Decline in the Value of Real Estate and Held Assets
First written in FY2016. 6 of 10 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2026.
Daiwa House Industry moved to the "Worse" side of this theme in 2016, 4 years before the typical company in this theme (2020).
The whole theme swung hardest in 2020: 49 of 91 companies on the "Worse" side.
63 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「The carrying amounts were reduced to their recoverable amounts due to deteriorating profitability resulting from falling real estate prices and intensifying competition, and the decrease of ¥30,647 million was recognized as an impairment loss under extraordinary losses.」
The risk of declining asset values materialized in fiscal 2025, resulting in an impairment loss of ¥30,647 million, down from ¥38,859 million in the previous fiscal year. - FY2025WorsenedAnnual report
「The carrying amounts were reduced to their recoverable amounts due to deteriorating profitability resulting from falling real estate prices and intensifying competition, and the decrease of ¥38,859 million was recognized as an impairment loss under extraordinary losses.」
The risk of declining asset values materialized as an impairment loss of ¥38,859 million, up from ¥10,826 million in the previous fiscal year. - FY2023MaterialisedAnnual report
「The carrying amounts of the above assets were reduced to their recoverable amounts due to deteriorating profitability resulting from falling real estate prices and intensifying competition, and the decrease of ¥11,271 million was recognized as an impairment loss under extraordinary losses.」
Declining asset values due to falling real estate prices and intensifying competition continued, and an impairment loss of ¥11,271 million was recognized in fiscal 2022. - FY2022WorsenedAnnual report
「The carrying amounts of the above assets were reduced to their recoverable amounts due to deteriorating profitability resulting from falling real estate prices and intensifying competition, and the decrease of ¥24,147 million was recognized as an impairment loss under extraordinary losses.」
Declining asset values due to falling real estate prices and intensifying competition continued to occur, and an impairment loss of ¥24,147 million was recognized. - FY2020MaterialisedAnnual report
「The carrying amounts of the above assets were reduced to their recoverable amounts due to deteriorating profitability resulting from falling real estate prices and intensifying competition, and the decrease of ¥17,062 million was recognized as an impairment loss under extraordinary losses.」
The risk of declining asset values due to falling real estate prices and intensifying competition materialized as an impairment loss of ¥17,062 million. - FY2018WorsenedAnnual report
「The carrying amounts of the above assets were reduced to their recoverable amounts due to deteriorating profitability resulting from falling real estate prices and intensifying competition, and the decrease of ¥11,801 million was recognized as an impairment loss under extraordinary losses.」
Deteriorating profitability due to falling real estate prices and intensifying competition resulted in an actual impairment loss of ¥11,801 million, up from ¥4,339 million in the previous fiscal year. - FY2017-Q3MaterialisedAnnual report
「However, due in part to the recognition of an inventory valuation loss in cost of sales, revenue from this business was ¥272,521 million, up 0.9% from the same period of the previous year, while operating profit was ¥8,883 million, down 15.2% from the same period of the previous year.」
The detached-home business continued to recognize inventory valuation losses, and operating profit fell 15.2% year on year. - FY2017-Q2MaterialisedAnnual report
「However, due in part to the recognition of an inventory valuation loss in cost of sales, revenue from this business was ¥192,687 million, up 2.0% from the same period of the previous year, while operating profit was ¥7,459 million, down 18.8% from the same period of the previous year.」
The detached-home business recognized an inventory valuation loss, and operating profit fell 18.8% year on year. - FY2017-Q1MaterialisedAnnual report
「However, due in part to the recognition of an inventory valuation loss in cost of sales, revenue from this business was ¥73,821 million, up 3.9% from the same period of the previous year, while operating loss was ¥781 million, compared with operating profit of ¥227 million in the same period of the previous year.」
An inventory valuation loss was recognized in the detached-home business, resulting in an operating loss. - FY2016First statedAnnual report
「If real estate market conditions deteriorate, resulting in declines in land prices and rents, this could adversely affect operating performance and other results.」
The disclosure indicates a market-downturn risk common to the real estate development, ownership and leasing businesses.