Luckland to Receive Loss Compensation Payment Amid Headquarters Relocation

TOKYO, Jul 16 (Pulse News Wire) – Luckland CO.,LTD. (9612.T) announced that it has entered into a loss compensation agreement with the Shinshukaku West Area Redevelopment Association related to its headquarters relocation to Minato Ward, Tokyo.

The company expects to recognize special income and expenses in its fiscal year ending December 2026 due to the relocation. Under the agreement, Luckland will receive initial compensation payments totaling ¥2.034 billion, with a provisional payment of ¥700 million expected in late July 2026. The remaining balance of ¥1.334 billion is scheduled to be received by the rights conversion date in June 2027.

In addition, the company anticipates recognizing extraordinary losses amounting to approximately ¥64 million in the second quarter of fiscal 2026 and up to ¥450 million combined in the third and fourth quarters of the same fiscal year. Further extraordinary losses of up to ¥100 million are projected in the first quarter of fiscal 2027. Regarding the recognition of special gains from the compensation payments, Luckland is considering various methods such as recording revenue upon the rights conversion date in June 2027, during the tenant's exit compensation period, or offsetting costs associated with the move and removal of fixed assets.

The final accounting treatment and timing remain under review.