FPG announced an upward revision to its financial results. [22/03/2024]

2024年3月23日 2024年3月23日

Good news has arrived for me: FPG announced "Notice of Revision of Earnings and Dividend Forecasts for the Fiscal Year Ending September 30, 2024" at 16:30 (JST) on 22/03/2024. In a blog post on March 20, I wrote that "FPG will probably revise upward," two days later, they announced an upward revision.

Notice of Revision of Earnings and Dividend Forecasts for the FY2024 (PDF file)

Notes on exchange rates and other figures

This article calculates the exchange rate at "$0.0067/yen" (150 yen/$).

The sales and other figures used in this article are current as of the time of writing. Depending on your viewing period, the figures may have changed significantly.

Table of Contents(目次)

Revision of Earnings Forecasts
Revision of Dividend Forecast
Finally
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Revision of Earnings Forecasts

	FY2023	Latest forecast for FY2024	Percentage change
Revenue	71,149 Million yen	78,200 Million yen	9.91%
Operating income	18,265 Million yen	20,800 Million yen	13.88%
Ordinary income	17,989 Million yen	21,000 Million yen	16.74%
Net income attributable to owners of the parent	12,466 Million yen	15,000 Million yen	20.33%
Net income per share	145.97 yen	175.64 yen	20.33%

FPG's document explains the reason for the upward revision as follows.

Revenue for the first half of the fiscal year is expected to significantly exceed the initial plan, mainly due to continued strong sales of small-lot real estate products in the domestic real estate fund business. Profits are also expected to exceed the previous forecast.

This is mainly due to the fact that in the lease fund business, we have continued to aggressively promote sales, mainly of marine transportation projects for ships and containers, including large ship projects related to ample inventory at the beginning of the period and transition financing related to CO2 reduction, while at the same time, in order to meet strong demand from investors, we have brought forward the sales plan for investments from the initial plan. In addition, in the overseas real estate fund business, sales of a large-scale multi-family residential project in Austin, Texas, U.S.A., which was launched in October 2023, have been strong.

The full-year forecasts for both revenue and profit have been revised upward in light of the strong performance in the first half of the fiscal year. In addition, we have taken a conservative view of the uncertain economic situation, including future interest rate hikes and exchange rate fluctuations, and in the lease fund business, we expect the first half of the year to be as heavily weighted as the same period last year due to the accelerated sales in the first half of the year of inventory that was originally scheduled for sale in the second half of the year.

The webmaster expects that the strong demand from investors will continue to grow. So I believe that FPG's performance may grow further.

Revision of Dividend Forecast

FPG's latest forecast for FY2024 is as follows.

	FY2023	Latest forecast for FY2024	Percentage change
End of 2nd quarter	0 yen	38.75 yen
End of term	73 yen	49.25 yen
Total	73 yen	88 yen	20.54%
Dividend payout ratio	50.0%	50.1%

Since FPG declared that it would aim for a dividend payout ratio of 50%, the dividend forecast was revised in line with the upward revision of the earnings forecast. Starting in FY2024, FPG will pay dividends in two installments: an interim dividend of 38.75 yen per share and a year-end dividend of 49.25 yen per share. The dividend would be 20.54% higher than in FY2023.

Finally

I have summarized FPG's announcement of an upward revision in this article.

I am very happy to see my mainstay stocks announce such good news. I am also happy that FPG is willing to return profits to shareholders, so I am also happy to see an increase in its dividend.
I get a 20% increase in my annual dividend just by sitting tight and holding FPG stock. There are still six months left in FY2024, so I look forward to seeing the company's performance improve.

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