Real Estate Price Adjustment Risk
First written in FY2017. 3 of 9 entries say "Reframed", first in FY2018. Latest entry: FY2026.
S Crypto Energy moved to the "Worse" side of this theme in 2018, 5 years before the typical company in this theme (2023).
The whole theme swung hardest in 2020: 30 of 70 companies on the "Worse" side.
45 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「The real estate held by the Company is highly susceptible to economic conditions, interest rates, land prices and other factors. Although the Company has personnel with extensive experience and advanced expertise in real estate appraisals and sales, if real estate market conditions lead to an asset value decline greater than anticipated and beyond the Company's expectations, this could affect the Company's operating results and financial position.」
The risk of a decline in the value of real estate held by the Company due to economic conditions, interest rates and land prices, together with the response policy involving specialized personnel, continues. - FY2025ReframedAnnual report
「The real estate held by the Company is highly susceptible to economic conditions, interest rates, land prices and other factors. Although the Company has personnel with extensive experience and advanced expertise in real estate appraisals and sales, if real estate market conditions lead to an asset value decline greater than anticipated and beyond the Company's expectations, this could affect the Company's operating results and financial position.」
The description was reorganized from the previous discussion of real estate price adjustments and the need to monitor price trends to focus on the risk that economic conditions, interest rates and land prices could reduce the value of real estate held by the Company, as well as the Company's response structure for real estate appraisals and sales. - FY2024The amount of real estate for sale subject to valuation was updated.Annual report
「If the net realizable value of real estate for sale falls below its carrying amount, the carrying amount is reduced to the net realizable value, and the decrease is recognized as an impairment loss.」
The valuation risk for real estate for sale continues. The carrying amount of real estate for sale declined from ¥414.734 million to ¥351.071 million, and the possibility of an impairment loss due to changes in the sales plan and market conditions continues to be indicated. - FY2023The estimated impairment loss on real estate for sale was disclosed.Annual report
「Real estate for sale is carried on the balance sheet at cost. If its net realizable value at the end of the period falls below cost, it is carried at that net realizable value. If the assumptions underlying the estimates change due to deteriorating economic conditions or market conditions, an impairment loss may be recognized from the following consolidated fiscal year onward.」
In addition to the existing real estate market and price trend risks, the accounting estimate was explicitly disclosed that an impairment loss would arise if the net realizable value of real estate for sale of ¥414.734 million declined. - FY2021WorsenedAnnual report
「In the real estate industry, prices declined due to the impact of COVID-19, and transactions also declined because face-to-face sales activities were not possible as a result of requests to refrain from such activities as part of measures to prevent infectious diseases. Sales activities therefore need to be conducted while carefully assessing trends in the real estate market.」
In addition to the previous focus on price adjustments and price trends, the full-year disclosure states that real estate prices and transactions actually declined due to COVID-19. - FY2020WorsenedAnnual report
「In the real estate industry, real estate prices continued to move within a high range, but declined in the latter half of the period due to the impact of COVID-19. Transactions also declined because face-to-face sales activities were not possible as a result of requests to refrain from such activities as part of measures to prevent infectious diseases. Sales activities therefore need to be conducted while carefully assessing trends in the real estate market.」
In addition to the previously described risks of real estate price adjustments and the need to monitor price trends, it is stated that prices and transactions actually declined due to COVID-19. - FY2019ReframedAnnual report
「In the real estate industry, if interest rates remain at the same low levels as before, the real estate market is not expected to undergo significant fluctuations, although this will not apply uniformly nationwide. However, as prices for investment properties and other real estate have surged in major cities, it will be necessary to closely monitor price trends after the Tokyo Olympics.」
While expressing the view that the real estate market would not fluctuate significantly, the focus of risk shifted to surging investment property prices in major cities and the need to monitor price trends after the Tokyo Olympics. - FY2018ReframedAnnual report
「The real estate market is not expected to undergo significant fluctuations. While the metropolitan areas, where redevelopment is active, remain vibrant, some properties in easily accessible regional areas still have scope for prices to remain stable or rise. It will therefore become important to distinguish between properties with value and those without.」
The focus of the description shifted from the previous emphasis on the risk of price adjustments to the view that market conditions would not fluctuate significantly and the importance of selecting properties by value. - FY2017First statedAnnual report
「In the real estate industry, prices have been pushed up by financing over the past several years, so further price increases are not expected and an adjustment is likely to take place.」
The risk of further increases becoming difficult and of a correction in real estate prices, which have been pushed up by financing, is noted.