Risk of Inventory Valuation Losses, Sales Delays and Financial Market Disruptions for Properties Held for Repositioning
First written in FY2016. 15 of 33 entries say "Restated". Latest entry: 2026-08-06.
Sun Frontier Fudousan moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2020: 8 of 22 companies on the "Worse" side.
12 other companies' latest entry also says "Worsened".
- 2026-08-06WorsenedEarnings presentation
「Inventory and interest-bearing debt increased due to property acquisitions and construction progress.」
Inventory increased from ¥178,540 million at 31 March 2026 to ¥201,177 million at 30 June 2026, further expanding inventory exposure. - FY2026WorsenedAnnual report
「In the replanning business, 24 properties were sold, including 3 newly built buildings, 3 fractional ownership products and 2 New York properties, representing a decline of 14 properties from the previous fiscal year. However, revenue and profit both increased due in part to sales of large properties and highly profitable newly built buildings.」
The number of properties sold declined by 14 from the previous fiscal year to 24, while properties under development for sale increased to ¥160.392 billion and an inventory valuation loss of ¥87 million was recognized. Higher profit from large, highly profitable properties coexisted with increased inventory exposure. - 2026-05-11WorsenedEarnings
「The main factors behind the increase in total assets were an increase of ¥43,975 million in real estate for sale under development and an increase of ¥2,230 million in buildings, net, despite decreases of ¥5,645 million in cash and deposits and ¥792 million in long-term loans receivable.」
Real estate for sale under development increased by ¥43,975 million from the previous period-end, expanding inventory exposure. - FY2026-H1Lower sales alongside higher inventoryAnnual report
「During the fiscal year, 13 properties were sold, including 2 fractional ownership products and 2 newly built buildings and other properties, representing a decline of 1 property year on year. However, revenue and profit both increased due in part to sales of large properties and highly profitable newly built buildings. Contracts for properties planned for sale this fiscal year have also steadily accumulated, and progress toward the full-year forecast is proceeding smoothly.」
The number of properties sold declined by 1 year on year to 13, but revenue and profit increased due to sales of large and highly profitable properties. Sales progress, including properties already under contract, was described as smooth, while properties under development for sale increased to ¥135.487 billion. - FY2025MitigatedAnnual report
「Property sales progressed as planned, and the full-year forecast was achieved.」
Property sales progressed as planned and the full-year forecast was achieved. Although the number of properties sold increased to 38, properties under development for sale also increased, leaving continued inventory exposure. - FY2025-H1MitigatedAnnual report
「During the fiscal year, 14 properties were sold, the same number as in the same period of the previous year, including 1 fractional ownership product. However, revenue and profit declined because the properties were smaller than those sold in the same period of the previous year. Sales this fiscal year are concentrated in the second half, and including properties already under contract and scheduled to settle during the fiscal year, progress toward the full-year forecast is proceeding smoothly at more than 50%.」
The number of properties sold was 14, unchanged from the same period of the previous year, but revenue and profit declined as the properties were smaller. Including properties already under contract and scheduled to settle during the fiscal year, progress toward the full-year forecast exceeded 50%, and the company explained that concerns about sales delays were easing. - FY2024MitigatedAnnual report
「During the fiscal year, 25 properties were sold, including 2 properties in New York and 1 fractional ownership product, while the segment profit margin remained high at 30%.」
The replanning business sold 25 properties, and sales activity remained firm. Although properties under development for sale increased, no inventory valuation loss was recognized during the fiscal year, and the company maintained a high profit margin, indicating an easing in the impact of sales delay and inventory valuation risks. - FY2024-Q3Fewer properties sold, while high profit margins were maintainedAnnual report
「During the period, acquisitions progressed at a pace exceeding the plan as a result of cooperation among the divisions of the office business and a strengthened acquisition structure. The company will continue to strengthen acquisitions for product development and sales in the next fiscal year. Although sales declined by 1 property year on year to 20, the profit margin remained high at 30%.」
The number of properties sold declined by 1 year on year to 20, while the company maintained a 30% profit margin and procurement progressed at a pace exceeding the plan. The decline in sales volume, high profitability and procurement progress were cited together in relation to sales delay and inventory risks. - FY2024-Q2MitigatedAnnual report
「During the fiscal year, procurement and sales progressed smoothly and at a pace exceeding the plan. ... Sales during the fiscal year totaled 14 properties, the same as in the same period of the previous year, while revenue and profit increased year on year.」
The number of properties sold was 14, unchanged from the same period of the previous year, with relatively large properties sold ahead of schedule to meet customer requests. Disclosures indicated an easing in sales delay risk with respect to sales progress. - FY2024-Q1MitigatedAnnual report
「Sales during the fiscal year were halved from the same period of the previous year, when nearly half of the full-year sales were concentrated, resulting in lower revenue and profit. This fiscal year, sales are expected to accelerate from the second quarter onward, with full-year revenue forecast to increase 10% year on year. Sales are currently progressing smoothly, and there has been no change to the full-year sales plan.」
The number of properties sold in the first quarter was halved due to the reversal of sales concentrated in the same period of the previous year. However, the company indicated that sales would accelerate from the second quarter onward, full-year revenue was expected to increase 10%, and the sales plan would be maintained, indicating an easing in the explanation of sales delay risk. - FY2023MitigatedAnnual report
「The number of properties sold in the replanning business increased by 2 from the previous fiscal year to 24, and the customer base expanded.」
The number of properties sold increased to 24, and the customer base expanded. Inventory valuation losses declined from ¥307 million in the previous fiscal year to ¥14 million, indicating an easing in the impact of sales delay and inventory valuation risks. - FY2023-Q3MitigatedAnnual report
「Sales during the quarter progressed smoothly against a backdrop of strong investor appetite. Although sales of relatively large properties decreased from the same quarter of the previous year, the number of properties sold in the replanning business increased by 4 year on year to 22, including properties sold in New York, as the customer base continued to expand.」
Although sales of large properties remained lower, the number of properties sold rose by 4 year on year to 22 against a backdrop of investor demand, indicating progress in sales including New York properties. Of the risks related to inventory and sales delays, sales-related risk is easing. - FY2023-Q2RestatedAnnual report
「Sales during the fiscal year progressed smoothly against a backdrop of strong investor appetite. In addition, in the real estate redevelopment business in New York, the company sold one property that had been developed for sale to meet customers’ needs for portfolio diversification. Including the New York property, the number of properties sold in the replanning business was 14, unchanged from the previous fiscal year, although sales of relatively large properties decreased from the previous fiscal year.」
Sales were described as progressing smoothly against a backdrop of investor demand, with 14 properties sold, unchanged from the previous fiscal year. There was no disclosure of deterioration in sales progress concerning the risks related to inventory valuation and sales delays, although a decline in sales of large properties was noted. - FY2023-Q1MitigatedAnnual report
「Sales during the fiscal year progressed smoothly against a backdrop of strong investor appetite. As a result, the number of properties sold in the replanning business increased by 2 year on year to 10.」
Sales of properties held for sale progressed smoothly, and the number of properties sold in the replanning business reached 10. Of the risks related to inventory valuation and sales delays, disclosures continued to indicate an easing in sales progress risk. - FY2022-Q3MitigatedAnnual report
「Sales during the fiscal year progressed smoothly against a backdrop of strong investor appetite. As a result, the number of properties sold in the replanning business reached 18, and both revenue and profit increased significantly year on year.」
Sales in the replanning business progressed smoothly, with 18 properties sold. Of the risks related to inventory valuation and sales delays, disclosures continued to indicate an easing in sales progress risk from the previous quarter. - FY2022-Q2MitigatedAnnual report
「During the fiscal year, sales of properties held for sale progressed smoothly as high-profitability, high-quality products were developed in the Group’s core real estate redevelopment business despite the COVID-19 pandemic,」
Sales of properties held for sale progressed smoothly, and the number of properties sold in the replanning business reached 14. Of the risks related to inventory valuation and sales delays, disclosures for the current quarter indicate an easing in sales progress risk. - FY2021MaterialisedAnnual report
「The ending inventory balance represents the amount after a write-down of the carrying value due to reduced profitability. In the consolidated fiscal year, an inventory valuation loss of ¥426 million was included in cost of sales.」
For properties held for sale and properties under development for sale, the company wrote down their carrying values due to lower profitability and recognized an inventory valuation loss of ¥426 million. - FY2021-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.」
The company states that there have been no material changes in the risks related to inventory valuation, sales delays and financial market disruption concerning replanning properties. - FY2020MaterialisedAnnual report
「The ending inventory balance represents the amount after a write-down of the carrying value due to reduced profitability. In the consolidated fiscal year, an inventory valuation loss of ¥751.475 million was included in cost of sales.」
Regarding the risk of lower inventory valuations for replanning properties, the company recognized an inventory valuation loss of ¥751.475 million during the year. It also disclosed the possibility of additional valuation losses in the following year if real estate market conditions deteriorate due to the impact of COVID-19. - FY2020-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 could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The company states that there have been no material changes in the risks related to inventory valuation, sales delays and financial market disruption concerning replanning properties. - FY2020-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The company states that there have been no material changes in the risks related to inventory valuation, sales delays and financial market disruption concerning replanning properties. - FY2019RestatedAnnual report
「If financial markets become disrupted due to an economic downturn, credit contraction or other factors, the real estate transaction market could stagnate. This could reduce the carrying value of properties handled in the replanning business as inventories, prevent sales activities from progressing as planned, and affect our Group’s operating results and financial position.」
The company continues to disclose the effects on operating results and the financial position resulting from lower inventory valuations, sales delays and financial market disruption concerning replanning properties. - FY2019-Q2RestatedAnnual report
「During the first six months of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no new occurrences or material changes in the risks related to inventory valuation, sales delays and financial market disruption concerning replanning properties. - FY2019-Q1RestatedAnnual report
「During the first quarter of the current fiscal year, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」
The company states that there have been no new occurrences or material changes in the risks related to inventory valuation, sales delays and financial market disruption concerning replanning properties. - FY2018RestatedAnnual report
「If financial markets become disrupted due to an economic downturn, credit contraction or other factors, the real estate transaction market could stagnate. This could reduce the carrying value of properties handled in the replanning business as inventories, prevent sales activities from progressing as planned, and affect our Group’s operating results and financial position.」
The company continues to disclose the decline in inventory valuations, sales delays and effects on operating results and the financial position resulting from financial market disruption. - FY2018-Q3RestatedAnnual report
「During the nine-month cumulative consolidated period under review, there were no new business or other risks, and no material changes to the business or other risks described in the securities report for the previous fiscal year.」
The company states that there have been no new occurrences or material changes in the risks related to inventory valuation, sales delays and financial market disruption concerning replanning properties. - FY2018-Q2RestatedAnnual report
「During the first six months of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no new occurrences or material changes in the risks related to inventory valuation, sales delays and financial market disruption concerning replanning properties. - FY2018-Q1RestatedAnnual report
「During the first quarter of the current fiscal year, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」
The company states that there have been no new occurrences or material changes in the risks related to inventory valuation, sales delays and financial market disruption concerning replanning properties. - FY2017RestatedAnnual report
「If financial markets become disrupted due to an economic downturn, credit contraction or other factors, the real estate transaction market could stagnate. This could reduce the carrying value of properties handled in the replanning business as inventories, prevent sales activities from progressing as planned, and affect our Group’s operating results and financial position.」
The annual report continues to disclose as risks the decline in inventory valuations, sales delays and effects on the financial position resulting from financial market disruption. - FY2017-Q3RestatedAnnual report
「During the nine-month cumulative consolidated period under review, there were no new business or other risks, and no material changes to the business or other risks described in the securities report for the previous fiscal year.」
The company states that there have been no new occurrences or material changes in the risks related to inventory valuation, sales delays and financial market disruption concerning replanning properties. - FY2017-Q2RestatedAnnual report
「During the first six months of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no additional occurrences or material changes in the risks related to inventory valuation, sales delays and financial market disruption concerning replanning properties. - FY2017-Q1RestatedAnnual report
「During the first quarter of the current fiscal year, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」
The company states that there have been no additional occurrences or material changes in the risks related to inventory valuation, sales delays and financial market disruption concerning replanning properties. - FY2016First statedAnnual report
「If financial markets become disrupted due to an economic downturn, credit contraction or other factors, the real estate transaction market could stagnate. This could reduce the carrying value of properties handled in the replanning business as inventories, prevent sales activities from progressing as planned, and affect our Group’s financial position and operating results.」
The business model of acquiring and holding properties, then selling them after redevelopment, creates risks in which inventory valuation, the timing of sales and financing affect one another.