Defects in Investment Real Estate and Liability for Additional Costs
First written in FY2016. 4 of 5 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2019: 1 of 6 companies on the "Worse" side.
9 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「Before investing, we conduct thorough due diligence, including obtaining engineering reports from specialists detailing the target property’s facilities and equipment, the building’s repair history, earthquake risks and the results of ground surveys. However, if a defect is discovered after the acquisition of investment real estate and additional costs are incurred to remedy it, this could affect the Group’s business results.」
The due diligence measures, including obtaining engineering reports, and the risks of discovering defects after acquisition and incurring additional costs were reaffirmed. - FY2020RestatedAnnual report
「Before investing, we conduct thorough due diligence, including obtaining engineering reports from specialists. However, if a defect is discovered after the acquisition of investment real estate and additional costs are incurred to remedy it, this could affect the Group’s business results.」
The measures, including due diligence, and the risk of discovering real estate defects after acquisition were reiterated. - FY2019RestatedAnnual report
「To eliminate losses arising from defects in investment real estate and other issues, the Group conducts thorough due diligence before investing, including obtaining engineering reports from specialists detailing the target property’s facilities and equipment, the building’s repair history, earthquake risks and the results of ground surveys. However, if a defect is discovered after the acquisition of investment real estate and additional costs are incurred to remedy it, this could affect the Group’s business results.」
The due diligence measures, including obtaining engineering reports, and the risk of discovering defects after acquisition were reiterated. - FY2017RestatedAnnual report
「Before investing, we conduct thorough due diligence, including obtaining engineering reports from specialists detailing the target property’s facilities and equipment, the building’s repair history, earthquake risks and the results of ground surveys. However, if a defect is discovered after the acquisition of investment real estate and additional costs are incurred to remedy it, this could affect the Group’s business results.」
The measures, including obtaining engineering reports, and the risk of discovering real estate defects after acquisition were reiterated. - FY2016First statedAnnual report
「To eliminate losses arising from defects in investment real estate and other issues, the Group conducts thorough due diligence before investing, including obtaining engineering reports from specialists detailing the target property’s facilities and equipment, the building’s repair history, earthquake risks and the results of ground surveys. However, if a defect is discovered after the acquisition of investment real estate and additional costs are incurred to remedy it, this could affect the Group’s business results.」
Although measures such as obtaining engineering reports are in place, the disclosure identified the risk that defects such as soil contamination or structural deficiencies may be discovered after acquisition.