Funding Difficulties and Risks Related to Interest-Bearing Debt and Rising Interest Rates
First written in FY2023. 8 of 12 entries say "Worsened", first in FY2024. Latest entry: 2026-08-31.
Realgate moved to the "Worse" side of this theme in 2024, 3 years after the typical company in this theme (2021).
The whole theme swung hardest in 2025: 23 of 75 companies on the "Worse" side.
13 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「Non-current liabilities at the end of the interim accounting period were ¥16,174.586 million, an increase of ¥2,162.889 million from the end of the previous fiscal year. This was mainly due to a ¥2,064.573 million increase in long-term borrowings resulting from the new borrowings described above.」
Borrowing associated with the acquisition of new properties increased debt exposure, and interest expense increased from ¥68.752 million in the previous interim accounting period to ¥126.138 million. The Company also newly entered into borrowing agreements subject to financial covenants for ¥500 million and ¥1,100 million. - FY2025WorsenedAnnual report
「The balance of borrowings at the end of the fiscal year was ¥13,937.697 million, up 43.6% year on year. Non-operating expenses were ¥222.671 million, up 60.3% year on year, mainly due to interest expense on borrowings for real estate purchases and capital investment.」
The balance of borrowings and interest expense increased from the previous period in connection with property acquisitions and capital investment, increasing exposure to interest-bearing debt and interest costs. - FY2025-H1WorsenedAnnual report
「This was mainly due to increases of ¥135 million in short-term borrowings and ¥118.283 million in long-term borrowings due within one year, resulting from new borrowings for property acquisitions, among other factors. Fixed liabilities amounted to ¥9,074.038 million, an increase of ¥1,728.599 million from the end of the previous fiscal year. This was mainly due to a ¥1,698.487 million increase in long-term borrowings resulting from the aforementioned new borrowings, among other factors.」
Short-term and long-term borrowings increased due to new borrowings for real estate acquisitions, and interest expense increased from ¥24.540 million in the previous interim period to ¥68.752 million. Exposure to interest rates and interest-bearing debt has increased. - FY2024WorsenedAnnual report
「Borrowings outstanding at the end of the fiscal year amounted to ¥9,706.811 million, up 68.1% year on year.」
The balance of borrowings increased 68.1% year on year, while interest expense increased 111.2% year on year. The Company's exposure to financing and interest-bearing debt is shown quantitatively. - FY2023First statedAnnual report
「If newly planned financing fails in the future, this could affect the Company's business performance and business development. In addition, if interest-rate levels or the financial environment change due to financial or economic conditions, this could affect the Company's business performance and financial position.」
Based on a business model that relies on borrowings and bonds to finance property acquisitions and construction costs, the Company identifies unsuccessful financing, financial covenants and changes in interest rates and the financial environment as risks.