Higher costs associated with the expansion of the Completed Construction business and lower operating profit
First written in FY2017-Q3. 11 of 29 entries say "Worsened", first in FY2023-Q1. Latest entry: 2026-11-10.
Sumitomo Realty & Development moved to the "Worse" side of this theme in 2025, 2 years after the typical company in this theme (2023).
The whole theme swung hardest in 2018: 3 of 17 companies on the "Worse" side.
6 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The division posted a substantial decline in profit, mainly because orders fell sharply in the first half due in part to the revision of the Building Standards Act, and because costs were incurred in connection with the spin-off.」
The housing business recorded 8,345 orders and operating profit of ¥13.4 billion, with profit declining due to the revision of the Building Standards Act and spin-off costs. On the other hand, signs of recovery are emerging in fourth-quarter orders and the order backlog at fiscal year-end. - FY2026-H1WorsenedAnnual report
「The revision of the Building Standards Act had a significant impact on large-scale renovations and other projects, and both orders and recognized units in this business segment are below the year-earlier levels.」
Orders for Shin築そっくりさん totaled 3,274 units and those for custom-built homes totaled 835 units, with both businesses recording lower orders and recognized units year on year. Operating profit in the housing business fell from ¥1.0 billion in the year-earlier period to ¥300 million. - FY2025-H1Lower revenue and operating profit despite higher orders, due to fewer recognized homesAnnual report
「Although this business segment posted lower revenue and profit, we believe it is progressing as planned for the full year, as orders increased and, as usual, recognized units are expected to increase mainly in the second half.」
Orders increased by 163 units year on year to 4,821, while recognized units fell 452 units to 3,245, resulting in lower revenue and profit. The note cites the recovery in orders and the delay in recognition, while explaining that performance remains on plan based on recognition in the second half. - FY2024-Q3Higher operating profit, but annual plan somewhat weaker after reflecting lower ordersAnnual report
「Operating profit progress against the full-year earnings forecast was 53%, above the year-earlier 50%, but recognized homes in the fourth quarter are expected to be below the year-earlier level, reflecting the decline in orders through the third quarter. Management considers the business to be somewhat weaker against the annual plan.」
Operating profit increased as margins improved through price increases and cost controls, but recognized homes in the fourth quarter are expected to be below the year-earlier level following the decline in orders through the third quarter. The assessment against the annual plan changed to "somewhat weaker." - FY2024-Q2AdvancedAnnual report
「Price increases took hold in both businesses, while cost controls improved margins, resulting in higher operating profit.」
Although revenue declined due to fewer recognized homes, the Completed Construction business moved to higher operating profit as price increases took hold and margins improved through cost controls. - FY2024-Q1Margins trending higher as price increases take holdAnnual report
「The division reported lower revenue because recognized homes declined, but price increases have taken hold in both businesses and margins are trending higher.」
The Completed Construction business reported lower revenue due to fewer recognized homes, but explained that margins are trending higher as price increases take hold. - FY2023AdvancedAnnual report
「The division reported higher revenue and operating profit and achieved a new record high profit for the first time in 3 periods.」
Despite a decline in orders for homes, the Completed Construction business reported higher revenue and operating profit due to price increases and cost controls, setting a new record high profit for the first time in 3 periods. - FY2023-Q3WorsenedAnnual report
「Orders in the third quarter (April–December) were 5,875 homes in the "Shinchiku Sokkuri-san" business, down 371 homes year on year, and 1,411 homes in the Custom-Built Homes business, down 386 homes.」
The decline in orders for the Completed Construction business continued through the nine months ended December. Although management explained that the business was on plan assuming backlog recognition in the fourth quarter, weakness in orders has persisted. - FY2023-Q2WorsenedAnnual report
「Operating profit progress against the full-year earnings forecast was only 14%, but backlog accumulated in the previous fiscal year is expected to be recognized mainly in the second half in both businesses, and management considers progress to be in line with plan.」
Orders for homes in the Completed Construction business declined by 609 year on year, and operating profit was also below the year-earlier level. Operating profit progress was only 14%, but management explained that the business was on plan, assuming recognition of backlog. - FY2023-Q1WorsenedAnnual report
「The division reported lower revenue and operating profit due to a decline in recognized homes, but backlog accumulated in the previous fiscal year is expected to be recognized going forward, mainly in the second half, in both businesses, and management considers progress against the full-year earnings forecast to be in line with plan.」
Recognized homes in the Completed Construction business declined from 1,450 in the year-earlier period to 1,385, while the operating loss widened from ¥166 million to ¥1.317 billion. While acknowledging lower revenue and operating profit and the widening operating loss, management explained that the business was on track with the full-year plan due to the recognition of backlog. - FY2022-Q3AdvancedAnnual report
「Cumulative third-quarter orders (April–December) increased from the previous year, reaching 6,246 Shinchiku Sokkuri-san homes, up 654, and 1,797 custom-built homes, up 173, compared with the previous year, when sales activities were voluntarily suspended following the declaration of a state of emergency.」
Against a backdrop of recovering orders, the Completed Construction business reported higher revenue and operating profit for the nine months ended December. Revenue increased by ¥8.7 billion year on year and operating profit by ¥3.6 billion. - FY2022-Q1Lower revenue and operating profit despite strong orders, due to fewer recognized homesAnnual report
「The division reported lower revenue and operating profit due to a decline in recognized homes, but backlog accumulated through strong orders is expected to be recognized mainly in the second half, and management considers progress to be in line with plan.」
Orders for homes increased significantly year on year, while recognized homes totaled 1,450, below the year-earlier period, resulting in lower revenue and operating profit in the Completed Construction business. Management explained that backlog is expected to be recognized mainly in the second half. - FY2021-Q3Revenue declined due to fewer recognized homes despite the continued recovery in ordersAnnual report
「Orders fell sharply in the first quarter (April–June) because the declaration of a state of emergency restricted large-scale customer-attraction events and face-to-face sales. After the declaration was lifted, orders entered a recovery trend, and from the second quarter onward (July–December), both businesses remained above the year-earlier level, with 4,351 Shinchiku Sokkuri-san homes, up 278, and 1,260 custom-built homes, up 198.」
Orders recovered from the second quarter onward, but recognized homes for the nine months ended December totaled 6,688, below the year-earlier period, resulting in lower revenue in the Completed Construction business. - FY2021-Q2Revenue declined due to fewer recognized homes despite the recovery in ordersAnnual report
「Revenue declined because recognized homes decreased, but operating profit reached a new record high for the same period, supported by lower selling expenses during the period of voluntary sales restrictions and an improved gross margin.」
Orders in the Completed Construction business recovered in the second quarter, but recognized homes in the first half totaled 3,789, below the year-earlier period, resulting in lower revenue. - FY2021-Q1MitigatedAnnual report
「Orders in the first quarter declined sharply from the year-earlier period as the declaration of a state of emergency due to the spread of COVID-19 severely restricted large customer-acquisition events and face-to-face sales. Orders were 1,241 homes in the "Shinchiku Sokkuri-san" business, down 472 homes year on year, and 364 homes in the Custom-Built Homes business, down 74 homes.」
Orders declined due to the impact of the infectious disease, but the operating loss in the Completed Construction business narrowed from ¥127 million in the year-earlier period to ¥26 million. Despite lower orders, the deterioration in earnings was mitigated. - FY2020MitigatedAnnual report
「The division reported lower revenue due to a decline in recognized Custom-Built Homes, but secured higher operating profit through improved margins and achieved a new record high profit.」
Although orders and revenue declined, the Completed Construction business reported higher operating profit due to improved margins and achieved a new record high profit. - FY2020-Q1MitigatedAnnual report
「Fewer orders, but progress in line with the plan」
Although the Completed Construction business remained in the red, its operating loss narrowed from ¥529 million in the year-earlier period to ¥127 million, while revenue increased. Despite the decline in orders, management explained that progress was in line with plan. - FY2019-Q3AdvancedAnnual report
「The division reported higher revenue and operating profit due to higher average prices per home and achieved operating profit growth of more than 20%.」
The Completed Construction business progressed from a slight decline in recognized homes in the year-earlier period to higher revenue and operating profit, supported by higher unit prices, with operating profit increasing by more than 20% year on year. - FY2019-Q2AdvancedAnnual report
「As a result, the division returned to higher revenue and operating profit for the first time in 5 periods for a second quarter.」
Against a backdrop of higher orders, the Completed Construction business returned to higher revenue and operating profit for the first time in 5 periods for a second quarter. - FY2019-Q1Reconfirmation of lower revenue and operating profit in the Completed Construction businessAnnual report
「The division reported lower revenue and operating profit, but, as in a typical year, recognized homes are expected to increase mainly in the second half, and management considers progress to be in line with plan.」
Revenue in the Completed Construction business was ¥27.5 billion and its operating loss was ¥500 million, compared with revenue of ¥28.9 billion and an operating loss of ¥400 million in the year-earlier period, representing a deterioration. However, this explanation does not identify higher costs associated with business expansion as a factor behind the lower profit. - FY2018MitigatedAnnual report
「As a result, the division achieved higher revenue and operating profit, driven by an increase in recognized homes and improved margins.」
The Completed Construction business shifted from lower operating profit due to higher costs associated with previously reported business expansion to higher revenue and operating profit driven by an increase in recognized homes and improved margins. - FY2018-Q2Slight decline in recognized homes cited as the reason for lower profitAnnual report
「Revenue and operating profit declined because recognized homes were only slightly below the year-earlier period.」
Regarding the lower revenue and operating profit in the Completed Construction business, this filing cites the slight year-on-year decline in recognized homes in the Custom-Built Homes and Shinchiku Sokkuri-san businesses, rather than higher costs associated with business expansion, as the reason. - FY2017-Q3First statedAnnual report
「Operating profit declined because the company was unable to offset higher costs associated with business expansion.」
The Completed Construction business reported revenue of ¥137.5 billion, up year on year, while operating profit declined to ¥7.9 billion from ¥9.1 billion in the year-earlier period.