SANKEI REAL ESTATE Inc.
(Progress of Disclosure) Notice Regarding Tenant Changes (Termination of Lease with Major Business Partner (Except Some)) (Fukuoka Green Building)
Due to delays in renovation work at Fukuoka Green Building, re-tenanting completion and sale will be after the fiscal year ending February 2027, resulting in a significant decrease in distributions for the same period.
Key Figures
- Cancellation penalty income: 582 million yen (Fiscal year ending February 2026)
- Restoration work settlement income: 1,419 million yen (Fiscal year ending August 2026)
- Re-tenanting completion timing: After fiscal year ending February 2027 (Delayed)
AI要約
Tenant Changes and Operational Status of Fukuoka Green Building
This investment corporation agreed to terminate the lease agreement with Hitachi, Ltd., which was a tenant of the Fukuoka Green Building (formerly Hitachi Kyushu Building) as of September 30, 2025, and is advancing renovation work to convert the building into a multi-tenant specification and re-tenanting. However, due to increased construction costs and shortages of labor and materials, the construction orders have been delayed, and re-tenanting completion is not expected within the fiscal year ending February 2027.
Future Outlook and Impact on Distributions
The sale of this property is contingent on the progress of renovation work and re-tenanting, and completion within the fiscal year ending February 2027 is not expected. The fiscal year ending February 2027 will not have income from cancellation penalties or restoration work settlements, resulting in significant revenue and profit declines compared to the fiscal year ending August 2025, and distributions are also expected to decrease significantly. Specific figures will be disclosed in the financial results announcement scheduled for April 15, 2026.
