Borrowings by the real estate trust, financial covenants and forced-sale risk
First written in FY2027-H1. 1 of 2 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2017: 8 of 70 companies on the "Worse" side.
48 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「The agreements relating to these borrowings include financial covenants requiring the maintenance of certain financial metrics, including the interest-bearing debt ratio and the debt service coverage ratio (DSCR), as well as prohibited actions, events triggering suspension of distributions, and events triggering a forced sale.」
The disclosure of ¥2,300 million in floating-rate borrowings, security interests, financial covenants, and the possibility of suspended distributions and a forced sale continues. - FY2027-H1First statedAnnual report
「The agreements relating to these borrowings include financial covenants requiring the maintenance of certain financial metrics, including the interest-bearing debt ratio and the debt service coverage ratio (DSCR), as well as prohibited actions, events triggering suspension of distributions, and events triggering a forced sale. Accordingly, if these financial covenants or prohibited actions are breached, or in certain other cases, including where the maturity date of these borrowings is extended, the trust beneficial interests in question or the investment properties underlying them may be subject to a forced sale, or early repayment of principal and interest on the borrowings may be required. Because these borrowings create leverage, fluctuations in the income and asset value of the trust beneficial interests in question or the investment properties may be reflected relatively more significantly in fluctuations in the income and price of these beneficial interests.」
The disclosure newly identified a structure under which the income and principal of ordinary beneficiaries may fluctuate significantly as a result of DSCR and other financial covenants, suspension of distributions, early repayment, enforcement of security interests and forced sale associated with the borrowings.