Transfer of Fixed Assets and Recognition of Extraordinary Losses at a Consolidated Subsidiary’s Fund
KIC Kasukabe 2 Tokutei Mokuteki Kaisha (a special purpose company under our group)
KIC Kasukabe Distribution Center 2 (Kasukabe, Saitama Prefecture)
Because a tenant could not be secured for the facility, negotiations could not be concluded at the anticipated transfer price, and the facility will therefore be transferred at a price below its carrying amount.
Approximately ¥770 million (expected to be recorded as an extraordinary loss, specifically an impairment loss on fixed assets, in the consolidated financial statements for the second quarter of the fiscal year ending March 2027). A separate ¥520 million (provision for investment losses, included in consolidated operating costs) is also expected to be recorded.
Second quarter of the fiscal year ending March 2027
The expected figures for the fiscal year ending March 2027 based on the “previous consolidation basis,” announced on 15 May 2026, are currently under review. The new expected figures will be disclosed once finalized. The company does not issue earnings forecasts.
The contract is scheduled to be signed on 30 September 2026, and the transfer is scheduled for 15 January 2027. The new “expected figures based on the previous consolidation basis” will be disclosed once finalized, and any information requiring timely disclosure will be announced promptly.
The new “expected figures based on the previous consolidation basis” will be disclosed once finalized.
| Item | Details |
|---|---|
| Event name | Transfer of Fixed Assets and Recognition of Extraordinary Losses at a Consolidated Subsidiary’s Fund |
| Date of occurrence | 30 September 2026 (the date on which the transfer was decided by resolution of the fund’s directors) |
| Subject Entity | KIC Kasukabe 2 Tokutei Mokuteki Kaisha (a special purpose company under our group) |
| Target Locations / Products | KIC Kasukabe Distribution Center 2 (Kasukabe, Saitama Prefecture) |
| Cause | Because a tenant could not be secured for the facility, negotiations could not be concluded at the anticipated transfer price, and the facility will therefore be transferred at a price below its carrying amount. |
| Amount of Impact on Business Performance | Approximately ¥770 million (expected to be recorded as an extraordinary loss, specifically an impairment loss on fixed assets, in the consolidated financial statements for the second quarter of the fiscal year ending March 2027). A separate ¥520 million (provision for investment losses, included in consolidated operating costs) is also expected to be recorded. |
| Accounting period in which recognized | Second quarter of the fiscal year ending March 2027 |
| Impact on Earnings Forecast | The expected figures for the fiscal year ending March 2027 based on the “previous consolidation basis,” announced on 15 May 2026, are currently under review. The new expected figures will be disclosed once finalized. The company does not issue earnings forecasts. |
| Outlook | The contract is scheduled to be signed on 30 September 2026, and the transfer is scheduled for 15 January 2027. The new “expected figures based on the previous consolidation basis” will be disclosed once finalized, and any information requiring timely disclosure will be announced promptly. |
| Planned follow-up disclosure | The new “expected figures based on the previous consolidation basis” will be disclosed once finalized. |
Items this document does not state (15)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Because a tenant could not be secured for the logistics facility and negotiations could not be concluded at the anticipated transfer price, the facility will be transferred at a price below its carrying amount.