Decline in rental revenue due to lower occupancy
First written in FY2016. 10 of 16 entries say "Mitigated", first in FY2018. Latest entry: FY2026.
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
「The occupancy rate was 98.4% at the end of the current consolidated fiscal year, compared with 98.3% at the end of the previous fiscal year.」
The company has maintained and improved its high occupancy rate, demonstrating the recent results of measures taken to address the risk of lower rental revenue caused by declining occupancy. - FY2025MitigatedAnnual report
「The Group analyzes not only the property’s location, age and equipment, but also trends in surrounding market rents and projected supply of competing properties, and assesses the risks of future rent fluctuations and vacancies.」
The company has specified measures to address the risk of rising vacancy rates and falling rents, including analysis of local market conditions and projected competitor supply, as well as a review of contract terms. - FY2024MitigatedAnnual report
「The sublease occupancy rate was 98.5% at the end of the current consolidated fiscal year, compared with 98.2% at the end of the same period of the previous year. Both revenue and profit margins have increased substantially through DX initiatives.」
The sublease occupancy rate increased from the end of the same period of the previous year, and efforts to improve management efficiency through DX initiatives are continuing. - FY2023MitigatedAnnual report
「The occupancy rate was maintained at a high level of 98.2% as of the end of the current consolidated fiscal year, compared with 96.3% at the end of the same period of the previous year.」
The occupancy rate improved from 96.3% at the end of the same period of the previous year to 98.2% and remains high. The recent reduction in the risk of lower occupancy is reflected in actual results. - FY2023-Q3MitigatedAnnual report
「The occupancy rate was maintained at a high level of 98.2% as of the end of the third quarter of the current consolidated fiscal year, compared with 96.0% at the end of the same period of the previous year. The company is pursuing DX initiatives, and both revenue and profit margins have increased substantially.」
The occupancy rate improved from 96.0% at the end of the same period of the previous year to 98.2% and remains high. DX initiatives are also continuing, indicating the results of measures taken in response to the recent risk of lower occupancy. - FY2023-Q2MitigatedAnnual report
「The occupancy rate was maintained at a high level of 97.2% as of the end of the second quarter of the current consolidated fiscal year, compared with 94.4% at the end of the same period of the previous year. The company is working to contain management costs through DX initiatives, and both revenue and profit margins have increased substantially.」
The occupancy rate improved from 94.4% at the end of the same period of the previous year to 97.2% and remains high. Efforts to contain management costs through DX initiatives are also continuing, indicating the results of measures taken in response to the recent risk of lower occupancy. - FY2022MitigatedAnnual report
「In addition to continuing measures to improve occupancy through leasing costs, the company has maintained a high occupancy rate of 97.7% excluding newly managed properties as of the end of the current consolidated fiscal year through DX initiatives. The overall occupancy rate was 96.3%, compared with 95.7% at the end of the same period of the previous year, as a result of aggressively acquiring new management contracts in line with its policy of expanding market share.」
The occupancy rate excluding newly managed properties was maintained at 97.7%, while the overall occupancy rate also improved to 96.3%. Measures involving leasing costs and DX initiatives remain ongoing. - FY2022-Q3MitigatedAnnual report
「In addition to continuing measures to improve occupancy through leasing costs, the company has maintained a high occupancy rate of 97.5% excluding newly managed properties as of the end of the third quarter of the current consolidated fiscal year through DX initiatives. Meanwhile, the overall occupancy rate was 96.0%, compared with 97.0% at the end of the same period of the previous year, as a result of aggressively acquiring new management contracts in line with its policy of expanding market share.」
The occupancy rate excluding newly managed properties was maintained at 97.5%, while the overall occupancy rate recovered from 94.4% in the previous quarter to 96.0%. However, the year-on-year decline associated with the aggressive acquisition of new management contracts remains. - FY2022-Q2Overall occupancy declined due to the aggressive acquisition of new management contractsAnnual report
「Meanwhile, the overall occupancy rate was 94.4%, compared with 95.5% at the end of the same period of the previous year, as a result of aggressively acquiring new management contracts.」
The overall occupancy rate declined from 95.5% at the end of the same period of the previous year to 94.4%, which the company attributed to the aggressive acquisition of new management contracts. - FY2021Year-end occupancy declined, but was explained as a temporary factorAnnual report
「The occupancy rate at the end of the current consolidated fiscal year was 95.7%, compared with 96.6% at the end of the previous fiscal year. The decline in occupancy was attributed to the temporary impact of an increase in new management contracts in the fourth quarter, compounded by the adverse effects of the state of emergency.」
The year-end occupancy rate declined from the end of the previous fiscal year, but the company explained that this was due to a temporary factor associated with an increase in new management contracts and the impact of the state of emergency. - FY2021-Q3MitigatedAnnual report
「As a result, the occupancy rate began to recover during the third quarter of the current consolidated fiscal year, which is a peak season, improving to 97.0% at the end of the third quarter of the current consolidated fiscal year (end-March), compared with 98.4% at the end of the same period of the previous year.」
In response to the increase in newly managed properties and the decline in occupancy caused by the spread of COVID-19 during the second quarter, the company implemented measures involving leasing costs, and explained that the occupancy rate had recovered to 97.0%. Although risks remain, the results of measures taken in response to the recent decline were demonstrated. - FY2020RestatedAnnual report
「The Group has consistently secured tenants, and historical trends indicate that fluctuations in occupancy have generally been smaller than fluctuations in economic conditions. However, if the domestic economy cools, the real estate market deteriorates as a result, and occupancy declines, rental revenue may decrease and fall below the guaranteed rent, which could affect the Group’s business performance.」
Stable tenant retention is presented as a risk-mitigating factor, while the risk of lower occupancy rates due to an economic downturn is reiterated. - FY2020-Q3RestatedAnnual report
「In the real estate management industry in which the Group operates, demand among individual investors and others to own real estate, supported by rising land prices and low-interest-rate policies, has remained strong, and demand for subleasing to maintain and enhance the value of those assets is also increasing.」
The continued increase in demand to own real estate and for subleasing is noted. No new specific change in the risk of lower occupancy is identified. - FY2018MitigatedAnnual report
「The Group has consistently secured tenants, and historical trends indicate that fluctuations in occupancy have generally been smaller than fluctuations in economic conditions. However, if the domestic economy cools, the real estate market deteriorates as a result, and occupancy declines, rental revenue may decrease and fall below the guaranteed rent, which could affect the Group’s business performance.」
While maintaining the risk of lower occupancy, identifies the stable securing of tenants and the historical tendency for occupancy fluctuations to be smaller than economic fluctuations as risk-mitigating factors. - FY2017RestatedAnnual report
「If the domestic economy weakens, the real estate market deteriorates, and the occupancy rate falls as a result, causing rental income to decline below the guaranteed rent, the Group's performance may be affected.」
Restates the mechanism by which lower occupancy leads to rental revenue falling below the guaranteed rent. - FY2016First statedAnnual report
「If the domestic economy weakens, the real estate market deteriorates, and the occupancy rate falls as a result, causing rental income to decline below the guaranteed rent, the Group's performance may be affected.」
Indicates the mechanism by which lower occupancy leads to rental revenue falling below the guaranteed rent.