Kenedix Announces Revisions to Interim and Full Year Earnings Forecasts.Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. , Japan, July July: see month. 13, 2006 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - Kenedix, Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 4321) has revised earnings forecasts for the interim period and for the full fiscal year 2006 (January January: see month. 1 - December December: see month. 31, 2006), which were announced with the release of the previous year's earnings statement on February February: see month. 14, 2006. This revision is based on recent earnings trends in the Company's business performance. 1. Revisions to the Forecast for the Interim Period (Jan. 1 - June June: see month. 30, 2006)
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(1) Consolidated
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(Millions of Yen)
Operating Ordinary Net
revenue income income
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Initial Forecast (A) 7,900 5,400 3,100
Revised Forecast (B) 16,100 11,900 6,800
Change (B-A) 8,200 6,500 3,700
Percentage Change (%) 103.8 120.4 119.4
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Ref: Interim FY2005 5,517 2,916 1,720
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(2) Non-consolidated
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Initial Forecast (A) 5,960 4,880 3,100
Revised Forecast (B) 12,000 10,200 6,200
Change (B-A) 6,040 5,320 3,100
Percentage Change (%) 101.3 109.0 100.0
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Ref: Interim FY2005 3,674 2,630 1,847
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2. Reasons for Interim Period Revisions Capital gains in the interim period, which included the advance appropriation The designation by the government or an individual of the use to which a fund of money is to be applied. The selection and setting apart of privately owned land by the government for public use, such as a military reservation or public building. of proceeds from anticipated sales of proprietary real estate in the second half, exceeded expectations, owing especially to the public offering and subsequent property acquisition by the Group's Kenedix Real Estate Investment Corporation and Japan Logistics Fund, Inc. Incentive fees resulted from the sale of properties to these companies from private funds also exceeded initial estimates. Overall operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. increased sharply due to the concentration of earnings in the interim period. As a result, interim results far exceeded initial expectations owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de dramatic increases in ordinary income and net income. The Group's assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. , including the properties held by the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. investment companies, totaled 463,500 million yen as of May 2006. Due to the aforementioned factors, the Company anticipates that interim operating revenue, ordinary income and net income will exceed estimates on both a consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: and non-consolidated basis, and has therefore revised its interim-period earnings estimates. 3. Revisions to the Forecast for the Full FY2006 (Jan. 1 - Dec. 31, 2006)
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(1) Consolidated
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(Millions of Yen)
Operating Ordinary Net
revenue income income
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Initial Forecast (A) 16,200 10,000 5,900
Revised Forecast (B) 22,000 13,300 7,700
Change (B-A) 5,800 3,300 1,800
Percentage Change (%) 35.8 33.0 30.5
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Ref: Full FY2005 13,958 8,113 4,757
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(2) Non-consolidated
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Initial Forecast (A) 10,900 7,700 4,800
Revised Forecast (B) 15,600 11,100 6,700
Change (B-A) 4,700 3,400 1,900
Percentage Change (%) 43.1 44.2 39.6
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Ref: Full FY2005 10,018 7,122 4,574
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4. Reasons for Full Year Revisions As stated in the reasons for the revision of interim-period earnings, proceeds from the sale of properties to Kenedix Real Estate Investment Corporation and Japan Logistics Fund, Inc., and the incentive fees from the sale of properties exceeded initial estimates. This increase in operating revenue is likely to result in full year earnings surpassing initial forecasts. However, the Company estimates that revenue in the second half of the current fiscal year will be lower than initially anticipated, due to the increased probability that the Company will sell its interests in the development of large commercial facilities in the next fiscal year, and not in the second half of the current fiscal year as initially anticipated. Furthermore, finance charges in the second half are expected to exceed initial forecasts following the establishment of an additional commitment line, undertaken in preparation for the flexible procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. of funds for future property acquisitions. Although the Company projects an increase in operating revenue, ordinary income and net income over initial estimates, and has revised its full year earnings statement accordingly, the rate of increase for the full year is lower than that of the interim period due to the aforementioned factors. About Kenedix, Inc. Kenedix, founded in April 1995, initially introduced and promoted real estate auctions to Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and investors and financial institutions. Today, the Kenedix Group is an organization advanced in a broad range of real estate services and finance. The Group's overall goal is to maximize returns on investments, accomplished by leveraging the Group's comprehensive research skills and extensive knowledge of the real estate business to accurately analyze an·a·lyze v. 1. To examine methodically by separating into parts and studying their interrelations. 2. To separate a chemical substance into its constituent elements to determine their nature or proportions. 3. and evaluate trends in a constantly changing market. Kenedix is working to become one of Japan's most prominent real estate asset managers, while building a highly stable and profitable corporate group. For more information, please visit www.kenedix.com. Source: Kenedix, Inc. Contact: Kenedix, Inc. Taiji Yoshikawa Chief Financial Officer +81-3-3519-2530 Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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