Fluctuations in Leasing Earnings Due to Rising Vacancy Rates and the Departure of Major Tenants
First written in FY2017. 5 of 10 entries say "Mitigated", first in FY2023. Latest entry: FY2026.
Shochiku moved to the "Worse" side of this theme in 2021.
2 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The rental real estate business maintained a strong earnings base by working to further deepen tenant relationships and continuing to maintain a high occupancy rate.」
While risks of higher vacancy rates and major tenant departures remain, the company stated that it maintained its earnings base by deepening tenant relationships and maintaining a high occupancy rate. - FY2025-H1MitigatedAnnual report
「In the real estate leasing business, the company worked to maintain close communication and build good relationships with occupying tenants, securing stable income through high occupancy at major properties including Kabukiza Tower and Ginza Shochiku Square. In addition, Ginza 2-chome Shochiku Building and its ANNEX, newly acquired as part of asset-replacement measures aimed at improving income, also achieved high occupancy.」
Newly acquired properties, in addition to existing major properties, achieved high occupancy, and the company continued to report results from measures addressing rising vacancy rates and tenant departure risks. - FY2025-Q1MitigatedAnnual report
「Ginza 2-chome Shochiku Building and its ANNEX, newly acquired in October 2023, also achieved high occupancy. As a result, performance exceeded that of the first quarter of the previous fiscal year.」
In addition to high occupancy at major properties, newly acquired properties also achieved high occupancy, demonstrating measures taken to address rising vacancy rates and tenant departure risks. - FY2024MitigatedAnnual report
「Stable income was secured through high occupancy at major properties such as Kabukiza Tower and Ginza Shochiku Square.」
While risks of higher vacancy rates and major tenant departures remain, high occupancy at major properties and the start of leasing operations at newly acquired properties contributed to full-year earnings exceeding plan. - FY2024-Q1RestatedAnnual report
「In the real estate leasing business, the company worked to build good relationships with existing tenants and conduct strategic leasing activities for vacant space. As a result, major properties including Kabukiza Tower and Ginza Shochiku Square maintained high occupancy and contributed to securing earnings in line with the plan.」
As measures to address vacancy and tenant departure risks, the company has continued to build relationships with existing tenants and pursue strategic leasing, and stated that it secured high occupancy at major properties. - FY2023MitigatedAnnual report
「In the real estate leasing business, the company worked to build good relationships with existing tenants and conduct strategic leasing activities for vacant space. As a result, major properties including Kabukiza Tower and Ginza Shochiku Square maintained high occupancy and contributed to securing earnings in line with the plan.」
While vacancy and tenant departure risks remain, the company has stated that it secured high occupancy and earnings in line with its plan at major properties by continuing to build relationships with existing tenants and pursue strategic leasing. - FY2023-Q2WorsenedAnnual report
「In the office rental market, the spread of remote work has led even major companies to review their office leases. In addition, rising construction costs due to a global surge in material prices are worsening business profitability, increasing uncertainty over the industry outlook and requiring continued monitoring over the medium to long term.」
New concerns were explicitly identified regarding office lease reviews due to the spread of remote work and rising construction costs and deteriorating profitability due to soaring material prices. Concerns about the rental business and the real estate development environment are increasing. - FY2022-Q2WorsenedAnnual report
「The real estate industry has been affected by the spread of COVID-19, resulting in downsizing or withdrawals in the food-service and lodging industries and at some companies’ offices, raising concerns about the impact on vacancy rates in the rental business.」
Downsizing or withdrawals have occurred in the food-service, lodging and some office sectors, and concerns have been raised about the impact on vacancy rates in the rental business. It was also stated that the company’s major properties remain fully occupied and that rent reductions have been kept in check. - FY2021MaterialisedAnnual report
「Although some tenant companies have begun reviewing their leases or vacating their premises due to the impact of COVID-19, we will address this through close communication and by attracting replacement tenants, while working to secure earnings.」
It was stated that tenant departures and deterioration in lease terms, previously presented as possibilities, have begun to occur in practice due to the impact of the infectious disease. - FY2017First statedAnnual report
「The Group owns rental real estate throughout Japan, but depending on real estate market conditions, it may be unable to earn the expected income due to higher vacancy rates at rental properties or the departure of major tenants.」
In addition to its record of high occupancy and stable income, the company has for the first time identified rising vacancy rates and major tenant departures due to real estate market conditions as risks to the rental business.