) Plaza Guarantee Co., Ltd. (Leasing Business)
Leopalace Guam Co., Leopalace Travel
Co., Ltd.
(Hotel & Resort Business)
Leopalace21 Business Consulting (Shanghai) Co., Ltd. (Leasing Business) Leopalace Smile Co., Ltd. (Other Business)
L21
Tenants’ furnishings insurance Tenant mediation Corporatehousing agent Rent guarantee
Resort Business Special subsidiaries
Woori & Leo PMC (New Business) Leopalace Power (New Business) Leasing mgmt Power generation
-39-Quarter Comparison
(Million yen)
Q4 Jan – Mar Q3
Oct – Dec Q2
Jul – Sep Q1
Apr – Jun
-375 -323 3,364 410 2,384 2,633 1,818 22,628 97,307 124,388 FY13/3 Actual -154 -248 -21 4,110 3,131 2,675 1,691 10,747 94,721 109,836 FY13/3 Actual -120 -116 -1,551 922 -1,421 2,625 1,816 5,910 96,097 106,449 FY13/3 Actual -56 -317 955 3,243 3,319 2,685 1,331 14,083 95,447 113,548 FY13/3 Actual FY14/3 Actual FY14/3 Plan FY14/3 Plan FY14/3 Plan
Sales 114,876 120,500 111,200 129,100
Leasing 96,142 96,300 96,600 100,100
Construction 13,874 19,900 10,200 24,500
Hotels & Resort 2,037 1,600 1,600 1,700
Elderly Care & Others 2,821 2,600 2,600 2,600
Operating profit 2,009 5,300 2,200 7,200
Leasing 2,680 3,900 4,100 4,600
Construction 89 2,400 -800 3,800
Hotels & Resort 66 -200 -200 -100
-40-Results for Leopalace21 and Major Subsidiaries
+5 +0
79 74
80 OP
+66 +51
306 240
255 Sales
LEOPALACE SSI Leopalace Guam Leopalace Leasing
(Million yen) FY13/3 Q1
Actual
FY14/3 Q1 Plan
FY14/3 Q1
Actual YoY Compared
to Plan
Leopalace21
Sales 104,707 104,800 112,896 +8,188 +8,096
OP -1,705 -900 1,496 +3,201 +2,396
Sales 262 220 309 +47 +89
OP 28 15 10 -17 -5
Plaza Guarantee Sales 775 860 804 +28 -56
OP -3 88 45 +48 -43
Sales 1,566 1,510 2,055 +488 +545
OP 149 156 340 +191 +184
Leopalace Travel Sales 246 210 210 -36 +0
OP 8 3 9 +1 +6
Others & Exclusions
Sales -1,364 -1,380 -1,706 -342 -326
-41-Occupancy by Group
12.6% 58,375 38.0% 176,139 49.4% 228,708 84.2% FY 82.9% 463,222 546,204 Q4 13.4% 60,342 38.9% 174,953 47.7% 214,450 82.5% 449,745 546,561 Q3 13.3% 60,865 39.4% 180,365 47.4% 217,034 82.9% 458,264 551,287 Q2 13.4% 61,667 39.3% 181,047 47.3% 217,517 82.2% 460,231 556,546 Q1 FY13/3 12.3% 56,152 38.2% 175,057 49.5% 226,474 83.6% 457,683 546,856 Q1 FY14/3 FY12/3
Q1 Q2 Q3 Q4
Units under management 571,068 571,908 561,084 556,207 A. Occupied units 461,846 463,509 451,925 463,877
Occupancy rate (average) 80.9% 80.7% 80.6% 82.6%
FY 81.2% B. Corporate-occupied units 199,441 204,279 204,415 219,239 Corporate share (B / A) 43.2% 44.1% 45.2% 47.3% C. Individual-occupied units 195,089 192,874 182,004 180,186 Individual share (C / A) 42.2% 41.6% 40.3% 38.8% D. Student-occupied units 67,316 66,356 65,506 64,452 Students share (D / A) 14.6% 14.3% 14.5% 13.9% *Occupancy rate is the average value for each period (Full-year or quarter)
Occupied Units by Industry
Leopalace21 will purse strategies of “expanding major business connections” and “cultivating ‘low-use’ business connections” while diversifying industry types of corporate tenants.
39,596 43,613 43,942 43,472 15,093 19,638 24,632 24,570
25,288
27,869 28,869 30,218
29,725 32,157 35,601 37,380 12,332 12,872 13,445 14,710 24,306 28,074 32,223 35,096 37,403 38,361 40,527 43,262 183,743 202,584 219,239 228,708 0 50,000 100,000 150,000 200,000 250,000
2010/3 2011/3 2012/3 2013/3
41,787 42,454 42,586 20,054 24,906 24,602
26,440 27,888 29,358
31,303 34,828 36,733 12,529 13,545 14,461 27,813 31,750 34,114 39,515 42,146 44,620 199,441 217,517 226,474
2011/6 2012/6 2013/6
+7.4% +6.8% +5.5% +5.3% -1.2% +0.3% +5.9%
-43-Units Occupied by Foreign Tenants (General Contracts)
915 766
669 670
622 594
559 545
547 Southeast Asia
9,517 1,601 652 1,463 5,035 Q4
8,423 1,454 640 1,489 4,171 Q3
8,321 1,485 627 1,490 4,049 Q2
8,206 1,438 675 1,533 3,938 Q1
FY13/3
9,635 1,651 621 1,441 5,007 Q1 FY14/3 (Units)
FY12/3
Q1 Q2 Q3 Q4
China 3,644 3,605 3,536 3,993
South Korea 1,636 1,575 1,614 1,565
Taiwan 707 735 744 737
Others 1,304 1,237 1,246 1,362
-44-93.8% 95.6% 92.1% 94.0%
91.4% 94.6% 91.3% 93.9% 93.7%
89.3% 86.7% 87.0%
80.0% 86.0% 85.8% 83.2%
87.9% 85.1% 85.6% 94.2%
91.7% 92.6%
90.0% 92.7%
91.0% 91.8%
87.6% 93.6%
93.4% 92.5%
70% 80% 90% 100%
Tokyo Saitama Kanagawa Chiba Tokyo Metro
Aichi Osaka Kyoto Hyogo 3-metro areas
Under 3 years Under 5 years Total 95.1% 92.1% 90.3% 93.3% 90.0%
85.4%
76.5% 74.3% 83.7%
0% 50% 100%
1 year 2 years 3 years Under 3 years
Under 5 years
5-10 years 10-15 years Over 15 years
Total
Occupancy Rates by Building Age (As of June 30, 2013)
370 384 371
381 372
414
442 462
478
464 463 460 458
117 (32%) 108 (26%) 107 (24%) 104 (23%) 114 (24%) 94
(20%) (17%)79 89 (19%) 77 (17%) 0 50 100 150 200 250 300 350 400 450 500
'07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '12/6 '13/6
Monthly General
(Thousand units)
Tenants by Contract Type
Breakdown of Users of Monthly Contracts
(June 2013)
-46-Partner and Direct Offices, and Contracts by -46-Partners
Leopalace21 will aim for 400 leasing offices including Partner and direct offices, with 8 overseas.
12,422 366 174 192 Q4
9,328 367 172 195 Q3
9,372 366 165 201 Q2
8,881 356 159 197 Q1
FY13/3 FY14/3
FY12/3
Q1 Q2 Q3 Q4 Q1
Partner offices 136 158 180 190 179
Direct offices (domestic) 155 155 158 159 176
Total leasing offices 291 313 338 349 355
Contracts by Partners 7,713 8,474 9,983 13,913 8,205
Reserve by Area
Occupancy Rate
Reserve for Apartment Vacancy Loss
(Billion yen)
Reversal in the reverse for apartment vacancy loss for the three months ended June 2013 was ¥1.2 billion (compared to forecast of ¥0.6 billion) due to “profit improvement” and “passage of remaining periods.”
Reversal forecast for the fiscal year ending March 2014 is ¥2.5 billion.
Q1 Q3
Q1
Q3 Q4 Q2 Q4
Q2 Q1 12.7 0.3 0.2 0.2 1.6 4.6 1.3 2.2 1.3 0.1 0.4 FY14/3 13.9 0.4 0.2 0.3 1.7 4.9 1.5 2.5 1.4 0.1 0.5 12.9 0.4 0.3 0.4 1.3 5.0 1.3 2.0 1.2 0.1 0.4
(Billion yen, %) FY12/3 FY13/3 Comparedto 2013/3 FY13/3
Q4
FY14/3
Q1 Diff.
Hokkaido 1.3 1.2 1.1 0.7 0.6 0.5 -0.05 75% 76% +1p
Tohoku 0.8 0.5 0.2 0.1 0.1 0.1 -0.02 93% 93% +0p
North Kanto 2.8 2.4 1.9 1.9 1.7 1.5 -0.10 80% 77% -3p
Tokyo Metropolitan 2.2 1.9 1.5 2.7 2.6 2.3 -0.28 88% 86% -2p
Hokuriku, Koshinetsu 2.1 1.7 1.5 1.7 1.7 1.6 -0.20 78% 79% +1p
Chubu 12.5 11.1 9.5 8.0 7.2 6.1 -0.31 81% 80% -1p
Kinki 4.9 4.3 3.6 2.0 1.8 1.6 -0.13 85% 83% -2p
Chugoku 1.0 1.0 0.8 0.6 0.6 0.5 -0.02 87% 86% -1p
Shikoku 0.6 0.6 0.5 0.3 0.3 0.3 +0.00 82% 81% -1p
Kyushu, Okinawa 1.4 1.2 0.9 0.6 0.6 0.5 -0.08 88% 89% +1p
Total 30.1 26.4 21.9 19.2 17.7 15.6 -1.22 84.8% 83.7% -1.1p
-48-Deferred tax assets 6,586 6,738
(Million yen) FY13/3 FY14/3
Q1
Cash and cash equivalents 56,681 51,078
Trade receivables 4,360 4,335
Accounts receivables for
completed projects 2,231 2,890
Prepaid expenses 12,772 11,168
Current assets 90,896 83,201
Buildings and structures 54,740 56,127
Land 80,780 81,334
Leased assets 1,798 1,750
Intangible assets 6,613 6,459
Long-term prepaid expenses 8,127 6,304
Fixed assets 170,705 170,769
Total assets 261,649 254,016
31,500 31,500
Interest-bearing debt (long-term)
(Million yen) FY13/3 FY14/3
Q1
Interest-bearing debt (short-term) 15,374 15,374
Advances received 49,036 45,450
Current liabilities 105,144 97,672
Reserve for apartment vacancy loss 13,950 12,725
Lease/guarantee deposits received 8,984 8,859
Long-term advances received 32,357 29,552
Long-term liabilities 98,353 94,331
Total liabilities 203,498 192,003
Common stock 62,867 62,867
Capital surplus 39,424 39,410
Retained earnings -31,018 -29,647
Total net assets 58,151 62,012
Shareholders’ equity ratio 22.2% 24.4%
-49-40.3
56.4
39.8
48.3 46.8 48.3 46.8
78.3
72.4
40.6 41.4
56.6
25.4
51.0
-0.23
-0.02
0.20
-0.07
-0.26
-0.17
0.69
0 10 20 30 40 50 60 70 80 90 100
FY09/3 FY10/3 FY11/3 FY12/3 FY13/3 FY13/3 Q1 FY14/3 Q1 (Billion yen)
-0.30 -0.20 -0.10 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 (Ratio)
Interest-bearing debt Cash Net DE ratio
：
NDE Ratio
*Net DE ratio = (Interest-bearing debt – Cash) / Shareholders’ equity
-0.3 -5.0
24.8
-0.5
-15.3
9.1 6.0
50.6
-0.0
56.3
-20 -10 0 10 20 30
Cash and cash equivalents at end of period Cash flows from
financing activities Cash flows from
investing activities Cash flows from
operating activities
Cash Flows
Cash flows from operating activities improved ¥10.2 billion year-on-year.
50
(Billion yen)
-0.1 -0.2
FY13/3 Full-year
FY13/3 Q1
50% 100%
Individuals and other 60.7% 58.6% 43.3% 44.3% 35.2% 35.3% 33.2% 30.4% 27.5%
Foreign corporations 11.3% 14.6% 27.8% 23.3% 35.2% 34.6% 34.3% 34.7% 42.8%
Trust banks 4.9% 4.7% 8.4% 8.6% 8.3% 7.9% 11.8% 12.7% 12.8%
Financial institutions other than trust banks 3.8% 3.4% 3.4% 3.7% 3.4% 3.7% 3.3% 3.7% 3.6%
Business corporations and other legal entities 14.1% 13.4% 13.0% 13.0% 12.7% 12.7% 12.3% 11.8% 7.8%
Securities companies 2.6% 2.8% 1.4% 4.5% 2.7% 3.1% 2.6% 4.3% 3.5%
Treasury stock 2.6% 2.6% 2.6% 2.6% 2.6% 2.6% 2.5% 2.4% 2.1%
2011/3 2011/6 2011/9 2011/12 2012/3 2012/6 2012/9 2012/12 2013/3
Shareholder Composition
-53-The figure below illustrates action plans for Leopalace21’s business segments during the new medium-term management plan.
FY2013/3
Create a foundation for growth
Establishment of earnings structure
Enhance channels
Establish a framework for operating profitability excluding the reversal of reserve for apartment vacancy loss
FY2014/3 FY2015/3
New growth stage
Further development as a high earning business
Maximum of 570,000 managed apartment units, increased competitiveness of owner-managed properties or buildings
Enhance service for tenants
Security systems installed in 35% of managed units (10% as of March 31, 2012)
Initiatives in new areas
Expand orders in areas where high occupancy rate is predicted
Expand orders other than master lease system apartments (elderly care facilities, stores)
Establishment of products and business areas that will form new earnings base
A larger variety of buildings
(energy-saving features, geared to the elderly, stores, etc.)
Solar power systems installed in 30% of managed units (18% as of March 2012)
Client retention
Client retention
Maximize earnings
Maximize earnings by streamlining operations and management framework, and strengthening collaboration
Cost options and centralization/Growth strategy initiatives
Making strategic cost investments while maintaining low cost structure (personnel costs, advertising costs, sales promotion costs)
Initiatives for new businesses
-54-Leopalace21 forecasts an increase in operating profit, especially in the Leasing Business, while sales remain flat.
73.0 82.9% 5.1% 74.5 29.0% 22.2% 58.1 13.3 11.0 -0.7 -1.0 2.7 8.6 7.4 10.6 6.6 53.3 383.5 454.2 Actual
FY2015/3 FY2014/3
FY2013/3 FY2012/3
(Billion yen)
Actual Plan Plan Plan
Sales 459.4 463.9 467.4 476.5
Leasing 380.3 386.6 389.0 391.5
Construction 62.9 60.2 61.1 67.4
Hotels & Resort 6.2 6.6 6.7 6.8
Elderly Care & Others 9.9 10.3 10.5 10.7
Operating profit 4.5 8.0 14.1 16.9
Leasing 5.2 9.5 15.0 16.1
Construction 4.3 3.0 3.5 5.1
Hotels & Resort -1.6 -1.0 -0.7 -0.6
Elderly Care & Others -0.8 -0.7 -0.6 -0.5
Recurring profit 2.3 6.1 12.2 15.1
Net income 1.5 5.5 11.0 13.5
Equity 33.8 42.8 58.0 76.5
Shareholders’ equity ratio 12.8% 17.0% 23.1% 29.5%
ROE 4.8% 14.3% 21.8% 20.0%
EPS (yen) 9.4 29.2 54.2 62.4
ROA 0.6% 2.2% 4.4% 5.2%
Average occupancy rate 81.2% 83.0% 85.0% 85.8%
Gross orders 50.0 76.8 80.1 78.9
-55-300,000 400,000 500,000 600,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 09/3 (Actual)
FY 10/3 (Actual)
FY 11/3 (Actual)
FY 12/3 (Actual)
FY 13/3 (Actual)
FY 14/3 (Plan)
FY 15/3 (Plan)
30% 40% 50% 60% 70% 80% 90% 100%
Occupied units Vacant units New units Occupancy rate
By improving the quality and competitiveness of our apartments, we aim to decrease vacancies and increase profits, while maintaining the number of units under management.
Units Under Management and Occupancy Rates
(Units) (Occupancy rate)
Plan
1,343 1,420
1,5101,5611,485 1,630
1,341
1,1801,2261,2131,1731,1461,1741,193
1,2491,285
1,0361,039
775 819 841 893
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800
88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 (Thousand units)
Leased units Condominiums House for sale Owner-occupied houses Company housing
New Housing Starts by Fiscal Year (April to March)
Sales tax increased from 3% to 5% in April 1997
Leased units starts +9.3% yoy, total housing starts +9.8% yoy in FY1996 Leased units starts -16.3% yoy, total housing starts -17.7% yoy in FY1997
Sales tax was raised from 3% to 5% in April 1997, in which new housing starts of leased units increased 9.3% yoy (FY1996) and decreased 16.3% yoy in the following year (FY1997).
-58-240 262 274
178 186 149
117 126 128 114 102 80 80 97 104 108 113 123 128 112 117 60 39 31 31 842
821 767
582 687
652
574 564 616
516
444 426 418 442 455 459 467
518 538
431 445
311 292 290 321
0 100 200 300 400 500 600 700 800 900
88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
Leased units under 30㎡
New Housing Starts of Leased Units by Fiscal Year (April to March)
After the Lehman collapse, leased units starts were decreasing, but figures for fiscal year ended March 2013 increased year-on-year for the first time in four year-on-years.
*Excerpted from “Housing Start Statistics” (Ministry of Land, Infrastructure and Transport)
9,637
10,269 10,861 11,037
10,973 10,782 10,500
14,646
14,474 14,274 13,814 13,132 12,340 11,532
4,112
4,535 4,982 5,338 5,558 5,648 5,645 6,212
5,779 5,150 4,594 4,127 3,743 3,421 49,063
51,842 52,904 53,053 52,439 51,231
49,555 0 10,000 20,000 30,000 40,000 50,000 60,000
2005 2010 2015 (E) 2020 (E) 2025 (E) 2030 (E) 2035 (E)
Singles Married couples
Married couples with child Single parents with child Others
(27.6%) (32.4%) (33.3%) (34.4%) (35.6%) (36.5%) (37.2%)
5,148 5,059 4,674 4,417
4,201 3,956 3,662 5,444 6,746 6,956 7,175 7,441 7,464
7,172
3,865
4,980 6,008 6,678
7,005 7,298
7,622 14,457
16,785 17,637
18,270 18,648 18,718 18,457
0 5,000 10,000 15,000 20,000
2005 2010 2015 (E) 2020 (E) 2025 (E) 2030 (E) 2035 (E)
under 35 35 - 64 over 65
*Excerpted from “Future Estimates of Households in Japan” (2013, Institute of Population Problems)
Number of General Households by Family Category
Number of Single-person Households by Age
Number of general households are predicted to decrease, but single-person households, which are Leopalace21’s main targets, are expected to increase, especially in the age group over 35.
-60-1,834
2,336
2,619
3,520
3,978
4,476
17.4%
18.8%
20.1%
14.3%
12.4%
14.3%
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000
1983 1988 1993 1998 2003 2008
0% 5% 10% 15% 20% 25%
Number of vacant houses for rent or sale (left axis) Vacancy rate (right axis)
Number of vacant rental housing and vacancy rate in Japan
*Excerpted from “Housing and Land Survey” (Ministry of Internal Affairs and Communications)
Vacancy in Japan’s rental housing has been increasing consistently. Since nationwide recovery in demand is not desirable, strategies such as building apartments in areas where high occupancy rates are expected, developing competitive products, and reducing costs by reviewing apartment management duties are crucial.
