Risks related to permits, coordination and weak sales in large-scale development projects
First written in FY2022. 2 of 4 entries say "Materialised", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2020: 2 of 10 companies on the "Worse" side.
1 other company's latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「There were fewer properties completed than in a typical year, limiting the number of units available for supply, and the sales pace of some condominium projects fell below expectations.」
The low number of completed properties and slower sales pace at some condominium projects materialized as lower revenue and profit in the condominium business. - 2026-05-13MitigatedResults presentation
「Sales in the current fiscal year became possible in corporate real estate sales because rights coordination progressed ahead of expectations」
For corporate projects, rights coordination progressed ahead of schedule, reducing the risk of delayed sales. - FY2025MaterialisedAnnual report
「A development plan was decided for approximately 860 tsubo of land in Asaka, Saitama Prefecture, acquired in 2023, and the plan changed from selling the land to developing a condominium internally. This delayed the timing of income generation and became a major factor behind lower revenue and profit. Some other corporate real estate sales were also pushed into the following fiscal year.」
A change in the use of a large project and the deferral of corporate sales to the following fiscal year actually affected performance by delaying the timing of revenue generation. - FY2022First statedAnnual report
「Large-scale development requires substantial investment in land acquisition and numerous processes, including obtaining development approval, coordinating with various stakeholders and carrying out construction.」
The Group identifies resident opposition, failure to obtain approvals, project cancellation or delays, and higher costs or discounts caused by weak sales as risks.