Risks from Changes in Occupancy Rates, Rents and Interest Rates for Investment-Oriented Condominiums
First written in FY2016. 3 of 6 entries say "Restated". Latest entry: FY2026.
2 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「However, if customers purchase condominiums without adequately understanding the investment risks because some sales personnel fail to provide sufficient explanations, and lawsuits or other claims subsequently arise, the Group’s credibility could be damaged and its business could be affected.」
The company continues to identify as risks lawsuits arising from inadequate explanations by sales personnel and the impact on customers’ asset management of changes in occupancy rates, rents, lending policies and interest rates. - FY2023WorsenedAnnual report
「If customers purchase condominiums without adequately understanding the investment risks because some sales personnel fail to provide sufficient explanations, and lawsuits or other claims subsequently arise, the Group’s credibility could be damaged and its business could be affected. In addition, if changes in social conditions result in lower occupancy rates, a substantial decline in market rents, changes in financial institutions’ lending policies or a sharp increase in interest rates, customers’ asset management could be adversely affected.」
In addition to the existing risks related to occupancy rates, rents and interest-rate fluctuations, the company explicitly identifies lawsuits arising from inadequate explanations by sales personnel and changes in financial institutions’ lending policies as specific risks. - FY2019RestatedAnnual report
「The Group thoroughly trains its sales personnel to provide customers with a full explanation of these investment risks and to conclude purchase and sale agreements only after customers have understood them. In addition, by providing an integrated range of services, from recruiting tenants and collecting rent on behalf of customers to maintaining and managing buildings, the Group fully supports customers in managing their assets on a stable, long-term basis and works to reduce risks such as vacancies and declines in asset value.」
The company continues to describe measures to explain and reduce investment risks through sales-staff training and integrated management services. - FY2018RestatedAnnual report
「The Group thoroughly trains its sales personnel to provide customers with a full explanation of these investment risks and to conclude purchase and sale agreements only after customers have understood them. In addition, by providing an integrated range of services, from recruiting tenants and collecting rent on behalf of customers to maintaining and managing buildings, the Group fully supports customers in managing their assets on a stable, long-term basis and works to reduce risks such as vacancies and declines in asset value.」
The company continues to describe measures to explain and reduce investment risks through sales-staff training and integrated management services. - FY2017MitigatedAnnual report
「The Group thoroughly trains its sales personnel to provide customers with a full explanation of these investment risks and to conclude purchase and sale agreements only after customers have understood them. In addition, by providing an integrated range of services, from recruiting tenants and collecting rent on behalf of customers to maintaining and managing buildings, the Group fully supports customers in managing their condominiums on a stable, long-term basis and works to reduce risks such as vacancies and declines in asset value.」
The company explicitly describes measures to explain and reduce investment risks through sales-staff training and integrated management services. - FY2016First statedAnnual report
「In general, investing in condominiums for asset-management purposes, commonly referred to as condominium management, entails various investment risks that could adversely affect profitability, including lower rental income resulting from declining occupancy rates or rents and increased debt-service burdens resulting from higher interest rates.」
The company states that deterioration in customers’ investment profitability could lead to customer lawsuits and affect the Group’s business.