Tenant Vacancy Risk for Single-Tenant Properties
First written in FY2017. 2 of 5 entries say "Mitigated", first in FY2018. Latest entry: FY2021-Q2.
The whole theme swung hardest in 2020: 10 of 26 companies on the "Worse" side.
2 other companies' latest entry also says "Dropped".
- FY2021-Q2DroppedAnnual report
「Because the Group transferred the fixed asset held as rental property on 29 May 2020 in its real estate leasing and related business, the section entitled “2) Other Risks, ⑥ Real Estate Leasing and Related Business” in the securities report for the previous fiscal year has been eliminated.」
The transfer of the rental property and withdrawal from the real estate leasing and related business explicitly eliminated the risks of tenant departure, securing a successor tenant and changes in contract terms for the single-tenant property. - FY2021-Q1MitigatedAnnual report
「Because real estate rental income will cease upon the transfer of ownership on 29 May 2020, the real estate leasing and related business segment is expected to cease to exist from the following consolidated fiscal year onward.」
The leased single-tenant property was transferred, and both rental income and the continuation of the real estate leasing and related business were expected to cease. As a result, the risks of tenant departure and securing a successor tenant for the property were mitigated. - FY2019RestatedAnnual report
「The Group operates a real estate leasing and related business involving the leasing and management of office buildings. Because the property is currently leased to a single tenant, its performance could be affected if the current tenant vacates and the Group is unable to contract with a new tenant, or if contract terms change even after a new tenant is secured.」
The risks of tenant departure, securing a successor tenant and changes in contract terms associated with single-tenant leasing continued to be disclosed. - FY2018MitigatedAnnual report
「During the fiscal year under review, the tenant changeover was completed smoothly from November to December. Net sales for the consolidated fiscal year under review were ¥127 million (¥115 million in the previous fiscal year), and operating income was ¥45 million (¥79 million in the previous fiscal year).」
Tenant turnover at the single-tenant property was completed smoothly, mitigating the risk of the property becoming vacant after the tenant’s departure during the fiscal year. However, the future risks of tenant departure and changes in contract terms associated with single-tenant leasing remain. - FY2017First statedAnnual report
「The Group operates a real estate leasing and related business involving the leasing and management of office buildings. Because the property is currently leased to a single tenant, its performance could be affected if the current tenant vacates and the Group is unable to contract with a new tenant, or if contract terms change even after a new tenant is secured.」
The risks that a new tenant may not be secured after the current tenant vacates a single-tenant property, and that changes in contract terms may affect performance, were disclosed as risks in the real estate leasing business.