Operating cash flow of $3.3B in 2024Q4 is offset by heavy capital deployment of $1.9B, resulting in a deeply negative AFFO of -$1.3B that limits dividend sustainability.
| Cash from Operations | 975M | 3.19B | 1.57B | -919.64M | -2.93B | -244.66M | -51.3M |
| Operating CF Growth % | 2150.39% | 103.19% | 270.93% | 68.62% | -1097.96% | -376.89% | - |
| Operating CF / Revenue % | 2.66% | 17.58% | 8.29% | -5.27% | -17.69% | -2.17% | -0.59% |
| Net Income | 1.18B | 816.33M | 654.28M | 606.05M | 528.38M | 252.36M | 101.44M |
| Depreciation & Amortization | 181.36M | 106.48M | 102.71M | 82.86M | 43.95M | 37.33M | 80.31M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 84.83M | 68.92M | 31.66M | 20.62M | 1.11B | 23.81M | 34.42M |
| Working Capital Changes | -707.46M | 2.2B | 760.36M | -1.64B | -4.6B | -564.92M | -267.48M |
| Cash from Investing | -3.55B | -2.53B | -2.24B | -1.26B | -19.08M | -160.43M | -312.88M |
| Acquisitions (Net) | 0 | 3.07M | 0 | 0 | 0 | 0 | 12.5M |
| Purchase of Investments | -16.15M | -97.21M | -15.2M | -8.15M | -3.67M | -10.7M | -26.9M |
| Sale of Investments | 15.91K | 0 | 0 | 5M | 11.79M | 42.04M | -12.5M |
| Other Investing | -9.47M | 0 | -6.36M | -2.44M | 510.09M | -21.54M | -15.99M |
| Cash from Financing | 3.54B | 670.73M | 1.18B | 2.55B | 2.85B | 555.6M | 402.65M |
| Dividends Paid | -22.83M | -39.45M | -25M | 0 | 0 | 0 | 0 |
| Common Dividends | -164.23K | 0 | -25M | 0 | 0 | 0 | 0 |
| Debt Issuance (Net) | 2M | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 921.47M | -47.46K | -229.05M | -63.7M | 99.97M | 35M | 0 |
| Net Change in Cash | 805.94M | 1.49B | 514.31M | 383.26M | -77.21M | 150.79M | 38.27M |
| Exchange Rate Effect | -160.3M | 149.66M | 8.9M | 4.41M | 19.96M | 271K | -196K |
| Cash at Beginning | 706.99M | 1.17B | 786.37M | 403.11M | 480.32M | 329.54M | 291.27M |
| Cash at End | 1.3B | 2.65B | 1.3B | 786.37M | 403.11M | 480.32M | 329.54M |
| Free Cash Flow | -2.76B | 762.85M | -655.96M | -2.36B | -3.47B | -414.89M | -321.29M |
| FCF Growth % | - | 216.3% | 72.23% | 31.89% | -735.93% | -29.13% | - |
| FCF / Revenue % | -7.54% | 4.2% | -3.46% | -13.54% | -20.93% | -3.69% | -3.7% |
Capital intensive development cycle
As reported in recent financial statements, LRE's FFO frequently diverges from GAAP operating cash flow, with the 2024Q4 FFO of $621.4M contrasting sharply against $3.3B in operating cash, suggesting that non-cash adjustments and project-based accounting significantly distort the firm's true operational cash generation capabilities.
The wide variance between FFO and GAAP operating cash flow implies that investors should be cautious when using headline FFO as a proxy for liquidity. This disconnect appears driven by the timing of property sales and the heavy capitalization of development costs, which obscures the underlying cash-generating efficiency of the core business.
Based on reported figures, LRE's AFFO remains deeply negative, reaching -$1.3B in 2024Q4, which indicates that the company is currently unable to fund its dividend distributions from recurring cash flow after accounting for the necessary maintenance and leasing capital expenditures required to sustain its luxury portfolio.
The persistent negative AFFO suggests that the firm's current dividend policy may be reliant on external capital or balance sheet cash rather than operational earnings. This trend warrants close monitoring, as the lack of a positive AFFO buffer limits the company's ability to self-fund future growth or provide consistent shareholder returns.
According to the provided cash flow data, LRE consistently deploys significant capital into its portfolio, with a $1.9B expenditure in 2024Q4, highlighting the capital-intensive nature of its luxury residential development strategy and the ongoing requirement for substantial reinvestment to maintain its competitive position in Tokyo.
The high level of capital expenditure relative to FFO suggests that the company is in a perpetual cycle of reinvestment to secure and develop new land plots. This strategy appears to prioritize long-term asset growth over immediate cash flow, which may leave the firm vulnerable to shifts in construction costs or market demand.
As disclosed in financial filings, the significant gap between Net Income and FFO, such as the $563.2M net income versus $621.4M FFO in 2024Q4, indicates that depreciation and amortization charges are substantial, potentially masking the true cash-based performance of the company's real estate assets.
While FFO is intended to normalize these non-cash charges, the volatility in these adjustments suggests that the company's earnings quality is highly sensitive to accounting estimates. Investors should interpret these figures as an indication of the firm's reliance on asset-heavy operations that require constant capital replenishment to offset the impact of depreciation.
Quick answers to the most common questions about buying LRE stock.
Lead Real Estate Co., Ltd American Depositary Shares (LRE) generated $3.19B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Lead Real Estate Co., Ltd American Depositary Shares (LRE) generated $762.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Lead Real Estate Co., Ltd American Depositary Shares (LRE) spent $2.43B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Lead Real Estate Co., Ltd American Depositary Shares (LRE) returned $39.5M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.