Risks of declining rents, rising vacancy rates and key tenant departures
First written in FY2016. 2 of 5 entries say "Restated". Latest entry: FY2020-Q3.
Es-Con Japan moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 2 of 6 companies on the "Worse" side.
0 other companies' latest entry also says "Other".
- FY2020-Q3Core tenants remain resilient, while some tenants continue to struggleAnnual report
「Supermarkets, drugstores and other businesses essential to daily life have continued operating even during the state of emergency and have maintained sales above 100% of the previous year’s level. However, customers have been slow to return to tenants such as restaurants, apparel stores and sports clubs, which remain in a difficult operating environment. The risk of a decline in planned real estate rental income may arise from requests for rent reductions, uncollected rent due to tenant bankruptcies and difficulties in leasing to new tenants.」
While core tenants such as supermarkets and drugstores maintained sales above the prior-year level, risks continue at restaurants, apparel stores and sports clubs, including sluggish customer recovery, requests for rent reductions, uncollected receivables and leasing difficulties. - FY2020-Q2MaterialisedAnnual report
「Tenants such as restaurants, apparel stores and sports clubs have been forced to suspend operations. The risk of a decline in planned real estate rental income may arise from rent reduction requests from tenants facing difficult conditions, uncollected rent due to tenant bankruptcies and difficulties in leasing to new tenants.」
Tenant requests to suspend operations, requests for rent reductions, uncollected rent and difficulties in leasing, which had previously been presented as possibilities, have emerged and become concrete under the impact of COVID-19. - FY2018RestatedAnnual report
「Depending on the departure of major tenants from commercial facilities and their usage levels, rents may decline and the occupancy rates of owned assets may fall, potentially affecting the Group’s operating results.」
The risks of falling rents, rising vacancy rates, major tenant departures and lower occupancy rates continue. - FY2017RestatedAnnual report
「The real estate leasing business has also taken measures against the risks of falling rents and rising vacancy rates. However, depending on the impact of economic trends and conditions, the departure of major tenants from commercial facilities and their usage levels, rents may decline and the occupancy rates of owned assets may fall, potentially affecting the Group’s operating results.」
The risks of falling rents, rising vacancy rates, major tenant departures and lower occupancy rates continue. - FY2016First statedAnnual report
「The real estate leasing business has taken measures against the risks of falling rents and rising vacancy rates. However, depending on the impact of economic trends and conditions, the departure of major tenants from commercial facilities and their usage levels, rents may decline and the occupancy rates of owned assets may fall, potentially affecting the Group’s operating results.」
The leasing business faces specific risks including falling rents, rising vacancy rates, the departure of major tenants and lower occupancy rates.