Revenue growth of 17.0% in 2024Q4 is tempered by NOI margin contraction to 11.4%, down from 17.2% in 2022Q4, suggesting rising cost pressures on luxury projects.
| Revenue | 36.59B | 18.17B | 18.95B | 17.44B | 16.57B | 11.26B | 8.68B |
| Revenue Growth % | - | -4.15% | 8.65% | 5.27% | 47.21% | 29.65% | - |
| Property Operating Expenses | 31.46B | 14.68B | 16B | 14.69B | 13.84B | 9.77B | 7.69B |
| Net Operating Income (NOI) | 5.13B | 3.49B | 2.95B | 2.76B | 2.73B | 1.49B | 993.5M |
| NOI Margin % | 14.03% | 19.2% | 15.56% | 15.8% | 16.49% | 13.21% | 11.44% |
| Operating Expenses | 3.71B | 2.07B | 2.05B | 1.82B | 1.98B | 1.03B | 814.59M |
| G&A Expenses | -1.09B | 0 | 2.05B | 1.82B | 1.79B | 1.03B | 814.59M |
| EBITDA | 2.01B | 1.53B | 1B | 1.02B | 931.04M | 490.97M | 259.22M |
| EBITDA Margin % | 5.49% | 8.41% | 5.28% | 5.86% | 5.62% | 4.36% | 2.99% |
| Depreciation & Amortization | 180.24M | 106.48M | 102.71M | 82.86M | 43.95M | 37.33M | 80.31M |
| D&A / Revenue % | 0.49% | 0.59% | 0.54% | 0.48% | 0.27% | 0.33% | 0.93% |
| Operating Income | 1.83B | 1.42B | 898.57M | 939.27M | 887.1M | 453.65M | 178.91M |
| Operating Margin % | 5% | 7.83% | 4.74% | 5.39% | 5.35% | 4.03% | 2.06% |
| Interest Expense | 4M | 42.94M | 18.29M | 16.73M | 23.33M | 56.65M | 11.59M |
| Interest Coverage | - | 33.11x | 53.17x | 56.51x | 36.92x | 7.84x | 15.12x |
| Non-Operating Income | -60.21M | 34.59M | -73.76M | -6.27M | 25.6M | 9.77M | 3.7M |
| Pretax Income | 1.84B | 1.34B | 954.04M | 928.81M | 838.17M | 387.23M | 163.62M |
| Pretax Margin % | 5.02% | 7.4% | 5.03% | 5.33% | 5.06% | 3.44% | 1.88% |
| Income Tax | 674.1M | 528.61M | 327.87M | 317.42M | 286.92M | 134.87M | 69.51M |
| Effective Tax Rate % | 36.69% | 39.32% | 34.37% | 34.17% | 34.23% | 34.83% | 42.48% |
| Net Income | 1.18B | 816.33M | 626.96M | 611.92M | 551.62M | 279.49M | 101.44M |
| Net Margin % | 3.23% | 4.49% | 3.31% | 3.51% | 3.33% | 2.48% | 1.17% |
| Net Income Growth % | - | 30.2% | 2.46% | 10.93% | 97.37% | 175.51% | - |
| Funds From Operations (FFO) | 1.36B | 922.81M | 729.67M | 694.78M | 595.57M | 316.82M | 181.76M |
| FFO Margin % | 3.72% | 5.08% | 3.85% | 3.98% | 3.59% | 2.81% | 2.09% |
| FFO Growth % | -1.89% | 26.47% | 5.02% | 16.66% | 87.99% | 74.31% | - |
| FFO per Share | 99.84 | 67.65 | 54.61 | 50.93 | 43.66 | 23.22 | 12.54 |
| FFO Payout Ratio % | 0.01% | 4.28% | 3.43% | 0% | 0% | 0% | 0% |
| EPS (Diluted) | 86.63 | 59.14 | 46.93 | 44.86 | 42.11 | 20.49 | 7.00 |
| EPS Growth % | - | 26.02% | 4.61% | 6.53% | 105.51% | 192.71% | - |
| EPS (Basic) | - | 59.14 | 46.93 | 44.86 | 42.11 | 20.49 | 7.00 |
| Diluted Shares Outstanding | 13.64M | 13.64M | 13.36M | 13.64M | 13.64M | 13.64M | 14.5M |
Project completion timing volatility
As reported in recent financial filings, Lead Real Estate experienced a 17.0% revenue surge in 2024Q4, yet this follows a period of inconsistent growth, suggesting that the company's reliance on project-based residential sales creates significant quarterly revenue swings that complicate long-term performance forecasting for investors.
The revenue trajectory appears heavily dependent on the timing of luxury condominium completions rather than steady operational growth. This lumpy recognition pattern warrants caution, as the 17.0% growth in the most recent quarter may not represent a sustainable trend but rather the successful delivery of specific high-value assets.
According to the company's income statement data, NOI margins contracted to 11.4% in 2024Q4 from a peak of 17.2% in 2022Q4, indicating that rising construction costs or competitive pricing pressures are likely eroding the profitability of the firm's core luxury residential development projects.
The decline in property-level profitability suggests that Lead Real Estate is struggling to maintain its premium positioning against escalating input costs in the Tokyo market. Investors should monitor whether this margin compression is a temporary byproduct of project mix or a structural shift in the firm's ability to pass costs to luxury buyers.
Based on reported figures, FFO per share reached 45.55 in 2024Q4, yet the underlying AFFO remains deeply negative at -$1.3B, highlighting a significant disconnect between headline earnings metrics and the actual cash generated after accounting for the heavy capital requirements of the firm's development pipeline.
The stark divergence between FFO and AFFO suggests that maintenance and development CAPEX are consuming substantial liquidity, potentially limiting the firm's ability to sustain consistent shareholder returns. The volatility in FFO growth, which swung from -39.7% in 2024Q2 to 40.2% in 2024Q4, underscores the inherent risk in relying on transactional development gains.
As disclosed in the latest financial statements, the persistent negative AFFO, including a -$1.3B figure in 2024Q4, suggests that the company's development activities are highly capital-intensive and may be failing to generate sufficient free cash flow to cover the recurring costs of its real estate portfolio.
The consistent gap between FFO and AFFO warrants further investigation into the company's capitalized costs and the true economic burden of its development projects. This discrepancy may indicate that the firm is reinvesting heavily to maintain its land bank, which could leave it vulnerable if market conditions for luxury residential assets deteriorate.
Quick answers to the most common questions about buying LRE stock.
For fiscal year 2025, Lead Real Estate Co., Ltd American Depositary Shares (LRE) reported total revenue of $18.17B. This represents a 109.3% increase compared to $8.68B in 2020.
Lead Real Estate Co., Ltd American Depositary Shares (LRE) is profitable, generating $816.3M in net income for the fiscal year ending 2025 with a net profit margin of 4.5%.
Lead Real Estate Co., Ltd American Depositary Shares (LRE) reported an operating income of $1.42B, resulting in an operating profit margin of 7.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Lead Real Estate Co., Ltd American Depositary Shares (LRE) generated $3.49B in gross profit for the year, representing a gross profit margin of 19.2%. This demonstrates the company's core pricing power and production efficiency.