LogProstyle Reports Fiscal Year 2025 Results

LogProstyle Reports Fiscal Year 2025 Results

TOKYO–(BUSINESS WIRE)–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 “¥” 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 ¥149.90 = 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) 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 ¥ in million)

 

 

Years Ended March 31,

 

 

2025

 

 

2025

 

 

2024

Operating income

 

US$ 9

 

 

 

¥

1,343

 

 

¥

938

Depreciation and amortization

 

US$ 1

 

 

 

 

144

 

 

 

81

EBITDA

 

US$ 10

 

 

 

¥

1,487

 

 

¥

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 ¥ (in millions except per share data, occupancy rate and average daily rate)

 

2025

2025

2024

%

Change

Revenue

US$138

¥20,650

¥14,122

46%

Gross Profit

US$24

¥3,559

¥2,652

34%

Gross Margin

17.2%

17.2%

18.8%

(154) bps

Operating Income

US$9

¥1,343

¥939

43%

Operating Margin

6.5%

6.5%

6.7%

(14) bps

EBITDA

US$ 10

¥1,487

¥1,019

45%

Net Income

US$5

¥754

¥324

133%

Basic & Diluted EPS

US$0.23

¥34.76

¥15.37

¥19.39

Occupancy rate

74.7%

74.7%

70.8%

390 bps

Average Daily Rate

US$133.42

¥20,000

¥23,000

(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 ¥19.39 (US$0.23) to ¥34.76 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,

2025

 

 

March 31,

2024

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

¥

2,120,515

 

 

¥

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

 

¥

22,484,188

 

 

¥

21,210,268

 

LIABILITIES

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

¥

597,708

 

 

¥

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

 

¥

18,966,969

 

 

¥

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.

 

¥

924,817

 

 

¥

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

 

¥

22,484,188

 

 

¥

21,210,268

 

LogProstyle Inc.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Yen in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

Ended

March 31, 2025

 

 

Fiscal Year

Ended

March 31, 2024

 

 

Fiscal Year

Ended

March 31, 2023

 

Revenue:

 

¥

20,650,916

 

 

¥

14,121,840

 

 

¥

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

 

¥

761,277

 

 

¥

316,332

 

 

¥

357,613

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

¥

34.76

 

 

¥

15.37

 

 

¥

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

Ended

March 31,2025

 

 

Fiscal Year

Ended

March 31,2024

 

 

Fiscal Year

Ended

March 31,2023

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

¥

753,621

 

 

¥

323,605

 

 

¥

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

 

¥

2,120,515

 

 

¥

1,218,241

 

 

¥

412,351

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

¥

476,650

 

 

¥

497,731

 

 

¥

391,364

 

Cash paid for taxes

 

¥

127,857

 

 

¥

179,888

 

 

¥

87,905

 

LogProstyle Inc.

REVENUE BY BUSINESS SEGMENT

(Yen in thousands)

 

 

Fiscal Year Ended

March 31,2025

 

 

Fiscal Year Ended

March 31,2024

 

 

YoY %

 

Real Estate

 

¥

18,819,041

 

 

¥

12,411,288

 

 

 

52 %

 

Hotel

 

 

1,248,784

 

 

 

1,044,267

 

 

 

20 %

Other

 

 

583,091

 

 

 

666,285

 

 

 

(12) %

 

Total Revenue

 

¥

20,650,916

 

 

¥

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).

LogProstyle Inc., Investor Relations, [email protected]

Hayden IR, Investor Relations, [email protected]

KEYWORDS: Japan Asia Pacific

INDUSTRY KEYWORDS: Commercial Building & Real Estate Construction & Property Business Professional Services Restaurant/Bar Lodging Retail Travel Residential Building & Real Estate

MEDIA:

Logo
Logo