Rental Business Risks from Real Estate Market Conditions and Declining Occupancy Rates
First written in FY2022. 2 of 3 entries say "Worsened", first in FY2025. Latest entry: FY2026.
Kimuratan moved to the "Worse" side of this theme in 2025, 5 years after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 4 of 11 companies on the "Worse" side.
1 other company's latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「For rental properties owned and operated by the Group, factors including regional population trends, economic sentiment, an increase in competing properties and building deterioration could lead to higher vacancy rates, lower rents and increased renovation costs.」
In addition to real estate market risk, higher vacancy rates, lower rents and increased renovation costs arising from population trends, competing properties and building deterioration were specified as distinct risks. - FY2025WorsenedAnnual report
「The real estate market is significantly affected by a combination of factors, including interest-rate levels, economic conditions, regulations governing real estate transactions, construction-material prices and investor sentiment. In the Group's resale and rental businesses, these market fluctuations could give rise to risks including lower sales margins due to falling real estate prices, liquidity risk and impairment losses arising from unrealized losses.」
The scope of the real estate market and occupancy-rate risk was expanded beyond declines in occupancy rates and tenant utilization rates to include interest rates, regulations, construction-material prices, investor sentiment, falling real estate prices, liquidity and impairment. - FY2022First statedAnnual report
「Depending on trends in the real estate market, a decline in occupancy rates at rental properties and utilization rates among tenants could affect operating performance and financial condition.」
As the Company pursues a policy of expanding its real estate business as its second core business, it identified real estate market conditions and declines in rental-property occupancy rates and tenant utilization rates as new business risks.