Leopalace21 Braces for 27.3-B.-Yen Net Loss for FY 2019

Economy

Tokyo, Nov. 7 (Jiji Press)--Leopalace21 Corp. <8848> said Thursday that it expects to incur a consolidated net loss of 27.3 billion yen for the year to March 2020, against the previous forecast of 100 million yen in net profit.

The major apartment rental company will book 10 billion yen in extraordinary loss due to expenses related to its shoddy construction scandal, including costs for improvement work.

Leopalace21 now expects to see red ink for the second consecutive year, after incurring a net loss of 68.6 billion yen in fiscal 2018.

Leopalace21 also revised down its sales forecast for fiscal 2019 to 447.3 billion yen from 502.2 billion yen, reflecting a drop in the average apartment occupancy rate due to prolonged repair work and other factors.

In spring 2018, a number of defects were found in rental apartment buildings built by the firm, including the absence of walls preventing fire spread in attics.

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