Financial burden from large-scale investment in the 2030s
First written in FY2023. 5 of 7 entries say "Worsened", first in FY2024-Q1. Latest entry: FY2026.
Keio moved to the "Worse" side of this theme in 2023, 1 year before the typical company in this theme (2024).
The whole theme swung hardest in 2025: 16 of 30 companies on the "Worse" side.
15 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Domestic interest rates are currently continuing to rise, and this trend is expected to continue. Accordingly, the financial burden on the group is expected to increase during the period of large-scale investment.」
The Company newly disclosed its expectation that domestic interest rates will continue to rise in connection with the financial burden from large-scale investment, and interest-bearing debt amounted to ¥469.055 billion. - FY2024-Q3MaterialisedAnnual report
「Following the decision to proceed with the Shinjuku Station Southwest Exit Area development plan, which received city planning approval as a special urban regeneration district, and the Keio Line Shinjuku Station improvement project, obligations to demolish property, plant and equipment in the relevant area arose. Accordingly, an asset retirement obligation was recognised during the current second-quarter consolidated accounting period, and the balance at the end of the current third-quarter consolidated accounting period was ¥10,714 million.」
Obligations to demolish property, plant and equipment arose in connection with the Shinjuku Station Southwest Exit Area development plan and Shinjuku Station improvement works, and an asset retirement obligation balance of ¥10.714 billion was recognised. The financial burden associated with large-scale investment has emerged as a specific accounting burden. - FY2024-Q2WorsenedAnnual report
「The amount of asset retirement obligations recognised during the current second-quarter consolidated accounting period was ¥10,697 million.」
Following the decision to proceed with the Shinjuku Station Southwest Exit Area development plan and Keio Line Shinjuku Station improvement works, obligations to demolish property, plant and equipment in the relevant area arose, and an asset retirement obligation of ¥10.697 billion was recognised. - FY2024-Q1WorsenedAnnual report
「Our business expenses Description Amount Our share of the total project cost for the Minami District development and part of the Shinjuku Station improvement construction costs advanced ahead of schedule ¥92.0 billion (planned) *The Company's total project cost for this plan and the Shinjuku Station improvement works as a whole is currently estimated at approximately ¥300 billion. Details have not yet been determined and will be decided going forward.」
The scale of the financial burden from large-scale investment in the 2030s has become more concrete: the Company's share of the Shinjuku Station Southwest Exit Area development and Shinjuku Station improvement works is ¥92.0 billion, with the total project cost estimated at approximately ¥300 billion. - FY2023First statedAnnual report
「The Company plans to fully launch large-scale investments, including redevelopment in the Shinjuku and Hashimoto areas, during the 2030s. Accordingly, the financial burden on the group is expected to increase during the period of large-scale investment.」
The increase in the financial burden associated with the full launch of large-scale investments in areas including Shinjuku and Hashimoto was identified explicitly for the first time as a separate major risk.