Indicators of Impairment in Rental Properties and Risk of Impairment Losses Due to Falling Rents
First written in FY2021. 6 of 12 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2020: 51 of 96 companies on the "Worse" side.
- FY2026MitigatedAnnual report
「If contract rents were to decline in the future, impairment losses of ¥0 million at a 16% decline, ¥6 million at a 20% decline, and ¥13 million at a 25% decline would each be incurred as a risk.」
No impairment loss was recognized in the current period. Sensitivity to rental declines has been updated from ¥1 million at a 15% decline, ¥9 million at a 20% decline and ¥32 million at a 25% decline in the previous period to ¥0 million at a 16% decline, ¥6 million at a 20% decline and ¥13 million at a 25% decline. - 2026-06-04RestatedGeneral Meetings of Shareholders
「If contract rents were to decline in the future, impairment losses of ¥0 million at a 16% decline, ¥6 million at a 20% decline, and ¥13 million at a 25% decline would each be incurred as a risk.」
Although no impairment loss was recorded for the current fiscal year, the risk of impairment losses if contract rents decline was disclosed at multiple levels of 16%, 20% and 25%. - FY2025WorsenedAnnual report
「Assuming that contractual rents decline in the future, there would be a risk of impairment losses of ¥1 million at a 15% decline, ¥9 million at a 20% decline and ¥32 million at a 25% decline.」
No impairment loss was recognized in the current period, but it was disclosed that a 20% decline in contractual rents would carry a risk of a ¥9 million impairment loss and a 25% decline a risk of a ¥32 million impairment loss. Multiple levels of sensitivity have been specified in greater detail than in the previous period. - FY2025-H1RestatedAnnual report
「During the interim consolidated accounting period, there were no material changes in the occurrence of major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters relating to the business conditions, financial position and other matters described in this interim report, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
Reconfirming that there have been no material changes regarding the indicators of impairment at rental properties and the risk of impairment losses due to falling rents. - FY2024MaterialisedAnnual report
「An impairment loss of ¥21 million was recognized in the current consolidated fiscal year, and this has been identified as a disclosure item in light of the risk of a material impact on the consolidated financial statements for the following consolidated fiscal year. Assuming that contractual rents decline in the future, a 20% decline would not result in an impairment loss, but a 23% decline would give rise to the risk of an impairment loss of ¥14 million.」
An impairment loss of ¥21 million was actually incurred on some rental properties. For the remaining properties, the disclosed sensitivity indicates a risk of a ¥14 million impairment loss if contractual rents decline by 23%. - FY2023Update to impairment risk assumptionsAnnual report
「Although no impairment loss was recognized in the current consolidated fiscal year, this has been identified as a disclosure item in light of the risk of a material impact on the consolidated financial statements for the following consolidated fiscal year. Assuming that contractual rents decline in the future, a 20% decline would not result in an impairment loss, but a 21% decline would carry the risk of an impairment loss of ¥12 million.」
No impairment loss was recognized in the current period, but the impairment risk sensitivity has been updated from ¥3 million at an 18% decline previously to ¥12 million at a 21% decline. - FY2023-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
Reconfirming that there have been no material changes regarding the indicators of impairment at rental properties and the risk of impairment losses due to falling rents. - FY2023-Q1RestatedAnnual report
「During the three-month period ended 30 June, there were no new risks that management recognizes as having the potential to materially affect the financial position, operating results or cash flows of the consolidated companies, and no material changes to the business risks described in the annual securities report for the previous fiscal year.」
Reconfirming that there have been no material changes regarding the indicators of impairment at rental properties and the risk of impairment losses due to falling rents. - FY2022MaterialisedAnnual report
「Although impairment losses were recognized for certain properties during the current consolidated fiscal year, other properties have been identified for disclosure in view of the risk of a material impact on the consolidated financial statements for the following consolidated fiscal year.」
Actual impairment losses of ¥29 million were recognized for certain rental properties. For other properties, the disclosure states that there is a risk of a ¥3 million impairment loss if contractual rents decline by 18%. The risk assumptions have also been updated from the previous assumption of a ¥2 million loss if rents declined by 20%. - FY2022-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
Reconfirming that there have been no material changes regarding the indicators of impairment at rental properties and the risk of impairment losses due to falling rents. - FY2022-Q1RestatedAnnual report
「During the three-month period ended 30 June, there were no new risks that management recognizes as having the potential to materially affect the financial position, operating results or cash flows of the consolidated companies, and no material changes to the business risks described in the annual securities report for the previous fiscal year.」
Reconfirming that there have been no material changes regarding the indicators of impairment at rental properties and the risk of impairment losses due to falling rents. - FY2021First statedAnnual report
「Although no impairment losses were recognized during the current consolidated fiscal year, this item has been identified for disclosure in view of the risk of a material impact on the consolidated financial statements for the following consolidated fiscal year.」
Stating that indicators of impairment were identified at certain rental properties and that a 2 million yen impairment loss could arise if rents decline by 20%. No impairment loss was recognized for the current period because market values exceeded carrying values.