Reliance on Interest-Bearing Debt and Interest Rate Fluctuations
First written in FY2016. 8 of 15 entries say "Worsened", first in FY2025. Latest entry: 2026-10-30.
The whole theme swung hardest in 2020: 64 of 143 companies on the "Worse" side.
- FY2026WorsenedAnnual report
「Liabilities at the end of the consolidated fiscal year increased by ¥33,382 million from the end of the previous consolidated fiscal year to ¥186,952 million. This was mainly due to an increase of ¥31,486 million in long-term borrowings, including the current portion, an increase of ¥1,980 million in electronically recorded obligations, and a decrease of ¥1,353 million in short-term borrowings.」
Amid continuing borrowing-dependence and interest-rate risks, long-term borrowings and other liabilities increased by ¥31,486 million, and total liabilities increased by ¥33,382 million from the end of the previous fiscal year. The funding recovery period from business-site acquisition to completion is also stated to have lengthened from approximately 2 years to approximately 3 years. - FY2026-H1WorsenedAnnual report
「Liabilities at the end of the interim consolidated accounting period increased by ¥13,351 million from the end of the previous consolidated fiscal year to ¥166,920 million. The main factors were an increase of ¥16,468 million in long-term borrowings, including the current portion, and a decrease of ¥2,814 million in electronically recorded obligations.」
Amid continuing borrowing-dependence and interest-rate risks, long-term borrowings, including the current portion, increased by ¥16,468 million, and total liabilities increased by ¥13,351 million from the end of the previous fiscal year. - FY2025WorsenedAnnual report
「Liabilities at the end of the consolidated fiscal year increased by ¥51,488 million from the end of the previous consolidated fiscal year to ¥153,569 million. This was mainly due to an increase of ¥38,670 million in long-term borrowings and an increase of ¥14,290 million in current portion of long-term borrowings.」
Amid continuing borrowing-dependence and interest-rate risks, long-term borrowings and the current portion of long-term borrowings increased, and total liabilities also increased from the end of the previous fiscal year. - FY2024RestatedAnnual report
「In addition to the risks described in “③ Sales Activities,” the Group primarily finances the acquisition of development sites through borrowings from financial institutions. Because its dependence on interest-bearing debt tends to be relatively high compared with other industries, an increase in interest rates could affect the Group's results of operations. In addition, because the business assumes a relatively long funding recovery period of approximately 2 years from the acquisition of a business site to completion of the property, the effects could continue for a relatively long period.」
The risks associated with borrowing dependence, higher interest rates and an approximately 2-year funding recovery period from site acquisition to completion have been reconfirmed. Measures including maintaining cash on hand, zero completed inventory and shortening the funding recovery period are also described. - FY2022RestatedAnnual report
「In addition to the risks described in “③ Sales Activities,” the Group primarily finances the acquisition of development sites through borrowings from financial institutions. Because its dependence on interest-bearing debt tends to be relatively high compared with other industries, an increase in interest rates could affect the Group's performance.」
The risk that dependence on borrowings to finance site acquisitions and higher interest rates could affect performance has been reconfirmed. - FY2020RestatedAnnual report
「In addition, because the business assumes a relatively long funding recovery period of approximately 2 years from the acquisition of a business site to completion of the property, the effects could continue for a relatively long period.」
The interest-rate risk associated with site acquisition funding, which is financed primarily through borrowings, has been reconfirmed, based on an assumed funding recovery period of approximately 2 years from acquisition to completion. - FY2019RestatedAnnual report
「The Group's core business is the sale of real estate. Because it primarily finances the acquisition of condominium development sites through borrowings from financial institutions, its dependence on interest-bearing debt is relatively high compared with other industries. If current interest rates fluctuate in the future, the Group's performance and financial position could be affected.」
The risk that dependence on borrowings to finance site acquisitions and interest-rate fluctuations could affect performance and financial position has been reconfirmed. - FY2018RestatedAnnual report
「Borrowings and bonds are obtained primarily from financial institutions to acquire inventories for the real estate sales business, exposing the Group to liquidity risk related to financing and interest-rate risk. To manage liquidity risk, the accounting department's finance section prepares funding plans as needed and submits and reports them to the head of the accounting department. Interest-rate risk is hedged, as necessary, through derivatives transactions, specifically interest-rate swaps.」
While recognizing the liquidity and interest-rate risks associated with borrowings and bonds, the Group has reconfirmed management through funding plans and hedging with interest-rate swaps as needed. - FY2017MitigatedAnnual report
「Borrowings and bonds are obtained primarily from financial institutions to acquire inventories for the real estate sales business, exposing the Group to liquidity risk related to financing and interest-rate risk. To manage liquidity risk, the accounting department's finance section prepares funding plans as needed and submits and reports them to the head of the accounting department. Interest-rate risk is hedged, as necessary, through derivatives transactions, specifically interest-rate swaps.」
While continuing to recognize the risks of borrowing dependence and interest-rate fluctuations, the Group describes liquidity management through funding plans and hedging with interest-rate swaps as needed. - FY2016First statedAnnual report
「The Group's core business is the sale of real estate. Because it primarily finances the acquisition of condominium development sites through borrowings from financial institutions, its dependence on interest-bearing debt is relatively high compared with other industries. If current interest rates fluctuate in the future, the Group's performance and financial position could be affected.」
The Group states that its dependence on interest-bearing debt to finance site acquisitions and interest-rate fluctuations could affect its performance and financial position.