May 12, 2015
NTT Urban Development Corporation
(First Section of the Tokyo Stock Exchange: 8933)
NTT Urban Development Corporation (head office: Chiyoda-ku, Tokyo, President and Chief Executive Officer: Sadao Maki) announced the consolidated financial results for the NTT Urban Development Group for the fiscal year ended March 31, 2015 (referring to the 30th business period from April 1, 2014 to March 31, 2015). Please refer to Presentation Material for the FY 2014 and the Summary of Financial Statements for the FY 2014. The Company also announced its results forecast for the Fiscal Year Ending March 31, 2015.
- For the fiscal year ended March 31, 2015, operating revenue reached ¥152.0 billion, a decrease of ¥37.1 billion year on year. Operating income was ¥24.8 billion, falling ¥5.6 billion, and ordinary income was ¥20.3 billion, declining ¥4.4 billion. Net income stood at ¥16.2 billion, rising ¥4.8 billion year on year due to the lowering of the corporate tax rate which increased net income by ¥4 billion. Compared with the full-year operating forecasts for the fiscal year ended March 31, 2015, operating revenue was almost level with the forecast, while operating income, ordinary income and net income were all higher than forecast.
- In the Leasing Business, operating revenue was ¥91.7 billion, falling ¥4.8 billion year on year, and operating income stood at ¥23.5 billion, declining ¥3.6 billion year on year. With improvement in the vacancy rate and halt in the decline of rents putting the brakes on decline in operating revenues from existing properties, fourth quarter results stayed virtually flat compared to the same period a year ago.
- In the Residential Property Sales Business, operating revenue amounted to ¥46.6 billion, a decrease of ¥32.9 billion year on year, and operating income was ¥4.4 billion, a decline of ¥3.8 billion, primarily reflecting a decrease in the number of condominiums delivered and a drop in the average price per property.
- In the fiscal year ending March 31, 2016, the Company expects that earnings in the Residential Property Sales Business will remain virtually flat. However, it anticipates that the Leasing Business will return to sales and profit growth due to improvement in the vacancy rate of existing properties, the tendency for halt in decline of rents, and the impact of property sales associated with the launch of private-placement REITs. In light of these factors, in its full-year results forecast, the Company expects operating revenue of ¥168.0 billion (up ¥15.9 billion year on year), operating income of ¥25.0 billion (up ¥0.1 billion), ordinary income of ¥21.0 billion (up ¥0.6 billion), and net income of ¥12.0 billion.