Risk of Reliance on Interest-Bearing Debt and Financial Institution Financing
First written in FY2024. 1 of 3 entries say "Mitigated", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2020: 2 of 9 companies on the "Worse" side.
8 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「To maintain diverse sources of financing, we transact with numerous financial institutions to reduce the risk of a decline in funding, while treating financial indicators such as the equity ratio and DER as important metrics.」
The Group continues to diversify funding sources and manage the equity ratio and DER in response to tighter lending standards and declining creditworthiness. - FY2025MitigatedAnnual report
「To address these risks, we transact with numerous financial institutions to maintain diverse sources of financing and reduce the risk of a decline in funding. We also closely monitor how financial institutions assess our lending position and maintain appropriate levels of financial indicators such as the equity ratio and DER so that our financial position does not impede access to financing.」
Measures include diversifying financial counterparties, monitoring lender assessments, and maintaining appropriate equity ratios and DER. - FY2024First statedAnnual report
「The Group finances most of the funds required to acquire land and other assets for the DX Real Estate Business through borrowings from financial institutions. If financing constraints arise, such as an inability to obtain stable financing because financial institutions tighten their lending stance due to a deterioration in the external environment or because the Group’s creditworthiness declines following a significant deterioration in its financial condition, the Group’s financial condition could be affected.」
The Group describes its dependence on borrowings for real estate acquisitions and the financing constraints that could result from higher interest rates, weaker creditworthiness, or tighter lending standards.