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6-K 1 tm2529920d1_6k.htm FORM 6-K

 

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of November  2025

 

Commission File Number: 001-41814

 

 

Lead Real Estate Co., Ltd

 

 

6F, MFPR Shibuya Nanpeidai Building 16-11

Nampeidai-cho, Shibuya-ku

Tokyo, 150-0036, Japan
(Address of Principal Executive Office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F x   Form 40-F ¨

 

 

 

 


 

EXHIBIT INDEX

 

Exhibit
No
  Description
99.1   Press Release dated November 3, 2025, “Lead Real Estate Co., Ltd Announces Fiscal Year 2025 Results”

 

 


 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Lead Real Estate Co., Ltd
   
Date: November 3, 2025 By: /s/ Eiji Nagahara
  Name: Eiji Nagahara
  Title: Representative Director, President, and Chief Executive Officer

 

 

 

EX-99.1 2 tm2529920d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Lead Real Estate Co., Ltd Announces Fiscal Year 2025 Results

 

Net income attributable to common shareholders increased by 35.1% to JPY846.8 million, or $5.9 million

 

Tokyo, Japan - Lead Real Estate Co., Ltd (Nasdaq: LRE) ("LRE" or the "Company"), a Japanese real estate developer of luxury residential properties, including single-family homes and condominiums across Tokyo, Kanagawa prefecture and Sapporo, and which develops and operates the ENT TERRACE brand of extended-stay hotels, today announced financial results for the fiscal year ended June 30, 2025.

 

Total revenue was JPY18.8 billion ($130.7 million) for the fiscal year ended June 30, 2025, compared to JPY19.0 billion for the fiscal year ended June 30, 2024, a decrease of 0.6%.

 

The primary revenue component, real estate sales, was JPY18.3 billion ($127 million), compared to JPY18.5 billion in the prior fiscal year, representing a 1.0% year-over-year decline in the fiscal year ended June 30, 2025. This reflects the Company’s strategic initiative to build out its hotel business as well as a stable performance amid fewer unit deliveries and higher average selling prices for single-family homes and condominiums. Real estate sales included the following.

 

    Units
Delivered
(FY2025)
    Units
Delivered
(FY2024)
    FY2025 Average
Sale Price (USD
thousands)
    FY2025 Average Sale
Price (JPY thousands)
    %
Change
Y-Y
 
Single-Family Home (Land)     70       71     $ 618     ¥ 89,108       16.0 %
Single-Family Home (Building)     24       41     $ 233     ¥ 33,574       10.7 %
Condominium (Land)     20       33     $ 2,225     ¥ 320,736       -9.2 %
Condominium (Building)     5       4     $ 364     ¥ 52,460       57.4 %
Hotels (Land)     4           $ 7,817     ¥ 1,126,984       n/m  
Hotels (Building)     1           $ 549     ¥ 79,120       n/m  

 

Other revenue increased by 15.5% to JPY535.3 million ($3.7 million), compared to JPY463.6 million in the prior fiscal year, primarily driven by the continued ramp-up of the Company's hotel operations and an increase in average daily rates.

 

The cost of revenue for real estate sales declined by 6.1% to JPY14.8 billion ($102.4 million), from JPY15.7 billion for the fiscal year ended June 30, 2024.

 

Gross margin increased to 19.8% from 15.6% in the prior year, reflecting a more favorable sales mix and higher-margin hotel transactions.

 

Selling, general, and administrative expenses were JPY2.3 billion ($15.6 million), an increase of 9.9% from JPY2.1 billion in the prior fiscal year. As a percentage of revenue, these expenses increased to 12.0% from 10.8% in fiscal year 2024.

 

 


 

Operating income increased by 64.1% year over year to JPY1,475 million ($10.2 million), compared to JPY898.6 million in the fiscal year ended June 30, 2024. The operating profit margin was 7.8%, compared to 4.7% in the prior fiscal year.

 

Interest expenses were JPY44.5 million ($309 thousand), compared to JPY18.3 million in the fiscal year ended June 30, 2024, reflecting higher market interest rates.

 

Other expense was JPY35.9 million ($249 thousand), compared to other income of JPY73.8 million in the prior year, primarily due to a non-recurring impairment loss on equity securities of JPY23.5 million.

 

Total other income (expense) was a net expense of JPY80.4 million ($558 thousand), compared to net income of JPY55.5 million in the prior year.

 

Net income attributable to common shareholders increased by 35.1% to JPY846.8 million ($5.9 million), or earnings per ADS of JPY62.07 ($0.43), compared to JPY627 million, or earnings per ADS of JPY46.93, in the fiscal year ended June 30, 2024.

 

Cash and cash equivalents were JPY2.7 billion ($18.4 million) as of June 30, 2025, compared to JPY1.3 billion as of June 30, 2024.

 

"We are pleased with the improved profitability we were able to achieve in 2025, which reflected Lead Real Estate's strong positioning in the Japanese real estate market, sustained demand from both individual and institutional buyers, and our increased focus on high-value locations and stylish, luxury designs and finishes," said Mr. Eiji Nagahara, Chief Executive Officer of LRE. "We are committed to delivering quality products to our customers and generating long-term value for our shareholders, as demonstrated by our recent payment of our third consecutive annual dividend."

 

Business Outlook

 

“Building on another year of solid revenue and continued improvement in our bottom line, we enter fiscal year 2026 with confidence and focus,” said Mr. Nagahara. “Market conditions remain favorable — inbound tourism has reached record levels, and housing demand in Tokyo’s core wards continues to strengthen amid rising land values.

 

“We will continue to target prime real estate opportunities, leveraging our strong brand and trusted relationships with local partners to drive growth. In Japan, our strategy centers on expanding hotel operations nationwide, extending beyond our flagship ENT TERRACE brand with two new concepts and the continued rollout of our Master Lease model.

 

“This fiscal year we also expect to make progress in expanding our presence internationally. We plan to acquire condominium units in the Philippines and Malta as part of our risk-hedging strategy and our commitment to identifying high-value opportunities both locally and globally. We continue to evaluate opportunities for expansion in the United States as well.

 

“Supported by strong market fundamentals, we expect to deliver renewed revenue growth in fiscal 2026, and further enhance profitability while maintaining disciplined execution and a commitment to delivering long-term shareholder value through sustained earnings growth and continued dividend payments.”

 

 


 

Conference Call Details

 

The Company will host a conference call to discuss its financial results for the fiscal year ended June 30, 2025, and business outlook on Monday, November 3, 2025, at 8:30 a.m. Eastern Time (10:30 p.m. Japan Standard Time).

 

To access the live call, participants in the United States should dial 1-877-407-9208, and international participants should dial 1-201-493-6784, approximately 15 minutes prior to the start time and use conference ID:13756898. The call will also be broadcast live over the Internet at https://viavid.webcasts.com/starthere.jsp?ei=1741003&tp_key=2c0fb29124.

 

For those unable to participate in the live event, a telephone replay will be available approximately three hours after the call concludes and will remain accessible until 11:59 p.m. Eastern Time on November 17, 2025, by dialing 1-844-512-2921 (U.S.) or 1-412-317-6671 (International) and entering the conference ID: 13756898.

 

The fiscal year 2025 earnings release will be available on the Company's website prior to the event: https://www.lead-real.co.jp/en/.

 

Exchange Rate Information

 

The Company's functional currency and reporting currency are the Japanese yen. Convenience translations included in this press release of Japanese yen into U.S. dollars have been made at the exchange rate of JPY144.1700 = $1.00, which was the foreign exchange rate on June 30, 2025, as reported by the Board of Governors of the Federal Reserve System in its weekly release on July 1, 2025.

 

 

About Lead Real Estate Co., Ltd

 

Lead Real Estate Co., Ltd is a Japanese developer of luxury residential properties, including single-family homes and condominiums, across Tokyo, Kanagawa prefecture, and Sapporo. In addition, the Company operates hotels in Tokyo and leases apartment building units to individual customers in Japan and Dallas, Texas.

 

The Company's mission is to serve its customers by offering stylish, safe, and luxurious living. The Company's vision is to adopt the Kaizen (continuous improvement) approach to seek to improve its operations, and to leverage its nationally recognized, award-winning luxury homes and strong market position in the luxury residential property market in Tokyo, Kanagawa prefecture, and Sapporo to create a global transaction platform allowing access to prime Japanese condominiums as well as overseas condominiums, including in the U.S. and Hong Kong.

 

For more information, please visit the Company's website at https://www.lead-real.co.jp/en/.

 

 

About "ENT TERRACE"

 

"ENT TERRACE" Series is an extended-stay hotel brand operated by Lead Real Estate Co., Ltd. The Company will continue to develop its hotels with the aim of providing a space where guests can relax as if they were at home while ensuring privacy and easing the burden of long-term stays.

 

Learn more at https://ent-terrace.com/en/.

 

 


 

Forward-Looking Statements

 

Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and other factors that may affect its future results in the Company's registration statement and in its other filings with the U.S. Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

 

 

Contact Information

 

For Media and Investor Relations:
Daisuke Takahashi
Chief Financial Officer
Lead Real Estate Co., Ltd
d-takahashi@lead-real.co.jp
+81 3-5784-5127

 

AUM Advisors

 

Crocker Coulson
Email: crocker.coulson@aummedia.org
Tel: (646) 652-7185

 

 


 

Summary Financial Tables

 

LEAD REAL ESTATE CO., LTD

CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2025 AND 2024

(Japanese yen in thousands, except share data)

 

    June 30,  
    2025     2024  
ASSETS                
Current assets:                
Cash and cash equivalents   ¥ 2,656,860     ¥ 1,300,684  
Accounts receivable, net     38,523       22,859  
Real estate inventory     10,134,739       9,267,825  
Contract assets     141,418       236,499  
Prepaid and other current assets     381,581       493,819  
Total current assets     13,353,121       11,321,686  
Property and equipment, net     5,796,381       5,449,101  
Intangible asset, net     35,396       54,138  
Investments in marketable securities     25,303       20,844  
Right-of-use assets, operating lease, net     820,786       154,613  
Investments     122,101       46,394  
Other assets     326,746       170,588  
Total assets   ¥ 20,479,834     ¥ 17,217,364  
LIABILITIES AND SHAREHOLDERS’ EQUITY                
Current liabilities:                
Accounts payable   ¥ 1,035,712     ¥ 602,013  
Current portion of notes payable     7,599,606       6,815,181  
Contract liabilities     337,483       130,259  
Current portion of operating lease liabilities     201,313       67,938  
Accrued expenses and other current liabilities     764,920       356,856  
Total current liabilities     9,939,034       7,972,247  
Notes payable, net of current portion     4,557,855       4,598,151  
Deferred tax liabilities, net     89,638       85,018  
Operating lease liabilities, net of current portion     621,962       91,471  
Other liabilities     240,632       233,109  
Total liabilities     15,449,121       12,979,996  
COMMITMENTS AND CONTINGENCIES                
SHAREHOLDERS’ EQUITY                
Common stock, 50,000,000 shares authorized, 15,628,000 shares issued and 13,641,900 shares outstanding as of June 30, 2025 and 2024 with no stated par value     1,207,055       1,206,765  
Retained earnings     3,965,673       3,159,815  
Treasury stock, at cost, 1,986,100 shares as of June 30, 2025 and 2024     (154,121 )     (154,121 )
Non-controlling interest     (8,456 )     (7,558 )
Accumulated translation gain     20,562       32,467  
Total shareholders’ equity     5,030,713       4,237,368  
Total liabilities and shareholders’ equity   ¥ 20,479,834     ¥ 17,217,364  

 

 


 

LEAD REAL ESTATE CO., LTD

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE FISCAL YEARS ENDED JUNE 30, 2025, 2024, AND 2023

(Japanese yen in thousands, except share and per share data)

 

    For the Fiscal Years Ended June 30,  
    2025     2024     2023  
                (as restated)  
Revenue:                        
Real estate sales   ¥ 18,307,409     ¥ 18,487,074     ¥ 17,098,308  
Other revenue     535,254       463,609       316,940  
Total revenue     18,842,663       18,950,683       17,415,248  
Expenses:                        
Cost of sales – real estate     14,756,750       15,721,271       14,466,459  
Cost of sales – other     357,279       279,806       191,544  
Selling, general and administrative     2,253,653       2,051,040       1,817,970  
Total expenses     17,367,682       18,052,117       16,475,973  
Operating income     1,474,981       898,566       939,275  
Other income (expense):                        
Interest expenses     (44,544 )     (18,286 )     (16,731 )
Other, net     (35,881 )     73,759       6,268  
Total other income (expense), net     (80,425 )     55,473       (10,463 )
Income before income taxes     1,394,556       954,039       928,812  
Income taxes     548,331       327,869       317,418  
Net income     846,225       626,170       611,394  
Net loss attributable to the noncontrolling interests     (559 )     (789 )     (524 )
Net income attributable to common stockholders     846,784       626,959       611,918  
Foreign currency translation gain (loss)     (11,905 )     10,512       5,241  
Total Comprehensive income   ¥ 834,879     ¥ 637,471     ¥ 617,159  
Earnings per share:                        
Basic   ¥ 62.07     ¥ 46.93     ¥ 48.96  
Diluted   ¥ 62.07     ¥ 46.93     ¥ 48.96  
Weighted average shares outstanding:                        
Basic     13,641,900       13,360,834       12,498,900  
Diluted     13,641,900       13,360,834       12,498,900  

 

 


 

LEAD REAL ESTATE CO., LTD

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE FISCAL YEARS ENDED JUNE 30, 2025, 2024, AND 2023

(Japanese yen in thousands)

 

    For the Fiscal Years Ended June 30,  
    2025     2024     2023  
                (as restated)  
Cash flows from operating activities:                        
Net income   ¥ 846,225     ¥ 626,170     ¥ 611,394  
Adjustments to reconcile net income to net cash used in operating activities:                        
Depreciation and amortization     110,448       102,713       82,865  
Loss on disposal of assets     320       5,852        
Gain on sales of assets     (1,000 )            
Impairment loss on property and equipment     14,741              
Impairment loss on real estate inventories     6,013              
Non-cash finance lease expense     28,503       23,847       20,523  
Investment revaluation (gain) loss     (4,459 )     1,965       96  
Impairment loss on equity securities without readily determinable fair values     23,509              
Deferred income taxes, net     4,418       50,993       3,334  
Changes in assets and liabilities:                        
Accounts receivable, net     (15,664 )     (16,246 )     (3,302 )
Real estate inventory     1,204,545       1,122,406       (1,569,350 )
Contract assets     95,081       199,522       (178,305 )
Prepaid and other current assets     112,238       (290,238 )     47,429  
Operating lease, net     (2,307 )     2,655       (805 )
Other assets     (156,158 )     15,890       11,963  
Accounts payable     433,699       (130,709 )     50,699  
Contract liabilities     207,224       (130,271 )     4,552  
Accrued expenses and other current liabilities     405,722       (12,654 )     (730 )
Net cash provided by (used in) operating activities     3,313,098       1,571,895       (919,637 )
Cash flows from investing activities:                        
Purchases of property and equipment     (2,521,787 )     (2,221,499 )     (1,250,451 )
Proceeds from sale of property and equipment     3,182              
Purchases of intangible assets     (2,351 )     (6,359 )     (2,438 )
Purchase of investments and investments in marketable securities     (100,841 )     (15,203 )     (8,150 )
Proceeds from sale of investments in marketable securities                 5,000  
Net cash used in investing activities     (2,621,797 )     (2,243,061 )     (1,256,039 )
Cash flows from financing activities:                        
Proceeds from notes payable     14,734,600       15,014,801       14,580,822  
Payments on notes payable     (13,969,871 )     (14,745,923 )     (11,944,327 )
Payments on IPO costs           (229,046 )     (63,702 )
Proceeds from common stock issuance           1,187,428        
Dividend payments     (40,926 )     (24,998 )      
Purchases of noncontrolling interest     (49 )            
Repayments of principal portion of finance lease liability     (27,999 )     (25,689 )     (18,262 )
Net cash provided by financing activities     695,755       1,176,573       2,554,531  
Effect of exchange rate change on cash and cash equivalents     (30,880 )     8,904       4,410  
Net increase in cash and cash equivalents     1,356,176       514,311       383,265  
Cash and cash equivalents, beginning of year     1,300,684       786,373       403,108  
Cash and cash equivalents, end of year   ¥ 2,656,860     ¥ 1,300,684     ¥ 786,373  
Supplemental disclosures of cash flow information:                        
Cash paid during the year for                        
Interest   ¥ 44,544     ¥ 352,355     ¥ 292,581  
Income taxes   ¥ 309,482     ¥ 316,050     ¥ 396,669  
Non-cash investing and financing activities                        
Operating lease right-of-use assets obtained in exchange for operating lease liabilities   ¥ 747,616     ¥ 2,613     ¥ 103,771  
Finance lease right - of - use assets obtained in exchange for finance lease liabilities   ¥ 38,066     ¥ 38,673     ¥ 50,685