Accumulation of Completed Inventory and Impairment Losses on Property for Sale
First written in FY2018. 14 of 24 entries say "Worsened", first in FY2020. Latest entry: 2026-09-04.
Lib Work moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2026: 20 of 35 companies on the "Worse" side.
13 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「Real estate held for sale ¥2,847.645 million ¥3,923.693 million Work-in-progress real estate held for sale ¥1,353.187 million ¥1,921.408 million」
The combined balance of real estate held for sale and work-in-progress real estate held for sale increased from ¥4,200.832 million at the end of the previous consolidated fiscal year to ¥5,845.101 million at the end of the interim consolidated accounting period. Inventory exposure is increasing. - FY2025MitigatedAnnual report
「Current assets decreased by ¥440.458 million from the end of the previous consolidated fiscal year to ¥9,304.283 million. The main factor was a ¥785.624 million decrease in work-in-progress real estate held for sale. Meanwhile, cash and deposits increased by ¥31.003 million, and real estate held for sale increased by ¥160.559 million.」
Exposure to total inventory decreased as a result of the decline in work-in-progress real estate held for sale. Although real estate held for sale increased, impairment losses recognized also decreased from ¥16.7 million in the previous period to ¥11.44 million. - FY2025-H1Real estate held for sale up, total inventory downAnnual report
「Real estate held for sale ¥2,687.085 million ¥2,927.634 million Work-in-progress real estate held for sale ¥2,138.812 million ¥1,554.25 million」
Real estate held for sale increased from ¥2,687.085 million to ¥2,927.634 million, while work-in-progress real estate held for sale decreased from ¥2,138.812 million to ¥1,554.25 million, resulting in a decline in their combined total. - FY2024Total inventory down, but impairment losses upAnnual report
「Current assets increased by ¥2,299.032 million from the end of the previous consolidated fiscal year to ¥9,744.741 million. The main factors were a ¥928.687 million decrease in work-in-progress real estate held for sale, offset by a ¥2,453.113 million increase in cash and deposits and a ¥629.162 million increase in real estate held for sale.」
Although total inventory decreased as a result of the decline in work-in-progress real estate held for sale, real estate held for sale increased, and impairment losses recognized increased from ¥8.716 million to ¥16.7 million. - FY2024-Q3WorsenedAnnual report
「Meanwhile, in the subdivision housing industry, deteriorating market conditions have led to an increase in completed inventory in Kanagawa Prefecture, while competitors have continued to make substantial price adjustments to sell this inventory quickly. Takue Home, which sells subdivision homes within our group, has been affected by this in its sales activities.」
The company explained that completed inventory in Kanagawa Prefecture increased and that competitors continued adjusting their prices against a deteriorating market backdrop. The risk of real estate held for sale remaining unsold and the deterioration in the sales environment are becoming more concrete. - FY2024-Q2Slight increase in total real estate held for sale and work-in-progress inventoryAnnual report
「Real estate held for sale ¥2,057.922 million ¥2,270.224 million Work-in-progress real estate held for sale ¥3,067.499 million ¥2,937.135 million」
Real estate held for sale increased from ¥2,057.922 million to ¥2,270.224 million, while work-in-progress real estate held for sale decreased from ¥3,067.499 million to ¥2,937.135 million. Their combined total edged up from ¥5,125.421 million to ¥5,207.359 million. - FY2024-Q1WorsenedAnnual report
「Real estate held for sale ¥2,057.922 million ¥2,570.52 million Work-in-progress real estate held for sale ¥3,067.499 million ¥2,776.47 million」
The combined balance of real estate held for sale and work-in-progress real estate held for sale increased from ¥5,125.421 million at the end of the previous consolidated fiscal year to ¥5,346.99 million, increasing exposure to completed and work-in-progress inventory. - FY2023WorsenedAnnual report
「Valuation of real estate held for sale and work-in-progress real estate held for sale Real estate held for sale ¥1,313.856 million ¥2,057.922 million Work-in-progress real estate held for sale ¥1,967.22 million ¥3,067.499 million Impairment losses recognized (cost of sales) ¥6.644 million ¥8.716 million」
The combined balance of real estate held for sale and work-in-progress real estate held for sale increased from ¥3,281.076 million at the end of the previous consolidated fiscal year to ¥5,125.421 million, while impairment losses increased from ¥6.644 million to ¥8.716 million. The risks of accumulated inventory and impairment losses are increasing. - FY2023-Q3WorsenedAnnual report
「Real estate held for sale ¥1,313.856 million ¥1,995.533 million Work-in-progress real estate held for sale ¥1,967.22 million ¥3,104.425 million」
The combined balance of real estate held for sale and work-in-progress real estate held for sale increased from ¥3,281.076 million at the end of the previous consolidated fiscal year to ¥5,099.958 million, increasing inventory exposure. - FY2023-Q2WorsenedAnnual report
「Real estate held for sale ¥1,313.856 million ¥1,736.822 million Work-in-progress real estate held for sale ¥1,967.22 million ¥2,645.53 million」
The combined balance of real estate held for sale and work-in-progress real estate held for sale increased from ¥3,281.076 million at the end of the previous consolidated fiscal year to ¥4,382.352 million. In cash flow from operating activities, the ¥1,267.699 million increase in inventories was also a use of cash. - FY2023-Q1WorsenedAnnual report
「Real estate held for sale ¥1,313.856 million ¥1,571.537 million Work-in-progress real estate held for sale ¥1,967.22 million ¥1,893.79 million」
The combined balance of real estate held for sale and work-in-progress real estate held for sale increased from ¥3,281.076 million at the end of the previous consolidated fiscal year to ¥3,465.327 million, increasing inventory exposure. - FY2022WorsenedAnnual report
「Valuation of real estate held for sale and work-in-progress real estate held for sale Real estate held for sale ¥1,313.856 million Work-in-progress real estate held for sale ¥1,967.22 million Impairment losses recognized (cost of sales) ¥6.644 million」
The combined balance of real estate held for sale and work-in-progress real estate held for sale increased to ¥3,281.076 million, and impairment losses of ¥6.644 million were also recognized. The risks of accumulated inventory and impairment losses continue to materialize in the actual results. - FY2022-Q3WorsenedAnnual report
「Real estate held for sale ¥920.147 million ¥1,410.82 million Work-in-progress real estate held for sale ¥1,838.063 million ¥2,203.616 million」
Real estate held for sale and work-in-progress real estate held for sale increased from ¥2,758.21 million at the end of the previous consolidated fiscal year to ¥3,614.436 million. Inventory exposure is increasing. - FY2022-Q2Increase in real estate for sale; decrease in real estate for sale under developmentAnnual report
「Real estate held for sale ¥920.147 million ¥1,162.547 million Work-in-progress real estate held for sale ¥1,838.063 million ¥1,473.112 million」
Real estate held for sale increased from ¥920.147 million to ¥1,162.547 million, while work-in-progress real estate held for sale decreased from ¥1,838.063 million to ¥1,473.112 million. Total inventory decreased from the end of the previous consolidated fiscal year. - FY2022-Q1MitigatedAnnual report
「Real estate held for sale ¥920.147 million ¥738.134 million Work-in-progress real estate held for sale ¥1,838.063 million ¥1,914.431 million」
Real estate held for sale and work-in-progress real estate held for sale decreased from ¥2,758.21 million at the end of the previous consolidated fiscal year to ¥2,652.565 million. Although work-in-progress real estate held for sale increased, total inventory declined. No impairment losses were stated. - FY2021MaterialisedAnnual report
「Real estate held for sale ¥920.147 million Work-in-progress real estate held for sale ¥1,838.063 million Impairment losses recognized (cost of sales) ¥7.637 million」
Real estate held for sale and work-in-progress real estate held for sale totaled ¥2,758.21 million, and impairment losses of ¥7.637 million were also recognized. The risks of accumulated completed inventory and impairment losses have materialized in the actual results. - FY2021-Q2MitigatedAnnual report
「This was mainly because, during the cumulative consolidated period under review, there were inflows including ¥296.016 million in profit before income taxes, a ¥346.593 million decrease in inventories and a ¥259.010 million increase in trade payables, while」
The company disclosed a ¥346.593 million decrease in inventories during the cumulative consolidated period under review, indicating that exposure to accumulated completed inventory and real estate held for sale had declined from the prior phase. - FY2020WorsenedAnnual report
「For the fiscal year under review, return on equity was 7.3% (22.8% in the previous corresponding period), return on ordinary profit to net sales was 3.2% (8.7% in the previous corresponding period), the inventory turnover period was 125 days (103 days in the previous corresponding period), and the equity ratio was 57.1% (56.4% in the previous corresponding period).」
The inventory turnover period lengthened from 103 days to 125 days, increasing exposure to the risk of completed inventory remaining unsold. The company did not state that impairment losses had been recognized. - FY2019Longer inventory turnover periodAnnual report
「Accordingly, the company has set improving return on equity as a target, and regards return on ordinary profit to net sales and the inventory turnover period as key management indicators from the perspective of profitability, and the equity ratio from the perspective of financial stability. For the fiscal year under review, return on equity was 22.8% (18.7% in the previous corresponding period), return on ordinary profit to net sales was 8.7% (7.3% in the previous corresponding period), the inventory turnover period was 103 days (80 days in the previous corresponding period), and the equity ratio was 56.4% (51.0% in the previous corresponding period).」
The inventory turnover period lengthened from 80 days in the previous corresponding period to 103 days. The company also stated that real estate held for sale increased by ¥571.175 million. It did not state that completed inventory had accumulated or that impairment losses had been recognized. - FY2018First statedAnnual report
「However, if sales fail to progress as planned due to a sharp economic downturn, rising interest rates or changes to real estate-related tax rules, completed inventory may remain unsold and affect the company’s results and other aspects of its business. In addition, if impairment losses are recognized on real estate held for sale or work-in-progress real estate held for sale because their fair value falls below cost as a result of applying the “Accounting Standard for Measurement of Inventories” (Accounting Standard No. 9, 26 September 2008), this may affect the company’s results and other aspects of its business.」
The company disclosed the failure to meet sales targets due to changes in economic conditions, interest rates and real estate taxation, the accumulation of completed inventory, and impairment losses on real estate held for sale and other assets as new risks.