Occupancy Shortfall and Rental Differential Risk under Master Lease Agreements
First written in FY2019. 5 of 17 entries say "Mitigated", first in FY2024-Q1. Latest entry: 2026-09-18.
0 other companies' latest entry also says "Materialised".
- FY2025Additional provision for sublease losses due to occupancy rates falling short of assumptionsAnnual report
「The company recorded an additional provision for sublease losses because rental occupancy fell below the planned assumptions as personal consumption stagnated due to rising prices.」
For master-leased properties, rental occupancy fell below the planned assumptions, and an additional provision for sublease losses was recorded. The provision balance increased from ¥63.853 million to ¥104.146 million. - FY2025-H1MitigatedAnnual report
「In addition, the self-storage facility opening and development consulting business, which began in earnest in the previous fiscal year, contributed to earnings through support for the opening of facilities by JR Tokai Shizuoka Development Co., Ltd., expanded sales to existing operators, and a 20.2% year-on-year increase in rental income from operated facilities.」
Although the company does not state that the rental shortfall risk associated with master leases and related arrangements has been resolved, support for facility openings and expanded sales to existing operators, together with a 20.2% year-on-year increase in rental income from operated facilities, contributed to earnings. - FY2024MaterialisedAnnual report
「The turnkey solution service recorded losses expected to arise over the remaining terms of lease agreements for individual rental properties, based on forecast future occupancy rates and other factors, resulting in lower profit.」
For master-leased properties, the company recorded sublease losses based on forecast future occupancy rates and other factors, with the provision for sublease losses amounting to ¥63.853 million. The risk of rental shortfalls due to occupancy rates falling short has crystallized as a specific estimated accounting loss. - FY2024-Q2MitigatedAnnual report
「In addition, facility utilization continued to improve through reviews of rent setting that took into account customer acquisition operations and usage demand trends, among other measures, and rental revenue from operated facilities increased 9.8% year on year.」
The company does not state that the risk of occupancy rates falling short at master-leased properties has been resolved, but reports higher occupancy and a 9.8% year-on-year increase in rental income. - FY2024-Q1MitigatedAnnual report
「Occupancy at the facilities continued to improve through reviews of rental pricing that took into account customer-attraction operations and demand trends, among other factors, and rental income from operated facilities increased 7.5% year on year.」
The company does not state that the risk of occupancy rates falling short at master-leased properties has been resolved, but occupancy and rental income continue to improve through reviews of customer-attraction operations and rental pricing. - FY2023Higher rental burden and improved rental profitability presented togetherAnnual report
「Meanwhile, in rental operations, although rental leasing payments under existing master lease arrangements increased, the company improved rental earnings by promoting higher utilization of operated facilities through continuous reviews of customer acquisition operations and advertising methods, with rental revenue increasing 17.4% from the previous fiscal year.」
While the rental burden under existing master lease transactions continues to increase, the company reports improved rental profitability through higher occupancy at operated facilities and increased rental income. - FY2023-Q3RestatedAnnual report
「In rental operations, rental payments under existing master lease transactions have increased. However, the company promoted higher occupancy at operated facilities through ongoing reviews of customer-attraction operations and advertising methods, and improved rental profitability, including a 20% year-on-year increase in rental income.」
While rental payments under existing master lease transactions continue to increase, the company is pursuing higher occupancy at operated facilities and a 20% year-on-year increase in rental income by reviewing customer-attraction and advertising methods. - FY2023-Q2Higher rental burden and cost reductions presented togetherAnnual report
「In rental operations, rental payments under existing master lease transactions have increased. However, the company sought to reduce costs through ongoing reviews of customer-attraction operations and advertising methods, and facility occupancy improved, including a 20% year-on-year increase in rental income.」
While the rental burden under existing master lease transactions continues to increase, the company reports cost reductions through reviews of customer-attraction and advertising methods, as well as higher rental income. - FY2023-Q1Emergence of higher costs for guaranteed master lease rent and related itemsAnnual report
「In terms of profit and loss, operating loss was ¥15.097 million due to higher guaranteed master lease rent and service operating costs, compared with an operating loss of ¥36.911 million in the same quarter of the previous year.」
The company expressly states that higher guaranteed master lease rent and service operating costs affected operating loss in the current quarter. Operating loss itself, however, narrowed from the same quarter of the previous year. - FY2022RestatedAnnual report
「If properties subject to these master lease agreements fail to reach their assumed occupancy rates, rental income may fall below the master lease fees payable, which could affect our business performance.」
The risk of rental shortfalls due to occupancy rates falling short at master-leased properties is reiterated. - FY2022-Q3RestatedAnnual report
「In rental operations, earnings were weighted toward expenditures owing to factors including higher rental leasing payments for properties sold in previous fiscal years. However, the company promoted initiatives including flexible rent setting reflecting usage trends and customer response at each facility, revisions to advertising measures and customer acquisition operations, and consequently acquired new users at a faster pace than in the same period of the previous year.」
Although cash outflows continue to precede inflows due in part to higher rental payments for properties sold in prior years, the company is pursuing the acquisition of new users by reviewing rental pricing, advertising and customer-attraction operations. - FY2022-Q2Loss impact from higher rental paymentsAnnual report
「Operating loss was ¥122.459 million, due in part to higher rental payments for properties sold in prior years.」
The company states that higher rental payments for properties sold in prior years affected operating loss in connection with post-sale operations, including master leases. However, it does not expressly state that occupancy rates fell short or that rental income fell below rental payments. - FY2020RestatedAnnual report
「If properties subject to these master lease agreements fail to reach their assumed occupancy rates, rental income may fall below the master lease fees payable, which could affect our business performance.」
The risk of rental shortfalls due to occupancy rates falling short at master-leased properties is reiterated. - FY2019First statedAnnual report
「If properties subject to these master lease agreements fail to reach their assumed occupancy rates, rental income may fall below the master lease fees payable, which could affect our business performance.」
When master lease agreements are entered into after the sale of developed properties, the company identifies the possibility that rental income may fall below master lease fees due to occupancy rates falling short of assumptions as a new risk.