Risk of inappropriate guaranteed-rent assessments
First written in FY2016. 3 of 6 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2024: 5 of 14 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual 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.」
Reconfirms the assessment method of analyzing surrounding market rents and projected supply of competing properties as a response to guaranteed-rent and vacancy risks. - FY2025MitigatedAnnual report
「In addition, rent guarantee agreements include rent review provisions for cases such as deviations from prevailing local market rents, as well as provisions for terminating the rent guarantee. We are establishing a framework for flexibly reviewing contractual terms in response to changes in market conditions, thereby reducing risk.」
Specifies rent review provisions, provisions for terminating the guarantee, and a system for reviewing contractual terms in response to market-change risks related to guaranteed rents. - FY2022RestatedAnnual report
「The Group subsequently assesses the “guaranteed rent” after taking into account vacancies and falling rents during the fixed term, which may be up to 5 years. However, if the rental housing market or competitive conditions in the area where the property is located change, the “guaranteed rent” set by the Group may ultimately become inappropriate.」
Reconfirms the assessment of guaranteed rents on the assumption of a fixed term of up to 5 years and the risk that the assessment may become inappropriate due to changes in market conditions. - FY2020RestatedAnnual report
「Subsequently, taking into account vacancies and rent declines during the fixed term, which may be up to 5 years, our Group assesses the guaranteed rent. However, the guaranteed rent set by our Group may ultimately prove inappropriate if market conditions or competition in the rental housing market in the area where the property is located change.」
Restates the assessment of guaranteed rents on the assumption of a fixed term of up to 5 years and the risk that the assessment may become inappropriate due to changes in market conditions. - FY2017RestatedAnnual report
「Subsequently, taking into account vacancies and rent declines during the fixed term, which may be up to 5 years, our Group assesses the guaranteed rent. However, the guaranteed rent set by our Group may ultimately prove inappropriate if market conditions or competition in the rental housing market in the area where the property is located change.」
Restates the assessment of guaranteed rents on the assumption of a fixed term of up to 5 years and the risk that the assessment may be inappropriate. - FY2016First statedAnnual report
「Subsequently, taking into account vacancies and rent declines during the fixed term, which may be up to 5 years, our Group assesses the guaranteed rent. However, the guaranteed rent set by our Group may ultimately prove inappropriate if market conditions or competition in the rental housing market in the area where the property is located change.」
Explains the mechanism for assessing guaranteed rents on the assumption of a fixed term of up to 5 years, as well as the risk of errors in those assessments.