LogProstyle Reports First Half Fiscal Year 2026 Results

Core Viewpoint - LogProstyle Inc. reported its first half fiscal year 2026 financial results, showing resilience in its business model despite a slight decline in revenue, with significant margin expansion and profit growth attributed to effective cost management and a strong hospitality sector driven by inbound tourism [2][3][4]. Financial Performance - Revenue for the first half of fiscal year 2026 was JPY10,324 million (US$69.8 million), a decrease of 2% from JPY10,518 million in the previous year [3][4]. - Gross profit increased by 25% to JPY2,196 million (US$14.8 million), with gross margin expanding by 463 basis points to 21.3% from 16.6% [4][5]. - Operating income rose by 31% to JPY884 million (US$6 million), with operating margin increasing by 217 basis points to 8.6% [4][6]. - Net income for the period reached JPY494 million (US$3.3 million), up 34% from JPY369 million [7][4]. - Basic earnings per share increased by JPY3.85 to JPY20.90 (US$0.14), and diluted earnings per share rose by JPY3.63 to JPY20.68 (US$0.14) [7][4]. Revenue Breakdown - Real estate revenue was JPY9,498 million (US$64.2 million), showing stability compared to JPY9,627 million in the previous year, with a slight decline attributed to fewer units sold [3][15]. - Hotel revenue increased by 10.7% to JPY642 million (US$4.3 million), driven by improved occupancy rates from 68.2% to 70.8% and higher average daily rates [5][15]. Operational Highlights - The company is focused on strengthening its balance sheet, accelerating development pipelines, and enhancing operational efficiency [2]. - LogProstyle announced plans for a new hotel in Asakusa, Tokyo, expected to open in October 2028, expanding its presence in key tourism markets [11]. - The company engaged Mitsubishi UFJ Morgan Stanley Securities to enhance liquidity and access to global investors [11]. Cash and Assets - Cash and cash equivalents decreased to JPY1,161 million (US$7.8 million) from JPY2,121 million at the end of the previous fiscal year [8]. - Total assets increased to JPY23,354 million from JPY22,484 million, with total liabilities rising to JPY19,383 million [10].