Reliance on Borrowings and Financing and Rising Interest Rate Risks
First written in FY2016. 29 of 36 entries say "Worsened", first in FY2018-Q3. Latest entry: 2026-08-07.
The whole theme swung hardest in 2020: 63 of 142 companies on the "Worse" side.
- FY2026WorsenedAnnual report
「The group generally finances the acquisition of business-use real estate, power generation facilities and other assets through borrowings from financial institutions and other lenders. Interest-bearing debt increased during the consolidated fiscal year in line with the steady acquisition of business-use assets and other factors.」
Non-current liabilities increased by ¥36,127 million and current liabilities by ¥9,865 million from the end of the previous fiscal year. The total amount of commitments increased from ¥90,728 million to ¥107,602 million, while the amount drawn increased from ¥55,521 million to ¥62,534 million. Meanwhile, LTV was 63.9%, within the target of below 65% in principle. - FY2026-H1WorsenedAnnual report
「Total overdraft limits and loan commitments ¥90,728 million ¥113,642 million Amount drawn ¥55,521 million ¥73,182 million Undrawn amount ¥35,207 million ¥40,459 million」
The total amount of overdraft and loan commitments with 59 financial institutions increased from ¥90,728 million at the end of the previous fiscal year to ¥113,642 million, while the amount drawn increased from ¥55,521 million to ¥73,182 million. Short-term and long-term borrowings also increased, and cash flow from operating activities was an outflow of ¥42,415 million, indicating increased reliance on borrowings and greater exposure to financing risk. There is no indication that financing constraints or a sharp increase in interest rates actually occurred. - FY2025WorsenedAnnual report
「Current liabilities increased to ¥134,075 million, up ¥11,537 million from the end of the previous consolidated fiscal year, mainly due to an increase in short-term borrowings. Non-current liabilities increased to ¥149,325 million, up ¥6,084 million, mainly due to an increase in long-term borrowings associated with new purchases.」
Short-term and long-term borrowings increased. Total overdraft and loan commitments also increased from ¥84,333 million to ¥90,728 million, while the amount drawn increased from ¥53,894 million to ¥55,521 million. LTV was 60.9%, within the target of below 65% in principle, but exposure to financing risk increased. - FY2025-H1WorsenedAnnual report
「Total overdraft limits and loan commitments ¥84,333 million ¥89,562 million Amount drawn ¥53,894 million ¥55,761 million Undrawn amount ¥30,439 million ¥33,800 million」
The total amount of overdraft and loan commitments with financial institutions increased from ¥84,333 million at the end of the previous fiscal year to ¥89,562 million, while the amount drawn increased from ¥53,894 million to ¥55,761 million. Current liabilities also increased by ¥4,858 million due to an increase in short-term borrowings, indicating greater exposure to financing risk. There is no indication that financing constraints or a sharp increase in interest rates actually occurred. - FY2024MitigatedAnnual report
「In light of the increase in borrowings resulting from the tender offer for investment units in Takara Leben Infrastructure Fund, Inc., the group announced a revision to its LTV target on 15 May 2023, setting it at below 65% in principle. LTV was 62.4% at the end of the consolidated fiscal year.」
After revising the LTV target to below 65%, LTV stood at 62.4% at the end of the fiscal year, within the target range. The total amount of commitments decreased from ¥85,033 million to ¥84,333 million, while the amount drawn increased to ¥53,894 million. - FY2024-Q3WorsenedAnnual report
「Total overdraft limits and loan commitments ¥85,033 million ¥96,669 million Amount drawn ¥51,105 million ¥69,638 million Undrawn amount ¥33,928 million ¥27,031 million」
The total amount of overdraft and loan commitments with financial institutions increased from ¥85,033 million at the end of the previous fiscal year to ¥96,669 million, while the amount drawn increased from ¥51,105 million to ¥69,638 million. Reliance on borrowings and exposure to financing risk increased. There is no indication that financing constraints or a sharp increase in interest rates actually occurred. - FY2024-Q2WorsenedAnnual report
「Total overdraft limits and loan commitments ¥85,033 million ¥96,699 million Amount drawn ¥51,105 million ¥62,633 million Undrawn amount ¥33,928 million ¥34,065 million」
The total amount of overdraft and loan commitments with financial institutions increased from ¥85,033 million at the end of the previous fiscal year to ¥96,699 million, while the amount drawn increased from ¥51,105 million to ¥62,633 million. Current liabilities also increased by ¥17,488 million from the end of the previous fiscal year due to an increase in short-term borrowings, indicating a further increase in reliance on borrowings and exposure to financing risk. There is no indication that financing constraints or a sharp increase in interest rates actually occurred. - FY2024-Q1WorsenedAnnual report
「(Current liabilities) Current liabilities increased to ¥173,462 million, up ¥11,304 million from the end of the previous consolidated fiscal year, mainly due to an increase in short-term borrowings and the reclassification of borrowings between current and non-current liabilities. (Non-current liabilities) Non-current liabilities increased to ¥115,975 million, up ¥1,606 million from the end of the previous consolidated fiscal year, mainly due to an increase in borrowings associated with new purchases.」
Both current and non-current liabilities increased from the end of the previous fiscal year. Total overdraft limits and loan commitments increased from ¥85,033 million to ¥90,643 million, while the amount drawn increased from ¥51,105 million to ¥56,503 million, indicating greater exposure to financing risk. There is no indication that financing constraints or a sharp increase in interest rates actually occurred. - FY2023WorsenedAnnual report
「The group generally finances the acquisition of business-use real estate, power generation facilities and other assets through borrowings from financial institutions and other lenders. Interest-bearing debt accounted for 66.6% of total assets at the end of the consolidated fiscal year. If financing becomes constrained or interest rates rise sharply due to deteriorating financial conditions or other factors, the group's operating performance and financial position may be affected.」
The interest-bearing debt ratio increased from 57.3% in the previous fiscal year to 66.6%. The total amount of commitments and other facilities also increased from ¥77,471 million to ¥85,033 million, while the amount drawn increased from ¥41,634 million to ¥51,105 million. - FY2023-Q3WorsenedAnnual report
「Total overdraft limits and loan commitments ¥77,471 million ¥100,701 million Amount drawn ¥41,634 million ¥56,299 million」
The total amount of commitments and other facilities with financial institutions increased from ¥77,471 million at the end of the previous fiscal year to ¥100,701 million, while the amount drawn increased from ¥41,634 million to ¥56,299 million. The increase in borrowings associated with the investment corporation becoming a consolidated subsidiary also contributed to greater exposure to financing risk. - FY2023-Q2WorsenedAnnual report
「Total overdraft limits and loan commitments ¥77,471 million ¥91,377 million Amount drawn ¥41,634 million ¥52,996 million」
The total amount of overdraft and loan commitments with financial institutions increased from ¥77,471 million at the end of the previous fiscal year to ¥91,377 million, while the amount drawn increased from ¥41,634 million to ¥52,996 million. Reliance on borrowings and exposure to financing risk increased. - FY2023-Q1WorsenedAnnual report
「(Current liabilities) Current liabilities increased to ¥83,873 million, up ¥8,862 million from the end of the previous consolidated fiscal year, mainly due to an increase in short-term borrowings and the reclassification of borrowings between current and non-current liabilities. (Non-current liabilities) Non-current liabilities increased to ¥101,576 million, up ¥12,715 million from the end of the previous consolidated fiscal year, mainly due to an increase in borrowings associated with new purchases.」
Both current and non-current liabilities increased from the end of the previous fiscal year due to increases in short-term borrowings and borrowings associated with new purchases. The total amount of commitments and other facilities with 67 financial institutions was ¥83,899 million, and the amount drawn was ¥50,699 million, both up from the end of the previous fiscal year. - FY2022A lower interest-bearing debt ratio alongside an increase in borrowingsAnnual report
「The group mainly finances the purchase of condominium sites and other land through borrowings from financial institutions. Interest-bearing debt accounted for 57.3% of total assets at the end of the consolidated fiscal year.」
The interest-bearing debt ratio declined from 58.0% in the previous fiscal year to 57.3%, and LTV remained within the target level of below 60%. Meanwhile, the amount drawn increased from ¥39,380 million to ¥41,634 million, and the total amount of commitments and other facilities increased from ¥70,930 million to ¥77,471 million. - FY2022-Q3WorsenedAnnual report
「Current liabilities increased to ¥74,804 million, up ¥19,154 million from the end of the previous consolidated fiscal year, mainly due to an increase in short-term borrowings and the reclassification of borrowings between current and non-current liabilities.」
Current liabilities increased by ¥19,154 million and non-current liabilities by ¥1,721 million from the end of the previous fiscal year. The total amount of overdraft and loan commitment agreements with 64 financial institutions was ¥75,647 million, and the amount drawn was ¥49,081 million, up from ¥70,930 million and ¥39,380 million, respectively, at the end of the previous fiscal year, indicating greater exposure to financing risk. There is no indication that financing constraints or a sharp increase in interest rates actually occurred. - FY2022-Q2WorsenedAnnual report
「Current liabilities increased to ¥68,901 million, up ¥13,251 million from the end of the previous consolidated fiscal year, mainly due to an increase in short-term borrowings and the reclassification of borrowings between current and non-current liabilities. Non-current liabilities increased to ¥109,392 million, up ¥15,358 million, due to an increase in borrowings resulting from changes in the scope of consolidation and an increase in borrowings associated with new purchases.」
Both current and non-current liabilities increased from the end of the previous fiscal year. The total amount of overdraft and loan commitment agreements with 64 financial institutions was ¥74,367 million, and the amount drawn was ¥46,200 million, up from ¥70,930 million and ¥39,380 million, respectively, at the end of the previous fiscal year, indicating greater exposure to financing risk. - FY2022-Q1WorsenedAnnual report
「(Current liabilities) Current liabilities increased to ¥75,547 million, up ¥19,897 million from the end of the previous consolidated fiscal year, mainly due to an increase in short-term borrowings and the reclassification of borrowings between current and non-current liabilities. (Non-current liabilities) Non-current liabilities increased to ¥100,964 million, up ¥6,930 million from the end of the previous consolidated fiscal year, due to an increase in borrowings resulting from changes in the scope of consolidation and an increase in borrowings associated with new purchases.」
Both current and non-current liabilities increased from the end of the previous fiscal year. The total amount of overdraft and loan commitment agreements with 63 financial institutions was ¥75,012 million, and the amount drawn was ¥47,040 million, indicating increased reliance on borrowings and greater exposure to financing risk. - FY2021MitigatedAnnual report
「Interest-bearing debt accounted for 58.0% of total assets at the end of the consolidated fiscal year. As countermeasures, the group has set targets of an LTV below 60% and a D/E ratio below 3x to establish a structure that does not rely excessively on borrowings, while diversifying its financing methods to establish a stable financing structure.」
The interest-bearing debt ratio declined slightly from 58.3% in the previous fiscal year to 58.0%, and LTV was described as remaining within the target level. Meanwhile, the amount drawn increased to ¥39,380 million, and the total amount of commitments and other facilities increased to ¥70,930 million, indicating continued reliance on borrowings. - FY2021-Q3WorsenedAnnual report
「(Current liabilities) Current liabilities increased to ¥69,639 million, up ¥4,022 million from the end of the previous consolidated fiscal year, mainly due to an increase in short-term borrowings and the reclassification of borrowings between current and non-current liabilities. (Non-current liabilities) Non-current liabilities increased to ¥85,485 million, up ¥6,792 million from the end of the previous consolidated fiscal year, mainly due to an increase in borrowings associated with new purchases.」
Current liabilities increased by ¥4,022 million, mainly due to an increase in short-term borrowings, while non-current liabilities increased by ¥6,792 million, mainly due to an increase in borrowings associated with new purchases. The total amount of overdraft and loan commitment agreements with 60 financial institutions was ¥77,069 million, and the amount drawn was ¥45,931 million, indicating increased reliance on borrowings and greater exposure to financing risk. - FY2021-Q2WorsenedAnnual report
「Non-current liabilities increased to ¥92,047 million, up ¥13,354 million from the end of the previous consolidated fiscal year, mainly due to an increase in borrowings associated with new purchases.」
Non-current liabilities increased by ¥13,354 million from the end of the previous consolidated fiscal year, mainly due to an increase in borrowings associated with new purchases. The total amount of overdraft and loan commitment agreements with 57 financial institutions was ¥68,887 million, and the amount drawn was ¥38,220 million, indicating increased reliance on borrowings and greater exposure to financing risk. - FY2021-Q1WorsenedAnnual report
「(Current liabilities) Current liabilities increased to ¥69,070 million, up ¥3,453 million from the end of the previous consolidated fiscal year, mainly due to an increase in short-term borrowings and the reclassification of borrowings between current and non-current liabilities. (Non-current liabilities) Non-current liabilities increased to ¥82,192 million, up ¥3,499 million from the end of the previous consolidated fiscal year, mainly due to an increase in borrowings associated with new purchases.」
Current liabilities increased by ¥3,453 million, mainly due to an increase in short-term borrowings, while non-current liabilities increased by ¥3,499 million, mainly due to an increase in borrowings associated with new purchases. The total amount of overdraft and loan commitment agreements with 57 financial institutions was ¥62,955 million, and the amount drawn was ¥34,974 million. - FY2020MitigatedAnnual report
「Interest-bearing debt accounted for 58.3% of total assets at the end of the consolidated fiscal year. As countermeasures, the group has set targets of an LTV below 60% and a D/E ratio below 3x to establish a structure that does not rely excessively on borrowings, while diversifying its financing methods to establish a stable financing structure.」
The interest-bearing debt ratio declined from 60.5% in the previous fiscal year to 58.3%, bringing LTV below the target level of 60%. The group also indicated that it was diversifying its financing methods and managing its D/E ratio below 3x. The risk itself remains. - FY2020-Q3WorsenedAnnual report
「(Current liabilities) Current liabilities increased to ¥70,758 million, up ¥12,219 million from the end of the previous consolidated fiscal year, mainly due to an increase in short-term borrowings and the reclassification of borrowings between current and non-current liabilities. (Non-current liabilities) Non-current liabilities decreased to ¥77,570 million, down ¥1,048 million from the end of the previous consolidated fiscal year, mainly due to the reclassification of borrowings between current and non-current liabilities.」
Current liabilities increased by ¥12,219 million from the end of the previous consolidated fiscal year, and total liabilities increased despite the decrease in non-current liabilities. Overdraft and loan commitment agreements with financial institutions covered 57 institutions and totaled ¥63,384 million, indicating continued reliance on borrowings and exposure to financing risk. Although the increase in liabilities was quantified, there is no indication that financing constraints or a sharp increase in interest rates actually occurred. - FY2020-Q2WorsenedAnnual report
「Current liabilities increased to ¥77,634 million, up ¥19,095 million from the end of the previous consolidated fiscal year, mainly due to an increase in short-term borrowings and the reclassification of borrowings between current and non-current liabilities. Non-current liabilities increased to ¥85,692 million, up ¥7,073 million, mainly due to an increase in borrowings associated with new purchases.」
Both current and non-current liabilities increased from the end of the previous consolidated fiscal year due to an increase in borrowings associated with new purchases. The main reason for the ¥17,436 million increase in cash from financing activities was also an increase in borrowings. - FY2020-Q1WorsenedAnnual report
「Current liabilities increased by ¥13,833 million from the end of the previous fiscal year to ¥72,372 million, mainly due to an increase in short-term borrowings and the reclassification of borrowings between current and non-current liabilities.」
Current liabilities increased by ¥13,833 million from the end of the previous consolidated fiscal year, mainly due to an increase in short-term borrowings. Under overdraft and loan commitment agreements with 53 financial institutions, the amount drawn was ¥45,722 million. - FY2019WorsenedAnnual report
「Interest-bearing debt accounted for 60.5% of total assets at the end of the fiscal year. If financing becomes constrained due to a deterioration in financial conditions or other factors, or if interest rates rise sharply, the Group's operating results and financial position may be affected.」
The interest-bearing debt ratio rose from the previously disclosed 54.3% to 60.5%, exceeding the company's target of keeping it below 60% in principle. The company also explained that its outstanding borrowings were trending upward. - FY2019-Q3WorsenedAnnual report
「Current liabilities increased by ¥4,448 million from the end of the previous fiscal year to ¥61,325 million, mainly due to an increase in short-term borrowings and the reclassification of borrowings between current and non-current liabilities. Non-current liabilities increased by ¥4,375 million to ¥82,180 million, mainly due to an increase in borrowings associated with new acquisitions.」
Both current and non-current liabilities increased from the end of the previous fiscal year due to higher borrowings associated with new acquisitions and other factors. Outstanding borrowings under overdraft and loan commitment agreements with 51 financial institutions totaled ¥39,277 million, while undrawn commitments totaled ¥13,048 million. - FY2019-Q2RestatedAnnual report
「Current liabilities increased by ¥8,555 million from the end of the previous fiscal year to ¥65,432 million, mainly due to an increase in short-term borrowings and the reclassification of borrowings between current and non-current liabilities. Non-current liabilities increased by ¥671 million to ¥78,476 million, mainly due to an increase in borrowings associated with new acquisitions.」
Current and non-current liabilities increased from the end of the previous fiscal year due to higher borrowings associated with new acquisitions and other factors. Financing activities provided an increase in funds of ¥18,904 million, mainly due to an increase in borrowings. Reliance on borrowings and financing exposure therefore continued. - FY2019-Q1WorsenedAnnual report
「Current liabilities increased by ¥9,808 million from the end of the previous fiscal year to ¥66,685 million, mainly due to an increase in short-term borrowings and the reclassification of borrowings between current and non-current liabilities. Non-current liabilities increased by ¥1,934 million to ¥80,125 million, mainly due to an increase in borrowings associated with new acquisitions.」
Both current and non-current liabilities increased from the end of the previous fiscal year due to higher short-term and long-term borrowings associated with new acquisitions and other factors. - FY2018-Q3WorsenedAnnual report
「Current liabilities increased by ¥8,280 million from the end of the previous fiscal year to ¥58,762 million, mainly due to an increase in short-term borrowings and the reclassification of borrowings between current and non-current liabilities. Non-current liabilities increased by ¥17,683 million to ¥70,282 million, mainly due to an increase in borrowings associated with new acquisitions.」
The increase in borrowings associated with new acquisitions and other factors expanded reliance on borrowings and financing exposure. The company stated, however, that no significant changes were made in the Business and Other Risks section. - FY2016First statedAnnual report
「Interest-bearing debt accounted for 54.3% of total assets at the end of the fiscal year. If financing becomes constrained due to a deterioration in financial conditions or other factors, or if interest rates rise sharply, the Group's operating results and financial position may be affected.」
The company explained that it primarily finances the acquisition of condominium sites and other land through borrowings from financial institutions.