Kenedix Revises Financial Forecast for the Interim and Fiscal Year Ending December 31, 2007.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, Aug 6, 2007 - (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). 1: 4321), a leading real estate financial advisor and asset manager, has revised the financial forecast for the first half ending June June: see month. 30, and full year ending December December: see month. 31, 2008, as announced on February February: see month. 13, 2007, based on recent developments in the Company's business performance. 1. Revisions to the Forecast for the FY07 Interim (Jan. 1 - June 30, 2007)
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(1) Consolidated
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(Millions of Yen)
Operating Operating Ordinary Net
revenue income income income
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Initial Forecast (A) 19,400 -- 12,500 6,300
Revised Forecast (B) 99,500 20,000 17,400 9,900
Change (B-A) 80,100 -- 4,900 3,600
Percentage Change (%) 412.9 -- 39.2 57.1
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Ref: Interim FY2006 16,859 13,367 12,515 7,140
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(2) Non-consolidated
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Initial Forecast (A) 13,200 -- 12,100 7,700
Revised Forecast (B) 16,700 14,800 14,900 9,300
Change (B-A) 3,500 -- 2,800 1,600
Percentage Change (%) 26.5 -- 23.1 20.8
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Ref: Interim FY2006 12,533 10,958 10,697 6,503
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2. Reasons for Interim Revisions The Listed Property Trust In Australia, a listed property trust (LPT) is a unitised portfolio of property assets, listed on a stock exchange, usually the Australian Stock Exchange (ASX). They are known internationally as real estate investment trusts (REITs). (LPT LPT - /L-P-T/ or /lip'it/ or /lip-it'/ Line printer. Rare under Unix, more common among hackers who grew up with ITS, MS-DOS, CP/M and other operating systems that were strongly influenced by early DEC conventions. ) established by Kenedix and the Challenger Financial Services Challenger Financial Services (ASX: CGF) is an Australian financial services company listed on the Australian Stock Exchange. The principal activities of the company are in the following areas:
pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. company listed on the Australian stock exchange Australian Stock Exchange (ASX) Australia's major securities market, formed when the six state stock exchanges (Adelaide, Brisbane, Hobart, Melbourne, Perth, and Sydney stock exchanges) were merged in 1987. (ASX ASX See: Australian Stock Exchange : CGF CGF Commonwealth Games Federation (UK) CGF Computer Graphics Forum CGF Computer Generated Forces CGF Chlorella Growth Factor CGF Charging Gateway Function CGF Crystal Growth Furnace CGF College Golf Foundation ) - was listed on the Australian Stock Exchange as the Challenger Kenedix Japan Trust on April 30, 2007 (ASX: CKTCA). The Challenger Kenedix Japan Trust invests in Japanese domestic real estate for investment purpose. The Kenedix Group sold twelve portfolio commercial properties, totaling 41 billion yen (the acquisition price on the properties), to the LPT during the interim period, and accepted management mandates from the LPT for the properties. Through these sales, the Kenedix Group realized greater capital gains than originally forecast. The Kenedix Group positions the LPT business as such that it contributes to developing a range of investor clients, and secures stable corporate financial returns, and the Kenedix Group aims to increase asset size of the LPT. The Kenedix Group additionally advised the Kenedix Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Investment Corporation on a capital increase through public offering during the period. The Group then sold five portfolio properties to the Advisory for a total of 22 billion yen (the acquisition price of the properties by the Advisory.) As a result, Kenedix is now allocating for greater capital gains than originally forecast. The Kenedix Group also realized additional incentive fees through the property sales which were higher than originally anticipated. Meanwhile, the balance of 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. at the end of the interim period rose to 622 billion yen, due to the Kenedix Group obtaining new property at a faster pace than originally planned. The Kenedix Group accounting methods regarding the sale of real estate property had previously calculated net profit or loss on sales revenues and disposal costs. However, with this interim, the Group revised its method by allocating gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. revenues to revenue, and gross disposal costs to cost of revenue. With this new method, there is no effect on profit, but revenue and cost of revenue are greatly increased. As a consequence, Kenedix has revised upward its financial forecast for both consolidated and non-consolidated interim operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , ordinary income, and net income. 3. Revisions to the Forecast for the Full FY2007 (Jan. 1 - Dec. 31, 2007)
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(1) Consolidated
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(Millions of Yen)
Operating Operating Ordinary Net
revenue income income income
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Initial Forecast (A) 31,700 -- 18,800 10,000
Revised Forecast (B) 132,500 27,600 22,200 11,900
Change (B-A) 100,800 -- 3,400 1,900
Percentage Change (%) 318.0 -- 18.1 19.0
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Ref: Full Year FY2006 27,044 18,637 16,461 9,015
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(2) Non-consolidated
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Initial Forecast (A) 21,300 -- 17,300 10,800
Revised Forecast (B) 23,700 19,700 18,000 11,200
Change (B-A) 2,400 -- 700 400
Percentage Change (%) 11.3 -- 4.0 3.7
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Ref: Full Year FY2006 17,694 14,701 13,769 8,303
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4. Reasons for Full Year Revisions As discussed in the reasons for revisions in the interim financial performance, the capital gain accompanying sales of own account holding property to the LPT in Australia and to the Kenedix Realty Investment Corporation, and incentive fees from private funds managed by the Kenedix Group are higher than originally forecast. Consequently, 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. , operating income, ordinary income and net income for the full year are expected to exceed original forecasts. As a result, the Kenedix Group is revising the full year financial forecast. About Kenedix, Inc. Kenedix, founded in April 1995, initially introduced and promoted real estate auctions to Japanese 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 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 http://www.kenedix.com/eng/index.html Japan Corporate News Network. All rights reserved. |
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