Temporary slowdown in earnings growth and increase in costs associated with Phase 4 development
First written in FY2018. 8 of 19 entries say "Mitigated", first in FY2020-Q1. Latest entry: 2026-08-03.
0 other companies' latest entry also says "Worsened".
- 2026-08-03WorsenedEarnings
「Operating profit fell below the same period of the previous year due to the impact of one-time removal costs associated with replacing air-conditioning units and higher depreciation expense associated with investment in facility upgrades.」
Operating profit was weighed down by one-time removal costs for replacing air-conditioning units, in addition to higher depreciation expense associated with investment in facility upgrades. - FY2026MitigatedAnnual report
「In the commercial facilities business, sales at Santomoon Kakita River, one of Shizuoka Prefecture's leading commercial facilities, exceeded those in the previous fiscal year against a backdrop of firm market conditions, helped in part by the success of Japanese films. Operating profit also exceeded the previous fiscal year despite higher depreciation expense associated with facility upgrade investments.」
Although the depreciation burden from facility upgrade investments continued, the commercial facilities business absorbed it and exceeded the previous fiscal year, with sales up 3.8% and operating profit up 6.4%. - 2026-05-08MitigatedRevision to earnings forecasts
「Business performance remained solid despite the increased depreciation burden from investment in facility upgrades.」
Business performance in the commercial facilities business remained solid despite the depreciation burden associated with investment in facility upgrades. - FY2026-H1WorsenedAnnual report
「In the commercial facilities business, sales at Santomoon Kakita River, one of Shizuoka Prefecture's leading commercial facilities, exceeded those in the same period of the previous year against a backdrop of improving market conditions. However, higher depreciation expense associated with continued investment in facility upgrades weighed on operating profit, which fell below the level of the same period of the previous year.」
The depreciation burden from new facility upgrade investments after Phase 4 development emerged as an actual factor depressing operating profit. - FY2024-Q1MitigatedAnnual report
「The work to reconfigure the main building's floor layout, which began in the previous fiscal year, was completed. GU, part of the Uniqlo group, opened before Golden Week, and the company also worked to open new tenant stores and strengthen promotional events.」
The work to reconfigure the main building's floor layout, which began in the previous fiscal year, was completed, and the business progressed from the stage of temporary closures and cost burdens associated with renovation work to the stage of assessing the effects of new store openings and operations. - FY2023MitigatedAnnual report
「Meanwhile, one-off costs were incurred as the company began partial renovation work to attract large tenants to the main building.」
One-off costs from the new renovation work were incurred, but the commercial facilities business absorbed them through improved profit margins, according to the company. - FY2023-Q3MaterialisedAnnual report
「Meanwhile, one-off costs were incurred as the company began partial renovation work to attract large tenants to the main building.」
One-off costs associated with new renovation work after Phase 4 development were incurred. However, the company stated that the commercial facilities business absorbed the burden through improved profit margins. - FY2021WorsenedAnnual report
「For the current fiscal year, sales came to ¥4,617 million, down 4.2% year on year. Higher depreciation expense related to Phase 4 development, completed at the end of the previous fiscal year, and the burden of rent concessions associated with temporary closures in the commercial facilities business, together with the healthcare and textile/apparel segments turning from operating profits in the previous fiscal year to operating losses, resulted in operating profit of ¥253 million, down 37.7% year on year.」
Depreciation expense after Phase 4 development increased to ¥165 million and, together with the burden of rent concessions associated with closures, contributed to lower profit in the commercial facilities business. - FY2021-Q3WorsenedAnnual report
「In addition, depreciation expense for Santomoon Oasis, the new building that opened in March 2020, increased by ¥129 million year on year, and operating profit came to ¥148 million, down 56.2% year on year.」
Depreciation expense after the new building opened increased by ¥129 million year on year, pushing cumulative operating profit down 56.2% year on year. - FY2021-Q2WorsenedAnnual report
「In addition, depreciation expense for Santomoon Oasis, the new building that opened in March 2020, increased by ¥86 million year on year, and operating profit came to ¥55 million, down 77.8% year on year.」
Depreciation expense after the new building opened increased by ¥86 million year on year, pushing cumulative operating profit down 77.8% year on year. - FY2021-Q1WorsenedAnnual report
「In addition, increased depreciation expense for the new building, Santomoon Oasis, which opened in the previous fiscal year, contributed to a substantial decline in operating profit to ¥1 million, down 98.9% year on year.」
Depreciation expense continued to increase after the new building opened, contributing to a 98.9% year-on-year decline in operating profit. - FY2020MitigatedAnnual report
「Against this backdrop, the expansion and renovation works at the facility, constituting the fourth development phase, progressed smoothly, and on 10 March 2020 the Company opened the new 3-story building “SUNTO MOON Oasis,” with approximately 7,000 m² of tenant space accommodating 33 stores.」
Phase 4 development culminated in the opening of the new building, and the risk of temporary cost burdens and downward pressure on earnings during construction shifted to the post-opening stage. However, partial closures occurred immediately after opening because of a state of emergency declaration. - FY2020-Q3MitigatedAnnual report
「The Company also proceeded with preparations, in line with the plan, to open the new building “Oasis” at “SUNTO MOON Kakitagawa” in March of the current year.」
Phase 4 development entered the stage of progressing with preparations for opening in line with the plan, and the risk of temporary cost burdens and downward pressure on earnings during construction is declining. - FY2020-Q2MitigatedAnnual report
「In terms of profit and loss, the one-off costs related to Phase 4 development recognized in the same period of the previous year were no longer incurred, resulting in higher profit year on year.」
The one-off costs related to Phase 4 development incurred in the same period of the previous year were no longer incurred in the current cumulative quarter, reducing the earnings pressure from costs during construction. - FY2020-Q1MitigatedAnnual report
「In the commercial facilities business, the construction schedule for the fourth development phase at “SUNTO MOON Kakitagawa,” one of Shizuoka Prefecture’s leading commercial facilities, became clear, and the Company announced plans to open the facility the following spring.」
Phase 4 development progressed to the stage where completion of construction was in sight and the planned opening could be announced. One-off costs associated with the start of development that were recognized in the same period of the previous year were not incurred in the current quarter. - FY2019-Q3MaterialisedAnnual report
「Although rental income became more profitable, the ¥53 million in depreciation expense associated with Phase 4 development, together with ¥57 million in demolition costs recognized in the consolidated third quarter, resulted in lower profit than in the same period of the previous year.」
Depreciation expense of ¥53 million and demolition costs of ¥57 million associated with Phase 4 development were incurred and contributed to lower profit in the commercial facilities business. - FY2019-Q2MaterialisedAnnual report
「Although profitability improved in the healthcare business and commercial facility rental income, the recognition of ¥53 million in depreciation expense associated with Phase 4 development of the commercial facilities weighed on gross profit, which came to ¥582 million, down 6.0% year on year.」
Depreciation expense of ¥53 million associated with Phase 4 development was recognized and contributed to the decline in gross profit. - FY2019-Q1MaterialisedAnnual report
「In the cumulative first quarter, one-off expenses totaling ¥69 million, including a ¥53 million increase in depreciation expense associated with the start of Phase 4 development and ¥16 million in mortgage registration costs, weighed on results, resulting in a net loss.」
One-off expenses of ¥69 million associated with the start of Phase 4 development were incurred and contributed to the first-quarter net loss. - FY2018MaterialisedAnnual report
「The company expects its consolidated results to temporarily stagnate during the construction period, but anticipates growth in both sales and operating profit after the full-scale opening. These figures have already been incorporated into the numerical plan in the published medium-term management policy.」
The company disclosed stagnation in earnings during the construction period for Phase 4 development as a new risk. Depreciation and other expenses of ¥110 million and non-operating expenses of ¥84 million related to the development were incurred in the current period, and completion was scheduled for summer 2019.