Sharp Debt Increase In 2026Total debt roughly doubled in 2026 to ~¥168.5B from ~¥76.1B, materially raising leverage. Higher debt elevates refinancing and interest-rate sensitivity for a developer with lumpy cash flows, constraining financial flexibility and increasing default/refinancing risk over the coming 2–6 months.
Very Weak Cash GenerationRepeated negative operating cash flow and an extremely negative FCF (~-¥108.1B in 2026) erode the company's ability to self-fund development and service debt. Persistent cash burn forces reliance on external financing, increasing liquidity risk and execution pressure across the medium term.
Volatile Revenue And Visibility RiskTop-line volatility—including a ~-9% revenue decline in 2026—reduces visibility into future margins and cash conversion. For a development business, unpredictable sales timing and revenue swings make project phasing and debt servicing harder to manage, heightening structural execution risk through the next several quarters.