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LogProstyle Reports Solid Earnings for the First Half of Fiscal Year 2026

On October 17, 2023, LogProstyle, listed on NYSE American under the ticker LGPS, announced its financial results for the first half of the fiscal year 2026, covering the period from April 1, 2025, to September 30, 2025. Despite a slight decline in revenue, the company showcased strong profitability and operational efficiency in its core business sectors.

Financial Highlights

The key financial metrics for the first half of fiscal 2026 compared to the same period in the previous year are as follows:

• - Revenue: ¥10,324 million (down 2% YoY)
• - Gross Profit: ¥2,196 million (up 25% YoY)
• - Gross Profit Margin: 21.3% (up 463 bps YoY)
• - Operating Profit: ¥884 million (up 31% YoY)
• - Operating Profit Margin: 8.6% (up 217 bps YoY)
• - Net Profit: ¥494 million (up 34% YoY)
• - Basic EPS: ¥20.90 (up ¥3.85 YoY)
• - Diluted EPS: ¥20.68 (up ¥3.63 YoY)
• - Equity Ratio: 17.0% (up 136 bps YoY)

Despite a 2% reduction in revenue compared to the previous year, the company's gross profit surged by 25%, demonstrating the effectiveness of cost management strategies and improved pricing power.

Business Performance

Yasuyuki Nozawa, LogProstyle's President and CEO, commented on the results: "The performance for the first half of fiscal 2026 is a testament to the resilience of our business model and steady progress in our core sectors of real estate and hospitality. The revenue may have slightly decreased; however, through rigorous cost control and the solid track record in the Japanese real estate market, we achieved a substantial improvement in profitability and stable profit generation. Our hospitality business benefited from robust inbound demand, resulting in increased average room rates as well as an improved occupancy rate."

The revenue from the real estate sector remained relatively stable at ¥9,498 million, despite a slight decrease due to a reduction in the number of sales. However, the increase in sales from new real estate development projects helped mitigate this decline. Meanwhile, the hotel business saw a revenue rise of 10.7%, growing from ¥580 million to ¥642 million, buoyed by an occupancy rate increase from 68.2% to 70.8% and raising the average room rate from ¥19,600 to ¥21,300.

Strategic Developments

In August 2025, LogProstyle revealed plans for its second hotel development in the Asakusa area of Tokyo, with an expected opening in October 2028. This addition is anticipated to expand the company’s hotel operations strategically within a major tourist market, positioning it within a historically and culturally rich area of Tokyo. The new facility will cover an area of over 280 square meters and is located just 300 meters from the existing PROSTYLE Ryokan Tokyo Asakusa, creating opportunities for operational synergies.

In line with its commitment to sustainable growth, LogProstyle’s shares became available for purchase through Mitsubishi UFJ Morgan Stanley Securities in August 2025. This initiative is intended to enhance the liquidity and accessibility of LogProstyle stock to both domestic and international investors.

Conclusion

As LogProstyle moves towards the second half of the fiscal year, it remains focused on strengthening its financial foundation, accelerating its development pipeline, and improving operational efficiency. The company continues to prioritize long-term sustainable growth and maximizing shareholder value, a strategy that has shown positive outcomes even amid challenging market conditions. The management aims for further enhancement in its performance measures and a sustained upward trajectory in profit margins and operational effectiveness.

In conclusion, while fluctuations in revenue are to be expected in any business cycle, LogProstyle's strategic emphasis on cost efficiency and value creation positions it well for the future.

About LogProstyle

LogProstyle is a diversified company involved in real estate development, hotel management, and restaurant operation, with the motto "redefine lifestyle." It aims to provide innovative and sustainable solutions to modern living, being a pioneer in the direct listing of ordinary shares on NYSE American as the first non-listed Japanese company to do so, rather than utilizing ADRs.

For more information or inquiries, please contact:
IR Department, LogProstyle: [email protected]
Hayden IR, Corbin Woodhull: [email protected]