Q2 results were on its path towards achieving FY2023 annual guidance: %Progress against the guidance; Operating Income 47.6%, Ordinary Income 47.1% and Net Income 51.0%, respectively.
Operating income from leasing & management, etc.: Properties acquired contributed while operating revenue decreased absent large transactions in the same period last fiscal year. Sales income also gained by 11.6% QoQ.
Operating income of Hotels/Ryokans (subsidiaries), which has already returned to profit in Q1, recorded JPY 0.2Bn, an increase of JPY 4.1Bn QoQ.
Interim dividend per share was approved at JPY 23.0, JPY 3.0 higher than the same period last fiscal year.
Major KPIs
(Japanese Yen)
2020/12
2021/12
2022/12
NIKKEI Index
27,444
28,792
26,095
HULIC share price (close)
1,133 yen
1,092 yen
1,040 yen
Market capitalization
763.5 Bn
838.6 Bn
798.6 Bn
Payout ratio
37.8%
38.5%
40.3%
EPS
95.23 yen
101.09 yen
104.00 yen
BPS
728.31 yen
836.89 yen
902.70 yen
Unrealized value of leasing assets
353.0 Bn
364.6 Bn
375.8 Bn
2023/6
33,189
1,231 yen
945.2 Bn
na na
957.42 yen
na
Key notes
Macro environment in Japan
Tokyo office average rents have declined for 35 consecutive months. Vacancy rate jumped to mid-6% in Tokyo central 5 wards.
Hulic continued to manage its rents higher than the market and vacancy rates below 1.0%.
The BOJ is continuing its easy money policy. The momentum of transaction market remained unchanged. Ample liquidity in the market underpinned robust transaction. No signs of CAP rate change were observed.
Properties sold in 2023 were sold above the appraisal value under the aforementioned market conditions.
Others
Acquisition: Acquired focus area assets and properties with stable cashflows and value-add potential.
Development: Cumulative project counted 92. Leasing of 14 properties completed or scheduled to be completed this year is progressing.
Sound financial base: JCR reconfirmed our AA- rating with outlook/stable in May 2023. The CP issuance limit was raised to JPY 200Bn from JPY 150Bn.
END
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Hulic Co. Ltd. published this content on 28 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2023 02:36:07 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. 
