TOKYO--(BUSINESS WIRE)--July 07, 2025--
LogProstyle Inc. (NYSE American: LGPS) (the "Company" or "LogProstyle"), a leading real estate renovation and resale, development, hotel and restaurant management company, today announced its financial results for the fiscal year ended March 31, 2025. References in this earnings release to "JPY" or "Yen" are to Japanese yen and "US$" is to United States dollar. Convenience translations included in this earnings release of Japanese yen into United States dollars have been made at the exchange rate of Yen149.90 = US$1.00, which was the foreign exchange rate on March 31, 2025. Highlights for the 2025 period compared to 2024 include:
-- Total revenue of JPY20,651 million (US$138 million) for the fiscal year of 2025, up 46% compared with JPY14,122 million in fiscal year 2024. -- Real estate revenue of JPY18,819 million (US$126 million) increased by 52% over the previous year. -- The number of real estate units sold was 187 units, an increase of 89 units from the previous year, of which 102 units were new condominium development units, an increase of 62 units from 2024. The number of renovated condominium units sold was 40, representing a decrease of two units from the previous year. -- Hotel revenue reached JPY1,249 million (US$8 million), up 20% from the previous year. -- Occupancy rate increased by 390 basis points to 74.7%, while average daily rate $(ADR.AU)$ for hotels operated by the company decreased by 13%. -- Gross profit reached JPY3,559 million (US$24 million), an increase of 34% from fiscal year 2024. -- Operating income of JPY1,343 million (US$9 million), up 43% from JPY939 million. Operating margin steady at 6.5%. -- EBITDA of JPY1,487 million (US$10 million) , up 45% from JPY1,019 million. -- Net income increased 133% to JPY754 million (US$5 million) from JPY324 million, and earnings per share grew by JPY19.39 to JPY34.76 (US$0.23 ). -- Equity ratio reached 15.6%, a 733 basis point improvement from 2024.
Reconciliation of Operating Income to EBITDA
(US$ and Yen in million)
Years Ended March 31,
-----------------------------------
2025 2025 2024
-------- ----------- ----------
Ye
Operating income US$ 9 n 1,343 Yen 938
Depreciation and amortization US$ 1 144 81
---------------- ----- --- -----
Ye
EBITDA US$ 10 n 1,487 Yen 1,019
EBITDA is a non-GAAP financial measure. Management believes that EBITDA provides useful information for investors to evaluate the Company's operating performance and cash-generating ability. It is also used by management for internal purposes, including performance evaluation and budgeting.
EBITDA is not a measure defined under US-GAAP or IFRS and may not be comparable to similar metrics disclosed by other companies.
Results Summary for Fiscal Year 2025
US$ and Yen (in millions except per share data, occupancy rate and average
daily rate)
---------------------------------------------------------------------------
%
2025 2025 2024 Change
---------------- ------------- ------------- ------------- -------------
Revenue US$138 Yen20,650 Yen14,122 46%
---------------- ------------- ------------- ------------- -------------
Gross Profit US$24 Yen3,559 Yen2,652 34%
---------------- ------------- ------------- ------------- -------------
Gross Margin 17.2% 17.2% 18.8% (154) bps
---------------- ------------- ------------- ------------- -------------
Operating Income US$9 Yen1,343 Yen939 43%
---------------- ------------- ------------- ------------- -------------
Operating Margin 6.5% 6.5% 6.7% (14) bps
---------------- ------------- ------------- ------------- -------------
EBITDA US$ 10 Yen1,487 Yen1,019 45%
---------------- ------------- ------------- ------------- -------------
Net Income US$5 Yen754 Yen324 133%
---------------- ------------- ------------- ------------- -------------
Basic & Diluted
EPS US$0.23 Yen34.76 Yen15.37 Yen19.39
---------------- ------------- ------------- ------------- -------------
Occupancy rate 74.7% 74.7% 70.8% 390 bps
---------------- ------------- ------------- ------------- -------------
Average Daily
Rate US$133.42 Yen20,000 Yen23,000 (13)%
---------------- ------------- ------------- ------------- -------------
Yasuyuki Nozawa, Representative Director, President and CEO of LogProstyle said, "Fiscal year 2025 was a transformative year for LogProstyle, marked by the historic milestone as the first unlisted Japanese company to list its Japanese common shares directly on the NYSE American instead of through American Depository Receipts. Our revenue surged by 46% driven by robust demand across our core business, and net income more than doubled, validating our sustainable growth trajectory. We took decisive steps to expand our global footprint beyond the borders of Japan. We believe these initiatives properly position us to introduce authentic Japanese hospitality and lifestyle experiences on an international scale. As we look ahead, we remain committed to delivering value to shareholders through continued innovation, operational excellence, and strategic execution. I am grateful to our dedicated employees, partners, and customers for their trust and support as we redefine life style and set new standards for sustainable growth."
Financial highlights:
Revenue for the fiscal year ended March 31, 2025 reached JPY20,651 million (US$138 million), an increase of 46% versus the year ago period of 2024. Real estate generated JPY18,819 million (US$126 million) in revenue, up 52% compared with JPY12,411 million in the year ago period, driven primarily by a 73% increase in the number of units sold. Hotel revenue reached JPY1,249 million (US$8 million), an increase of 20% versus JPY1,044 million in the same period of 2024. Revenue growth from the hotel segment was supported by occupancy rate expansion of 390 basis points while average daily rate (ADR) declined 13.0% compared to fiscal year 2024. Other revenue for the fiscal year 2025 of JPY583 million (US$4 million) compared to JPY666 million in fiscal year 2024.
Gross profit increased by 34% to JPY3,559 million (US$24 million) in fiscal year 2025, up from JPY2,652 million in 2024, with gross margin declining 154 basis points to 17.2% from 18.8% in fiscal year 2024.
Operating expenses increased by 29% to JPY2,217 million (US$15 million) from JPY1,713 million in fiscal year 2024. The increase in operating expenses was driven by higher payroll costs and brokerage fees. Operating income in fiscal year 2025 was JPY1,343 million (US$9 million), an increase of 43% compared with the JPY939 million in fiscal year 2024. Operating margin of 6.5% was roughly flat with the 6.6% operating margin in fiscal year 2024, supported by revenue growth and diligent expense management.
Net income for fiscal year 2025 reached JPY754 million (US$5 million), up 133% compared with the JPY324 million in fiscal year 2025. Basic and diluted earnings per share increased by Yen19.39 (US$0.23) to Yen34.76 in fiscal year 2025.
EBITDA reached JPY1,487 million (US$10 million) in fiscal year 2025, up 45% over fiscal 2024.
Cash and cash equivalents of JPY2,121 million (US$14 million) at March 31, 2025 compared with JPY1,218 million at March 31, 2024.
Real Estate:
During the fiscal year of 2025, LogProstyle sold 187 units, up from the 98 units sold in the year ago period. The number of new condominium units sold increased by 62 units from 40 units in the fiscal year ended March 31, 2024 to 102 units in the fiscal year ended March 31, 2025. The number of renovated condominium units sold decreased by two units from 42 units in the fiscal year ended March 31, 2024 to 40 units in the fiscal year ended March 31, 2025.
Hotel Management:
As of March 31, 2025, LogProstyle operated 4 hotels with 210 collective rooms. Occupancy rates for the fiscal year 2025 reached 74.7% compared with 70.8% in 2024 while ADR of JPY20 thousand declined 13% from JPY23 thousand in 2024.
Operational highlights:
--
Inline with the Company's ongoing commitment of returning value to
shareholders, in May of 2025 the Board of Directors approved a proposal
to distribute a cash dividend of US$0.023 per share, or US$543 thousand
in the aggregate. The proposal was submitted for shareholder approval at
the Annual General Meeting on June 30, 2025, and was approved. The
dividend is payable on August 5, 2025, to shareholders of record as of
July 7, 2025, with an ex-dividend date of the same day.
--
In December 2024, LogProstyle established its new subsidiary,
"LogProstyle US Inc.", headquartered in Las Vegas, Nevada, USA, to
support its global expansion strategy. The subsidiary will focus on
introducing authentic Japanese hospitality and culinary experiences to
the U.S. market through hotel operations, food services, and real estate
development. This initiative marks a key step in the Company's efforts to
expand its cultural brand presence internationally.
--
On April 5, 2025, LogProstyle signed a Memorandum of Association (MoA)
with the Dubai Department of Economy and Tourism (DET) and established a
new entity, "Logprostyle Inc For Hotel Management CO. L.L.C S.O.C"
(LogProstyle Dubai). With the objective of broadening its international
expansion, the strategic entry into the United Arab Emirates will serve
as an important growth catalyst for the company.
Financial Results:
The Company has posted a presentation of the fiscal year 2025 results today, July 7, 2025. The presentation and accompanying slides can be found on the LogProstyle website at https://ir.logprostyle.co.jp/presentations/
LogProstyle Inc.
CONSOLIDATED BALANCE SHEETS
(Yen in thousands, except share data)
March 31, March 31,
2025 2024
---------------- ---------------
ASSETS
Current assets
Cash and cash equivalents Yen 2,120,515 Yen 1,218,241
Trade notes and accounts receivable,
net 138,373 181,808
Inventories, net 13,612,387 13,518,460
Consumption tax receivable 5,749 69,388
Short-term investments 182,030 38,801
Other current assets 353,579 232,790
---------- --- ----------
Total current assets 16,412,633 15,259,488
---------- --- ----------
Non-current assets
Property, plant and equipment, net 357,527 426,865
Operating lease right-of-use assets 4,481,941 4,703,805
Software 27,792 16,692
Leasehold and guarantee deposits 465,968 346,408
Deferred tax assets 458,767 383,158
Other non-current assets 363,608 73,852
Allowance for credit losses (84,048) -
---------- --- ----------
Total non-current assets 6,071,555 5,950,780
---------- --- ----------
Total assets Yen 22,484,188 Yen 21,210,268
--- ---------- --- ----------
LIABILITIES
Current liabilities
Accounts payable Yen 597,708 Yen 306,153
Accrued expenses 112,661 214,897
Short-term loans 1,885,259 2,574,734
Current portion of bonds 28,620 49,270
Current portion of long-term loans 4,025,343 6,065,020
Operating lease liabilities, current 463,129 558,529
Finance lease liabilities, current 8,400 6,083
Contract liabilities 252,260 352,651
Income taxes payable 248,885 66,323
Other current liabilities 254,956 205,314
---------- --- ----------
Total current liabilities 7,877,221 10,398,974
---------- --- ----------
Non-current liabilities
Bonds - 28,620
Long-term loans 6,858,607 4,559,117
Operating lease liabilities,
non-current 4,090,933 4,307,338
Finance lease liabilities,
non-current 19,062 11,684
Deferred tax liabilities - 18,633
Other non-current liabilities 121,146 123,085
---------- --- ----------
Total non-current liabilities 11,089,748 9,048,477
---------- --- ----------
Total liabilities Yen 18,966,969 Yen 19,447,451
--- ---------- --- ----------
SHAREHOLDERS' EQUITY
Common shares: 81,498,000
shares authorized, 23,652,110
and 21,652,110 shares issued
and 23,628,452 and 21,628,452
shares outstanding as of
March 31, 2025 and 2024 with
no stated value. Yen 924,817 Yen 235,001
Capital Surplus 1,445,333 755,517
Additional paid in capital (238,115) 148,392
Retained earnings 1,397,387 643,766
Treasury shares (2,539) (2,539)
Accumulated other comprehensive loss (9,664) (17,320)
---------- --- ----------
Total shareholders' equity 3,517,219 1,762,817
---------- --- ----------
Total liabilities and equity Yen 22,484,188 Yen 21,210,268
--- ---------- --- ----------
LogProstyle Inc.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Yen in thousands, except share and per share data)
Fiscal Year Fiscal Year Fiscal Year
Ended Ended Ended
March 31, 2025 March 31, 2024 March 31, 2023
----------------- ---------------- ----------------
Revenue: Yen 20,650,916 Yen 14,121,840 Yen 13,264,408
Cost of revenue (17,091,646) (11,469,951) (10,744,926)
----------- --- ----------- --- -----------
Gross profit 3,559,270 2,651,889 2,519,482
Operating expenses
Selling, general and
administrative
expenses (2,216,754) (1,713,388) (1,602,627)
----------- --- ----------- --- -----------
Total operating expenses (2,216,754) (1,713,388) (1,602,627)
Operating income 1,342,516 938,501 916,855
Other income
(expenses):
Interest expenses (209,971) (422,769) (315,511)
Other income, net 15,699 4,227 3,823
----------- --- ----------- --- -----------
Total other
expenses (194,272) (418,542) (311,688)
Income before income
taxes 1,148,244 519,959 605,167
Income tax expenses (394,623) (196,354) (251,142)
----------- --- ----------- --- -----------
Net income 753,621 323,605 354,025
Other
comprehensive
income (loss)
Foreign currency
translation adjustment 7,656 (7,273) 3,588
----------- --- ----------- --- -----------
Total comprehensive
income Yen 761,277 Yen 316,332 Yen 357,613
=== =========== === =========== === ===========
Earnings per
share:
Basic and
Diluted Yen 34.76 Yen 15.37 Yen 17.38
Weighted average
number of shares
of common stock
outstanding
Basic and Diluted 21,679,507 21,053,384 20,374,500
LogProstyle Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Yen in thousands)
Fiscal Year Fiscal Year Fiscal Year
Ended Ended Ended
March 31,2025 March 31,2024 March 31,2023
----------------- --------------- ---------------
Cash flows from
operating
activities:
Net income Yen 753,621 Yen 323,605 Yen 354,025
Depreciation and
amortization 144,087 87,027 81,641
Amortization of debt
issuance costs 84,928 40,787 17,486
Deferred income taxes 91,910 76,049 117,730
Provision of allowance
for credit losses 84,048 - -
Changes in
operating assets
and liabilities:
Decrease (increase)
in trade notes and
accounts receivable,
net 43,435 (43,872) (45,176)
(Increase) in
inventories, net (93,927) (2,944,684) (2,907,401)
Decrease (increase)
in consumption taxes
receivable 63,639 239,859 (268,119)
(Increase) decrease
in prepaid expenses (44,678) 16,533 (31,212)
(Increase) decrease
in advances to
vendors (70,369) 7,295 (25,086)
(Increase) in
leasehold and
guarantee deposits (119,560) (3,538) (10,238)
(Decrease) in
accounts payables (40,412) (194,318) (502,185)
(Decrease) increase
in accrued expenses (102,236) 105,822 14,168
Increase (decrease)
in income taxes
payable 182,562 (48,438) 52,003
(Decrease) increase
in contract
liabilities (100,391) 207,881 (569,033)
Increase (decrease)
in deposits
received 20,510 (11,878) 32,968
Other, net (92,530) 58,597 33,113
----------- --- ---------- --- ----------
Net cash flows
provided by (used
in) operating
activities 804,637 (2,083,273) (3,655,316)
----------- --- ---------- --- ----------
Cash flows from
investing
activities:
Purchase of short-term
investments (367,150) (13,800) (60,001)
Proceeds from sales of
short-term investments 223,921 50,000 128,050
Purchases of property,
plant and equipment,
net (37,464) (42,145) (24,979)
Purchases of software (19,563) (3,186) (6,779)
Purchases of long-term
investments (270,000) - -
Purchases of investment
securities - (800) (20,034)
Other, net (5,599) (3,607) 1,594
----------- --- ---------- --- ----------
Net cash flows
provided by (used
in) investing
activities (475,855) (13,538) 17,851
----------- --- ---------- --- ----------
Cash flows from
financing
activities:
(Decrease) increase in
short-term borrowings,
net (685,830) (283,069) 857,179
Borrowings from
long-term loans 12,946,844 9,687,048 7,656,000
Repayments for long-term
loans (12,708,107) (6,628,349) (5,224,864)
Proceeds from issuance
of bonds - - 100,000
Redemption of bonds (49,270) (49,309) (59,954)
Payments for finance
leases (8,664) (7,505) (5,277)
Payment for debt
issuance costs (67,498) (78,844) (48,512)
Proceeds from issuance
of shares 1,379,632 270,002 -
Proceeds from sale of
treasury shares - - 301,539
Payments of listing
expenses (235,037) - -
----------- --- ---------- --- ----------
Net cash flows
provided by
financing
activities 572,070 2,909,974 3,576,111
----------- --- ---------- --- ----------
Effect of exchange rate
changes on cash, cash
equivalents and restricted
cash 1,422 (7,273) 3,590
----------- --- ---------- --- ----------
Net increase (decrease) in
cash and cash equivalents 902,274 805,890 (57,764)
----------- --- ---------- --- ----------
Cash and cash equivalents
at the beginning of the
year 1,218,241 412,351 470,115
Cash and cash
equivalents at the
end of the year Yen 2,120,515 Yen 1,218,241 Yen 412,351
--- ----------- --- ---------- --- ----------
SUPPLEMENTAL CASH
FLOW INFORMATION:
Cash paid for
interest Yen 476,650 Yen 497,731 Yen 391,364
Cash paid for taxes Yen 127,857 Yen 179,888 Yen 87,905
LogProstyle Inc.
REVENUE BY BUSINESS SEGMENT
(Yen in thousands)
Fiscal Year Ended Fiscal Year Ended
March 31,2025 March 31,2024 YoY %
------------------- ------------------- ------
Real Estate Yen 18,819,041 Yen 12,411,288 52 %
Hotel 1,248,784 1,044,267 20 %
Other 583,091 666,285 (12) %
------------ ---- ------------- ------
Total
Revenue Yen 20,650,916 Yen 14,121,840 46 %
---- ------------ ---- ------------- ------
Forward-Looking Statements Disclaimer:
This press release contains"forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the Company's proposed dividend, the AGM, the Company's future financial performance, capital allocation, and shareholder return strategy. These statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed or implied in the forward-looking statements. These risks and uncertainties include, but are not limited to, general economic conditions, changes in market conditions, shareholder approval at the AGM, and other factors described in the Company's filings with the U.S. Securities and Exchange Commission, including the risks detailed in the Company's annual report on Form 20-F filed with the SEC on July 7, 2025. Forward-looking statements speak only as of the date they are made and the Company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this press release, except as required by applicable law. Any references to our website have been provided as a convenience, and the information contained on such website is not incorporated by reference into this press release.
About LogProstyle Inc.
LogProstyle Inc. is involved in a wide range of businesses, including real estate development, hotel management, and restaurant management. With the slogan "redefine life style," the Company is working on various projects with the aim of illustrating an innovative and sustainable lifestyle. LogProstyle is the first unlisted Japanese company to list its Japanese common shares directly on a major United States stock exchange rather than through American Depositary Receipts (ADRs).
View source version on businesswire.com: https://www.businesswire.com/news/home/20250707591893/en/
CONTACT: LogProstyle Inc., Investor Relations, ir@logprostyle.co.jp
Hayden IR, Investor Relations, corbin@haydenir.com
(END) Dow Jones Newswires
July 07, 2025 08:12 ET (12:12 GMT)