Lead Real Estate Co., Ltd reported fiscal year results for the period ended June 30, 2025, showing total revenue of ¥18.8 billion, a 0.6% decline from the prior year.
Real‑estate sales generated ¥18.3 billion, down 1.0% YoY, while hotel‑related revenue rose 15.5% to ¥535 million. The real‑estate segment includes single‑family homes and condominiums, whereas the hotel segment is driven by the ENT TERRACE brand.
Gross margin improved to 19.8% from 15.6% in FY2024, driven by a higher‑margin hotel mix and a more favorable sales mix. Operating income surged 64.1% to ¥1,475 million, and net income rose 35.1% to ¥846.8 million, or ¥0.43 per ADS.
Interest expense was ¥44.5 million. A one‑time impairment loss of ¥23.5 million on equity securities contributed to a net other‑income expense of ¥80.4 million. Cash and cash equivalents stood at ¥2.7 billion, up from ¥1.3 billion a year earlier.
Management expressed confidence in Japan’s luxury real‑estate market, citing record inbound tourism and rising land values. They highlighted continued expansion of hotel operations, the launch of a new Master Lease model in August 2025, and pursuit of international acquisitions in the Philippines and Malta.
Compared with FY2024, when total revenue was ¥18.9 billion and operating income fell 4.3% to ¥898.5 million, FY2025 shows improved profitability despite a slight revenue dip, driven by stronger hotel performance and cost efficiencies.
The company’s liquidity position strengthened, with cash reserves more than doubled, providing a buffer for future investments and operational initiatives.
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