Impact of Rising Market Interest Rates on Borrowing Costs and Sales Plans
First written in FY2017. 10 of 18 entries say "Worsened", first in FY2020. Latest entry: 2026-09-10.
Kose R.E. moved to the "Worse" side of this theme in 2020, 3 years before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 31 of 96 companies on the "Worse" side.
40 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Balance of interest-bearing debt (A) (¥ thousand) 3,025,291 5,125,040 7,253,216, Interest-bearing debt dependence ratio (%) (A/B) 20.6 30.1 36.7, Interest expense (D) (¥ thousand) 56,178 57,029 115,318, (D/C) (%) 3.5 17.7 15.0」
For the fiscal year ended January 2026, the balance of interest-bearing debt rose to ¥7,253,216 thousand, and the interest-bearing debt dependence ratio rose to 36.7%. Interest expense was ¥115,318 thousand, indicating greater borrowing exposure to rising interest rates than in the previous fiscal year. - 2026-03-12WorsenedEarnings
「Equity ratio (%) 69.7 60.0 53.9」
The equity ratio fell from 60.0% in the fiscal year ended January 2025 to 53.9%. - FY2026-H1WorsenedAnnual report
「In addition, mortgage rates have been rising gradually as a result of the Bank of Japan's shift in monetary policy, raising concerns about the increased burden on customers and the impact on their willingness to purchase.」
The company explicitly identified rising mortgage rates resulting from the Bank of Japan's shift in monetary policy as a concern that could increase customers' burden and affect their willingness to purchase. - FY2025WorsenedAnnual report
「Balance of interest-bearing debt (A) (¥ thousand) 4,306,177 3,025,291 5,125,040 Interest-bearing debt dependence ratio (%) (A/B) 27.8 20.6 30.1 (D/C) (%) 6.8 3.5 17.7」
For the fiscal year ended January 2025, the balance of interest-bearing debt increased from ¥3,025,291 thousand in the previous fiscal year to ¥5,125,040 thousand, the interest-bearing debt dependence ratio rose from 20.6% to 30.1%, and the ratio of interest expense to operating profit rose from 3.5% to 17.7%. - FY2025-H1WorsenedAnnual report
「Liabilities decreased by ¥451.257 million from the end of the previous consolidated fiscal year to ¥3,935.701 million. This was mainly due to a ¥826.000 million decrease in short-term borrowings following the delivery of completed properties, as well as a ¥447.095 million decrease in electronically recorded obligations due to settlement at maturity, despite increases of ¥556.285 million in long-term borrowings and ¥538.476 million in the current portion of long-term borrowings associated with project progress and the acquisition of a logistics warehouse.」
Although total liabilities declined, long-term borrowings and long-term borrowings due for repayment within 1 year increased in connection with project progress and the acquisition of a logistics warehouse, changing the composition of borrowings exposed to rising market interest rates. - FY2025-Q1WorsenedAnnual report
「This was due to a ¥1,070,191 thousand increase in long-term borrowings associated with project progress and the acquisition of a logistics warehouse.」
Long-term borrowings increased by ¥1,070,191 thousand in connection with project progress and the acquisition of a logistics warehouse, increasing borrowing exposure after the decline in interest-bearing debt at the end of the previous fiscal year. - FY2024MitigatedAnnual report
「Balance of interest-bearing debt (A) (¥ thousand) 7,326,595 4,306,177 3,025,291 Interest-bearing debt dependence ratio (%) (A/B) 42.1 27.8 20.6 Interest expense (D) (¥ thousand) 160,632 110,920 56,178 (D/C) (%) 14.1 6.8 3.5」
The balance of interest-bearing debt declined from ¥4,306,177 thousand in the previous fiscal year to ¥3,025,291 thousand, and the interest-bearing debt dependence ratio declined from 27.8% to 20.6%. The ratio of interest expense to operating profit also declined from 6.8% to 3.5%, reducing borrowing exposure to the risk of rising interest rates. - FY2024-Q3MitigatedAnnual report
「Liabilities decreased by ¥1,884.334 million from the end of the previous consolidated fiscal year to ¥4,198.909 million. This was mainly due to a ¥1,433.000 million decrease in short-term borrowings following the delivery of completed properties, as well as a ¥398.860 million decrease in electronically recorded obligations due to their maturity.」
Short-term borrowings decreased by ¥1,433,000 thousand in connection with the delivery of completed properties, and total liabilities declined to ¥4,198,909 thousand. Borrowing exposure to the risk of rising market interest rates declined during this period of lower liabilities. - FY2024-Q2MitigatedAnnual report
「Liabilities decreased by ¥1,840,028 thousand from the end of the previous consolidated fiscal year to ¥4,243,215 thousand. This was mainly due to a ¥1,607,000 thousand decrease in short-term borrowings associated with the delivery of completed properties, as well as a ¥398,860 thousand decrease in electronically recorded obligations as they fell due.」
Short-term borrowings decreased by ¥1,607,000 thousand in connection with the delivery of completed properties, and total liabilities decreased by ¥1,840,028 thousand from the end of the previous consolidated fiscal year. Borrowing exposure to the risk of rising market interest rates declined during this period of lower liabilities. - FY2023MitigatedAnnual report
「Balance of interest-bearing debt (A) (¥ thousand) 11,876,769 7,326,595 4,306,177 Total assets (B) (¥ thousand) 20,859,378 17,417,226 15,476,175 Interest-bearing debt dependence ratio (%) (A/B) 56.9 42.1 27.8 Operating profit (C) (¥ thousand) 754,281 1,141,903 1,630,870 Interest expense (D) (¥ thousand) 156,281 160,632 110,920 (D/C) (%) 20.7 14.1 6.8」
The balance of interest-bearing debt declined from ¥7,326,595 thousand in the previous fiscal year to ¥4,306,177 thousand, and the interest-bearing debt dependence ratio declined from 42.1% to 27.8%. The ratio of interest expense to operating profit also declined from 14.1% to 6.8%. - FY2022MitigatedAnnual report
「Balance of interest-bearing debt (A) (¥ thousand) 8,150,769 11,876,769 7,326,595 Total assets (B) (¥ thousand) 16,953,889 20,859,378 17,417,226 Interest-bearing debt dependence ratio (%) (A/B) 48.1 56.9 42.1 Net sales (¥ thousand) 9,055,069 9,375,168 11,288,896 Operating profit (C) (¥ thousand) 624,379 754,281 1,141,903 Interest expense (D) (¥ thousand) 151,064 156,281 160,632 (D/C) (%) 24.2 20.7 14.1」
The balance of interest-bearing debt declined from ¥11,876.77 million in the previous fiscal year to ¥7,326.60 million, and the interest-bearing debt dependence ratio declined from 56.9% to 42.1%. The ratio of interest expense to operating profit also declined from 20.7% to 14.1%. - FY2021WorsenedAnnual report
「Balance of interest-bearing debt (A) (¥ thousand) 6,856,329 8,150,769 11,876,769 Interest-bearing debt dependence ratio (%) (A/B) 41.9 48.1 56.9 (D/C) (%) 9.4 24.2 20.7」
The balance of interest-bearing debt rose from ¥8,150.769 million in the previous fiscal year to ¥11,876.769 million, and the interest-bearing debt dependence ratio rose from 48.1% to 56.9%. The ratio of interest expense to operating profit declined from 24.2% to 20.7%, but the risk of rising interest rates remains. - FY2020WorsenedAnnual report
「Balance of interest-bearing debt (A) (¥ thousand) 7,232,725 6,856,329 8,150,769 Interest-bearing debt dependence ratio (%) (A/B) 48.8 41.9 48.1 (D/C) (%) 8.3 9.4 24.2」
The balance of interest-bearing debt rose to ¥8,150.769 million, and the interest-bearing debt dependence ratio rose to 48.1%. The ratio of interest expense to operating profit also rose to 24.2%. - FY2019Decline in interest-bearing debt dependence ratio and rise in interest expense ratioAnnual report
「Balance of interest-bearing debt (A) (¥ thousand) 7,874,878 7,232,725 6,856,329 Interest-bearing debt dependence ratio (%) (A/B) 62.2 48.8 41.9 (D/C) (%) 13.7 8.3 9.4」
The balance of interest-bearing debt declined to ¥6,856.33 million, and the interest-bearing debt dependence ratio declined to 41.9%, while the ratio of interest expense to operating profit rose from 8.3% to 9.4%. The risk of rising interest rates remains. - FY2018MitigatedAnnual report
「In the family condominium sales business and the asset-management condominium sales business, the ratio of interest-bearing debt to total assets is expected to remain high as we continue to expand project development activities. However, if market interest rates rise beyond expectations, higher interest expenses and other factors could affect the performance of our group.」
Although the risk of rising interest rates remains, the interest-bearing debt dependence ratio declined from 62.2% to 48.8%, and the ratio of interest expense to operating profit declined from 13.7% to 8.3%. - FY2017First statedAnnual report
「The balance of interest-bearing debt of our group is as shown in the table below. In the family condominium sales business and the asset-management condominium sales business, the ratio of interest-bearing debt to total assets is expected to remain high as we continue to expand project development activities. However, if market interest rates rise beyond expectations, higher interest expenses and other factors could affect the performance of our group.」
The balance of interest-bearing debt was ¥7,874,878 thousand and the interest-bearing debt dependence ratio was 62.2% for the fiscal year ended January 2017. The company identified higher interest expenses resulting from rising market interest rates and weaker customer purchasing power as risks.