Risk of Business Partners Withdrawing, Going Bankrupt, Ceasing Operations, or Requesting Rent Reductions
First written in FY2020. 5 of 6 entries say "Materialised", first in FY2020. Latest entry: FY2022.
J.Front Retailing moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 10 of 26 companies on the "Worse" side.
0 other companies' latest entry also says "Materialised".
- FY2022MaterialisedAnnual report
「Building on the consolidation of the real estate business under PARCO carried out in the previous fiscal year, in March we promoted the utilization of existing properties, including the opening of a commercial facility on the former site of the Matsuzakaya distribution center, development for multiple uses other than commercial purposes, and the sale of non-operating assets.」
The impact of rent reduction risks associated with deteriorating business partner and tenant performance continues to be felt in real estate revenue, as rent reduction or waiver measures related to suspended operations remain in place. - FY2021MaterialisedAnnual report
「In addition to being forced to suspend operations or shorten operating hours at facilities because of the spread of the infection, rental income declined as tenant sales decreased owing to requests to refrain from going out and other factors.」
The deterioration in the performance of business partners and tenants and the risk of rent reductions affected full-year performance through suspended operations, lower tenant sales, and lower rental income. - FY2021-Q3RestatedAnnual report
「Partly because we reduced or waived rents at many facilities in response to the spread of COVID-19, revenue decreased 16.7% year on year to ¥11,048 million and operating profit decreased 63.9% to ¥2,597 million.」
Rent reductions or waivers for business partners and tenants continued at many facilities, with the impact materializing as lower revenue and operating profit in the real estate business. - FY2021-Q2MaterialisedAnnual report
「Following the conversion of PARCO into a wholly owned subsidiary, we completed various procedures, including the transfer of properties, to consolidate the real estate business under PARCO and centralized our real estate functions. Despite these initiatives, revenue decreased 22.7% year on year to ¥6,815 million and operating profit decreased 71.5% to ¥1,634 million, partly because we reduced or waived rents at many facilities, including GINZA SIX, in response to the spread of COVID-19.」
The risk of rent reductions by business partners materialized through rent reductions or waivers at many facilities, including GINZA SIX, resulting in lower revenue and operating profit in the real estate business. - FY2021-Q1MaterialisedAnnual report
「The retail industry was also significantly affected by the spread of COVID-19. Store operating hours were shortened and operations were voluntarily suspended for an extended period, and some companies, including major apparel manufacturers, went bankrupt because of deteriorating performance and other factors.」
Risks of business partners and tenants withdrawing or going bankrupt materialized in the form of bankruptcies, including among apparel manufacturers, against a backdrop of voluntary store closures and deteriorating performance. - FY2020MaterialisedAnnual report
「Following the suspension of operations caused by the COVID-19 outbreak, the performance of business partners operating under traditional department-store transaction models, such as purchase and consignment sales arrangements, has deteriorated significantly. In addition, business partners under fixed-term lease agreements whose performance has deteriorated have requested rent reductions.」
We identified, for the first time, the shift of business partners to e-commerce, store withdrawals, bankruptcies and business closures, performance deterioration caused by suspended operations, and requests for rent reductions as key risks associated with changes in our business partners.