Loadstar Capital Kk · TSE:3482
Loadstar Capital Kk — FY2023 Earnings Presentation
45 slides from Loadstar Capital Kk's earnings presentation, February 2024
Slide 1: Fiscal Year Ended December 31, 2023 Earnings Briefing
Fiscal Year Ended December 31, 2023 Earnings Briefing Loadstar Capital K.K. Securities Code: 3482 February, 2024 © Loadstar Capital ALL RIGHTS RESERVED
Slide 2: 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
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．Topics of FY2023 & Forecast for FY2024 P. 3 ２．Overview of FY2023 P. 7 ３．Business Overview by Segment P. 15 ４．Progress of Medium-Term Management Plan P. 24 ５．Our Strengths and Characteristics P. 29 ６．Company Profile P. 38 © Loadstar Capital ALL RIGHTS RESERVED 2
Slide 4: Topics of FY2023 & Forecast for FY2024
1. Topics of FY2023 & Forecast for FY2024 © Loadstar Capital ALL RIGHTS RESERVED 3
Slide 5: Business Highlights
Business Highlights Markets (¥ billions) % Y-o-Y European and U.S. markets were unstable, and investment demand in Japan from European and U.S. investors was limited. On the other hand, investment demand, mainly from domestic Net Sales 28.7 ＋21.5％ institutional investors and business corporations, w
Slide 6: Forecasts for FY2024
Forecasts for FY2024 • We expect a 30% increase in sales, 40% increase in each profit, 10 billion yen in pre-tax income, and a dividend of 70 yen per share. • Along with aggressive domestic investors, some European and U.S. investors have resumed investing. We expect the real estate market will rema
Slide 7: Real Estate Market Outlook
Real Estate Market Outlook Overall Outlook • The rise in interest rates and decline in real estate prices across the globe appear to have passed their peaks. Now, a market recovery is expected. • Although negative interest rates in Japan are toward being lifted, we believe that the favorable financi
Slide 8: Overview of FY2023
2 Overview of FY2023 © Loadstar Capital ALL RIGHTS RESERVED 7
Slide 9: Consolidated Sales and Consolidated Profit before income taxes
Consolidated Sales and Consolidated Profit before income taxes • All businesses performed well. Consolidated net sales increased for the 11th consecutive year to 28.7 billion yen (up 21% y-o-y). • Consolidated profit before income taxes was 7.1 billion yen. Despite a slight increase from the previou
Slide 10: Topics of FY2023
Topics of FY2023 ① Achieved 11th consecutive fiscal year of sales and profit growth since our founding Despite concerns of the impact of the U.S. and European markets, investment demand, especially from domestic investors, remained strong. Thus, we achieved sales and profit growth for the 11th conse
Slide 11: Cost Control and Human Capital Investment
Cost Control and Human Capital Investment • We maintained a high profit margin in FY2023. For FY2024, we do not anticipate a significant increase in costs. • Since our foundation, we have focused on "Human Capital Investment." We strive to provide appropriate compensation based on performance of eac
Slide 12: Consolidated Statements of Income
Consolidated Statements of Income • Achieved record-high increases in net sales and all PL items below. • Costs of interest rate swap agreements were incurred, but this will reduce the potential interest burden in the future. FY2023 Results FY2022 Results Progress vs. % of Net % of Net Amount % Y-o-
Slide 13: Consolidated Financial Position
Consolidated Financial Position • Real estate as inventory, our future business foundation, increased by approx. 8 billion yen to 55.1 billion yen (up 17% from the previous year-end). • Having secured adequate liquidity on hand, we plan to continue to make aggressive investments in FY2024. • This sh
Slide 14: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows • Despite a slightly negative operating CF due to an increase in the balance of real estate as inventory, we are firmly managing cash. Thus, our cash on hand has increased significantly. • Since we have been in a good relationship with banks, we are now able to
Slide 15: Return to Shareholders
Return to Shareholders Basic Policy • We continue our efforts to improve corporate value and shareholder profit by expanding business performance. Dividend Policy • Aiming for dividend payout ratio of 17%, we shall continue stable and continuous return of profits. For FY 2023, we will pay a dividend
Slide 16: Business Overview by Segment
3 Business Overview by Segment © Loadstar Capital ALL RIGHTS RESERVED 15
Slide 17: 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 18: Corporate Funding Business Results: Real Estate Investment Sales
Corporate Funding Business Results 【Real Estate Investment Sales】 • Sales increased 22% y-o-y to 25.1 billion yen as a result of the sale of 13 properties. • Return-to-office trend has become more common in corporate landscapes. Investment demand, mainly from domestic institutional investors and bus
Slide 19: Corporate Funding Business Results: Real Estate Leasing Sales
Corporate Funding Business Results 【Real Estate Leasing Sales】 • Three hotels performed better than expected, capturing demand from both Japanese and foreign travelers. The hotels are expected to contribute to earnings in FY2024. • Real estate leasing costs slightly increased due to aggressive value
Slide 20: Corporate Funding Business Results
Corporate Funding Business Results • Profit margins on property sales continue to remain high, reflecting the robust market. • We acquired 8 properties, including large -scale projects, and sold 13 properties, mainly small-and medium-sized ones. We are operating our business efficiently due to an in
Slide 21: Asset Management Business Results
Asset Management Business Results • We now have a total of four transactions in which we received mandates for asset management services after the sale of our properties. Synergy between AM and Corporate Funding Business is increasing. • Despite the sale of some properties under management, AUM incr
Slide 22: 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 23: Crowdfunding Business Results
Crowdfunding Business Results • Thanks to the favorable real estate market conditions, the Crowdfunding business performed well. Net sales reached a record high level of 459 million yen, up 13% y-o-y. • Operating loans stood at 6.9 billion yen, down 18% from the previous fiscal year-end, due to the
Slide 24: Crowdfunding Business (KPI)
Crowdfunding Business（KPI） • We launched a new marketing campaign through our official LINE account. In addition, we created special investment allotments for first -time investors in OwnersBook to enable them to invest more easily. • We have set an STO project launch in the medium -term management
Slide 25: Progress of Medium-Term Management Plan
4 Progress of Medium-Term Management Plan © Loadstar Capital ALL RIGHTS RESERVED 24
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: Progress of Medium-Term Management Plan
Progress of Medium-Term Management Plan • In FY2023, although slightly short of our original plan, we were on a good track for FY2024, the final year of our medium-term management plan. • We have set challenging targets especially for Real estate investment as inventory/AUM/OwnersBook investment, bu
Slide 29: 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 30: Our Strengths and Characteristics
5 Our Strengths and Characteristics © Loadstar Capital ALL RIGHTS RESERVED 29
Slide 31: 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 32: 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 33: 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 34: 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 35: 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. 111 trillion yen by 2032 (based on the rate as of Dec 31, 2023). （出典：Polar
Slide 36: 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 37: 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 38: 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 購入額 Purchase amount 借入額 Borrowed amount 評
Slide 39: Company Profile
6 Company Profile © Loadstar Capital ALL RIGHTS RESERVED 38
Slide 40: Company Profile (as of Dec 31, 2023)
Company Profile（as of Dec 31, 2023） 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 41: 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 will seek to attend individual investor briefings more often and proactively reach out to institutional
Slide 42: 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 41
Slide 43: Track Record for Asset Management Business
Track Record for Asset Management Business © Loadstar Capital ALL RIGHTS RESERVED 42
Slide 44: Vacancy Rates
Vacancy Rates • Vacancy rates in the Tokyo business district, which had been very low, increased but have now stabilized. • Tokyo’s office vacancy rates remain lower than in the UK and US. （%） Overall vacancy rate for Tokyo’s 5 major wards 20 Vacancy rates in Japan, UK, and US （%） Q4 2021 20 Q2 2022
Slide 45: 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