Q1 results were on track in achieving FY2023 annual guidance: Operating Income and Ordinary Income increased by 17.8% and 11.7% QoQ, respectively.
Operating income from leasing & management, etc. rose by 6.4% QoQ, and sales income also gained by 11.2% QoQ.
Operating income of Hotels/Ryokans (subsidiaries) turned black from a loss in FY2022, recording JPY 2.1Bn increase QoQ.
As a result, Profits attributable to owners of parents recorded JPY 22.0Bn, an increase of 19.9% QoQ.
II. Major KPIs
(Japanese Yen)
2020/12
2021/12
2022/12
2023/3
NIKKEI Index
27,444
28,792
26,095
28,041
HULIC share price (close)
1,133 yen
1,092 yen
1,040 yen
1,087 yen
Market capitalization
763.5 Bn
838.6 Bn
798.6 Bn
834.7 Bn
Payout ratio
37.8%
38.5%
40.3%
na
EPS
95.23 yen
101.09 yen
104.00 yen
na
BPS
728.31 yen
836.89 yen
902.70 yen
909.33 yen
Unrealized value of leasing assets
353.0 Bn
364.6 Bn
375.8 Bn
na
Key notes
Japanese real estate market
Vacancy ratio has been hovering around lower 6% in Tokyo central 5 wards whereas ours has been less than 1%. Not expecting a jump in near future.
Rents in Tokyo business district have declined 32 consecutive months. Not anticipating short time improvements on the back of a scheduled large supply of S class properties in 2023.
Japanese transaction market continued to be robust. CAP rates have not risen and liquidity in the market was sufficient even uncertainties over the BOJ's monetary policy and global
economic slowdown lingered.
Others
Acquisition: Acquired a land bank for logistic facility, properties with stable cashflows through various schemes during Q1. Continue investing in prime properties.
Sales: All of the properties we sold during Q1 were sold above the appraisal value under the favorable market conditions.
Development: We plan to complete 28 plus properties during the current medium-term management plan (2023 to 2025) and another 44 plus after 2026 on top of 16 we completed during the previous medium-term management plan (2020 to 2022). Among them, 30 are located in our strategically important "focus area". To date, the construction works are on schedule.
CRE: Selected as the business partner of JFE's redevelopment project of their former blast furnace facility. Major facilities will be research labs.
Sound financial base: Completed replacement of hybrid finance of JPY 150Bn with JPY 76Bn hybrid bonds and JPY 74Bn hybrid loans. Half of these bonds and loans are credited as equity by JCR when calculating equity ratio.
ESG: Established a joint 3-year research program with University of Tokyo in April 2023 on environmental education for children. Plan offering inclusive learning experience for children with disease by utilizing ICT (information and communication technology).
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END
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Hulic Co. Ltd. published this content on 27 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2023 02:46:06 UTC.
Hulic Co Ltd is a Japan-based company mainly engaged in the real estate business and insurance business. It operates through two business segments. Real Estate segment has three kinds of business. The real estate leasing business manages approximately 250 rental properties (excluding real estate for sale) that are owned and managed mainly near stations in the 23 wards of Tokyo. Real estate development business is performed according to the characteristics of the property location. Asset management business is entrusted with asset management business. It also provides real estate rental, building management and cleaning business. The Insurance segment is engaged in non-life insurance agency business such as fire insurance and automobile insurance, life insurance such as fixed-term insurance and endowment insurance, and solicitation business. It is also engaged in the design, repair and construction work on owned buildings, hotel and inn management and agricultural production in Vietnam.
HULIC CO., LTD. 
