Difficulty of Estimating Asbestos Removal Costs for Leased Properties

「Certain buildings held by our Group will be subject to an obligation to remove asbestos upon demolition. However, it is extremely difficult to conduct on-site investigations, including partial demolition, at properties that are currently leased and operating in order to estimate asbestos removal methods and costs. In addition, as our Group has no experience demolishing buildings, it is also difficult to estimate, based on forecasts, when the obligation will be settled, given the difficulty of estimating the buildings' physically usable lives due to aging and other factors.」