Guaranteed Rent and Early Termination Risks Associated with atoa’s Long-Term Lease Agreement
First written in FY2021. 1 of 3 entries say "Restated". Latest entry: FY2023.
No other company in this theme has enough history to compare yet.
- FY2023ReframedAnnual report
「Although COVID-19 has been reclassified as a Class 5 infectious disease under the Infectious Diseases Act, we will continue to maintain infection-prevention measures and a business-continuity framework through various health and hygiene measures, secure the peace of mind, health and safety of customers and employees, and work to allocate personnel appropriately according to demand and reduce expenses.」
In light of the change in the legal classification of the infectious disease and the recovery in demand, the response to atoa's long-term lease and guaranteed rent risks has been organised around infection prevention and business continuity in the post-pandemic environment. - FY2022RestatedAnnual report
「To address this risk, until the restrictions on economic activity arising from the response to COVID-19 have normalised, we will work to negotiate rent reductions, allocate personnel appropriately according to demand, and reduce expenses, while strengthening advertising and promotional activities to attract visitors.」
The company continues to address the long-term lease and guaranteed rent risks at atoa through rent-reduction negotiations, personnel allocation, expense reductions and advertising and promotion. - FY2021First statedAnnual report
「Because early termination of the agreement is difficult and it would also be difficult to renegotiate the rent downward in a situation involving the closure of the facility or a decline in sales over a short period, the company has established a framework for controlling risk through a variable rent agreement linked to revenue.」
For atoa, scheduled to open in October 2021, the company has identified for the first time the long-term fixed-term lease agreement, guaranteed rent and difficulty of early termination as risks, and presented a variable rent agreement and cost controls as countermeasures.