Fluctuations in the Prices and Rents of Owned Real Estate
First written in FY2016. 6 of 15 entries say "Worsened", first in FY2021-Q2. Latest entry: FY2026.
Kpp Group Holdings moved to the "Worse" side of this theme in 2020, 3 years before the typical company in this theme (2023).
The whole theme swung hardest in 2020: 30 of 70 companies on the "Worse" side.
46 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Office demand remained generally stable in 2025. Stable occupancy resulted in a slight year-on-year increase in rental income.」
The disclosure reports stable office demand and occupancy, along with a slight increase in rental income. However, the risk of fluctuations in the value and rents of owned real estate remains. - FY2025MitigatedAnnual report
「Office demand is trending upward against a backdrop of strong corporate earnings and intensifying competition to recruit talent. New supply is also being absorbed quickly, and this trend is expected to continue.」
In contrast to the uncertainty surrounding office demand and rents through the previous fiscal year, the disclosure cites rising office demand and the absorption of new supply. The real estate leasing business increased profit despite lower revenue, due to reduced repair expenses. - FY2025-H1MitigatedAnnual report
「Office demand remains firm nationwide, and vacancy rates are trending downward. Rents have also begun to trend upward gradually, including as rents for properties priced below market levels have been raised.」
Office demand is firm, and the disclosure indicates declining vacancy rates and a trend toward higher rents, suggesting that risk factors relating to real estate values and rents have improved from the previous fiscal year. - FY2024MaterialisedAnnual report
「KPP Yaesu Building, the Company's rental asset, was recognized as an impairment loss during the fiscal year due to declining profitability.」
The decline in real estate profitability materialized as a ¥924 million impairment loss on KPP Yaesu Building. - FY2024-Q3AdvancedAnnual report
「Although vacancy periods arose due to tenant turnover at KPP Yaesu Building, KPP Akashicho Building, completed in February 2023, contributed to year-on-year revenue and profit growth in this segment. Consequently, revenue for the cumulative third quarter of the fiscal year was ¥1,139 million, up 30.1% year on year, and operating profit was ¥435 million, up 167.7%.」
Despite vacancy periods, revenue and operating profit in the real estate leasing business exceeded the same period of the previous year due to the contribution from KPP Akashicho Building, and the earnings base continues to improve. - FY2024-Q2Revenue and profit growth amid market uncertaintyAnnual report
「Although the average vacancy rate for office buildings in major cities is gradually improving, the outlook for office demand remains uncertain as working styles are being reassessed due to COVID-19. Rents have also remained weak due to rent adjustments to secure tenants and other factors. KPP Akashicho Building contributed to year-on-year revenue and profit growth.」
Although uncertainty over the outlook for office demand and weak rents persisted, the real estate leasing business increased revenue and profit due to the contribution from KPP Akashicho Building. - FY2023-Q3Continued revenue declines and improving profitAnnual report
「Although the Group increased revenue by reviewing the management structure of certain tenant buildings, rental income declined due to the redevelopment of leased parking facilities and vacancy periods caused by tenant turnover at KPP Yaesu Building, resulting in lower revenue year on year. Consequently, revenue for the cumulative third quarter of the fiscal year was ¥875 million, down 5.5% year on year, while operating profit was ¥162 million, up 18.7%.」
Although rental income continued to decline due to redevelopment and tenant turnover, operating profit increased year on year as a result of the management structure review and other measures. - FY2023-Q2WorsenedAnnual report
「Although the average vacancy rate in the office building markets of major cities nationwide had been trending upward since the spread of COVID-19, companies' appetite for office expansion is gradually improving, while remaining weak, and the outlook remains uncertain. Rents have also remained weak due to rent adjustments to secure tenants and other factors.」
Although companies' appetite for office expansion is gradually improving, the recovery in vacancy rates and rents remains weak. Revenue from the leasing business declined 4.8% year on year, while operating profit declined 32.6%. - FY2022WorsenedAnnual report
「Although KPP Yaesu Building, the Group's core property, continued to operate at full occupancy, revenue declined year on year, partly due to lower rental income associated with the redevelopment of owned properties.」
Although the core property continued to operate at full occupancy, the leasing business generated revenue of ¥1,230 million and segment profit of ¥176 million, with profit down 72.0%, indicating that rental and real estate market conditions affected performance. - FY2022-Q3WorsenedAnnual report
「KPP Yaesu Building, the Group's core property, remained fully occupied, but revenue declined slightly due in part to lower rental income associated with the redevelopment of owned properties. Profit declined because ground rent arose following the sale of the land beneath KPP Yaesu Building in February 2021.」
Lower rental income from the redevelopment of owned properties and the emergence of land rent after the sale of land have appeared as declines in revenue and profit in the leasing business, and the risk relating to rental income from real estate has materialized in actual results. - FY2022-Q2WorsenedAnnual report
「In the office building markets of major cities nationwide, office demand has declined due to the spread of COVID-19, average rents in the Tokyo area have begun to fall, and rents in other areas have remained weak.」
The disclosure cites declining office demand, falling average rents in the Tokyo area and weak rents in other areas, indicating a deterioration in the environment surrounding risks related to fluctuations in real estate values and rents. - FY2021WorsenedAnnual report
「In the office building markets of major cities nationwide, changes in working arrangements, including telework, resulting from the spread of COVID-19 led to moves to reduce office space from the summer onward, and the average vacancy rate increased. Average rents in the Tokyo area consequently began to decline, and conditions in other areas also require close monitoring.」
The disclosure notes rising vacancy rates and falling average rents in the Tokyo area against a backdrop of telework and other factors, indicating a deterioration in real estate market risk. However, the rental real estate ratio has declined to 2.5%. - FY2021-Q2WorsenedAnnual report
「In the office building markets of major cities nationwide, the average vacancy rate had been declining and average rents had continued to trend upward. However, changes in working arrangements, including telework, accompanying the spread of COVID-19 have prompted moves to reduce office space, and the average vacancy rate, although still low, is beginning to trend upward.」
The Company explains that the average vacancy rate, which had previously been declining, is beginning to trend upward as telework and other changes prompt reductions in office space. The factors affecting real estate market and rental rate risks have deteriorated. - FY2019MitigatedAnnual report
「At the end of the fiscal year, rental real estate accounted for 8.3% of total assets.」
The ratio of rental real estate declined from 8.6% in the previous fiscal year to 8.3%. The Company's exposure has decreased as a result of real estate sales. - FY2016First statedAnnual report
「If real estate market conditions change and the value of the real estate owned by the Group or its rental income declines, this may affect the Group's financial position and operating results. At the end of the fiscal year, rental real estate accounted for 8.6% of total assets.」
While using real estate leasing to stabilize its earnings base, the Company discloses market risks relating to rental real estate, which accounts for 8.6% of total assets.