Loadstar Capital Kk · TSE:3482

Loadstar Capital Kk — Q2 2024 Earnings Presentation

51 slides from Loadstar Capital Kk's earnings presentation, August 2024

Slide 2: Real estate and technology opening up the future market
不動産とテクノロジーの融合が未来のマーケットを切り開く 1
Slide 3: Table of Contents
Table of Contents １．Business Highlights & Topics of Q2 FY2024 P. 3 ２．Overview of Q2 FY2024 Financial Results P. 7 ３．Business Overview by Segment P. 14 ４．Progress of Medium-Term Management Plan P. 23 ５．Our Strengths and Characteristics P. 33 6．Company Profile P. 42 7．Real Estate Market Analysis P. 47
Slide 5: Business Highlights
Business Highlights FY2024 Q2 Financial Results • All businesses - Corporate Funding, Asset Management, and Crowdfunding – performed well. • Contracts for some projects have already been executed since the start of the 2nd half of the year, and we are on track to achieve our plan for the full year.
Slide 6: Topics of Q2 FY2024
Topics of Q2 FY2024 ①HOTEL LiVEMAX Shinjuku ① Acquired 4th Hotel in Shinjuku, Tokyo Kabukicho We acquired the HOTEL LiVEMAX, a relatively new and competitive hotel, in Shinjuku Kabukicho, which is well known around the world and recently has been growing as an urban tourist spot in Japan. We continu
Slide 7: Real Estate Market Outlook
Real Estate Market Outlook Overall Outlook • Tokyo ranked first in the global city-by-city investment ranking for the January-March 2024 period, with investment volume up 178% from the previous quarter, reaching nearly the pre-pandemic level of the January-March period of 2020. (Source: JLL Investme
Slide 9: Consolidated Sales
Consolidated Sales • Consolidated sales increased 5% year on year to 15.2 billion yen. • The real estate market remains brisk, particularly with strong demand from domestic businesses and real estate companies. • We have seen an increasing number of inquiries from European and U.S. real estate funds
Slide 10: Cost structure
Consolidated Profit before income taxes and Cost Controls • Consolidated profit before income taxes totaled 4.3 billion yen, up 24% year on year. • The pre-tax profit margin increased due to the improved leasing profit margin and growth in the Asset Management and Crowdfunding Businesses. Consolidat
Slide 11: Consolidated Statements of Income
Consolidated Statements of Income • As non-operating income, we recorded a valuation gain of 203 million yen on interest rate swap contracts purchased in prior years. • We purchased Hiramatsu's shares following the acquisition of six hotels that have been operated by Hiramatsu. Since the stock price
Slide 12: Consolidated Financial Position
Consolidated Financial Position • We acquired 4 properties and sold 4 properties. As a result, the real estate as inventory stood at 62.9 billion yen. A significant increase is expected in the 2nd half of the year. • Operating loans for the Crowdfunding Business have remained at slightly less than 1
Slide 13: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows • CF from operating activities was negative due to the increasing balance of real estate as inventory. However, we are managing cash and the cash position is robust. • CF from financing activities has also remained stable due to the good relationships we have bu
Slide 14: Return to Shareholders
Return to Shareholders Basic Policy • We strive to improve corporate value and shareholder profit by expanding business performance Dividend Policy • We shall perform stable and continuous profit returns with a payout ratio of 17%. Surplus Dividend to For Future Growth Share Buybacks Shareholders 20
Slide 16: Real Estate Investments: Real Estate X Tech
Real Estate Investments Real Estate X Tech to Open Up a New Market Real Estate Investments Real Estate Tech CORPORATE FUNDING ASSET MANAGEMENT CROWDFUNDING Investment in real Management of Japan’s first real estate using internal investment real estate estate crowdfunding funds, and property on beha
Slide 17: Corporate Funding Business Results: Real Estate Investment Sales
Corporate Funding Business Results 【Real Estate Investment Sales】 • We sold 4 offices. As a result, net sales totaled 12.8 billion yen, the same level year on year. • We acquired 6 hotels in the 2nd half of the year. In addition, we have already signed a contract to sell a large-scale office buildin
Slide 18: Corporate Funding Business Results: Real Estate Leasing Sales
Corporate Funding Business Results 【Real Estate Leasing Sales】 • We acquired our 4 th business hotel. Hotel rent revenue exceeded the plan, achieving 1.35 billion yen (up 12% y-o-y) in leasing sales. • Leasing for office buildings has also remained strong, and the market is on a recovery trend. • De
Slide 19: Corporate Funding Business Results
Corporate Funding Business Results • Profit margins on property sales continue to remain high. • We are focusing on market liquidity and efficient property management, and we are increasing the acquisition size of properties for investment. • We continue to invest aggressively, mainly in offices and
Slide 20: Asset Management Business Results
Asset Management Business Results • Sales jumped 170% year on year to 710 million yen due to the successful start of mandates and sales of properties, respectively. • AUM has not changed significantly, but in the 2nd half of the year, we schedule to receive mandates for several projects. Net Sales a
Slide 21: Real Estate Tech: Real Estate X Tech
Real Estate Tech Real Estate X Tech to Open Up a New Market Real Estate Investments Real Estate Tech CORPORATE FUNDING ASSET MANAGEMENT CROWDFUNDING Investment in real Management of Japan’s first real estate using internal investment real estate estate crowdfunding funds, and property on behalf of p
Slide 22: Crowdfunding Business Results
Crowdfunding Business Results • Sales increased 28% year on year to 300 million yen due to the steady project originations. • Operating loans increased 35% from the previous year -end to 9.3 billion yen, the largest ever. Net Sales and Operating Loans Receivables （Millions of yen） 1Q 2Q 9,354 3Q 8,4
Slide 23: Crowdfunding Business (KPI)
Crowdfunding Business (KPI) • The number of investor members has generally remained flat. However, we have seen strong demand for projects, as even projects worth several hundred million yen are completed within a few minutes. • As for STO launch, we are looking to prepare for launch as soon as we f
Slide 25: Progress of Medium-Term Management Plan
Progress of Medium-Term Management Plan • We are working to increase sales and profits in all businesses, aiming to achieve the targets of the medium-term management plan. • Currently, we are behind the plan regarding AUM and OwnersBook investment. To achieve the target, we are committed to making e
Slide 26: Medium-Term Management Plan Basic Policy
Medium-Term Management Plan Basic Policy With the Corporate Funding Business as our business Basic foundation, we aim to increase our corporate value Policy by expanding the scale of our Asset Management Business and Crowdfunding Business. 1．Increase Assets Held on the Balance Sheet 2．Expand AUM in
Slide 27: Policy Summary by Year
Policy Summary by Year Open up the real estate investment market to individuals • [Done] Increase assets held on the balance sheet • [Done] Expand AUM in Asset Management Business • [Done] Increase OwnersBook transactions • [Not yet] Launch STO 2024 • Increase assets held on the balance sheet • Expa
Slide 28: Business Strategy: Increase Assets Held
Business Strategy: ① Increase Assets Held Strengthen Business Foundation with Continuous Real Estate Investment • Continue to invest approx. 40 billion yen a year in real estate that will form our future revenue base. • Increase assets held on the balance sheet to approx. 75 billion yen by the end o
Slide 29: Business Strategy: Asset Management Business
Business Strategy: ② Asset Management Business Increase AUM and Boost Name Recognition • Accumulate AUM of several tens of billions of yen per year in response to ongoing high demand for Tokyo real estate not only from overseas investors but also domestic investors. • Accumulate AUM worth 200 billio
Slide 30: Business Strategy: Crowdfunding Business (Loan-Type)
Business Strategy: ③ Crowdfunding Business (Loan-Type) Increase Scale and Diversity of Investment Products • Continue to provide products to meet investor demand, as individual investors are still highly motivated to invest. ➢ Larger scale transactions ➢ Enhancement and expansion of products with sh
Slide 31: Business Strategy: Crowdfunding Business (Equity-Type)
Business Strategy: ④ Crowdfunding Business (Equity-Type) Aim to Create Funds Targeted at Individuals • Considering selling our own properties to funds as well as acquiring external projects to generate recurring revenues. • Aiming to create open-ended funds*. • Continue to discuss funds using STOs.
Slide 32: Business Strategy: Crowdfunding Business (STOs)
Business Strategy: ⑤ Crowdfunding Business (STOs) A framework based on new technologies for providing law/regulation-compliant services that meet What are STOs demand for new fund procurement methods to (Security Token replace traditional equity and debt financing, as well as Offerings)? demand for
Slide 33: Business Strategy: ESG
Business Strategy: ESG Environment Society Governance ✓ Studying donation-type ✓ Enhancing workforce ✓ Switching to electricity Crowdfunding Business diversity from renewable ✓ Encouraging employees' ✓ Strengthening compliance Initiatives energy sources health and wellness system and ✓ Reducing CO₂
Slide 35: Value Creation in the Corporate Funding Business
Value Creation in the Corporate Funding Business ■Why are we targeting mid-sized offices in the Tokyo's 23 wards for investment? Office conditions for small and medium- New supply of mid-sized buildings Positioning sized enterprises (SMEs) • 99% of the companies in Tokyo are SMEs • Mid-sized buildin
Slide 36: Competitive Advantage of Corporate Funding Business
Competitive Advantage of Corporate Funding Business Building Establishing a future stable business financial base foundations Information gathering Acquisition Increase value Solid track record • Track record of property acquisitions totaling 120 billion • Over 20 years of real estate • Construction
Slide 37: Asset Management Business
Asset Management Business • We have a number of employees from real estate funds who have knowledge and experience in asset management business, as well as extensive networks with institutional investors both in Japan and overseas. Thus, we have successfully increased AUM. • We have also seen synerg
Slide 38: Asset Management Business
Asset Management Business Synergy with Recurring Corporate subscription Funding business model Business Acquisition Management Sale • Formulating investment • Enhancing property strategies value to maximize returns for investors • Formulating exit • Sourcing properties strategies • Supervising PBM •
Slide 39: Crowdfunding Market and Growth Potential
Crowdfunding Market and Growth Potential • Market is expected to continue to grow as the number of lending-type/FTK* crowdfunding business operators is increasing every year. • The global market is expected to grow to approx. 128 trillion yen by 2032 (based on the rate as of Jun 30, 2024). （出典：Polar
Slide 40: OwnersBook Features
OwnersBook Features 1 Loan-Type Loan-Type Loans secured by real estate Loan Real Lending (Mortgage) estate ¥800~1,200 ¥1,000 million ~1,500 million OwnersBook Interest/ Investment Investors Equity ¥200~300 million Principal Equity-Type Dividend/ Non-recource Principal loan Investment Real ¥600~900 e
Slide 41: OwnersBook Features
OwnersBook Features 2 Borrowers’ Investors’ demand demand OwnersBook Lending Investment Interest/ Dividend/ Principal Principal Financing collateral Small inves tm ent Little time & effort is Quick origination capacity amounts required Faster originations No price changes We can provide loans Easy i
Slide 42: Stable Financial Base
Stable Financial Base Creditworthiness backed by appraisal ◼ Build a stable financial base through long-term borrowings to track record prepare for short-term real estate price fluctuations. 150 Tokyo Office Real Estate Price Index 100 250.0 50 200.0 0 150.0 Purchase Loan amount Appraisal value amou
Slide 44: Company Profile (as of Jun 30, 2024)
Company Profile（as of Jun 30, 2024） Company Name Loadstar Capital K.K. Address Prime Ginza Yanagidori Building, 1-9-13 Ginza, Chuo-ku, Tokyo, Japan Founded March 14, 2012 Representative Tatsushi Iwano, President Number of Directors 7 (including three outside directors) Number of Officers Approx. 80
Slide 45: Shareholders
Shareholders • While the ratio of voting rights of major shareholders has decreased, the ratio of domestic institutional investors has increased due to the increase in market capitalization. • We performed more interviews with institutional investors. • We also continue to attend briefings for indiv
Slide 46: Track Record for Corporate Funding Business
Track Record for Corporatefunding Business Our main targets are office buildings in central Tokyo - Looking to consider residences, hotels, and logistics - © Loadstar Capital ALL RIGHTS RESERVED 45
Slide 49: Real Estate Investment from Overseas
Real Estate Investment from Overseas • Globally, real estate investment has been sluggish due to ongoing high interest rates and concerns about economic recession. In Japan, on the other hand, interest rates are not expected to rise sharply. Active real estate transactions are expected to continue w
Slide 50: Vacancy Rates
Vacancy Rates • Demand for offices has now returned. As a result, vacancy rates in Tokyo‘s business districts are in decline. • Office vacancy rates in Tokyo have remained lower compared to the U.K. and the U.S. Therefore, we expect to see more investments from overseas. （%） Overall vacancy rate for
Slide 51: Disclaimers
Disclaimers ⚫ The contents of this document are being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published in whole or in part, for any purpose without our prior permission. This document is being

Loadstar Capital K.K. — Q2 2024 Earnings Presentation on 6ix

Loadstar Capital Kk — Q2 2024 Earnings Presentation

Slide 1: Q2 FY2024 Financial Results

Slide 2: Real estate and technology opening up the future market

Slide 3: Table of Contents

Slide 4: Business Highlights & Topics of Q2 FY2024

Slide 5: Business Highlights

Slide 6: Topics of Q2 FY2024

Slide 7: Real Estate Market Outlook

Slide 8: Overview of Q2 FY2024 Financial Results

Slide 9: Consolidated Sales

Slide 10: Cost structure

Slide 11: Consolidated Statements of Income

Slide 12: Consolidated Financial Position

Slide 13: Consolidated Statements of Cash Flows

Slide 14: Return to Shareholders

Slide 15: Business Overview by Segment

Slide 16: Real Estate Investments: Real Estate X Tech

Slide 17: Corporate Funding Business Results: Real Estate Investment Sales

Slide 18: Corporate Funding Business Results: Real Estate Leasing Sales

Slide 19: Corporate Funding Business Results

Slide 20: Asset Management Business Results

Slide 21: Real Estate Tech: Real Estate X Tech

Slide 22: Crowdfunding Business Results

Slide 23: Crowdfunding Business (KPI)

Slide 24: Progress of Medium-Term Management Plan

Slide 25: Progress of Medium-Term Management Plan

Slide 26: Medium-Term Management Plan Basic Policy

Slide 27: Policy Summary by Year

Slide 28: Business Strategy: Increase Assets Held

Slide 29: Business Strategy: Asset Management Business

Slide 30: Business Strategy: Crowdfunding Business (Loan-Type)

Slide 31: Business Strategy: Crowdfunding Business (Equity-Type)

Slide 32: Business Strategy: Crowdfunding Business (STOs)

Slide 33: Business Strategy: ESG

Slide 34: Our Strengths and Characteristics

Slide 35: Value Creation in the Corporate Funding Business

Slide 36: Competitive Advantage of Corporate Funding Business

Slide 37: Asset Management Business

Slide 38: Asset Management Business

Slide 39: Crowdfunding Market and Growth Potential

Slide 40: OwnersBook Features

Slide 41: OwnersBook Features

Slide 42: Stable Financial Base

Slide 43: Company Profile

Slide 44: Company Profile (as of Jun 30, 2024)

Slide 45: Shareholders

Slide 46: Track Record for Corporate Funding Business

Slide 47: Track Record for Asset Management Business

Slide 48: Real Estate Market Analysis

Slide 49: Real Estate Investment from Overseas

Slide 50: Vacancy Rates

Slide 51: Disclaimers