Risks Related to Continued Tenant Occupancy, Property Aging and Natural Disasters
First written in FY2016. 13 of 35 entries say "Restated". Latest entry: FY2026.
Musashino Kogyo moved to the "Worse" side of this theme in 2016.
3 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「In the real estate rental business, the company’s business may be affected by declining rents resulting from tenant departures. In addition, the group’s business performance and financial condition may be affected by increases in maintenance and management expenses attributable to aging facilities, the financial impact of new capital investment, damage caused by natural disasters such as earthquakes, unexpected accidents, and a decline in creditworthiness resulting from contractual nonconformities at rental properties.」
The company continues to disclose real estate rental risks including tenant departures and declining rents, aging properties and capital investment, natural disasters, and contractual nonconformities. - FY2025Contractual nonconformity risk for rental properties expressly identifiedAnnual report
「In addition, the group’s business performance and financial condition may be affected by increases in maintenance and management expenses attributable to aging facilities, the financial impact of new capital investment, damage caused by natural disasters such as earthquakes, unexpected accidents, and a decline in creditworthiness resulting from contractual nonconformities at rental properties.」
In addition to the existing risks of tenant departures, declining rents, aging properties and natural disasters, the company expressly identified a decline in creditworthiness resulting from contractual nonconformities at rental properties as a risk. - FY2025-H1RestatedAnnual report
「In the real estate leasing segment, tenant income remained stable. Although maintenance expenses, including ongoing equipment upgrades at major tenant buildings, continued to be incurred, the segment as a whole performed steadily.」
The company disclosed stable tenant income and solid performance in the rental business, while maintenance and management expenses, including facility renewal, continued to be incurred. - FY2024MitigatedAnnual report
「In the real estate rental business, customer traffic at individual tenants trended upward and tenant income showed signs of increasing. Although maintenance and management expenses, including facility renewal at the main tenant buildings, continued to be incurred, the real estate rental business as a whole remained solid.」
Customer traffic at tenants trended upward and tenant income recovered, and the real estate rental business remained solid. Meanwhile, maintenance and management expenses, including facility renewal, continued to be incurred. - FY2024-Q3MitigatedAnnual report
「In the rental real estate business, tenant customer traffic has been trending upward following the reclassification of COVID-19 under Japan’s Class 5 infectious diseases, and tenant income has also begun to recover. Although maintenance costs, including equipment renewals at the main tenant building, continue to be incurred, the rental real estate business as a whole remained solid.」
After COVID-19 was reclassified as a Class 5 disease, customer traffic at tenants trended upward and tenant income recovered. Although maintenance and management expenses, including facility renewal, continued, the rental business remained solid. - FY2024-Q2MitigatedAnnual report
「In the real estate rental business, as COVID-19 was reclassified as a Class 5 disease under the Infectious Diseases Control Law, customer traffic at individual tenants began to trend upward and tenant income showed signs of recovery. Depreciation expenses related to facility renewal at the main tenant buildings declined as the work itself was reduced by scrutinizing the scope of work and carrying it out in stages.」
Customer traffic at tenants trended upward and tenant income recovered, while the work itself declined as facility renewal was carried out in stages. The impact on earnings associated with the infectious disease and aging properties eased somewhat this quarter. - FY2024-Q1MitigatedAnnual report
「In the real estate rental business, as COVID-19 was reclassified as a Class 5 disease under the Infectious Diseases Control Law, customer traffic at individual tenants began to trend upward and tenant income showed signs of recovery. Depreciation expenses related to facility renewal at the main tenant buildings declined as the work itself was reduced by scrutinizing the scope of work and carrying it out in stages.」
Customer traffic at tenants trended upward and tenant income recovered, while the work itself declined as facility renewal was carried out in stages. The impact of the infectious disease on tenant income and the burden of facility renewal eased somewhat this quarter. - FY2023MaterialisedAnnual report
「In the real estate rental business, while the impact of the continued spread of COVID-19 persisted, operating performance during the fiscal year fell below that of the previous fiscal year due to a decline in tenant income and an increase in depreciation expenses associated with the renewal of facilities at the main tenant buildings.」
The decline in tenant income and increase in depreciation expenses associated with facility renewal also occurred for the full fiscal year, with revenue from the real estate business down 0.7% from the previous fiscal year and operating profit down 4.6%. - FY2023-Q3MaterialisedAnnual report
「In the rental business, while the impact of the continued spread of COVID-19 persisted, operating performance during the nine-month period ended the third quarter fell below the same period of the previous year due to a decline in tenant income and an increase in depreciation expenses associated with the renewal of facilities at the main tenant buildings. As a result, total segment revenue was ¥415 million, down 3.5% year on year, and segment profit was ¥240 million, down 5.3% year on year.」
A decline in tenant income due to the impact of the infectious disease and an increase in depreciation expenses associated with facility renewal actually occurred, and revenue from the real estate business fell 3.5% year on year, while segment profit fell 5.3%. - FY2023-Q2MaterialisedAnnual report
「In the leasing segment, as the impact of the COVID-19 pandemic continued, revenue during the cumulative second-quarter consolidated period was below the same period of the previous year due to lower tenant revenue.」
A decline in tenant income actually occurred, and revenue from the real estate business fell 4.6% year on year, while segment profit fell 6.1% year on year. - FY2023-Q1MaterialisedAnnual report
「In the leasing segment, customer traffic at food-service tenants recovered less than expected, and as the impact of the COVID-19 pandemic continued, tenant revenue also declined. As a result, revenue for the quarter was slightly below the same period of the previous year.」
The continuation of the infectious disease and weak recovery in customers at food-service tenants actually resulted in a decline in tenant income and rental business earnings falling below the same period of the previous year. - FY2022Natural disaster risks across all businesses and disaster preparednessAnnual report
「The group operates businesses including film, real estate, driving schools and trading. If a natural disaster such as an earthquake or typhoon, a fire or an accident occurs, it may affect the group’s business performance and financial condition through damage to facilities, personal injury and disruption to the continuation of business activities.」
The company broadened the scope of its risk assessment from natural disaster risks related to real estate properties to natural disaster, fire and accident risks across the entire group, including its film, real estate, driving school and trading businesses, and also referred to its management systems, including fire and disaster prevention drills. - FY2022-Q3RestatedAnnual report
「In the rental business, although concerns remained about the impact on the financial condition and other aspects of occupying tenants due to continued changes in the business environment resulting from the spread of COVID-19, the company was able to secure earnings approximately at the same level as in the same period of the previous year during the nine-month period ended the third quarter.」
The company explained that concerns about the impact of the infectious disease on tenants’ financial condition continue, but that rental earnings were secured approximately at the same level as in the same period of the previous year. - FY2022-Q2RestatedAnnual report
「In the rental business, although changes in the business environment resulting from the spread of COVID-19 continued to raise concerns about trends among occupying tenants, the company was able to secure earnings approximately at the same level as in the same period of the previous year during the six-month period ended the second quarter.」
The company explained that concerns about tenant trends due to the infectious disease continue, but that rental income from real estate was secured at approximately the same level as in the same period of the previous year. - FY2022-Q1RestatedAnnual report
「In the rental business, although the continuing spread of COVID-19 and resulting changes in the business environment continued to raise concerns about the impact on the financial condition and other aspects of occupying tenants, the company was able to secure earnings approximately at the same level as in the same period of the previous year during the quarter.」
The company explained that concerns about the impact of the infectious disease on the financial condition of occupying tenants continue, but that the rental business secured earnings approximately at the same level as in the same period of the previous year. - FY2021WorsenedAnnual report
「As the increase in vacancy rates at tenant buildings due to the spread of COVID-19 has also become pronounced, the company must accurately assess the impact of the disease on the management of tenant buildings and on the business conditions of occupying tenants, pay closer attention than before to its relationships with related contractors and customers, and prepare for risks including tenant departures and declining rents.」
In addition to the existing risks related to aging buildings and repair costs, the company recognized that the increase in vacancy rates due to the infectious disease had become pronounced and heightened its vigilance regarding tenant departures and declining rents. However, the real estate business secured operating performance generally at the same level as in the previous fiscal year. - FY2021-Q3RestatedAnnual report
「In the rental business, although there were concerns that the spread of COVID-19 would affect the business environment of occupying tenants and undermine the earnings base of the main tenant buildings, the company was able to secure earnings at approximately the same level as in the same period of the previous year during the nine-month period ended the third quarter.」
The company explained that concerns about the impact of the infectious disease on tenants’ business environments and the maintenance of the earnings base continue, but that rental income from real estate was secured at approximately the same level as in the same period of the previous year. - FY2021-Q2RestatedAnnual report
「In the real estate business, the company conducted its operations while monitoring the impact of the spread of COVID-19 on the business environment of occupying tenants, but operating performance was approximately at the same level as in the same period of the previous year.」
While continuing to express concern about the impact on tenants’ business environments, the company explained that operating performance in the real estate business was approximately at the same level as in the same period of the previous year. - FY2021-Q1WorsenedAnnual report
「The real estate business is centered on real estate leasing. Going forward, the Company recognizes the need to secure stable rental income while carefully monitoring the impact of the COVID-19 pandemic on tenant-building operations, particularly the operating conditions of tenant businesses, in addition to the increasingly significant major repair and depreciation expenses resulting from the aging of its main tenant buildings.」
In addition to the existing risks related to aging buildings and repair costs, the company identified the impact of infectious diseases on tenants’ business conditions and heightened its vigilance regarding risks that could lead to tenant departures and declining rents. Meanwhile, it explained that rental earnings for the quarter were at approximately the same level as in the same period of the previous year. - FY2020WorsenedAnnual report
「In the real estate business, the main rental properties are located in convenient areas of the Tokyo metropolitan region, and the company has maintained a relatively stable customer base. At the same time, the buildings are aging, raising concerns about future facility maintenance costs. In addition, the company believes it is necessary to accurately assess the impact of the spread of COVID-19 on the management of tenant buildings and on the business conditions of occupying tenants, pay closer attention than before to its relationships with related contractors and customers, and prepare for risks including tenant departures and declines in rents.」
While recognizing its stable customer base, the company newly identified, in addition to maintenance costs associated with aging buildings, the risks of tenant departures and declining rents resulting from COVID-19. - FY2020-Q3MaterialisedAnnual report
「In the rental business, although there was no significant change in real estate management services or the leasing status of the main tenant buildings, depreciation expenses related to the renewal of facilities at the main tenant buildings increased, causing operating performance to fall below the same period of the previous year.」
Depreciation expenses associated with facility renewal at the main tenant buildings increased again this quarter, and operating performance in the rental business fell below the same period of the previous year. - FY2020-Q2MaterialisedAnnual report
「In the rental business, although there was no significant change in real estate management services or the leasing status of the main tenant buildings, depreciation expenses related to the renewal of facilities at the main tenant buildings increased, causing operating performance to fall below the same period of the previous year.」
Depreciation expenses increased as a result of facility renewal at the main tenant buildings, and operating performance in the rental business fell below the same period of the previous year. - FY2020-Q1WorsenedAnnual report
「At the same time, there are concerns that repair costs and depreciation expenses related to major repairs and renewal work necessitated by the aging of buildings may affect the company’s financial position in the future.」
In addition to its existing recognition of risks related to continued tenant occupancy and property aging, the company expressly identified concerns that repair costs and depreciation expenses associated with major repairs and renewal work may affect its financial position. - FY2019-Q3RestatedAnnual report
「In the rental business, property management operations and leasing conditions at the main tenant building remained largely unchanged, while operating performance remained solid.」
The company explained that there was no significant change in real estate management services or the leasing status of the main tenant buildings, which remained stable. - FY2019-Q2RestatedAnnual report
「We recognize and analyze that the location of all our rental and investment properties in convenient areas of the Tokyo metropolitan region, together with our continued ability to secure customers on a stable basis, is contributing to solid operating performance.」
The company continues to recognize that the stable locations of its properties in the Tokyo metropolitan region and the stability of customer acquisition underpin the earnings base of its rental and investment properties. - FY2019-Q1RestatedAnnual report
「We recognize and analyze that the location of all our rental and investment properties in convenient areas of the Tokyo metropolitan region, together with our ability to secure a stable customer base, is supporting the maintenance of earnings.」
The company continues to recognize that securing a stable customer base for its rental and investment properties in the Tokyo metropolitan region supports the maintenance of earnings. - FY2018RestatedAnnual report
「The operating status of Omiya Building and Jiyugaoka Building, the company’s main tenant buildings, remains stable,」
The company reaffirmed the stable operating status of its main tenant buildings. It explained that Musashino Building also became capable of operating throughout the year after seismic retrofitting work. - FY2018-Q3RestatedAnnual report
「In the rental business, property management operations and leasing conditions at the main tenant building remained largely unchanged, while operating performance remained solid.」
The company explained that there was no significant change in real estate management services or the leasing status of the main tenant buildings, and that operating performance remained solid. - FY2018-Q2RestatedAnnual report
「In the rental business, property management operations and leasing conditions at the main tenant building remained largely unchanged, while operating performance remained solid.」
The company explained that there was no significant change in real estate management services or the leasing status of the main tenant buildings, which remained stable. - FY2018-Q1MitigatedAnnual report
「Occupancy and management conditions at the tenant building remained generally stable, and operating performance in the rental business exceeded the same period of the previous year.」
Occupancy and management conditions at the tenant buildings were generally stable, and operating performance in the rental business exceeded that of the same period of the previous year. As a result, the impact of the decline in earnings described in the previous fiscal year has not appeared this quarter. - FY2017MaterialisedAnnual report
「The operating status of Omiya Building and Jiyugaoka Building, the company’s main tenant buildings, remains stable. However, rental business earnings declined from the same period of the previous year due in part to repair work on the exterior walls and other areas of Jiyugaoka Building.」
Although the operations of the main tenants remain stable, a decline in rental business earnings actually occurred due to repair work at Jiyugaoka Building. - FY2017-Q3MaterialisedAnnual report
「In the leasing segment, although revenue from real estate management declined due to seismic retrofitting of managed buildings, occupancy at the main tenant buildings remained stable and operating performance remained solid.」
The company explained that the decline in income from real estate management services due to seismic retrofitting work continued, while the operating status of the main tenant buildings remained stable. - FY2017-Q2MaterialisedAnnual report
「In the rental business, although income from real estate management services declined due to seismic retrofitting work at managed buildings, there was no significant change in the leasing status of the main tenant buildings, and operating performance remained solid.」
Although income from real estate management services declined due to seismic retrofitting work, there was no significant change in the leasing status of the main tenant buildings. - FY2017-Q1MaterialisedAnnual report
「In the rental business, Jiyugaoka Mu Building experienced a temporary decline in rental income associated with tenant turnover and an increase in operating expenses, including repair work due to aging facilities. Income from real estate management services also temporarily declined, causing operating performance to fall below the same period of the previous year.」
A temporary decline in rental income due to tenant turnover and an increase in repair costs associated with aging facilities actually occurred. - FY2016First statedAnnual report
「Stable and continuous occupancy by tenants of our rental properties, a major source of our earnings, is a prerequisite for sustaining our earnings capacity. If this prerequisite becomes difficult to meet, the continuation of our earnings capacity may be at risk.」
The company identifies continued tenant occupancy as a prerequisite for earnings capacity and also points to the possibility of damage caused by defects, aging and earthquakes.