Hulic : Financial Information for the Third Quarter of FY2023 (January~September) 【SUMMARY】
October 27, 2023 at 04:15 am EDT
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October 27, 2023 Company Name: Hulic Co., Ltd.
(3003JP TSE Prime) President: Takaya MAEDA
Contact: naruse.mayumi@hulic.co.jp
Financial Information for the Third Quarter of FY2023 (January~September)
【SUMMARY】
Summary of FY2023Q3 Performance Results
(JPY Billion)
FY2023 Guidance
FY2023Q3
FY2022Q3
Change
%Change
FY2022
Revised
In January
Operating Revenue
278.5
399.2
-120.6
-30.2%
523.4
470.0
na
Operating Profit
90.9
77.2
13.6
17.7%
126.1
143.0
140.0
Ordinary Profit
83.5
76.0
7.5
9.8%
123.2
134.0
132.0
Net Income
58.6
48.6
10.0
20.6%
79.1
90.0
86.5
Annual dividend per share
Intrim
Intrim
42.0 yen
48.0 yen
46.0 yen
23.0 yen
20.0 yen
Executive Summary
Leasing & management, etc.: , Transaction: , Hotel/Ryokan: Market cap topped JPY 1.0Tn on August 31, 2023.
Highlights
Q3 results were in line with our plan as overall real estate fundamentals remained unchanged.
Operating revenue fell absent large-scale transactions in the same period last fiscal year. Operating profit from leasing & management, etc.: steady earnings underpinned by acquisitions and completion of properties were offset by absence of one-off in FY2022. Sales profit gained reflecting favorable transaction market.
Operating profit of Hotels/Ryokans (subsidiaries) recorded JPY 0.7Bn, an increase of JPY 5.7Bn YoY, the pace of recovery further accelerated in Q3.
Announced upward revision of its annual guidance, EPS will be JPY 118.28. Annual dividend per share was also revised upward to JPY 48.0, which brings the payout ratio to 40.5%.
II. Major KPIs
(Japanese Yen)
2020/12
2021/12
2022/12
2023/9
NIKKEI Index
27,444
28,792
26,095
31,857.62
HULIC share price (close)
1,133.00
1,092.00
1,040.00
1,341.00
Market capitalization
763.5 Bn
838.6 Bn
798.6 Bn
1,029.7 Bn
Payout ratio
37.8%
38.5%
40.3%
na
EPS
95.23
101.09
104.00
na
BPS
728.31
836.89
902.70
960.28
Unrealized value of leasing assets
353.0 Bn
364.6 Bn
375.8 Bn
na
III.
Key notes
Macro environment in Japan
₋
Real estate fundamentals
Tokyo office average rents have declined for 38 consecutive
months. Vacancy rate decreased to 6.1% in Tokyo central 5 wards as positive moves including absorption at newly completed buildings and relocation for expansion were observed. Hulic continued to manage its rents higher than the market and vacancy rates below 1.0%. Transaction market remained robust on the back of land price appreciation and abundant liquidity while cap rate remained stable.
The BOJ continued its easy money policy while uncertainty overhung the direction of monetary policy of central banks elsewhere.
Others
Acquisition: Acquired focus area assets and properties with stable cashflows and value-add potential.
Development: Completion of properties counts 14 this year. Leasing is steadily progressing.
Market cap: Topped JPY 1.0Tn on August 31, 2023.
END
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Hulic Co. Ltd. published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2023 08:14:02 UTC.
Hulic Co Ltd is a Japan-based company mainly engaged in the real estate business and insurance business. It operates through two business segments. Real Estate segment has three kinds of business. The real estate leasing business manages approximately 250 rental properties (excluding real estate for sale) that are owned and managed mainly near stations in the 23 wards of Tokyo. Real estate development business is performed according to the characteristics of the property location. Asset management business is entrusted with asset management business. It also provides real estate rental, building management and cleaning business. The Insurance segment is engaged in non-life insurance agency business such as fire insurance and automobile insurance, life insurance such as fixed-term insurance and endowment insurance, and solicitation business. It is also engaged in the design, repair and construction work on owned buildings, hotel and inn management and agricultural production in Vietnam.