Hulic : Financial Information for the Third Quarter of FY2023 (January～September) 【SUMMARY】

October 27, 2023 Company Name: Hulic Co., Ltd.

(3003JP TSE Prime) President: Takaya MAEDA

Contact: [e-mail]

Financial Information for the Third Quarter of FY2023 (January～September)

【SUMMARY】

1. Summary of FY2023Q3 Performance Results

								(JPY Billion)
							FY2023 Guidance
	FY2023Q3	FY2022Q3	Change	%Change	FY2022		Revised	In January
Operating Revenue	278.5	399.2	-120.6	-30.2%	523.4		470.0	na
Operating Profit	90.9	77.2	13.6	17.7%	126.1		143.0	140.0
Ordinary Profit	83.5	76.0	7.5	9.8%	123.2		134.0	132.0
Net Income	58.6	48.6	10.0	20.6%	79.1		90.0	86.5
Annual dividend per share	Intrim	Intrim			42.0 yen		48.0 yen	46.0 yen
23.0 yen	20.0 yen

Executive Summary

Leasing & management, etc.: , Transaction: , Hotel/Ryokan: Market cap topped JPY 1.0Tn on August 31, 2023.

Highlights

• Q3 results were in line with our plan as overall real estate fundamentals remained unchanged.
• Operating revenue fell absent large-scale transactions in the same period last fiscal year. Operating profit from leasing & management, etc.: steady earnings underpinned by acquisitions and completion of properties were offset by absence of one-off in FY2022. Sales profit gained reflecting favorable transaction market.
• Operating profit of Hotels/Ryokans (subsidiaries) recorded JPY 0.7Bn, an increase of JPY 5.7Bn YoY, the pace of recovery further accelerated in Q3.
• Announced upward revision of its annual guidance, EPS will be JPY 118.28. Annual dividend per share was also revised upward to JPY 48.0, which brings the payout ratio to 40.5%.

II. Major KPIs

				(Japanese Yen)
	2020/12	2021/12	2022/12	2023/9
NIKKEI Index	27,444	28,792	26,095	31,857.62
HULIC share price (close)	1,133.00	1,092.00	1,040.00	1,341.00
Market capitalization	763.5 Bn	838.6 Bn	798.6 Bn	1,029.7 Bn
Payout ratio	37.8%	38.5%	40.3%	na
EPS	95.23	101.09	104.00	na
BPS	728.31	836.89	902.70	960.28
Unrealized value of leasing assets	353.0 Bn	364.6 Bn	375.8 Bn	na

III.	Key notes
Macro environment in Japan
₋	Real estate fundamentals	Tokyo office average rents have declined for 38 consecutive

months. Vacancy rate decreased to 6.1% in Tokyo central 5 wards as positive moves including absorption at newly completed buildings and relocation for expansion were observed. Hulic continued to manage its rents higher than the market and vacancy rates below 1.0%. Transaction market remained robust on the back of land price appreciation and abundant liquidity while cap rate remained stable.

• The BOJ continued its easy money policy while uncertainty overhung the direction of monetary policy of central banks elsewhere.

Others

• Acquisition: Acquired focus area assets and properties with stable cashflows and value-add potential.
• Development: Completion of properties counts 14 this year. Leasing is steadily progressing.
• Market cap: Topped JPY 1.0Tn on August 31, 2023.

END