Slides
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Leopalace 21 ++ Leopalace21 Corporation Financial Results for Q1 Fiscal Year 2026 ..... ال .
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Table of Contents 2 Chapter 2 Chapter 1 Chapter 3 (Note) This material contains some forward-looking statements. Please understand that actual results may differ significantly from these forecasts due to various factors. Executive Summary Outline of the Financial Results for Q1 FY2026 Leasing Business Conditions Development Business Conditions Appendix p.3 p.4 p.10 p.18 p.21
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PL Net sales and profits are broadly in line with the plan for Q1 FY2026. ・Net sales: JPY 115.9 bn (-JPY 0.1 bn vs plan) ・Operating profit: JPY 12.1 bn (-JPY 0.1 bn vs plan) ・Recurring profit: JPY 12.2 bn (+JPY 0.0 bn vs plan) ・Net income: JPY 7.0 bn (-JPY 0.0 bn vs plan) Development Business Progressing steadily toward the FY 2026 full-year plan of 140 apartment buildings. ・No. of buildings: 31 (+2 YoY) ・No. of units: 476 (+46 YoY) ・Order receipts: JPY 4,578 mil (+JPY 644 mil YoY) Executive Summary 3 Leasing Business The average unit rent for new contracts and the occupancy rate for Q1 FY2026 achieved the plan. The average unit rent for new contracts (index) in June marked the record high of 123 (up 11 p YoY). The average occupancy rate for Q1 FY2026 was 87.23% (up 0.98 p YoY).
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Outline of the Financial Results for Q1 FY2026Chapter 1
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5 1. PL (JPY million) Q1 FY2025 Actual* Q1 FY2026 Actual Q1 FY2026 Plan Factors contributing to changesComparison with Q1 FY2026 Comparison with Q1 FY2026 Plan Net sales +3.7% +4,184 111,717 115,902 116,100 (197) (0.2%) ■Net sales The average unit rent remained at a high level primarily due to corporate contracts, leading to significant growth YoY. ■Cost of sales Increase YoY due to enhanced properties maintenance. ■SG&A Increased YoY due to the promotion of investments in human capital and DX initiatives. ■Non-operating income Total JPY 0.34 bn, up JPY 0.23 bn YoY, incl. foreign exchange gain of JPY 0.13 bn, up JPY 0.13 bn YoY. ■Non-operating expenses Total JPY 0.18 bn incl. interest expenses of JPY 0.15 bn. (Total JPY 0.79 bn incl. interest expenses of JPY 0.24 bn and commission fee of JPY0.26 bn in the previous fiscal year.) ■Net income An extraordinary loss of JPY 10.0 bn was recorded in the previous fiscal year due to the cancellation of treasury stock acquisition rights. Cost of sales +3.2% +2,778 86,612 89,391 89,900 (508) (0.6%) Gross profit ＋5.6% +1,406 25,105 26,511 26,200 +311 +1.2% % ＋0.4 p ー 22.5％ 22.9% 22.6% ー +0.3 p SG&A ＋12.0% +1,536 12,851 14,388 13,900 +488 +3.5% Operating profit (1.1%) (130) 12,253 12,123 12,300 (176) (1.4%) % (0.5 p) ー 11.0％ 10.5% 10.6% ー (0.1 p) EBITDA (1.6%) (213) 13,347 13,133 13,100 +33 +0.3% Recurring profit ＋6.2% +715 11,563 12,279 12,200 +79 +0.6% Net income ＋1,166.2% +6,479 555 7,034 7,100 (65) (0.9%) EPS (JPY) +1,283.8% +20.54 1.60 22.14 22.35 (0.21) (0.9%) Chap 1 * Figures for FY2025 are presented on a restated basis following the accounting policy change effective from the beginning ofQ1 FY2026.
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2. PL (Quarterly Comparison) 6 Chap 1 (JPY million) FY2025* FY2026 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY Total Actual Actual Actual Actual Plan Actual Plan Plan Plan Plan Net sales 111,717 110,293 110,699 112,109 116,100 115,902 115,800 116,300 116,800 465,000 Cost of sales 86,612 88,846 89,514 90,372 89,900 89,391 92,200 93,000 93,100 368,200 Gross profit 25,105 21,446 21,185 21,736 26,200 26,511 23,600 23,300 23,700 96,800 SG&A 12,851 13,632 12,612 14,144 13,900 14,388 14,500 14,400 15,500 58,300 Operating profit 12,253 7,813 8,572 7,591 12,300 12,123 9,100 8,900 8,200 38,500 Recurring profit 11,563 7,482 8,761 7,300 12,200 12,279 9,000 8,900 8,000 38,100 Net income 555 4,131 5,318 5,091 7,100 7,034 5,200 5,200 4,700 22,200 * Figures for FY2025 are presented on a restated basis following the accounting policy change effective from the beginning ofQ1 FY2026.
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Cost of sales for Q1 FY2026 increased compared with the Q1 FY2025 due to factors such as enhanced maintenance efforts. 7 3. Cost of Sales -0.5 bn +0.1 bn +0.0 bn Increase due to enhanced maintenance YoY Compared with plan -0.7 bnAlmost flat year on year Almost in line with plan Lower than plan due to lower-than-expected utility cost and others Increase due to Development Business expansion Q1 FY2025 Actual Q1 FY2026 Actual Q1 FY2026 Plan (JPY billion) Chap 1 Almost in line with plan Leasing Operation Leasing Management Others +2.7 bn +0.8 bn +1.7 bn +0.2 bn
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0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 Increase from the previous year due to investing in human resources and DX. 8 4. SG&A Expenses *Others: Commission fee, taxes and public charges, repair and maintenance expenses, rent expense, travelling, depreciation and amortization, etc. +0.8 bn +0.5 bn +1.5 bn -0.1 bn +0.0 bn +0.1 bn +0.4 bn +0.4 bn YoY Compared with plan +0.0 bn (JPY billion) +0.1 bn Chap 1 Q1 FY2025 Actual Q1 FY2026 Actual Q1 FY2026 Plan Promoting investment in human resources (improvement to employee compensation and benefits and in the number of employees by 242 from the end of previous period) The number of contracts involving real estate agents was slightly increased compared with the previous period The number of contracts involving real estate agents was slightly above the plan Almost in line with the plan Promoting investment in DX (expenses by various departments expanded incl. system license fee and others) Personnel Advertising Sales commission Others* 5.7 0.3 0.3 6.3 7.1 7.3 0.4 0.5 0.4 0.4 6.2 5.8 12.8 14.3 13.9 Promoting investment invested in DX etc. (expenses by various departments expanded incl. system license fee and others)
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5. BS 9 * Interest-bearing debt = borrowings + lease obligations (JPY million) End of FY2025** End of Q1 FY2026 Change from the end of previous quarter Factors contributing to changes Cash and deposits 57,908 65,719 +7,811 ■Cash and deposits Revenue and other income from the Leasing Business increased by JPY 7.8 billion from the end of FY2025.Trade receivables 7,927 7,132 (794) Total assets 178,331 182,754 +4,423 Interest-bearing debt* 32,600 32,448 (152) Provision for warranty obligations on completed projects 6,263 5,705 (558) Provision for apartment vacancy loss 2,913 3,193 +280 Total liabilities 130,180 129,510 (669) Common stock 100 100 ±0 Capital surplus 15,015 15,014 (0) ■Retained earnings Increased by JPY 5.3 billion from the end of FY2025 due to recognition of quarterly net income of JPY 7.03 billion and dividend payment of JPY 1.63 billion. Retained earnings 28,106 33,505 +5,399 Treasury stock (8,749) (8,728) +20 Total shareholders’ equity 34,472 39,891 +5,418 Total accumulated other comprehensive income 7,943 8,246 +303 Ownership equity 42,416 48,138 +5,722 Equity ratio 23.8% 26.3% +2.5 p Share subscription rights 22 22 ±0 Non-controlling interests 5,712 5,083 (628) ■Non-controlling interests Decreased by JPY 0.62 billion due to Leopalace Power’s acquisition of treasury stock and dividend payment. Total net assets 48,150 53,244 +5,093 Chap 1 ** Figures for FY2025 are presented on a restated basis following the accounting policy change effective from the beginning of Q1 FY2026.
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Leasing Business ConditionsChapter 2
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11 1. Changes in Average Unit Rent for New ContractsChap 2 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY Average FY2024 102 103 106 107 108 108 109 109 111 111 111 107 108 FY2025 107 108 112 113 113 114 115 116 118 119 117 111 114 FY2026 115 120 123 122 (Apr 2016 set as 100) The average unit rent for new contracts (index) for June 2026, marked a record high of 123 mainly helped by the corporate customers’ rising unit rent. Monthly Data： https://www.leopalace21.co.jp/english/ir/finance/monthly/index.html 100 105 110 115 120 125 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY2024 FY2025 FY2026 FY2026(Plan)
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2. Movements in Occupancy Rate Monthly Data： https://www.leopalace21.co.jp/english/ir/finance/monthly/index.html Chap 2 12 ▲FY2025 Actual Avg. 85.78% End 88.78% ◆FY2026 Plan Avg. 86.49% End 89.24% Apr May Jun Apr-Jun Average Jul Aug Sep Oct Nov Dec Jan Feb Mar FY Average FY2024 86.93% 86.50% 86.01% 86.48% 85.18% 84.83% 85.07% 84.88% 84.43% 84.42% 84.77% 86.11% 87.57% 85.56% FY2025 86.49% 86.20% 86.06% 86.25% 85.51% 84.87% 85.38% 85.11% 84.47％ 84.14％ 85.41％ 86.94％ 88.78％ 85.78％ FY2026 87.58% 87.03% 87.08% 87.23% 86.68% Driven primarily by corporate contracts, mainly consisting of foreign national tenants, the average occupancy rate for Q1 FY2026 was 87.23% (+0.98 p YoY ,and +0.19 p against the plan). ●FY2024 Actual Avg. 85.56％ End 87.57％ ■FY2026 Actual 80% 85% 90% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
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3. Changes in Occupancy Rate by Type of Contract We continued a policy of restraining monthly lease contracts*1 which yield low profits. The occupancy rate for ordinary lease contracts*2 has remained higher than the previous period. Chap 2 - 0.48 p YoY + 1.50 p YoY 13 Note 1: Short-term contract with a lump sum payment (monthly contract) 2: Long-term contract with monthly payment (ordinary contract) 82.55% 82.05% 81.61% 85.21% 83.39% 82.70% 82.31% 85.32% 83.82% 83.35% 82.50% 86.86% 85.32% 84.31% 83.42% 87.53% 4.27% 3.57% 2.85% 2.82% 2.62% 2.37% 2.10% 2.25% 2.24% 2.03% 1.64% 1.92% 1.76% 1.79% 1.42% 1.71% Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar FY2023 FY2024 FY2025 FY2026 Ordinary lease contracts Ordinary lease contracts (Plan) Monthly lease contracts Monthly lease contracts (Plan)
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4. Shares of Occupied Units by Customer Segment (Units) Chap 2 Composition Ratio 14 6.3% 27.2% 66.5% No. of occupied units by corporate customers No. of occupied units by individual customers No. of occupied units by students The composition ratio by the corporate customers remained at 66.5%, the highest level in the past. （+1.8 p YoY , +0.0 p QoQ） 293,552 291,848 291,326 308,613 302,586 299,633 295,496 318,956 312,525 147,933 143,468 139,230 137,731 134,940 132,694 129,695 130,177 127,779 33,171 32,664 31,707 31,544 30,458 30,518 29,883 30,390 29,470 474,656 467,980 462,263 477,888 467,984 462,845 455,074 479,523 469,774 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY2024 FY2025 FY2026 Student-occupied units Individual-occupied units Corporate-occupied units
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68,983 71,504 72,191 71,807 70,619 71,444 70,054 72,903 71,422 65,003 64,370 64,336 68,086 65,908 65,175 65,537 69,889 68,515 37,727 36,944 36,765 40,313 39,017 38,351 37,684 41,705 40,436 35,192 34,283 33,888 36,179 34,797 34,031 32,986 35,980 34,920 23,957 22,255 21,549 23,418 24,428 22,928 22,251 24,395 24,595 27,709 27,097 26,730 29,273 28,287 27,706 27,104 29,630 28,672 17,827 18,435 18,802 21,112 21,180 21,498 21,331 24,176 24,00010,637 10,423 10,295 10,912 10,763 10,788 10,553 11,312 10,842 6,517 6,537 6,770 7,513 7,587 7,712 7,996 8,966 9,123293,552 291,848 291,326 308,613 302,586 299,633 295,496 318,956 312,525 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY2024 FY2025 FY2026 5. Occupancy by Industry The number of units used by the corporate customers reached the highest level compared with Q1 of previous fiscal years. The numbers showed usual seasonal trends on QoQ, showing growth across all the industry on YoY. Chap 2 No. of companies (Units) 15 (41,213) (41,330) (40,833) (41,305) (40,414) (40,206) (39,246) (39,784) (38,678) 10,53810,20611,03510,65910,440 10,17410,96310,51010,51114,21513,85614,82614,48914,23313,75014,96614,71214,46528,90427,57029,09328,00127,15826,12128,43427,50326,92327,950 26,749 28,830 29,084 27,602 26,362 28,645 30,267 28,498 37,79636,67338,41236,33534,93134,40936,81036,27535,684 36,47636,06939,39637,69036,54235,77139,64037,87237,032 38,46141,558 46,98448,41850,64052,55158,25758,35460,271 57,12854,90558,23858,46861,00560,64163,09563,19564,661 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 21/3期 22/3期 23/3期 運輸業 飲食・宿泊業 サービス業 その他 製造業 卸売・小売業 派遣・業務請負 建設業 10,53810,20611,03510,65910,440 10,17410,96310,51010,51114,21513,85614,82614,48914,23313,75014,96614,71214,46528,90427,57029,09328,00127,15826,12128,43427,50326,92327,950 26,749 28,830 29,084 27,602 26,362 28,645 30,267 28,498 37,79636,67338,41236,33534,93134,40936,81036,27535,684 36,47636,06939,39637,69036,54235,77139,64037,87237,032 38,46141,558 46,98448,41850,64052,55158,25758,35460,271 57,12854,90558,23858,46861,00560,64163,09563,19564,661 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 21/3期 22/3期 23/3期 運輸業 飲食・宿泊業 サービス業 その他 製造業 卸売・小売業 派遣・業務請負 建設業 Transportation 10,53810,20611,03510,65910,440 10,17410,96310,51010,51114,21513,85614,82614,48914,23313,75014,96614,71214,46528,90427,57029,09328,00127,15826,12128,43427,50326,92327,950 26,749 28,830 29,084 27,602 26,362 28,645 30,267 28,498 37,79636,67338,41236,33534,93134,40936,81036,27535,684 36,47636,06939,39637,69036,54235,77139,64037,87237,032 38,46141,558 46,98448,41850,64052,55158,25758,35460,271 57,12854,90558,23858,46861,00560,64163,09563,19564,661 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 21/3期 22/3期 23/3期 運輸業 飲食・宿泊業 サービス業 その他 製造業 卸売・小売業 派遣・業務請負 建設業 Food service and hospitality 10,53810,20611,03510,65910,440 10,17410,96310,51010,51114,21513,85614,82614,48914,23313,75014,96614,71214,46528,90427,57029,09328,00127,15826,12128,43427,50326,92327,950 26,749 28,830 29,084 27,602 26,362 28,645 30,267 28,498 37,79636,67338,41236,33534,93134,40936,81036,27535,684 36,47636,06939,39637,69036,54235,77139,64037,87237,032 38,46141,558 46,98448,41850,64052,55158,25758,35460,271 57,12854,90558,23858,46861,00560,64163,09563,19564,661 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 21/3期 22/3期 23/3期 運輸業 飲食・宿泊業 サービス業 その他 製造業 卸売・小売業 派遣・業務請負 建設業 Service 10,53810,20611,03510,65910,440 10,17410,96310,51010,51114,21513,85614,82614,48914,23313,75014,96614,71214,46528,90427,57029,09328,00127,15826,12128,43427,50326,92327,950 26,749 28,830 29,084 27,602 26,362 28,645 30,267 28,498 37,79636,67338,41236,33534,93134,40936,81036,27535,684 36,47636,06939,39637,69036,54235,77139,64037,87237,032 38,46141,558 46,98448,41850,64052,55158,25758,35460,271 57,12854,90558,23858,46861,00560,64163,09563,19564,661 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 21/3期 22/3期 23/3期 運輸業 飲食・宿泊業 サービス業 その他 製造業 卸売・小売業 派遣・業務請負 建設業 Others 10,53810,20611,03510,65910,440 10,17410,96310,51010,51114,21513,85614,82614,48914,23313,75014,96614,71214,46528,90427,57029,09328,00127,15826,12128,43427,50326,92327,950 26,749 28,830 29,084 27,602 26,362 28,645 30,267 28,498 37,79636,67338,41236,33534,93134,40936,81036,27535,684 36,47636,06939,39637,69036,54235,77139,64037,87237,032 38,46141,558 46,98448,41850,64052,55158,25758,35460,271 57,12854,90558,23858,46861,00560,64163,09563,19564,661 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 21/3期 22/3期 23/3期 運輸業 飲食・宿泊業 サービス業 その他 製造業 卸売・小売業 派遣・業務請負 建設業 Manufacturing 10,53810,20611,03510,65910,440 10,17410,96310,51010,51114,21513,85614,82614,48914,23313,75014,96614,71214,46528,90427,57029,09328,00127,15826,12128,43427,50326,92327,950 26,749 28,830 29,084 27,602 26,362 28,645 30,267 28,498 37,79636,67338,41236,33534,93134,40936,81036,27535,684 36,47636,06939,39637,69036,54235,77139,64037,87237,032 38,46141,558 46,98448,41850,64052,55158,25758,35460,271 57,12854,90558,23858,46861,00560,64163,09563,19564,661 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 21/3期 22/3期 23/3期 運輸業 飲食・宿泊業 サービス業 その他 製造業 卸売・小売業 派遣・業務請負 建設業 Wholesale / Retail 10,53810,20611,03510,65910,440 10,17410,96310,51010,51114,21513,85614,82614,48914,23313,75014,96614,71214,46528,90427,57029,09328,00127,15826,12128,43427,50326,92327,950 26,749 28,830 29,084 27,602 26,362 28,645 30,267 28,498 37,79636,67338,41236,33534,93134,40936,81036,27535,684 36,47636,06939,39637,69036,54235,77139,64037,87237,032 38,46141,558 46,98448,41850,64052,55158,25758,35460,271 57,12854,90558,23858,46861,00560,64163,09563,19564,661 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 21/3期 22/3期 23/3期 運輸業 飲食・宿泊業 サービス業 その他 製造業 卸売・小売業 派遣・業務請負 建設業 Staffing & outsourcing Construction YoY QoQ +3.6% -3.0% +4.0% -2.0% +0.4% -2.9% +0.7% +0.8% +1.1% -2.0% +0.7% -4.2% +1.4% -3.2% +3.3% -2.0% +13.3% -0.7% +20.2% +1.8%Medical and welfare services
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6. No. of Units Used by Foreign Nationals （Units） The number of units used by foreign national tenants reached a record high of 66,719, representing 14.2% of the total. The number of foreign national tenants in corporate contracts, particularly in the industry of medical and welfare services, wholesale/retail, construction, and food service and hospitality saw firm increase. Chap 2 16 +20.3％ YoY +1.3％ QoQ 32,106 33,321 33,305 36,517 33,842 32,071 31,537 33,201 31,248 31,335 31,537 32,530 35,050 36,816 38,389 42,352 42,373 43,322 43,659 47,565 47,651 49,114 50,109 54,648 55,475 58,142 59,254 65,858 66,719 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 Q1 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Contracts with Individual customers Contracts with corporate customers
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7. Units and Occupancy Rates by PrefectureChap 2 17 Q1 FY2026 Managed units (thousand) Occupancy rate YoY QoQ Hokkaido 13 84% －2 p ＋1 p Aomori 3 84% ＋7 p ＋4 p Iwate 3 88% ＋2 p ＋3 p Miyagi 9 80% ＋2 p －1 p Akita 2 95% ＋7 p ＋5 p Yamagata 3 80% －1 p ＋2 p Fukushima 9 81% ＋1 p －2 p Ibaraki 15 89% ＋3 p －2 p Tochigi 11 83% ＋3 p －1 p Gunma 11 82% ＋2 p －1 p Saitama 44 94% ＋4 p －2 p Chiba 32 94% ＋3 p －3 p Tokyo 41 96% ＋1 p －3 p Kanagawa 39 93% ＋1 p －3 p Niigata 8 81% ＋2 p ＋2 p Toyama 5 89% ＋5 p －0 p Q1 FY2026 Managed units (thousand) Occupancy rate YoY QoQ Ishikawa 5 89% ＋0 p －1 p Fukui 4 85% －6 p ＋1 p Yamanashi 4 95% －0 p ＋0 p Nagano 10 86% －3 p －1 p Gifu 7 83% ＋2 p ＋1 p Shizuoka 23 79% ＋0 p －1 p Aichi 40 86% －1 p －2 p Mie 11 76% ＋6 p －2 p Shiga 8 90% ＋2 p －1 p Kyoto 8 88% －2 p －5 p Osaka 29 90% ＋2 p －2 p Hyogo 21 86% －1 p －3 p Nara 3 84% ＋2 p －2 p Wakayama 3 75% ＋3 p －3 p Tottori 2 77% －1 p －3 p Shimane 2 98% ＋6 p ＋1 p Q1 FY2026 Managed units (thousand) Occupancy rate YoY QoQ Okayama 11 78% －2 p －4 p Hiroshima 13 87% ＋3 p －2 p Yamaguchi 7 80% ＋2 p －1 p Tokushima 2 69% －3 p －1 p Kagawa 4 76% －0 p －2 p Ehime 4 72% －0 p －1 p Kochi 2 79% －0 p －6 p Fukuoka 19 89% ＋1 p －0 p Saga 3 83% ＋5 p ＋2 p Nagasaki 2 76% －1 p －4 p Kumamoto 6 73% －11 p －2 p Oita 4 80% －2 p －3 p Miyazaki 2 73% －14 p －2 p Kagoshima 3 74% －5 p －6 p Okinawa 5 99% －0 p －0 p Total 539 87% ＋1 p －2 p Q1 FY2026 followed the usual seasonal trend across Japan. Occupancy rates in Aomori and Akita increased both YoY and QoQ, driven by a rise in power plant and dam construction projects. Kumamoto and Miyazaki showed decreases both YoY and QoQ due to completion of major construction projects.
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Development Business ConditionsChapter 3
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0% 25% 50% 75% 100% Order Receipt No. of Apartment Units No. of Apartment Buildings Chap 3 19 We expanded the activities in Osaka, Hiroshima and Fukuoka in FY2026. The number of apartment buildings ordered, the number of units ordered, and order value remained solid, all exceeding the prior-year level. 1,900 units 140 apartments JPY 13,400 million 31 YoY＋2 476 YoY＋46 JPY 4,578 million YoY＋JPY 644 million Results for Q1 FY2026 FY2026 Plan 1. Order Receipt Plan and Rate of Progress Rate of Progress 22.1% 25.1% 34.1% No. of Apartment Buildings No. of Apartment Units Order Value
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Chap 3 20 2. Launched New Model Named ArLk Standard with a wall-mounted TV to maximize space. The adjustable mount allows you to position it to suit your lifestyle. For evolving cooking styles, the kitchen features an easy-to-clean tabletop IH cooking heater. Adopts a reinforced ceiling designed to prevent fire spread during a blaze. In addition to improved sound insulation and enhanced fire-resistance performance, it also promotes better constructability. Embrace a new style: versatile single living Built with a reinforced ceiling Removing interior walls reduces construction costs compared to previous models. Connected spaces allow for consistent air conditioning, ensuring uniform comfort. The open design enhances a sense of spaciousness and improves space efficiency. Minimal partitions Sanitary areaWalk-in open closet Move the heater aside to free up the worktop and create more cooking space. Building on our expertise as a leader in studio apartments, we’ve launched the new model created with fresh ideas—free from conventional norms. Designed to redefine single living.
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Appendix
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22 Corporate Data (as of June 30, 2026) Group Companies (as of June 30, 2026) Plaza Guarantee Rent guarantee Established August 17, 1973 Paid-in Capital JPY 100 million Representative Director Bunya Miyao, President and CEO Employees 4,323 (consolidated), 2,832 (non-consolidated) Authorized Shares 750,000,000 Outstanding Shares 334,415,678 Shareholders 32,047 (as of March 31, 2026) Business Model Providing apartment units equipped with furniture and appliances 72% of the listed companies have used Leopalace21’s services Leopalace Guam Co. Resort Business Leopalace Smile Special subsidiary Azu Life Care Elderly care service Leasing Leopalace Leasing Corporate housing agent Leopalace Power Power generation ASUKA SSI Tenant contents insurance Leopalace21 Singapore Pte. Ltd. Investment management * Results of the International Business are reported under the Leasing Business segment. Leopalace21 Business Consulting (Shanghai) Tenant recruitment Leopalace Green Energy Sustainable Energy Provider International* Elderly Care Others 1. Corporate Profile Azu Residence Elderly care service
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334.5 342.3 355.7 379.0 383.6 388.5 399.3 410.6 421.3 435.5 426.3 388.9 391.9 383.0 391.4 407.4 416.9 429.6 359.1 237.0 107.8 62.9 53.3 63.1 61.3 74.1 80.3 76.5 58.9 23.8 733.2 620.3 483.5 458.2 454.2 470.8 483.2 511.5 520.4 530.8 505.2 433.5 408.9 398.3 406.4 422.6 431.8 444.8 50.1 (29.7) (24.4) 3.3 7.4 13.4 14.8 21.0 22.8 22.9 7.3 (36.4) (29.1) 1.7 9.8 23.3 29.2 36.2 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Leasing Developmet Others Operating profit 23 Leopalace21 shifted its business model to center on the Leasing Business after the global financial crisis. With construction defects problem coming to light in FY2018and another blow by COVID-19 impact starting from FY2020, implementing continuous structural reforms turned operating profit in five consecutive years from FY2021. (JPY billion) Recorded two consecutive operating losses due to the global financial crisis Shifted the business model to center on the Leasing Business aiming for mid- to long-term stable earnings structure Construction defects problem came to light Continuous structural reforms 2. Results Trend COVID-19 Impact * Figures for FY2025 are presented on a restated basis following the accounting policy change effective from the beginning ofQ1 FY2026.
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(JPY million) FY2025 Actual* FY2026 Plan FY2027 PlanChange Amount Change % Change Amount Change % Net sales 444,820 465,000 +20,179 +4.3% 477,800 +12,800 +7.4% Cost of sales 355,346 368,200 +12,853 +3.5% 374,600 +6,400 +5.4% Gross profit 89,473 96,800 +7,326 +7.6% 103,200 +6,400 ＋15.3% % 20.1% 20.8% ー +0.7 p 21.6% ー +0.8 p SG&A 53,242 58,300 +5,057 +8.7% 60,100 +1,800 ＋12.9% Operating profit 36,231 38,500 +2,268 +5.9% 43,100 +4,600 ＋19.0% % 8.1% 8.3% ー +0.2 p 9.0% ー +0.7 p Recurring profit 35,107 38,100 +2,992 +7.9% 42,700 +4,600 ＋21.6% Net income 15,097 22,200 +7,102 +32.0% 25,000 +2,800 ＋65.6% Both net sales and profits are expected to increase due to the Development Business expansion and the rising average unit rent for all occupied units in the Leasing Business. 3. Earnings Forecasts * Figures for FY2025 are presented on a restated basis following the accounting policy change effective from the beginning ofQ1 FY2026. 24
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90 95 100 105 110 115 120 125 65% 70% 75% 80% 85% 90% 95% 100% Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 PlanFY2027 Plan Occupancy rate Average unit rent for new contracts 25 COVID-19 impact Revelation of construction defects problem Implementing price- focused strategy The average unit rent for new contracts has been on an upward trend, driven by the price-focused strategy implemented starting in FY2023 and the elevated average unit rent achieved by the corporate contracts in FY2025. Implementing occupancy rate boosting measures Occupancy Rate Average unit rent for new contracts (Apr 2016 set as 100) Strengthening corporate sales 4. Occupancy Rate and Ave. Unit Rent for New Contracts Trends
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526 1,524 1,900 3,500 FY2024 FY2025 FY2026 Plan FY2027 Plan 34 107 140 250 FY2024 FY2025 FY2026 Plan FY2027 Plan Changes in no. of apartment units under management Promoted a slower decline in the number of apartment units under management and reduced the average age of apartment buildings through rebuilding existing apartments and land-set sales. Order intake: no. of apartment buildings Order intake: no. of apartment units FY2024 546,000 FY2025 540,000 FY2026 (plan) 537,000 FY2027 (plan) 534,000 5. Development Business Plan 26
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6. Revision of management Indicators ROE = Net income / Average shareholders’ equity during the period ROIC = NOPAT (Net Operating Profit After Tax) / Average invested capital duringthe period (interest-bearing debt + shareholders’ equity) EPS = Net income / Average number of shares outstanding during the period EBITDA = Operating income + Depreciation and amortization DEBT to EBITDA Ratio = interest-bearing debt at period-end / EBITDA Profitability Financial Soundness Capital Efficiency FY2025 Actual* FY2026 Plan FY2027 Plan** ROE* 24.7% 44% 37% ROIC* 27.8% 33% 30% EPS JPY 45.63 JPY 69.87 JPY 78.68 EBITDA (JPY million) 40,585 41,900 46,800 Debt to EBITDA Ratio 0.8x 0.8x 0.7x * Figures are presented on a restated basis following the accounting policy change effective from the beginning of Q1 FY2026. ** Excludes the impact of the new lease accounting standard scheduled to be adopted from FY2027. 27
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28 We paid an annual dividend of JPY 10 for FY2025, and intend to increase it to JPY 15 for FY2026, with a target dividend payout ratio of 30% for FY2027. Dividend Policy Dividend per share 7. Shareholder Return ◆ We plan to utilize cash generated from the growth of the Leasing Business to implement stable shareholder returns. ◆ We aim to continue stable dividends while balancing investment in growth and shareholder returns. End of Q2 End of FY Total Dividend payout ratio (Consolidated) FY2024 JPY 5.00 JPY 5.00 JPY 10.00 17.8% FY2025 JPY 5.00 JPY 5.00 JPY 10.00 21.9%* FY2026 (Forecast) JPY 5.00 JPY 10.00 JPY 15.00 21.5% Dividend payout ratio 17.8% FY2024 Dividend payout ratio 30% （Target） FY2027 * Figures for FY2025 are presented on a restated basis following the accounting policy change effective from the beginning ofQ1 FY2026.
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⚫Type and no. of shares issued Common stock 84,507,000 shares ⚫Issue Price JPY 142 per share 1. Issuance of New Shares through Third Party Allotment Approx. JPY 12.0 billion ⚫Type and no. of shares issued Class A Preferred Stock 750,000 shares ⚫Dividend 7% 3. Issuance of Preferred Stock by a Consolidated Subsidiary, Leopalace Power JPY 15.0 billion 2. Issuance of Stock Acquisition Rights in Connection with Loan Approx. JPY 30.2 billion [Loan] ⚫Amount of loan JPY 30.0 billion Refinanced from Mizuho Bank (As of March 7, 2025) 【Stock Acquisition Rights】 ⚫Total no. of stock acquisition rights 159,748,700 units ⚫No. of dilutive stocks 163,196,513 shares* 2020 2025 ⚫Tender offer price JPY 522 ⚫No. of shares acquired 137,072,803 shares (No. of shares acquired ①: Equivalent to 134,176,899 Stock Acquisition Rights) Tender offer for Treasury Stock Total acquisition amount: Approx. JPY 71.6 billion ⚫Acquisition price JPY 383 ⚫No. of dilutive shares 26,123,710 shares * (No. of shares acquired ②: 25,571,801 Stock Acquisition Rights) Repurchase of Treasury Stock Acquisition Rights Total acquisition amount: Approx. JPY 10.0 billion *Taking into account the no. of additional shares to be issued for stock acquisition rights, based on the terms and conditions of the 5th series stock acquisition rights. To alleviate concerns about dilution related to the exercise of stock acquisition rights, we executed a Tender Offer for Treasury Stock, Repurchase of Treasury Stock Acquisition Rights and Cancellation of Treasury Stock. 29 ⚫Date of Change September 30, 2025 ⚫No. of shares held after sale 50,507,600 shares Partial Sale of Share 34,000,000 shares ⚫No. of acquired shares: 302,500 ⚫No. of remaining shares: 447,500 (As of June 30, 2026) Treasury Stock Acquisition by Leopalace Power Cancelled 132,046,640 shares of treasury stock on September 29, 2025 Cancelled treasury stock acquisition rights on June 30, 2025 8. Outline of the Capital Strategy Related to Fortress (2020-2025)