Declining Values of Properties Held for Sale and Rising Construction Costs
First written in FY2022. 1 of 3 entries say "Restated". Latest entry: FY2025.
A.D.Works Group moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
The whole theme swung hardest in 2018: 11 of 37 companies on the "Worse" side.
35 other companies' latest entry also says "Materialised".
- FY2025MaterialisedAnnual report
「Inventory valuation loss 257,537 256,517」
For properties held for sale and other inventories, an inventory valuation loss of ¥256,517 thousand was recorded in cost of sales for the fiscal year ending December 2025. The risks associated with lower selling prices, higher construction costs and additional work have materialized as actual costs. - FY2025-H1RestatedAnnual report
「For entire-building income-producing properties, rents in both the residential and office sectors in central urban areas have remained high due to wage increases and inflation. In addition, new properties have become more expensive because of rising construction costs.」
Higher construction costs, higher prices for new properties and inflation are described as continuing factors affecting the real estate business. - FY2022First statedAnnual report
「If a gap arises between estimates and actual results for net realizable value due to lower selling prices caused by deterioration in the real estate sales market, higher construction prices or additional construction work, consolidated profit or loss in the following fiscal year could be affected.」
For properties held for sale and work in progress, the company identifies gaps in estimated net realizable value caused by lower selling prices, higher construction costs and additional work as factors that could affect the following year’s earnings.