Interest Rate and Financing Risks Associated with High Interest-Bearing Debt Ratios
First written in FY2016. 23 of 38 entries say "Worsened", first in FY2017-Q1. Latest entry: FY2026.
Urbanet Corporation moved to the "Worse" side of this theme in 2016, 5 years before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 63 of 142 companies on the "Worse" side.
83 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Interest-bearing liabilities accounted for 69.5% of total assets at the end of the consolidated fiscal year, a high level.」
The interest-bearing liabilities ratio rose from 67.2% in the previous fiscal year to 69.5%, increasing dependence on borrowings and exposure to interest-rate and funding risks. - FY2026-H1WorsenedAnnual report
「The increase in liabilities was mainly attributable to a ¥3,767 million increase in long-term borrowings for land purchases, including the portion due for repayment within one year.」
Long-term borrowings and other liabilities associated with land purchases increased by ¥3,767 million, expanding borrowing exposure. - FY2025WorsenedAnnual report
「The Group finances its business operations through borrowings from financial institutions. Interest-bearing liabilities accounted for 67.2% of total assets at the end of the fiscal year, remaining at a high level.」
The ratio of interest-bearing liabilities to total assets rose from 62.6% in the previous fiscal year to 67.2%. Long-term borrowings also increased by ¥12,361 million, expanding exposure to reliance on borrowings and to interest-rate and funding risks. - FY2025-H1WorsenedAnnual report
「The increase in liabilities was mainly attributable to a ¥621 million increase in accounts payable associated with the expansion of development properties, together with a ¥10,706 million increase in long-term borrowings, including the portion due for repayment within one year, through project financing for land purchases and long-term working-capital financing under a syndicated loan.」
Borrowings of project financing for land purchases and long-term working-capital financing under a syndicated loan increased long-term borrowings and other liabilities by ¥10,706 million, expanding borrowing exposure. - FY2024WorsenedAnnual report
「The Group finances its business operations through borrowings from financial institutions. Interest-bearing liabilities accounted for 62.6% of total assets at the end of the fiscal year, remaining at a high level.」
The ratio of interest-bearing liabilities to total assets rose from 59.4% in the previous fiscal year to 62.6%, indicating greater reliance on borrowings. - FY2024-Q3WorsenedAnnual report
「The increase in liabilities was mainly attributable to a ¥1,067 million increase in accounts payable and other items, together with a ¥4,088 million increase in short-term and long-term borrowings, including the portion of long-term borrowings due for repayment within one year, following the acquisition of K9 Co., Ltd. as a subsidiary.」
Following the acquisition of K9 Co., Ltd. as a subsidiary, short-term and long-term borrowings increased by ¥4,088 million, expanding borrowing exposure. Overall, cash from financing activities decreased because repayments associated with property sales exceeded borrowings for land purchases. - FY2024-Q2MitigatedAnnual report
「The decrease in liabilities was mainly attributable to an increase of ¥335 million in accounts payable, more than offset by decreases of ¥466 million in advances received upon project completion and handover and ¥1,992 million in long-term borrowings, including the portion due for repayment within one year, as project sales progressed.」
As project sales progressed, long-term borrowings, including the portion due for repayment within one year, decreased by ¥1,992 million, indicating a reduction in part of the borrowing exposure. - FY2024-Q1MitigatedAnnual report
「The decrease in liabilities was mainly attributable to an increase of ¥1,175 million in accounts payable and other items, more than offset by an ¥1,819 million decrease in long-term borrowings, including the portion due for repayment within one year, as project sales progressed.」
As project sales progressed, long-term borrowings, including the portion due for repayment within one year, decreased by ¥1,819 million, reducing part of the borrowing exposure. - FY2023WorsenedAnnual report
「Interest-bearing liabilities accounted for 59.4% of total assets at the end of the fiscal year, remaining at a high level.」
The ratio of interest-bearing liabilities to total assets rose from 55.1% in the previous fiscal year to 59.4%, indicating greater reliance on borrowings. - FY2023-Q3WorsenedAnnual report
「The increase in liabilities was mainly attributable to an increase in accounts payable and other items, as well as a ¥6,366 million increase in long-term borrowings for land acquisitions, including the portion of long-term borrowings due for repayment within one year.」
Long-term borrowings for land acquisitions increased by ¥6,366 million, further expanding borrowing exposure from the ¥4,969 million increase disclosed previously. - FY2023-Q2WorsenedAnnual report
「The increase in liabilities was mainly attributable to an increase in advances received and other items, as well as a ¥4,969 million increase in long-term borrowings for land acquisitions, including the portion of long-term borrowings due for repayment within one year.」
Long-term borrowings for land acquisitions increased by ¥4,969 million, further expanding borrowing exposure from the previous disclosure. - FY2023-Q1WorsenedAnnual report
「The increase in liabilities was mainly attributable to an increase in short-term borrowings and other liabilities related to dividends, tax payments and other purposes, as well as a ¥2,801 million increase in long-term borrowings for land purchases, including the portion of long-term borrowings due for repayment within one year.」
Long-term borrowings for land purchases increased by ¥2,801 million, indicating an expansion in borrowing exposure. - FY2022WorsenedAnnual report
「Interest-bearing liabilities accounted for 55.1% of total assets at the end of the fiscal year, remaining at a high level.」
The ratio of interest-bearing liabilities to total assets rose from 54.5% in the previous fiscal year to 55.1%, with the Company continuing to disclose elevated interest-rate and funding risks associated with its reliance on borrowings. - FY2022-Q3WorsenedAnnual report
「The increase in total liabilities was mainly attributable to a ¥349 million decrease in advances received in connection with project completion and handover, partly offset by increases of ¥366 million in accounts payable and ¥894 million in borrowings for land purchases and other purposes.」
Borrowings for land purchases and other purposes increased by ¥894 million, shifting from the excess repayments of borrowings described through the previous quarter to an expansion in borrowing exposure. - FY2022-Q2MitigatedAnnual report
「Cash used in financing activities was ¥484 million, compared with ¥1,367 million used in the same quarter of the previous year. This was mainly because the decrease in cash from repayments of long-term borrowings following construction completions and dividend payments exceeded proceeds from long-term borrowings for the group's own development land in the real estate business.」
Cash from long-term borrowings for land for the Company's own development projects was outweighed by repayments of long-term borrowings upon project completion and dividend payments, resulting in a ¥484 million decrease in cash from financing activities. - FY2022-Q1WorsenedAnnual report
「Cash provided by financing activities was ¥14 million, compared with ¥43 million provided in the same quarter of the previous year. This was mainly because proceeds from long-term borrowings to purchase development land for the group's own projects in the real estate business exceeded repayments of long-term borrowings following property sales and dividend payments.」
Proceeds from long-term borrowings for land purchases exceeded repayments and dividend payments. The combined balance-sheet amounts of short-term borrowings, the current portion of long-term borrowings and long-term borrowings also increased by approximately ¥270 million from the end of the previous fiscal year, indicating increased borrowing exposure. - FY2021-Q3MitigatedAnnual report
「The decrease in total liabilities was mainly due to a ¥1,719 million decrease in borrowings resulting from the repayment of long-term borrowings following construction completions and other repayments, as well as a ¥520 million decrease in corporate taxes payable.」
Borrowings decreased by ¥1,719 million due to repayments following construction completions and other factors, indicating a partial reduction in borrowing exposure. - FY2021-Q2MitigatedAnnual report
「The increase in total liabilities was mainly due to a ¥2,447 million increase in trade payables associated with construction completions, which more than offset a ¥1,046 million decrease in borrowings resulting from the repayment of long-term borrowings for land purchases and other repayments.」
Borrowings for land purchases decreased by ¥1,046 million, indicating a partial reduction in borrowing exposure. - FY2021-Q1WorsenedAnnual report
「The increase in total liabilities was mainly due to a ¥277 million increase in trade payables, a ¥51 million increase in long-term borrowings, including the current portion, for land purchases, and a ¥245 million increase in short-term borrowings, which more than offset a ¥459 million decrease in corporate taxes payable associated with tax payments.」
Long-term and short-term borrowings for land purchases increased, expanding borrowing exposure from the end of the previous fiscal year. The interest-bearing debt ratio for the current quarter is not disclosed. - FY2020MitigatedAnnual report
「Interest-bearing debt represented a high 54.5% of total assets at the end of the current consolidated fiscal year.」
The interest-bearing debt ratio fell from 59.5% in the previous fiscal year to 54.5%, but the company continues to disclose the risk of rising interest rates, describing the ratio as high. - FY2020-Q3WorsenedAnnual report
「Total liabilities increased by ¥3,486 million from the end of the previous consolidated fiscal year to ¥25,590 million. This was mainly because trade payables related to development land acquisitions and borrowings for land acquisitions increased ahead of the settlement of a large property in the fourth quarter.」
Purchases of development land ahead of the settlement of a large property in the fourth quarter increased trade payables and borrowings, causing total liabilities to rise by ¥3,486 million from the end of the previous fiscal year. - FY2020-Q2WorsenedAnnual report
「This was mainly due to a ¥1,839 million decrease in current liabilities, resulting from a ¥1,005 million decrease in trade payables and a ¥433 million decrease in advances received following the recognition of sales, as well as a ¥288 million decrease in corporate taxes payable, which was more than offset by a ¥1,582 million increase in non-current liabilities, centered on a ¥1,593 million increase in long-term borrowings to finance land purchases for development.」
Long-term borrowings increased by ¥1,593 million to finance development land purchases, indicating increased borrowing exposure compared with the end of the previous fiscal year. - FY2019MitigatedAnnual report
「Interest-bearing debt represented a high 59.5% of total assets at the end of the current consolidated fiscal year.」
The interest-bearing debt ratio fell from 64.9% in the previous fiscal year to 59.5%, but the group continues to disclose interest-rate and financing risks, describing the ratio as high. - FY2019-Q3MitigatedAnnual report
「This was mainly because current liabilities increased by ¥1,455 million due to higher corporate taxes payable, while non-current liabilities decreased by ¥1,600 million, primarily because long-term borrowings were repaid following the recognition of sales in the real estate development and sales business.」
States that non-current liabilities decreased by ¥1,600 million due to the repayment of long-term borrowings following the recognition of sales in the real estate development and sales business. - FY2019-Q1MitigatedAnnual report
「This was mainly because long-term borrowings, including the current portion, decreased by ¥2,134 million as project financing for the real estate development and sales business was repaid.」
Long-term borrowings, including the current portion, decreased by ¥2,134 million as project financing was repaid, indicating a partial reduction in borrowing exposure. However, the interest-bearing debt ratio for the current quarter is not disclosed. - FY2018WorsenedAnnual report
「Our group obtains business funds through borrowings from financial institutions, and interest-bearing debt represented a high 64.9% of total assets at the end of the current consolidated fiscal year.」
The interest-bearing debt ratio rose from 63.3% in the previous fiscal year to 64.9%, disclosing a higher degree of reliance on borrowings. - FY2018-Q3RestatedAnnual report
「In the real estate industry, the Group's business sector, financial institutions have adopted a cautious lending stance partly because real estate lending has exceeded bubble-era levels. Even under these conditions, land prices remain firm nationwide, while residential, commercial and industrial land prices in the Tokyo metropolitan area have risen for 5 consecutive years. This trend is expected to continue for the time being.」
Continues to state that financial institutions have adopted a cautious lending stance because real estate lending volumes exceeded those during the bubble period. - FY2018-Q2RestatedAnnual report
「In the real estate industry, the Group's business sector, financial institutions have adopted a cautious lending stance partly because real estate lending has exceeded bubble-era levels. However, investment money is also flowing into the market, and land prices in the Tokyo metropolitan area continue to rise even under these conditions. This trend is expected to continue for the time being.」
Continues to state that financial institutions have adopted a cautious lending stance because real estate lending volumes exceeded those during the bubble period. - FY2018-Q1RestatedAnnual report
「In the real estate industry, which is our group's business domain, financial institutions have adopted a cautious lending stance, partly because real estate lending volumes exceeded those during the bubble period.」
Continues to state that financial institutions have adopted a cautious lending stance against a backdrop of high real estate lending volumes. - FY2017WorsenedAnnual report
「Our group obtains business funds through borrowings from financial institutions, and interest-bearing debt represented a high 63.3% of total assets at the end of the current consolidated fiscal year.」
The interest-bearing debt ratio rose from 56.8% to 63.3%, disclosing a higher degree of reliance on borrowings. - FY2017-Q3RestatedAnnual report
「In the real estate industry, which is our group's business domain, financial institutions have shown a cautious lending stance, including screening borrower companies and properties to be financed as real estate prices continue to rise.」
Continues to describe financial institutions' cautious lending stance, including screening borrower companies and properties to be financed amid surging real estate prices. - FY2017-Q2RestatedAnnual report
「In the real estate industry, which is our group's business domain, financial institutions have shown a cautious lending stance, including screening borrower companies and properties to be financed as real estate prices continue to rise.」
Continues to describe financial institutions' cautious lending stance, including screening borrower companies and properties to be financed amid surging real estate prices. - FY2017-Q1WorsenedAnnual report
「As financial institutions faced shrinking interest margins following the introduction of negative interest rates, and real estate lending volumes exceeded those during the bubble period, their lending stance became more cautious, including through the selective screening of borrower companies and properties to be financed.」
States that financial institutions have adopted a cautious lending stance, including screening borrower companies and properties to be financed. - FY2016First statedAnnual report
「Our group obtains business funds through borrowings from financial institutions, and interest-bearing debt represented a high 56.8% of total assets at the end of the current consolidated fiscal year. Accordingly, if interest rates rise due to changes in financial conditions, the group's operating results could be affected.」
Reports an interest-bearing debt ratio of 56.8% and explains the risk of rising interest rates.