Prolonged Sales Periods and Valuation Losses on Properties Held for Sale
First written in FY2016. 30 of 40 entries say "Worsened", first in FY2017-Q3. Latest entry: 2026-08-07.
Agratio urban design moved to the "Worse" side of this theme in 2017, 5 years before the typical company in this theme (2022).
The whole theme swung hardest in 2026: 20 of 35 companies on the "Worse" side.
13 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Interest-bearing liabilities, including borrowings and lease obligations, stood at ¥26,040.187 million at the end of the consolidated fiscal year.」
Interest-bearing liabilities increased from ¥22,883.445 million at the end of the previous fiscal year. - FY2026-H1WorsenedAnnual report
「Total assets at the end of the interim consolidated accounting period increased by ¥1,014.218 million from the end of the previous consolidated fiscal year to ¥34,302.995 million. The main factors were decreases of ¥1,230.810 million in cash and deposits and ¥534.696 million in real estate for sale, partially offset by a ¥2,737.356 million increase in real estate under development for sale.」
Completed inventory decreased, while real estate under development for sale increased by ¥2,737.356 million. Inventories also increased by ¥2,202.267 million in cash flows from operating activities, expanding exposure to completed and work-in-progress inventory. - FY2025WorsenedAnnual report
「Inventories increased by ¥7,261.370 million as the acquisition of business-use land progressed.」
Inventories increased substantially in connection with land acquisition for business-use land. Real estate for sale amounted to ¥3,861.314 million and real estate under development for sale to ¥21,010.211 million, expanding exposure to completed and work-in-progress inventory. - FY2025-H1WorsenedAnnual report
「The main factors were a ¥591.411 million decrease in cash and deposits, while real estate for sale increased by ¥1,300.441 million and real estate under development for sale increased by ¥1,624.026 million.」
Real estate for sale and real estate under development for sale increased by a combined ¥2,924.467 million, expanding exposure to completed and work-in-progress inventory. Cash flows from operating activities also resulted in a ¥2,453.442 million use of funds. - FY2024-Q3WorsenedAnnual report
「The main components were cash and deposits of ¥4,280.584 million, real estate for sale of ¥4,436.893 million, and real estate under development for sale of ¥17,093.853 million.」
Real estate for sale and real estate under development for sale totaled ¥21,530.746 million, indicating a high level of exposure to completed and work-in-progress inventory. - FY2024-Q2MaterialisedAnnual report
「The company implemented price revisions and discount sales to accelerate the replacement of completed inventory for properties acquired when land prices were high. For the six months ended 30 September, net sales were ¥8,480.012 million, down 25.1% year on year, and gross profit was ¥1,158.903 million, down 39.6%.」
Price revisions and discount sales were implemented for completed inventory of properties acquired at high prices, bringing the risk in sales inventory to light in the form of lower revenue and gross profit. - FY2024-Q1WorsenedAnnual report
「Cash and deposits decreased by ¥2,688.899 million, while inventories increased by ¥3,764.207 million as land acquisition for business-use land progressed smoothly.」
Inventories increased by ¥3,764.207 million in connection with land acquisition for business-use land, expanding exposure to real estate for sale and real estate under development for sale. - FY2023WorsenedAnnual report
「This was mainly attributable to a ¥3,653.516 million increase in inventories as the acquisition of business-use land progressed.」
Inventories increased by ¥3,653.516 million in connection with land acquisition for business-use land, expanding exposure to real estate for sale and real estate under development for sale. The average business period was approximately 11 months. - FY2023-Q3WorsenedAnnual report
「This was mainly attributable to a ¥1,627.262 million decrease in cash and deposits, offset by a ¥2,623.407 million increase in inventories as the acquisition of business-use land progressed.」
Inventories increased by ¥2,623.407 million as the acquisition of business-use land progressed, expanding exposure to real estate for sale and real estate under development for sale. - FY2023-Q2WorsenedAnnual report
「This was mainly attributable to a ¥1,087.195 million decrease in cash and deposits, offset by a ¥1,297.799 million increase in inventories as land acquisition for business-use land progressed smoothly.」
Inventories increased by ¥1,297.799 million in connection with land acquisition for business-use land, expanding exposure to real estate for sale and real estate under development for sale. - FY2023-Q1WorsenedAnnual report
「This was mainly attributable to a ¥1,717.577 million decrease in cash and deposits, offset by a ¥1,788.565 million increase in inventories as land acquisition for business-use land progressed smoothly.」
Inventories increased by ¥1,788.565 million in connection with land acquisition for business-use land, expanding exposure to real estate for sale and real estate under development for sale. - FY2022WorsenedAnnual report
「This was mainly attributable to a ¥3,966.760 million increase in inventories as the acquisition of business-use land progressed.」
Inventories increased by approximately ¥3.97 billion in connection with land acquisition for business-use land, expanding exposure to real estate for sale and real estate under development for sale. The average business period was approximately 11 months, with no material change from the previous fiscal year. - FY2022-Q3WorsenedAnnual report
「This was mainly attributable to a ¥997.525 million decrease in cash and deposits, offset by a ¥8,982.154 million increase in inventories as the acquisition of business-use land progressed.」
Inventories increased by ¥8,982.154 million in connection with land acquisition for business-use land, substantially expanding exposure to real estate for sale and real estate under development for sale. - FY2022-Q2WorsenedAnnual report
「This was mainly attributable to a ¥1,120.208 million decrease in cash and deposits, offset by a ¥6,279.460 million increase in inventories as land acquisition for business-use land progressed smoothly.」
Inventories increased by ¥6,279.460 million in connection with land acquisition for business-use land, substantially expanding exposure to real estate for sale and real estate under development for sale. - FY2022-Q1WorsenedAnnual report
「The main factor was a ¥1,026.412 million decrease in cash and deposits, offset by a ¥1,919.484 million increase in inventories as land acquisition for detached homes progressed smoothly.」
Inventories increased by ¥1,919.484 million in connection with land acquisition for detached homes, expanding exposure to real estate for sale and real estate under development for sale. - FY2021MitigatedAnnual report
「The average business period from settlement of the land acquisition to handover for the company’s core detached-home subdivision business is approximately 11 months.」
The average business period shortened from approximately 12 months in the previous fiscal year to approximately 11 months. The company also reported a decrease in real estate for sale from completed inventory sales and an overall reduction in inventories. - FY2021-Q3MitigatedAnnual report
「This was mainly attributable to a ¥629.902 million decrease in real estate for sale as completed inventory sold smoothly, while cash and deposits increased by ¥1,002.656 million and real estate under development for sale increased by ¥464.712 million as land acquisition for detached homes progressed.」
The decrease in real estate for sale from completed inventory sales offset the increase in real estate under development for sale. Total inventories decreased from the end of the previous fiscal year. - FY2021-Q2MitigatedAnnual report
「Real estate for sale decreased by ¥1,478.101 million as completed inventory sold smoothly, while real estate under development for sale increased by ¥1,354.625 million and cash and deposits increased by ¥980.020 million, respectively, as land acquisition for detached homes progressed.」
Real estate for sale decreased as completed inventory was sold, and total inventories also decreased by ¥153.559 million, reducing inventory exposure from the previous quarter. Real estate under development for sale, however, increased. - FY2021-Q1WorsenedAnnual report
「The main factor was a ¥348.612 million decrease in cash and deposits, offset by a ¥1,429.850 million increase in inventories as land acquisition for detached homes progressed smoothly.」
As land acquisition for detached homes progressed, inventories increased by ¥1,429.850 million, expanding exposure to real estate for sale and real estate under development for sale. - FY2020WorsenedAnnual report
「The average business period from settlement of the land acquisition to handover for the company’s core detached-home subdivision business is approximately 12 months.」
The average business period lengthened from approximately 10 months in the previous fiscal year to approximately 12 months, increasing the risks of prolonged sales periods and inventory valuation losses. - FY2020-Q3RestatedAnnual report
「During the cumulative third quarter of the current fiscal year, there were no occurrences of matters concerning the business situation, accounting situation or other matters described in the quarterly report that could have a material impact on investors’ decisions, and no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The company states that there have been no material changes in the risks associated with prolonged sales periods and impairment losses on real estate for sale. - FY2020-Q2MitigatedAnnual report
「This was mainly attributable to a ¥1,182.995 million decrease in inventories resulting from the selective acquisition of land for detached homes.」
The selective acquisition of land resulted in a ¥1,182.995 million decrease in inventories from the end of the previous fiscal year, reducing exposure to real estate for sale and real estate under development for sale. - FY2020-Q1WorsenedAnnual report
「The main factor was a ¥1,172.805 million decrease in cash and deposits, offset by a ¥1,663.243 million increase in inventories as land acquisition for detached homes progressed smoothly.」
As land acquisition for detached homes progressed, inventories increased by ¥1,663.243 million from the end of the previous fiscal year, expanding exposure to real estate for sale and real estate under development for sale. - FY2019MaterialisedAnnual report
「Gross profit margin declined from 14.5% in the same period of the previous year to 12.9%, due to a higher cost ratio resulting from soaring prices for land for detached homes and price revisions and discount sales implemented to sell completed inventory promptly.」
Price revisions and discount sales were implemented in connection with prolonged sales periods and the disposal of completed inventory, bringing the risk to light in the form of lower margins. - FY2019-Q3WorsenedAnnual report
「The main factor was a ¥220.833 million decrease in cash and deposits, offset by a ¥3,761.408 million increase in inventories as land acquisition for detached homes progressed smoothly.」
As land acquisition for detached homes progressed, inventories increased by ¥3,761.408 million, further expanding exposure to real estate for sale and real estate under development for sale. - FY2019-Q2WorsenedAnnual report
「The main factor was a ¥2,755.185 million increase in inventories as land acquisition for detached homes progressed smoothly, despite a ¥165.325 million decrease in cash and deposits.」
As land acquisition for detached homes progressed, inventories increased by ¥2,755.185 million, expanding exposure to real estate held for sale and work-in-progress real estate held for sale. - FY2019-Q1WorsenedAnnual report
「The main factor was a ¥1,902.276 million increase in inventories as land acquisition for detached homes progressed smoothly.」
As land acquisition for detached homes progressed, inventories increased by ¥1,902.276 million, expanding exposure to real estate held for sale and work-in-progress real estate held for sale. - FY2018WorsenedAnnual report
「The average business period from settlement of the land acquisition for the Company's core detached-home subdivision business to delivery of all homes is approximately 10 months.」
The average business period remains elevated at approximately 10 months, and inventories increased by ¥1,837.234 million as land acquisition progressed. Exposure to real estate held for sale and work-in-progress real estate held for sale has expanded. - FY2018-Q3WorsenedAnnual report
「The main factor was a combined ¥1,732.587 million increase in work-in-progress real estate held for sale and real estate held for sale as land acquisition for detached homes progressed, despite a ¥952.109 million decrease in cash and deposits.」
As land acquisition for detached homes progressed, work-in-progress real estate held for sale and real estate held for sale increased by a combined amount exceeding ¥1.7 billion, expanding inventory exposure. - FY2018-Q2WorsenedAnnual report
「The main factor was a ¥338.281 million decrease in cash and deposits and a ¥265.917 million decrease in work-in-progress real estate held for sale, despite a ¥297.627 million increase in real estate held for sale.」
Real estate held for sale increased by ¥297.627 million, indicating that exposure to completed inventory expanded. Meanwhile, work-in-progress real estate held for sale decreased. - FY2018-Q1WorsenedAnnual report
「The main factor was a ¥299.542 million decrease in cash and deposits, despite a ¥134.876 million increase in real estate held for sale.」
Real estate held for sale increased by ¥134.876 million, indicating that exposure to completed inventory expanded. - FY2017WorsenedAnnual report
「The average business period from settlement of the land acquisition for the Company's core detached-home subdivision business to delivery of all homes is approximately 10 months.」
The average business period lengthened from approximately 9 months in the previous fiscal year to approximately 10 months. It states that no impairment losses on real estate held for sale had been recognized through the current fiscal year. - FY2017-Q3WorsenedAnnual report
「Current assets amounted to ¥8,074.048 million, an increase of ¥1,775.597 million, or 28.2%, from the end of the previous fiscal year. The main factor was a ¥2,007.940 million increase in work-in-progress real estate held for sale as land acquisition progressed, despite a ¥585.324 million decrease in cash and deposits.」
As land acquisition progressed, work-in-progress real estate held for sale increased, and the disclosure indicates that inventory exposure expanded after previously shrinking due to progress in sales of completed inventory. - FY2017-Q2MitigatedAnnual report
「Real estate held for sale decreased by ¥318.200 million as sales of completed inventory progressed, while」
It describes progress in sales of completed inventory and a decrease in real estate held for sale, indicating that exposure to completed inventory has decreased. Meanwhile, work-in-progress real estate held for sale has increased. - FY2017-Q1MitigatedAnnual report
「Real estate held for sale decreased by ¥279.216 million as sales of completed inventory progressed.」
It describes progress in sales of completed inventory and a decrease in real estate held for sale, indicating that exposure to inventory associated with prolonged sales periods has decreased. - FY2016First statedAnnual report
「The average business period from settlement of the land acquisition for a subdivision of detached homes to delivery of all homes is approximately 9 months.」
It identifies the risk of declining selling prices and impairment losses on inventories if the sales period is prolonged.