HULIC CO., LTD. October 27, 2023
FY2023 3Q (January - September) IR Presentation
Code:3003
Bizflex Tokyo Yaesu
(Completed in Oct. 2023)
HULIC &New UDAGAWA II (Completed in Oct. 2023)
Table of Contents
Page | FY2023 3Q Consolidated Performance Summary | |
03 | Executive Summary | 3 |
Financial Highlights | 4 | |
Key Metrics / Shareholder Return | 5 | |
Progress on Forecast for FY2023 | 6 | |
Income Statement | 7 | |
Segment Performance | 8 | |
Balance Sheets | 9 | |
Funding | 10 | |
Financial KPIs | 11 | |
Priority Challenge (1) in MT Management Plan | ||
Page | ||
12 | Create a high-quality leasing portfolio and | |
maintain / enhance the flexible earnings structure | ||
Restructuring to High Quality | 13 | |
Leasing Portfolio | ||
Vacancy Rate & Rent History | 14 | |
Portfolio Distribution Pictures | 15-16 | |
Investment in Real Estate | 17 | |
CRE Business | 18 | |
Real Estate for Sale | 19 | |
Appendix | ||
Macro Environment | 48-51 | |
Corporate Profile | 52-76 | |
Page
20
Page
31
Page
41
Priority Challenge (2) in MT Management Plan
Expand pipelines for development / reconstruction and Value-added projects, diversify exits to ensure profitability
Ongoing Projects | 21-27 |
Bank Branch Reconstruction | 28 |
PPP Business | 29 |
Value Added Business | 30 |
Priority Challenge (3) in MT Management Plan
Promote new businesses to diversify revenue source
Data Center | 32 |
Logistics Center | 33-34 |
Other Next Generation Assets | 35 |
Senior-related Business | 36 |
Tourism-related Business | 37 |
Initiatives for New Business | 38 |
Development | |
Midsize Flexible Office 'Bizflex' | 39 |
Education Business for Children | 40 |
Priority Challenge (5) in MT Management Plan
Continue to promote the sustainable management to address environmental issues and human capital development, etc.
Initiatives for Sustainability | 42-46 |
2
Executive Summary
FY2023 3Q Results
-
All profit items are at record-highs for 3Q
3Q results were on track in achieving FY2023 annual guidance - Operating profit reached JPY90.9 bn, +17.7% YoY
- Profit attributable to owners of parent：JPY58.6 bn, +20.6% YoY
- Market capitalization exceeded JPY 1.0 tn in Aug. 31, 2023
- Lifted FY2023 annual guidance and year-end dividend forecast
Revised Annual | Initial Annual | Change | |||
Forecast | Forecast | ||||
Operating Revenue | 470.0 | － | － | (bn yen) | |
Operating Profit | 143.0 | 140.0 | +3.0 | (bn yen) | |
Ordinary Profit | 134.0 | 132.0 | +2.0 | (bn yen) | |
Profit attributable to Owners of Parent | 90.0 | 86.5 | +3.5 | (bn yen) | |
Annual Dividend | 48.00 | 46.00 | +2.00 | (yen) | |
- Expect to book record-high results for each profit item
- Annual dividend per share was revised upward to 48.00 yen, +6.00 yen YoY
3
Financial Highlights (Consolidated)
Revenue and all profit items reached record-highs for 3Q Revised the FY2023 annual guidance upward
Operating Revenue
（ Billion yen ） | 523.4 | (plan) | |||
470.0 | |||||
500.0 | |||||
447.0 | |||||
400.0 | 357.2 | 339.6 | 399.2 | ||
287.5 | |||||
300.0 | |||||
200.0 | 278.5 | ||||
100.0 | |||||
0.0 | |||||
18/12 | 19/12 | 20/12 | 21/12 | 22/12 | 23/12 |
Forecast | ||
Revised: 143.0 bn | ||
Operating Profit | Initial: | 140.0 bn |
（ Billion yen ） | Up: | 3.0 bn |
140.0 | 114.5 | 126.1 | ||||
120.0 | 100.5 | |||||
88.3 | ||||||
100.0 | 75.5 | |||||
80.0 | ||||||
90.9 | ||||||
60.0 | ||||||
77.2 | ||||||
40.0 | ||||||
20.0 | ||||||
0.0 | ||||||
18/12 | 19/12 | 20/12 | 21/12 | 22/12 | 23/12 |
Forecast | Forecast | ||||
Revised: 134.0 bn | |||||
Ordinary Profit (Recurring Profit) | Profit attributable to Owners of Parent | Revised: | 90.0 bn | ||
Initial: | 132.0 bn | ||||
Initial: | 86.5 bn | ||||
（ Billion yen ） | Up: | 2.0 bn | （ Billion yen ） | ||
Up: | 3.5 bn | ||||
140.0 | 123.2 | |||||
120.0 | 109.5 | |||||
95.6 | ||||||
100.0 | 84.6 | |||||
72.5 | ||||||
80.0 | 83.5 | |||||
60.0 | 76.0 | |||||
40.0 | ||||||
20.0 | ||||||
0.0 | ||||||
18/12 | 19/12 | 20/12 | 21/12 | 22/12 | 23/12 |
100.0 | ||||||
80.0 | 69.5 | 79.1 | ||||
58.8 | 63.6 | |||||
60.0 | ||||||
49.5 | ||||||
40.0 | 58.6 | |||||
48.6 | ||||||
20.0 | ||||||
0.0 | ||||||
18/12 | 19/12 | 20/12 | 21/12 | 22/12 | 23/12 |
4
Key Metrics / Shareholder Return
Hiked annual dividend to 48.0 yen (+6.0 yen YoY, +14%) reflecting ESP increase Payout ratio will be kept above 40%
EPS (Net income per share)
（Yen）
120.00 | 118.28 | ||||
95.23 | 101.09 | 104.00 | |||
100.00 | |||||
88.93 | |||||
- 75.18
0.00
18/12 | 19/12 | 20/12 | 21/12 | 22/12 | 23/12 |
(plan) |
BPS (Book value per share)
（Yen）
1,200.00
1,000.00 | 960.28 | ||||
836.89 | 902.70 | ||||
800.00 | 728.31 | ||||
687.01 | |||||
600.00 | 608.49 | ||||
400.00
200.00
0.00
18/12 | 19/12 | 20/12 | 21/12 | 22/12 | 23/9 |
Payout ratio guidance during | |
Dividend History | the mid-term plan (2023-2025) |
: 40% or higher | |
（Yen per Share）
60.00 | 45.0% | ||||||||||||||||||||||||||||||
(plan) | |||||||||||||||||||||||||||||||
40.3% | 40.5% | ||||||||||||||||||||||||||||||
37.8% | 38.5% | 40.0% | |||||||||||||||||||||||||||||
48.00 | |||||||||||||||||||||||||||||||
50.00 | |||||||||||||||||||||||||||||||
33.9% | 35.4% | Revised up | |||||||||||||||||||||||||||||
32.6% | 35.0% | ||||||||||||||||||||||||||||||
32.0% | +2.00 yen | ||||||||||||||||||||||||||||||
40.00 | 30.0% | ||||||||||||||||||||||||||||||
42.00 | 23.00 | ||||||||||||||||||||||||||||||
Initial | |||||||||||||||||||||||||||||||
39.00 | forecast | 25.0% | |||||||||||||||||||||||||||||
30.00 | |||||||||||||||||||||||||||||||
36.00 | |||||||||||||||||||||||||||||||
20.0% | |||||||||||||||||||||||||||||||
31.50 | |||||||||||||||||||||||||||||||
20.00 | 25.50 | 23.00 | 15.0% | ||||||||||||||||||||||||||||
21.00 | Actual | 10.0% | |||||||||||||||||||||||||||||
interim | |||||||||||||||||||||||||||||||
10.00 | 17.00 | dividend | |||||||||||||||||||||||||||||
5.0% | |||||||||||||||||||||||||||||||
0.00 | 0.0% | ||||||||||||||||||||||||||||||
16/12 | 17/12 | 18/12 | 19/12 | 20/12 | 21/12 | 22/12 | 23/12 | ||||||||||||||||||||||||
Annual Dividend (Left axis) | Payout ratio (Right axis) |
5
FY2023 3Q Progress over FY2023 Guidance (Consolidated)
Earnings steadily proceeded in line with the annual guidance
(Billion yen) | |||||
FY2023 | |||||
FY2022 | |||||
Initial | Revised | % | |||
Result | 3Q Result | ||||
Forecast | Forecast | Progress | |||
Operating Revenue | 523.4 | - | 470.0 | 278.5 | 59.2% |
Operating Profit | 126.1 | 140.0 | 143.0 | 90.9 | 63.6% |
Ordinary Profit | 123.2 | 132.0 | 134.0 | 83.5 | 62.3% |
(Recurring Profit) | |||||
Profit attributable to | 79.1 | 86.5 | 90.0 | 58.6 | 65.2% |
Owners of Parent | |||||
6
FY2023 3Q Income Statement (Consolidated)
Real estate business advanced as planned & Profit from Hotels / Ryokans expanded
(Million yen) | ||||
FY22/12 | FY23/12 | QoQ Change (%) | ||
3Q | 3Q | |||
Operating Revenue | 399,208 | 278,529 | -120,679 | (-30.2%) |
Operating Gross Profit | 111,518 | 130,368 | 18,850 | |
SGA Expenses | 34,261 | 39,418 | 5,157 | |
Operating Profit | 77,257 | 90,950 | 13,693 | (+17.7%) |
Non-operating Income | 7,816 | 2,865 | -4,950 | |
Non-operating Expenses | 8,994 | 10,226 | 1,232 | |
Ordinary Profit | 76,078 | 83,588 | 7,510 | (+9.8%) |
(Recurring Profit) | ||||
Extraordinary Income | 469 | 3,594 | 3,124 | |
Extraordinary Losses | 4,246 | 1,910 | -2,336 | |
Total Income Taxes | 23,643 | 26,557 | 2,913 | |
Profit attributable to | 48,667 | 58,697 | 10,030 | (+20.6%) |
Owners of Parent | ||||
Major factors for changes
Real Estate Business -130.5 bn
Hotels/Ryokans | +11.8 bn |
Hotels/Ryokans | +3.4 bn |
Amortization of goodwill+0.2 bn
Real Estate Business | +8.6 bn |
Hotels/Ryokans | +5.7 bn |
Early termination fee | -4.1 bn |
Compensation income for loss | |
from redevelopment | +3.3 bn |
7
FY2023 3Q Segment Performance (Consolidated)
Falling off of one-off in 2022 affected "Leasing / Management Profit" Steady capital gains continued
FY2022 3Q | FY2023 3Q | QoQ | ||||
Change | ||||||
Operating Revenue | 399,208 | 278,529 | -120,679 | |||
Real Estate | 377,983 | 247,461 | -130,521 | |||
Leasing / Management Revenue, etc. | 71,858 | 73,489 | 1,630 | |||
Sales Revenue | 306,124 | 173,972 | -132,151 | |||
Insurance Agency (subsidiary) | 2,835 | 2,726 | -109 | |||
Hotels / Ryokans (subsidiaries) | 19,018 | 30,898 | 11,879 | ＊1 | ||
Others | 5,520 | 4,754 | -765 | |||
Elimination / Corporate | -6,148 | -7,311 | -1,162 | |||
Operating Profit | 77,257 | 90,950 | 13,693 | |||
Real Estate | 88,795 | 97,424 | 8,629 | |||
Leasing / Management Profit, etc. | (53%) 47,418 | (43%) 42,304 | -5,114 | |||
Sales Profit | (47%) 41,376 | (57%) 55,120 | 13,743 | |||
Insurance Agency (subsidiary) | 960 | 872 | -88 | |||
Hotels / Ryokans (subsidiaries) | -4,995 | 778 | 5,773 | ＊1 | ||
Others | 478 | 404 | -73 | |||
Elimination / Corporate | -7,982 | -8,529 | -547 | |||
Major factors for changes
Properties acquired/completed +9.5 bn
Transfer to real estate for sale
-8.7 bn | |
Others | +0.6 bn |
Properties acquired/completed +6.5 bn
Transfer to real estate for sale
-5.7 bn | |
Others (including falling off of | |
one-off in 2022) | -5.8 bn |
Recovery in occupancy rate/ADR +5.7 bn
Note: Leasing / management revenue / profit, etc. is the amount subtracting sales revenue / profit from total real estate operating revenue / profit
Note: Percentage numbers in brackets: ratios of leasing / management profit, etc. and sales profit in real estate business
*1 Results from 11/2022 to 7/2023 of Nippon View Hotel and 10/2022 to 6/2023 of Hulic FUFU, The Hotel Nikko Kanazawa and Tokyo Bay Maihama Hotel were consolidated in the above results.
8
FY2023 3Q Balance Sheets (Consolidated)
Property, plant and equipment increased owing to continued acquisition and development Net assets stood at well over JPY700.0 bn by accumulating profits
Assets
Liabilities & Net Assets
（Million yen） | ||||
2022/12 | 2023/9 | Change | ||
Current Assets | 250,901 | 402,270 | 151,368 | |
Non-current Assets | 2,067,114 | 2,126,578 | 59,464 | |
Property, Plant and Equipment | 1,644,449 | 1,652,164 | 7,714 | |
Investment Securities | 284,706 | 318,717 | 34,011 | |
Marketable Securities | 111,113 | 140,167 | 29,054 | |
Investments in silent | 21,792 | 22,924 | 1,131 | |
partnership | ||||
Shareholdings/Investments of | 151,800 | 155,625 | 3,825 | |
Affiliated Companies, etc. | ||||
Total | 2,320,337 | 2,530,800 | 210,462 | |
Liabilities | 1,633,183 | 1,796,509 | 163,325 | |
Borrowings | 1,019,986 | 1,043,321 | 23,335 | |
Corporate Bonds | 421,000 | 505,980 | 84,980 | |
Deferred Tax Liabilities | 53,532 | 61,324 | 7,792 | |
Net Assets | 687,153 | 734,290 | 47,137 | |
Shareholders' Equity | 646,469 | 670,867 | 24,397 | |
Valuation Difference on | 40,267 | 60,027 | 19,759 | |
Available-for-sale Securities | ||||
Total | 2,320,337 | 2,530,800 | 210,462 | |
In 3Q FY2023,
Invested approx. JPY 260.0 bn (gross)
- Expecting to add another JPY100.0 bn of by the end of Dec. 2023.
Major factors for changes
Real estate for sale | +155.4 bn |
Acquisitions, transfer | +265.1 bn |
Sale | -109.7 bn |
Real estate for sale in process -3.2 bn
Cash and deposits | -8.2 bn |
Land・Buildings | -19.1 bn |
Acquisitions, completions | +205.6 bn |
Transfer | -207.1 bn |
Others | -17.6 bn |
Construction in progress | +26.9 bn |
MTM valuation | +28.2 bn |
Short-term bonds | +94.9 bn |
Quarterly net income | +58.6 bn |
Dividend paid | -34.4 bn |
9
Funding
Favorable funding conditions are strongly supported by AA rating
External Rating | Instant Borrowing Capacity | |||||||
(As of Sep. 30, 2023） | （Billion yen） | |||||||
AA－（Stable） | ||||||||
JCR rating | ||||||||
Upgraded from "A＋(Positive)" | OD limit | (outstanding balance) | 154.0 | ( - ) | ||||
in May 2022 | CP issue limit (outstanding balance) | 200.0 | (95.0) | |||||
Corporate Bonds | (*)Sustainability Linked Bonds | Added SB limit / issued | 300.0 | (116.0) | / 411.0 | |||
Date | Coupon rate | JPY | Tenor (year) | ||
(%) | (bn) | ||||
Apr. 24, 2014 | 5th Straight | 0.949 | 10.0 | 10 | |
Oct. 22, 2018 | 6th Straight | 0.494 | 20.0 | 10 | |
Jun. 25, 2019 | 7th Straight | 0.20 | 20.0 | 5 | |
〃 | 8th Straight | 0.30 | 20.0 | 7 | |
〃 | 9th Straight | 0.40 | 15.0 | 10 | |
Jul. 2, 2020 | 2nd Hybrid | 1.28 | 120.0 | 35 (NC5) | |
〃 | 3rd Hybrid | 1.40 | 40.0 | 37 (NC7) | |
〃 | 4th Hybrid | 1.56 | 40.0 | 40 (NC10) | |
Oct. 15, 2020 | 10th Straight (*) | 0.44 | 10.0 | 10 | |
Oct. 19, 2022 | 5th Hybrid | 1.435 | 46.0 | 35 (NC5) | |
〃 | 6th Hybrid | 1.849 | 30.0 | 40 (NC10) | |
Apr. 13, 2023 | 11th Straight | 0.320 | 40.0 | 3 |
Average Funding Cost & Long-term Borrowing Period
long-term borrowing ratio | average interest rate（*） | |||
（％） | （％） | ||||||
100.0 | 1.00 | ||||||
90.0 | 98.9 | 98.2 | 99.9 | 99.9 | 99.9 | 0.90 | |
93.7 | |||||||
80.0 | 0.80 | ||||||
70.0 | 0.70 | ||||||
60.0 | 0.59 | 0.55 | 0.56 | 0.56 | 0.57 | 0.55 | 0.60 |
50.0 | 0.50 | ||||||
18/12 | 19/12 | 20/12 | 21/12 | 22/12 | 23/9 |
(*) Average interest rate including hybrid finance is the following:
2018/12 | 2019/12 | 2020/12 | 2021/12 | 2022/12 | 2023/9 |
0.64% | 0.60% | 0.72% | 0.71% | 0.77% | 0.75% |
10
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Hulic Co. Ltd. published this content on 02 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2023 08:47:10 UTC.
