Sale of Property Held for Sale, Early Repayment of Borrowings, and Recognition of a Non-Operating Expense
MBK Co.,Ltd. (the filing company)
Property held for sale in Hachioji, Tokyo (multi-unit residential building, retail premises, offices, parking lot, sports center, and clinic)
The Company changed the purpose for which it held the property because it now expects to secure a sufficient profit through the sale. In connection with the sale of the property, the Company will make an early repayment of borrowings secured by the property.
A gain on sale of approximately ¥330 million will be recognized as operating profit in the fourth quarter of the fiscal year ending October 2026, and an early repayment fee of ¥34 million will be recognized as a non-operating expense under fees paid. Annual interest expenses of approximately ¥40 million will be eliminated.
The fourth quarter of the fiscal year ending October 2026 (gain on sale), and the consolidated results for the fiscal year ending October 2026 (early repayment fee and reduction in interest expenses)
The impact of the sale of the property on results for the fiscal year ending October 2026 will be examined and disclosed if necessary. The impact of the early repayment on consolidated results for the fiscal year ending October 2026 is expected to be immaterial.
The Company plans to make an early repayment on 28 August 2026 (scheduled), using part of the sale proceeds. Going forward, it will actively sell properties it holds and invest in more profitable opportunities while securing profits and cash flow.
The Company will examine the impact of the property sale on its earnings forecast and disclose the impact if necessary. If the need for timely disclosure arises, the Company will disclose the information promptly.
| Item | Details |
|---|---|
| Event name | Sale of Property Held for Sale, Early Repayment of Borrowings, and Recognition of a Non-Operating Expense |
| Date of occurrence | 24 July 2026 (date of board resolution and execution of the sale and purchase agreement) |
| Subject Entity | MBK Co.,Ltd. (the filing company) |
| Target Locations / Products | Property held for sale in Hachioji, Tokyo (multi-unit residential building, retail premises, offices, parking lot, sports center, and clinic) |
| Cause | The Company changed the purpose for which it held the property because it now expects to secure a sufficient profit through the sale. In connection with the sale of the property, the Company will make an early repayment of borrowings secured by the property. |
| Amount of Impact on Business Performance | A gain on sale of approximately ¥330 million will be recognized as operating profit in the fourth quarter of the fiscal year ending October 2026, and an early repayment fee of ¥34 million will be recognized as a non-operating expense under fees paid. Annual interest expenses of approximately ¥40 million will be eliminated. |
| Accounting period in which recognized | The fourth quarter of the fiscal year ending October 2026 (gain on sale), and the consolidated results for the fiscal year ending October 2026 (early repayment fee and reduction in interest expenses) |
| Impact on Earnings Forecast | The impact of the sale of the property on results for the fiscal year ending October 2026 will be examined and disclosed if necessary. The impact of the early repayment on consolidated results for the fiscal year ending October 2026 is expected to be immaterial. |
| Outlook | The Company plans to make an early repayment on 28 August 2026 (scheduled), using part of the sale proceeds. Going forward, it will actively sell properties it holds and invest in more profitable opportunities while securing profits and cash flow. |
| Planned follow-up disclosure | The Company will examine the impact of the property sale on its earnings forecast and disclose the impact if necessary. If the need for timely disclosure arises, the Company will disclose the information promptly. |
Items this document does not state (15)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The Company will change the purpose for which it holds the property and sell it because it now expects to secure a sufficient profit through the sale. In connection with the sale, part of the sale proceeds will be applied toward early repayment of the secured borrowings, resulting in an early repayment fee.