Risks Related to Joint Ventures and Property Inventory
First written in FY2016. 3 of 8 entries say "Materialised", first in FY2020. Latest entry: FY2026.
First-corporation moved to the "Worse" side of this theme in 2020, 2 years before the typical company in this theme (2022).
The whole theme swung hardest in 2020: 8 of 22 companies on the "Worse" side.
0 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「One of the specific actions under First VISION 2031's key initiative of improving returns on capital is the promotion of joint ventures. During the current fiscal year, new projects under joint venture agreements also progressed, enabling us to secure real estate for the medium to long term.」
The company disclosed progress on new joint venture agreements and efforts to secure real estate over the medium to long term. - FY2025-H1MitigatedAnnual report
「During the interim consolidated accounting period, sales revenue from condominiums sold through joint ventures was strong, and the sale of business-use land substantially exceeded the initial plan, resulting in solid performance.」
Sales revenue from condominiums sold through joint ventures was strong, improving from the decline in joint venture revenue reported previously. - FY2023MitigatedAnnual report
「In the real estate business, sales revenue from condominiums sold through joint ventures was strong, while sales of business-use land fell well short of the initial plan.」
Sales revenue from condominiums sold through joint ventures was described as strong, representing a change from the previously reported decline in joint venture revenue. Meanwhile, sales of business-use land fell below plan. - FY2022MaterialisedAnnual report
「Real estate revenue increased year on year as the sale of condominium development land grew substantially, although joint venture revenue declined due to a decrease in the number of properties being sold.」
The decrease in joint venture revenue was recorded as a result for the fiscal year, indicating that the impact related to joint ventures and for-sale inventory continues to materialize. - FY2020MaterialisedAnnual report
「Real estate revenue increased due to the sale of business-use land, although joint venture revenue declined as a result of the spread of COVID-19.」
The decrease in joint venture revenue was recorded as an actual result, indicating that the impact of risks related to joint ventures and for-sale inventory has materialized. - FY2016First statedAnnual report
「For some orders, the Company enters into a joint venture agreement with a developer and participates in the developer’s business as the selling business operator. In such cases, the portion corresponding to the Company’s ownership ratio remains the Company’s inventory until sales are completed.」
The Company recognizes the risks of weak sales in joint ventures, deterioration in a partner’s performance, declines in real estate prices, additional costs and write-downs.