TOKYO--(BUSINESS WIRE)--December 22, 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 first half fiscal year 2026 financial results for the period ended September 30, 2025. References in this earnings release to "JPY" or "Yen" refer to Japanese yen and "US$" refers to United States dollars. Convenience translations included in this earnings release of Japanese yen into United States dollars have been made at the exchange rate of Yen147.97 = US$1.00, which was the foreign exchange rate on September 30, 2025.
First Half Fiscal Year 2026 Summary
(First half fiscal year 2026 results for the six-month period ended September 30, 2025, compared to the comparable six-month period of 2024)
-- Total revenue of JPY10,324 million (US$69.8 million) compared to
JPY10,518 million.
-- Gross profit increased 25% to JPY2,196 million (US$14.8 million),
margin expansion of over 460 basis points to 21.3% from 16.6%.
-- Operating income reached JPY884 million (US$6 million), up 31% from
JPY673 million. Operating margin increased by 217 basis points to 8.6%
from 6.4%.
-- Net income increased 34% to JPY494 million (US$3.3 million) from JPY369
million. Basic earnings per share grew by JPY3.85 to JPY20.90 (US$0.14),
and diluted earnings per share grew by JPY 3.63 to JPY 20.68 (US$0.14).
-- Equity ratio expanded by 136 basis points to 17.0%.
Results Summary for the First Half Fiscal Year 2026
------------------------------------------------------------------------------
(US$ and Yen in
millions except 1H FY2026 1H FY2026 1H FY2025
per share data) ($USD) (YenJPY) (YenJPY) YoY Change
----------------- -------------- -------------- -------------- -----------
Revenue US$69.8 Yen10,324 Yen10,518 (2)%
----------------- -------------- -------------- -------------- -----------
Gross Profit US$14.8 Yen2,196 Yen1,750 25%
----------------- -------------- -------------- -------------- -----------
Gross Margin 21.3% 21.3% 16.6% 463 bps
----------------- -------------- -------------- -------------- -----------
Operating Income US$6.0 Yen884 Yen673 31%
----------------- -------------- -------------- -------------- -----------
Operating Margin 8.6% 8.6% 6.4% 217 bps
----------------- -------------- -------------- -------------- -----------
Net Income US$3.3 Yen494 Yen369 34%
----------------- -------------- -------------- -------------- -----------
Basic EPS US$0.14 Yen20.90 Yen17.05 Yen3.85
----------------- -------------- -------------- -------------- -----------
Diluted EPS US$0.14 Yen20.68 Yen17.05 Yen3.63
----------------- -------------- -------------- -------------- -----------
Yasuyuki Nozawa, Representative Director, President and CEO of LogProstyle said, "Our performance in the first half of fiscal year 2026 demonstrates the resilience of our business model and the continued progress across our core real estate and hospitality business lines. Despite modest revenue declines, we delivered material margin expansion and profit generation, largely attributed to disciplined cost management and proven track record navigating the Japanese real estate market. We are pleased with the performance of our hospitality business, with robust inbound tourism driving improved occupancy and higher average daily rates. As we look ahead to the back-half of the year, we remain focused on strengthening our balance sheet, accelerating our development pipelines, and enhancing operational efficiency. Our strategic priorities remain centered on long-term sustainable growth and value creation for our shareholders."
Financial highlights:
Revenue for the first six months of fiscal year 2026 in the period ended September 30, 2025, reached JPY10,324 million (US$69.8 million), declined slightly by 2% compared to JPY10,518 million in the year ago period. Real estate generated JPY9,498 million (US$64.2 million) in revenue, roughly stable versus JPY9,627 million in the year ago period. The moderate decline in real estate revenue was driven primarily by a reduction in the number of units sold, partially offset by an increase in sales of new real estate development projects. Hotel revenue of JPY642 million (US$4.3 million), increased by 10.7% compared to JPY580 million in the comparable year-ago period. Revenue growth was driven by an increase in occupancy rates from 68.2% to 70.8% in the six months ended September 30, 2025, and the higher average daily rates which increased from JPY19.6 thousand (US$130) to JPY21.4 thousand (US$140).
Gross profit increased by 25% to JPY2,196 million (US$14.8 million), up from JPY1,750 million, with gross margin expanding by 463 basis points to 21.3% from 16.6% in the prior year period. The gross margin expansion was supported by diligent cost controls and pricing power, partially offset by lower revenue.
Operating expenses increased by 22% to JPY1,311 million (US$8.9 million) from JPY1,077 million in the prior-year period. The increase in operating expenses was driven by costs associated with being a public company, and higher payroll costs. Operating income reached JPY884 million (US$6 million), an increase of 31% compared with JPY673 million in the comparable year-ago period. Operating margin expanded by 217 basis points to 8.6%, up from 6.4%, supported by stable revenue and rigorous expense management.
Net income for the first six months of fiscal year 2026 reached JPY494 million (US$3.3 million), up 34% compared with the JPY369 million in the year-ago period. Basic earnings per share increased by Yen3.85 to Yen20.90 (US$0.14) from Yen17.05, and diluted earnings per share increased by Yen3.63 to Yen20.68 (US$0.14) from Yen17.05.
EBITDA reached JPY927 million (US$6.3 million), up 28% from JPY723 in the year ago period of fiscal 2025. EBITDA margin expanded by 210 basis points to 9.0% from 6.9% in the year ago period.
Cash and cash equivalents of JPY1,161 million (US$7.8 million) at September 30, 2025, compared with JPY2,121 million at March 31, 2025.
Operational highlights:
-- In October, LogProstyle announced a land acquisition for the
development of its second hotel in the Asakusa district of Tokyo.
Expected to open in October of 2028, LogProstyle's footprint expands to
five strategically located hotels in the leading tourism markets of
Japan. Situated on over 280 square meters of land in one of Tokyo's most
atmospheric and historically rich neighborhoods, this latest hotel
property is located within 300 meters from PROSTYLE RYOKAN Asakusa Tokyo,
enabling operational synergies between the two hotels.
-- Effective August 2025, LogProstyle engaged with Mitsubishi UFJ Morgan
Stanley Securities Co., Ltd. ("Mitsubishi UFJ Morgan Stanley Securities")
to serve as an intermediary for the buying and selling of its shares. In
line with the strategy of driving sustainable growth and long-term value
creation for shareholders, the engagement marks an important milestone in
enhancing liquidity and distribution, while expanding access to global
institutional and individual investors.
LogProstyle Inc.
CONSOLIDATED BALANCE SHEETS
(Yen in thousands, except share data)
September 30,2025 March 31,2025
-------------------- ------------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents Yen 1,161,203 Yen 2,120,515
Trade notes and accounts
receivable, net 97,590 138,373
Inventories, net 15,036,477 13,612,387
Consumption tax receivable 137,380 5,749
Short-term investments 156,214 182,030
Other current assets 536,948 353,579
------------ --- ----------
Total current assets 17,125,812 16,412,633
------------ --- ----------
Non-current assets
Property, plant and equipment, net 424,770 357,527
Operating lease right-of-use
assets 4,246,457 4,481,941
Software 25,349 27,792
Leasehold and guarantee deposits 395,137 465,968
Deferred tax assets 435,123 458,767
Other non-current assets 776,860 363,608
Allowance for credit losses (75,044) (84,048)
------------ --- ----------
Total non-current assets 6,228,652 6,071,555
------------ --- ----------
Total assets Yen 23,354,464 Yen 22,484,188
---- ------------ --- ----------
LIABILITIES
Current liabilities
Accounts payable Yen 303,760 Yen 597,708
Accrued expenses 148,554 112,661
Short-term loans 1,861,566 1,885,259
Current portion of bonds 6,323 28,620
Current portion of long-term loans 4,001,512 4,025,343
Operating lease liabilities, current 475,229 463,129
Finance lease liabilities, current 8,019 8,400
Contract liabilities 91,659 252,260
Income taxes payable 256,081 248,885
Other current liabilities 176,528 254,956
---------- --- ----------
Total current liabilities 7,329,231 7,877,221
---------- --- ----------
Non-current liabilities
Bond 38,720 -
Long-term loans 8,010,676 6,858,607
Operating lease liabilities,
non-current 3,863,265 4,090,933
Finance lease liabilities,
non-current 15,228 19,062
Other non-current liabilities 126,351 121,146
---------- --- ----------
Total non-current liabilities 12,054,240 11,089,748
---------- --- ----------
Total liabilities Yen 19,383,471 Yen 18,966,969
--- ---------- --- ----------
SHAREHOLDERS' EQUITY
Common shares: 81,498,000
shares authorized, 23,652,110
shares issued and 23,628,452
shares outstanding as of
September 30, 2025 and March
31, 2025 with no stated
value. Yen 924,817 Yen 924,817
Capital surplus 1,445,333 1,445,333
Additional paid in capital (197,466) (238,115)
Retained earnings 1,813,103 1,397,387
Treasury shares (2,539) (2,539)
Accumulated other comprehensive loss (12,255) (9,664)
---------- --- ----------
Total shareholders' equity 3,970,993 3,517,219
---------- --- ----------
Total liabilities and equity Yen 23,354,464 Yen 22,484,188
--- ---------- --- ----------
LogProstyle Inc.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Yen in thousands, except share and per share data)
For the Six Months Ended September 30,
-----------------------------------------------
2025 2024
----------------------- ----------------------
Revenue: Yen 10,324,388 Yen 10,518,468
Cost of revenue (8,128,849) (8,768,666)
-------------- ---- -------------
Gross profit 2,195,539 1,749,802
Operating expenses
Selling, general and
administrative expenses (1,311,386) (1,077,092)
-------------- ---- -------------
Total operating expenses (1,311,386) (1,077,092)
Operating income 884,153 672,710
Other income
(expenses):
Interest expenses (126,237) (109,535)
Other income, net 5,301 5,871
-------------- ---- -------------
Total other expenses (120,936) (103,664)
Income before income taxes 763,217 569,046
Income tax expenses (268,798) (199,891)
-------------- ---- -------------
Net income 494,419 369,155
Other comprehensive
income (loss)
Foreign currency translation
adjustment (2,591) (9,114)
-------------- ---- -------------
Total comprehensive
income Yen 491,828 Yen 360,041
===== ============== ==== =============
Earnings per share:
Basic Yen 20.90 Yen 17.05
Diluted 20.68 17.05
Weighted average
number of shares of
common stock
outstanding
Basic 23,652,110 21,652,110
Diluted 23,906,208 21,652,110
LogProstyle Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Yen in thousands)
For the Six Months Ended September 30,
-----------------------------------------------
2025 2024
----------------------- ----------------------
Cash flows from
operating activities:
Net income Yen 494,419 Yen 369,155
Depreciation and
amortization 42,794 50,249
Amortization of debt
issuance costs 32,222 34,665
Stock-based compensation
expenses 40,649 -
Deferred income taxes 23,644 95,736
Provision of allowance for
credit losses (9,004) -
Changes in
operating assets
and liabilities:
Decrease in trade notes
and accounts receivable,
net 40,783 51,518
(Increase) decrease in
inventories, net (1,424,090) 1,339,815
(Increase) decrease in
consumption taxes
receivable (131,631) 22,899
(Increase) decrease in
prepaid expenses (195,177) 12,795
(Increase) in advances to
vendors (9,313) (42,793)
Decrease (increase) in
leasehold and guarantee
deposits 70,831 (7,875)
(Increase) decrease in
long-term prepaid
expenses (406,129) 125
Increase in accounts
payables 38,018 943
Increase (decrease) in
accrued expenses 35,893 (100,303)
Increase in income taxes
payable 7,196 42,200
(Decrease) in contract
liabilities (160,601) (59,719)
Increase in deposits
received 28,773 12,060
Other, net (59,989) 71,689
-------------- ---- -------------
Net cash flows (used
in) provided by
operating activities (1,540,712) 1,893,159
-------------- ---- -------------
Cash flows from
investing activities:
Purchase of short-term
investments (30,064) (118,000)
Proceeds from sales of
short-term investments 55,880 73,800
Purchases of property, plant
and equipment, net (104,682) (32,745)
Purchases of software (2,584) (15,963)
Purchases of long-term
investments - (270,000)
Purchases of investments in
capital (3,270) (1,220)
Other, net - (77)
-------------- ---- -------------
Net cash flows used in
investing activities (84,720) (364,205)
-------------- ---- -------------
Cash flows from
financing activities:
(Decrease) increase in
short-term borrowings, net (20,681) 127,254
Borrowings from long-term loans 7,180,708 4,633,208
Repayments for long-term loans (6,030,730) (6,728,724)
Proceeds from issuance of bonds 50,000 -
Redemption of bonds (28,620) (24,640)
Payments for finance leases (4,216) (4,148)
Payment for debt issuance costs (68,504) (15,304)
Payments for dividends (78,703)
Payments of listing expenses (331,966) (100,180)
-------------- ---- -------------
Net cash flows provided by
(used in) financing
activities 667,288 (2,112,534)
-------------- ---- -------------
Effect of exchange rate changes
on cash, cash equivalents and
restricted cash (1,168) 2,830
-------------- ---- -------------
Net (decrease) in cash and cash
equivalents (959,312) (580,750)
-------------- ---- -------------
Cash and cash equivalents at
the beginning of period 2,120,515 1,218,241
Cash and cash
equivalents at the end
of period Yen 1,161,203 Yen 637,491
----- -------------- ---- -------------
SUPPLEMENTAL CASH FLOW
INFORMATION:
Cash paid for interest Yen 279,310 Yen 255,293
Cash paid for taxes Yen 260,665 Yen 67,666
Cash refund for taxes 884 3,348
LogProstyle Inc.
REVENUE BY BUSINESS SEGMENT
(US$ and Yen thousands)
Six Months Ended September 30,
-----------------------------------------
2025
($) 2025 (Yen) 2024 (Yen) YoY %
------- --------------- --------------- ---------
Real Estate $64,190 Yen 9,498,243 Yen 9,627,373 (1.3)%
Hotel 4,340 642,236 579,914 10.7%
Other 1,243 183,909 311,181 (40.9)%
------ --- ---------- --- ---------- -----
Total
Revenue $69,773 Yen 10,324,388 Yen 10,518,468 (1.8)%
LogProstyle Inc.
Reconciliation of Operating Income to EBITDA
(US$ and Yen in million)
Six Months Ended September 30,
--------------------------------------------
2025 ($) 2025 (Yen) 2024 (Yen)
---------------- ------------ ------------
Operating income $ 6 Yen 884 Yen 673
Depreciation and
amortization 0.3 43 50
---- ---------- ----- ----- ----- -----
EBITDA $ 6.2 Yen 927 Yen 723
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.
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 future financial performance, operating results, business strategy, capital resources, liquidity, development pipeline, operational efficiency, and long-term growth objectives. 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, changes in economic conditions, real estate and hospitality market conditions, interest rate fluctuations, construction and development risks, cost inflation, regulatory changes, foreign exchange fluctuations, and other risks related to the Company's business operations, 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/20251222935008/en/
CONTACT: LogProstyle Inc., Investor Relations, ir@logprostyle.co.jp
Hayden IR, Investor Relations, corbin@haydenir.com
(END) Dow Jones Newswires
December 22, 2025 16:30 ET (21:30 GMT)