KEIHANSHIN BUILDING CO., LTD. Note:This document is a translation of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.
Consolidated Financial Results
for the Three Months Ended June 30, 2022
[Japanese GAAP]
July 29, 2022
Company name: Keihanshin Building Co., Ltd.
Stock exchange listing: Tokyo
Code number: 8818
URL: http://www.keihanshin.co.jp/english/
Representative: Tsuneo Wakabayashi, President
Contact: Toshiki Tabuchi, Operating Officer, General Manager (Finance & Accounting Dept)
Phone: 06-6202-7331
Scheduled date of filing quarterly securities report: August 05, 2022
Scheduled date of commencing dividend payments: -
Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: No
(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Three Months Ended June 30, 2022 (April 01, 2022 to June 30, 2022)
(1) Consolidated Operating Results | (% indicates changes from the previous corresponding period.) | |||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||
owners of parent | ||||||||||||
Three months ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||
June 30, 2022 | 4,574 | 5.9 | 1,460 | 69.7 | 1,478 | 70.9 | 1,732 | 188.6 | ||||
June 30, 2021 | 4,317 | 14.2 | 860 | (43.0) | 865 | (44.2) | 600 | (63.3) | ||||
(Note) Comprehensive income: | Three months ended June 30, 2022: | ¥ | 1,018million | [ 477.7%] | ||||||||
Three months ended June 30, 2021: | ¥ | 176million | [(94.9) %] | |||||||||
Basic earnings | Diluted earnings per | |||||||||||
per share | share | |||||||||||
Three months ended | Yen | Yen | ||||||||||
June 30, 2022 | 34.55 | 34.44 | ||||||||||
June 30, 2021 | 11.72 | 11.68 |
(Reference) Ordinary income after tax before depreciation Three months ended June 30, 2022: | ¥ | 1,975million | [ | 30.4%] | |||||
Three months ended June 30, 2021: | ¥ | 1,515million | [ | (6.9) %] | |||||
The Company has positioned ordinary income after tax before depreciation as an important management indecator. | |||||||||
Ordinary income after tax before depreciation = (ordinary profit×(1-effective tax rate) + depreciation) | |||||||||
(2) Consolidated Financial Position | |||||||||
Total assets | Net assets | Capital adequacy ratio | |||||||
As of | Million yen | Million yen | % | ||||||
June 30, 2022 | 148,708 | 70,500 | 47.4 | ||||||
March 31, 2022 | 149,994 | 70,510 | 46.9 | ||||||
(Reference) Equity: As of | June 30, 2022: | ¥ | 70,424 million | ||||||
As of | March 31, 2022: | ¥ | 70,390 million |
2. Dividends
Annual dividends | ||||||
1st | 2nd | 3rd | Year-end | Total | ||
quarter-end | quarter-end | quarter-end | ||||
Yen | Yen | Yen | Yen | Yen | ||
Fiscal year ended March 31, 2022 | - | 15.50 | - | 20.50 | 36.00 | |
Fiscal year ending March 31, 2023 | - | |||||
Fiscal year ending March 31, 2023 | 18.00 | - | 18.00 | 36.00 | ||
(Forecast) | ||||||
(Note) Revision to the forecast for dividends | announced most | recently: No |
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023(April 01, 2022 to March 31, 2023)
(% indicates changes from the previous corresponding period.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | ||||||
owners of parent | per share | |||||||||
Million | % | Million | % | Million | % | Million yen | % | Yen | ||
yen | yen | yen | ||||||||
Full year | 18,700 | 5.0 | 5,200 | 1.5 | 5,000 | 2.5 | 4,300 | (16.8) | 85.63 | |
(Note) Revision to the financial results forecast announced most recently: No | ||||||||||
(Reference) Ordinary income after tax before depreciation | ¥ 7,200 million | [1.2%] |
* Notes:
- Changes in significant subsidiaries during the three months ended June 30, 2022 (changes in specified subsidiaries resulting in changes in scope of consolidation): No
- Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to the revision of accounting standards: No
- Changes in accounting policies other than 1) above: No
- Changes in accounting estimates: No
- Retrospective restatement: No
- Total number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares):
June 30, 2022: | 50,309,498 | shares | |
March 31, 2022: | 50,309,498 | shares | |
2) | Total number of treasury shares at the end of the period: | ||
June 30, 2022: | 95,940 | shares | |
March 31, 2022: | 161,781 | shares | |
3) | Average number of shares during the period: | ||
Three months ended June 30, 2022: | 50,154,163 | shares | |
Three months ended June 30, 2021: | 51,220,344 | shares |
*This summarry is not subject to review procedures by a certified public accountant or audit firm.
*Appropriate use of business forecasts ; other special items
Information described in this document, such as projections, is prepared based on available information at the time of the release this
document and certain assumptions that the Company judged as rational. Actual results may be significantly different due to various
factors.
Table of Contents - Attachments | ||
1. Qualitative Information on Quarterly Financial Results ........................................................................... | 2 | |
(1) | Explanation of Operating Results .......................................................................................................... | 2 |
(2) | Explanation of Financial Condition ...................................................................................................... | 3 |
(3) | Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information | ..... 4 |
2. Quarterly Consolidated Financial Statements and Principal Notes ........................................................... | 5 | |
(1) | Quarterly Consolidated Balance Sheets ................................................................................................ | 5 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income ........................................ | 7 |
(3) | Notes to Quarterly Consolidated Financial Statements ......................................................................... | 9 |
(Notes on going concern assumption) .............................................................................................. | 9 | |
(Notes in case of significant changes in shareholders' equity) ......................................................... | 9 | |
(Segment information) ..................................................................................................................... | 9 | |
(Significant subsequent events) ........................................................................................................ | 9 |
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1. Qualitative Information on Quarterly Financial Results
(1) Explanation of Operating Results
During the first quarter of the fiscal year ending March 31, 2023, expectations mounted for the Japanese economy to recover, due to easing of movement restrictions caused by COVID-19. However, there was a rapid increase in COVID-19 cases in recent days, and a surge in energy costs caused by the escalating tension in Russia and Ukraine and rapid depreciation of the yen have made the economic outlook increasingly unclear. In the real estate leasing industry, there has been an increasing trend toward downsizing and withdrawal of business sites against the backdrop of the proliferation of remote working and other new workstyles and the reduction of fixed costs, while the supply of office buildings is likely to increase due to the new large-scale development at business areas. It is necessary to keep a close watch on the future real estate market conditions.
Under such circumstances, the Group maintained high occupancy rate, with the vacancy rate at 0.39%. In terms of existing buildings, we will strive to enhance their asset value through preventive maintenance against natural disasters and promotion of energy saving, maintain competitive edge against surrounding buildings and actively work on new investment strategies for our future growth.
For the three months ended June 30, 2022, consolidated net sales increased by 256 million yen (5.9%) year-on-year to 4,574 million yen due to the enhanced occupancy rate of the OBP Building, which was completed in April last year.
Additionally, as for cost of sales, due to a decrease in one-time expenses including real estate acquisition tax associated with the OBP Building recorded in the previous fiscal year (652 million yen), operating profit increased by 600 million yen (69.7%) year-on-year to 1,460 million yen, ordinary profit increased by 613 million yen (70.9%) to 1,478 million yen and profit attributable to owners of parent amounted to 1,732 million yen, an increase of 1,132 million yen (188.6%) year-on-year, due to the recording of extraordinary income from the sale of investment securities.
The Group operates under a single segment of the "Building lease business," which is primarily engaged in the leasing of land and buildings. The status of each business division operated by the Group is as follows.
Three months ended June 30, 2021 | Three months ended June 30, 2022 | |||
Net sales (million yen) | Rate (%) | Net sales (million yen) | Rate (%) | |
Office building business | 1,055 | 24.4 | 1,076 | 23.5 |
Datacenter building business | 2,155 | 49.9 | 2,382 | 52.1 |
WINS building business | 862 | 20.0 | 869 | 19.0 |
Commercial buildings and | 244 | 5.7 | 245 | 5.4 |
logistics warehouses business | ||||
Total | 4,317 | 100.0 | 4,574 | 100.0 |
1) Office Building Business
The Group owns and leases a total of eight office buildings, mainly in business areas of Osaka and Tokyo. We are developing safe and comfortable office buildings equipped with the latest features. Even with aged buildings, we strive to offer comfortable business spaces comparable to new buildings by means of systematic facility renewal and maintenance. Furthermore, at the newest buildings, we meet BCP needs by leveraging our expertise in the operation of datacenter buildings.
While office vacancy rates have been increasing due to the progress of workstyle reforms triggered by the COVID-19 pandemic, the impact on the Group's office building business has been currently minimal and we have maintained high occupancy rates. Owing to the contribution from rental income thanks to an improved occupancy rate of the Toranomon Building, consolidated net sales from the office building business for the three months ended June 30, 2022 amounted to 1,076 million yen, an increase of 21 million yen (2.0%) year-
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on-year.
2) Datacenter Building Business
The Group is developing datacenter buildings mainly in the city center of Osaka, and owns and leases a total of eight datacenter buildings, including the OBP Building, which was completed in April 2021. The Group's urban-type datacenter buildings boast the latest specifications including advanced disaster-prevention functions by the adoption of seismic isolation structures, among others, stable power supplies in emergencies utilizing large emergency-use generators, and state-of-the-art security systems. Furthermore, our solid maintenance and management services based on our rich track record of datacenter building leases over more than 30 years are also highly regarded.
Against the backdrop of promotion of digital transformation (DX), the demand for datacenters is expected to remain robust, along with increases in data communication volume. Owing to an increased occupancy rate for equipment rooms of the OBP Building, consolidated net sales from the datacenter building business for the three months ended June 30, 2022 stood at 2,382 million yen, an increase of 227 million yen (10.5%) year-on-year.
3) WINS Building Business
WINS buildings refer to the facilities that sell off-track betting tickets for Japan Racing Association (JRA) races held all over Japan. The Group owns and leases a total of five WINS buildings in the central area of the cities of Kyoto, Osaka, and Kobe. Since the Group's founding, the WINS building business has continued to be one of our core businesses that generate stable revenue. To provide safe, convenient, and comfortable premises to horse-racing fans, we have continued to clean up and make improvements to the facilities.
While the share of sales of betting tickets at WINS buildings is on a declining trend as online betting has become widespread due to the COVID-19 pandemic, the impact on our business performance is minimal owing to the leasing system by fixed rent. Consolidated net sales from the WINS building business for the three months ended June 30, 2022 amounted to 869 million yen, an increase of 7 million yen (0.9%) year-on- year.
4) Commercial Buildings and Logistics Warehouses Business
The Group has been developing the leasing business for commercial buildings and logistics warehouses since the 1970s. We used to have road-side-type commercial facilities located across Japan, but these have been progressively sold in response to changing needs and we are currently promoting acquisition of more conveniently located properties in accordance with our Mid-Term Business Plan. The Group owns and leases five commercial buildings and logistics warehouses in the country, particularly in the Kansai Region and the Tokyo metropolitan area.
The impact of the COVID-19 pandemic on our facilities has been minor for commercial buildings, as they are leased to retailers of daily necessities such as supermarkets. Also, strong demand for logistics warehouses is predicted to continue due to factors such as the proliferation of electronic commerce (EC). Consolidated net sales from the commercial buildings and logistics warehouses business for the three months ended June 30, 2022 stood at 245 million yen, an increase of 0 million yen (0.3%) year-on-year.
(2) Explanation of Financial Condition
Total assets at the end of the three months ended June 30, 2022 amounted to 148,708 million yen, a decrease of 1,286 million yen (0.9%) from the end of the previous fiscal year. This was mainly due to a decrease of 1,850 million yen in consumption taxes refund receivable due to tax refund, a decrease of 1,121 million yen in investment securities due to sale and a decrease of 886 million yen in property, plant and equipment due to the recording of depreciation, despite an increase of 2,317 million yen in cash and deposits.
Total liabilities at the end of the three months ended June 30, 2022 amounted to 78,207 million yen, a decrease of 1,276 million yen (1.6%) from the end of the previous fiscal year. This was mainly due to a
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Keihanshin Building Co. Ltd. published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2022 07:04:13 UTC.
