Occupancy and Investment Recovery Risks Associated with Fixed-Rent Master Leases
First written in FY2022. 2 of 7 entries say "Mitigated", first in 2026-03-16. Latest entry: FY2026.
Storage-Oh moved to the "Worse" side of this theme in 2024, 3 years after the typical company in this theme (2021).
The whole theme swung hardest in 2024: 5 of 15 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Provision for sublease losses 60,000 8,184」
The provision for sublease losses declined from ¥60,000 thousand to ¥8,184 thousand, reducing the provision for expected losses associated with master leases. - FY2025WorsenedAnnual report
「Provision for sublease losses 9,543 60,000」
The provision for sublease losses associated with master leases increased from ¥9,543 thousand to ¥60,000 thousand, expanding the provision for occupancy and investment recovery risks related to properties with fixed rents. - FY2024MaterialisedAnnual report
「Based on information available as of the end of the fiscal year, we recorded a provision for sublease losses.」
For sublease losses associated with master leases, which had previously been described as a possibility requiring a provision, we actually recorded a provision for sublease losses of ¥9,543 thousand. - FY2023Specific provision-recognition riskAnnual report
「If occupancy at properties subject to these master lease agreements remains below the initial plan and investment recovery cannot be expected during the master lease term, a provision may be recorded.」
The Company explicitly states the possibility of recording a provision if investment recovery becomes impossible under fixed-rent master leases. - FY2022First statedAnnual report
「In the fiscal year ended January 2022, we opened 3 projects involving master leases under fixed-rent fixed-term leases that cannot be terminated for 15 years after construction and sale of the properties.」
Because the Company remains responsible for fixed rent after selling the properties, low initial occupancy and insufficient investment recovery remain with the Company.