53.66% and 141.14% Increase in Gross Profit and Net Income from Continuing Operations for Full Year 2023 Compared to Full Year 2022, Respectively

Rimawari-kun Members Reached 279,029 as of December 31, 2023, a 17.7% Increase from 2022

Rimawari-kun Platform Gross Merchandise Value Surpasses 5 Billion Yen as of December 31, 2023

TOKYO, May 16, 2024 (GLOBE NEWSWIRE) -- SYLA Technologies Co., Ltd. (NASDAQ:SYT) ("SYLA" or "the Company"), operator of the largest membership real estate crowd-funding platform in Japan, Rimawari-kun, reported its financial results for the full year ended December 31, 2023.

Full Year 2023 Operational Highlights:

Awarded the Excellent business Award for ZEH-M Oriented Certification and Integration of Energy-Saving Technology for its SYFORME MOTOMACHI-CHUKAGAI brand condominium
Sold the SYFORME SUMIYOSHI II brand condominium
Announced gain on sales of investment securities, resulting in a profit of 96 million yen
As of May 8, 2024, ietty membership surpassed 400,000, a 100,000 increase in membership since March 2024
Subsidiary SYLA Solar announced issuance of series 1 unsecured bonds of ¥50 million and announced comprehensive business alliance with LIVE THE CREATIVE Inc.
Announced growth strategy centered on mergers and acquisitions
Announced FY2024 financial guidance and upward revision of FY2023 year-end dividend to ¥180 Per Share
Entered into capital and business alliance and became largest shareholder of RIBERESUTE CORPORATION
Sold four SYFORME brand condominiums to a private fund managed by BlackRock's real estate business
Rimawari-kun platform gross merchandise value surpasses ¥5 billion
Announced business collaboration with a private fund managed by BlackRock's real estate business
Announced definitive agreement for a business transfer from ietty, Inc.
Began the sale of SYFORME NAKANO condominium units for investors
Initiated Employee Stock Purchase Plan
Sold a condominium development site in Shimo-Meguro, Tokyo
Announced Interim Dividend of ¥70 Per Share
Authorized ¥200.0 Million ($1,385,000) ADS Repurchase Program
Rimawari-kun ranked as the top real estate crowdfunding platform in Japan for two consecutive years

Management Commentary

"This past year was a pivotal one full of advancement for SYLA across our various business sectors," said Chairman, Founder, and CEO Hiroyuki Sugimoto. "We achieved record highs in our real estate development and sales, real estate crowdfunding, asset management, solar power businesses, and we achieved significant increases in both gross profit and net income."

"Throughout the latter half of the year, the company strategically pursued acquisitions to bolster our real estate development and sales, and crowdfunding businesses. The acquisition of ietty, becoming the largest shareholder and forming a strategic business alliance with RIBERESUTE, and the supply of properties to BlackRock are all strategic moves that have positioned SYLA for significant growth in 2024 and beyond. The favorable Japanese macroeconomic environment, characterized by low interest rate policies, increased inbound investments, and population growth in the central Tokyo area are all factors that position our top-line growth."

"Looking ahead, I would like to reiterate and emphasize our growth strategy centered around M&A. The successes of the past year on this front have strengthened our confidence in maximizing the potential of ventures that have synergies with our company. We anticipate reasonable, short-term integration costs which we believe will yield substantial returns for our shareholders in the medium to long-term. With a robust balance sheet and ample cash reserves, we are well positioned to explore and execute on this initiative."

Full Year 2023 Financial Results:

Results compare the full year ended December 31, 2023, to the full year ended December 31, 2022, unless otherwise indicated. Results below are for SYLA Technologies Co., Ltd. on a consolidated basis.

Revenues increased 3.12% to ¥22,743,410 thousand (US $161.4 million) for the year ended December 31, 2023 from ¥22,055,785 thousand for the year ended December 31, 2022. The increase was mainly attributable to an increase in land sales due to a sale of large development sites, offset by a decrease in total real estate sales due to the number of units sold decreased from 588 units in full year 2022 to 446 units in full year 2023.

Gross profit increased 53.66% to ¥5,537,444 thousand (US $39.3 million) for the year ended December 31, 2023 from ¥3,603,816 thousand for the year ended December 31, 2022. The increase was mainly attributable to high-margin transactions, such as the sale of land for large-scale development and the sale of one building for sale.

Total operating expenses increased to ¥4,096,346 thousand (US $29.1 million) for the year ended December 31, 2023 from ¥2,825,104 thousand for the year ended December 31, 2022. The increase was mainly attributable to an increase in legal and professional expenses due to increase in IPO-related costs such as share-based payment costs and legal fees due to listing on the NASDAQ market, and an increase in salaries and welfare expenses due to increase in personnel for management system development, etc.

Net income from continuing operations increased by 141.14% to ¥749,361 thousand (US $5.3 million) for the year ended December 31, 2023 from ¥310,761 thousand for the year ended December 31, 2022. The increase was mainly attributable to the significant increase in gross profit.

As of December 31, 2023, SYLA Technologies Co., Ltd. had ¥4,017,311, thousand (US $28.5 million) cash and cash equivalents.

Total net assets increased to ¥40,084,427 thousand ($285 million) as of December 31, 2023 from ¥29,792,974 thousand ($211 million) as of December 31, 2022.

*(Conversion rate: ¥140.92 = US$1.00)

Fiscal Year 2024 Guidance

SYLA is providing the following guidance for fiscal year 2024:

	Low (JPY)	High (JPY)
Fiscal Year 2024 Revenue	27.5 billion yen	30.0 billion yen
Fiscal Year 2024 Income from Continuing Operations	750 million yen	1.10 billion yen

About SYLA Technologies Co., Ltd.

Headquartered in Tokyo, Japan, SYLA Technologies Co., Ltd. (NASDAQ:SYT) ("SYLA" or "the Company") owns and operates the largest membership real estate crowd-funding platform in Japan, Rimawari-kun, which targets individuals, corporate and institutional investors, as well as high net worth individuals. SYLA's mission is to democratize real estate investment around the world through technology and asset management through the Rimawari-kun platform. SYLA is engaged in the overall investment condominium business, including planning, development, construction, sales, rental management, building management, repair work, and the sale of properties. Additional information about the Company's products and services is available at https://syla-tech.jp/en.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. For example, the Company is using forward-looking statements when it discusses the expected gross proceeds and the closing of the offering. Forward-looking statements are not historical facts, and are based upon management's current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management's expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company's reports filed from time to time with the Securities and Exchange Commission ("SEC"), including, but not limited to, the risks detailed in the Company's annual report on Form 20-F, filed with the SEC on April 18, 2023. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.

Contact Information

SYLA Technologies Investor Relations Contact:

Gateway Group, Inc.

John Yi and Steven Shinmachi

SYLA@gateway-grp.com

(949) 574-3860

SYLA Technologies Company Contact

Takeshi Fuchiwaki

Director, Chief Growth Officer

irpr@syla.jp


SYLA TECHNOLOGIES CO., LTD.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Japanese Yen ("JPY"), except for share data)


	As of December 31,
	2023			2022

ASSETS
Current assets
Cash and cash equivalents		4,017,311			2,542,795
Restricted cash		569,469			168,630
Term deposits		233,505			160,089
Short-term investments		89,482			-
Accounts receivable, net		162,690			67,776
Inventories		16,849,935			10,517,193
Prepaid expenses, net		357,104			647,534
Other current assets, net		304,271			185,350
Current assets of discontinued operations		-			10,600
Total current assets		22,583,767			14,299,967

Non-current assets
Restricted cash, non-current		25,180			76,578
Long-term deposits		9,300			30,511
Long-term investments, net		490,437			413,805
Property, plant and equipment, net		11,889,701			10,231,057
Solar power systems, net		476,778			361,422
Intangible assets, net		133,226			194,361
Goodwill		730,776			727,701
Operating lease right-of-use assets		2,409,255			2,597,500
Finance lease right-of-use assets		11,980			11,396
Other assets, net		1,324,027			848,676
Total non-current assets		17,500,660			15,493,007

TOTAL ASSETS		40,084,427			29,792,974

LIABILITIES AND EQUITY
Current liabilities
Accounts payable		559,420			419,058
Accrued liabilities		277,425			159,533
Short-term loans		1,692,599			697,179
Current portion of long-term loans		7,243,022			1,030,850
Current portion of long-term bonds		107,601			126,525
Deferred revenue		165,262			228,426
Income tax payables		466,872			431,418
Operating lease liabilities, current		433,725			427,856
Finance lease liabilities, current		4,158			4,821
Other current liabilities		1,047,016			1,603,498
Current liabilities of discontinued operations		-			3,308
Total current liabilities		11,997,100			5,132,472

Non-current liabilities
Long-term loans		14,308,136			15,257,106
Long-term bonds		97,549			205,769
Operating lease liabilities, non-current		1,958,689			2,175,786
Finance lease liabilities, non-current		8,040			6,795
Other liabilities		534,228			448,356
Total non-current liabilities		16,906,642			18,093,812

TOTAL LIABILITIES		28,903,742			23,226,284

EQUITY
Capital stock (900,000 shares authorized, 260,891 and 239,489 shares issued and outstanding as of December 31, 2023 and 2022, respectively, with no stated value)		100,000			161,580
Capital surplus		4,988,126			2,987,795
Treasury stock, at cost (142 and nil shares as of December 31, 2023 and 2022, respectively)		(13,631	)		-
Retained earnings		3,413,644			2,767,001
Total SYLA Technologies Co., Ltd.'s equity		8,488,139			5,916,376
Noncontrolling interests		2,692,546			650,314
TOTAL EQUITY		11,180,685			6,566,690
TOTAL LIABILITIES AND EQUITY		40,084,427			29,792,974


SYLA TECHNOLOGIES CO., LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Amounts in thousands of JPY, except for share and per share data)

	For the Years Ended December 31,
	2023			2022			2021

Revenues, net		22,743,410			22,055,785			16,665,382
Cost of revenues		(17,205,966	)		(18,451,969	)		(13,516,293	)
Gross profit		5,537,444			3,603,816			3,149,089
Operating expenses
Selling, general and administrative expenses		(4,096,346	)		(2,825,104	)		(2,466,731	)
Total operating expenses		(4,096,346	)		(2,825,104	)		(2,466,731	)

Income from continuing operations		1,441,098			778,712			682,358

Other income (expenses)
Other income		146,787			201,954			43,951
Income (loss) from equity method investments		(1,689	)		(748	)		109
Other expenses		(570,856	)		(323,977	)		(226,346	)
Total other expenses		(425,758	)		(122,771	)		(182,286	)
Income from continuing operations before income taxes		1,015,340			655,941			500,072
Income tax expense		(265,979	)		(345,180	)		(221,384	)
Net income from continuing operations		749,361			310,761			278,688
Income (loss) from discontinued operations, net of income taxes		(6,742	)		78,628			-
Net income		742,619			389,389			278,688
Net income from continuing operations attributable to noncontrolling interests		61,187			4,329			1,199
Net loss from discontinued operations attributable to noncontrolling interests		-			(9,895	)		-
Less: net income (loss) attributable to noncontrolling interests		61,187			(5,566	)		1,199
Net income attributable to SYLA Technologies Co., Ltd.		681,432			394,955			277,489

Net income from continuing operations per share
- Basic		2,698.42			1,280.25			1,201.09
- Diluted		2,263.36			1,081.45			1,022.40

Income (loss) from discontinued operations per share
- Basic		(26.44	)		369.84			-
- Diluted		(22.17	)		312.41			-

Net income attributable to SYLA Technologies Co., Ltd. per share
- Basic		2,671.99			1,650.09			1,201.09
- Diluted		2,241.19			1,393.86			1,022.40

Weighted average shares used in calculating basic and diluted net income per share
- Basic		255,028			239,353			231,031
- Diluted		304,049			283,354			271,409

Comprehensive income
Net income		742,619			389,389			278,688
Other comprehensive income, net of tax
Reclassification of unrealized loss on available-for-sale debt securities to net income when realized, net of tax effect of nil, nil, and 175 for the years ended December 31, 2023, 2022 and 2021, respectively		-			-			396
Other comprehensive income, net of tax		-			-			396
Comprehensive income		742,619			389,389			279,084
Comprehensive income (loss) attributable to noncontrolling interests		61,187			(5,566	)		1,199
Comprehensive income attributable to SYLA Technologies Co., Ltd.		681,432			394,955			277,885

SYLA Reports Full Year 2023 Financial and Operational Results