Risks of Development Delays, Cost Increases, and Changes to or Cancellation of Plans
First written in FY2018. 4 of 8 entries say "Worsened", first in FY2021. Latest entry: FY2026.
Tokyu Fudosan Holdings moved to the "Worse" side of this theme in 2018, 7 years before the typical company in this theme (2025).
The whole theme swung hardest in 2026: 4 of 6 companies on the "Worse" side.
1 other company's latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Inflation has become entrenched in Japan, driving up costs including construction costs. Interest rates are also rising faster than anticipated.」
The Company recognizes an external environment in which, in addition to higher costs such as construction costs, interest rates are rising faster than anticipated. - FY2025RestatedAnnual report
「Construction costs are trending higher due to soaring material prices and a chronic labor shortage, but we will continue to monitor developments closely while working to control costs.」
The Company continues to identify the risk of higher construction costs due to soaring material prices and labor shortages, together with cost-control measures to address it. - FY2024WorsenedAnnual report
「Construction costs are trending higher due to soaring material prices and a chronic labor shortage, but we will continue to monitor developments closely while working to control costs.」
Regarding the risk of higher development costs, the Company identifies the upward trend in construction costs caused by soaring material prices and a chronic labor shortage. - FY2022WorsenedAnnual report
「Construction costs are subject to concerns over increases caused by a chronic labor shortage and higher raw material prices, and we will continue to monitor developments closely.」
The Company continues to identify concerns over higher construction costs caused by a chronic labor shortage and higher raw material prices. - FY2021WorsenedAnnual report
「In addition, although construction related to the Tokyo 2020 Olympic and Paralympic Games has largely been completed, we expect construction costs to remain elevated due to a chronic labor shortage.」
Regarding the risk of higher development costs, the Company indicates that construction costs are expected to remain elevated due to a chronic labor shortage even after construction demand has run its course. - FY2019MaterialisedAnnual report
「Although rental revenue from existing properties improved, revenue and profit declined due to lower gains from sales of buildings and other properties to investors, lost profits from properties sold in the previous fiscal year, and higher costs in redevelopment projects.」
Higher costs in redevelopment projects actually occurred as a factor behind the decline in revenue and profit in the urban business for the current fiscal year. - FY2019-Q2MaterialisedAnnual report
「Although rental revenue from existing properties improved, revenue and profit declined due to lower gains from sales of buildings and other properties to investors, lost profits from properties sold in the previous fiscal year, and higher costs in redevelopment projects.」
Higher costs in redevelopment projects actually occurred and were cited as a factor behind the decline in revenue and profit in the urban business. - FY2018First statedAnnual report
「Projects may fail to progress as initially planned, making delays or changes to project plans unavoidable. Real estate development is also subject to numerous external factors, including the outsourcing of work to third parties such as construction companies, increases in acquisition and development costs, and construction defects, which may result in unexpected expenses or make delays, changes or cancellation of development plans unavoidable.」
For real estate development, third-party outsourcing, cost increases, construction defects, and delays, changes or cancellation of plans are identified as separate risks.