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NIPPON REIT Investment Corp ( (JP:3296) ) has issued an announcement.
NIPPON REIT Investment Corporation has announced an exchange transaction in which it will transfer the ageing Kudankita 325 office building and acquire CIRCLES Nihonbashi Hamacho, a relatively new office property located in Tokyo’s Chuo ward. The REIT will sell Kudankita 325, a 38-year-old building with rising capital expenditure needs and limited internal growth potential, for ¥2,740 million, and redeploy those gains into purchasing CIRCLES Nihonbashi Hamacho for ¥3,492 million, below its appraisal value of ¥3,960 million, while recording a reduced book value to lower the effective acquisition cost. The newly built asset, completed in June 2024 and expected to reach 100% occupancy by the March 2026 acquisition date, offers better unrealized gain potential, a smaller rent gap and lower depreciation and capex burdens, positioning NIPPON REIT’s portfolio for improved growth and inflation-resilient income by upgrading from an older to a newer core office asset in central Tokyo.
The most recent analyst rating on (JP:3296) stock is a Buy with a Yen113813.00 price target. To see the full list of analyst forecasts on NIPPON REIT Investment Corp stock, see the JP:3296 Stock Forecast page.
More about NIPPON REIT Investment Corp
NIPPON REIT Investment Corporation is a Japan-listed real estate investment trust (REIT) that primarily invests in income-producing properties, with a focus on office buildings and other commercial assets across major urban areas such as central Tokyo. By actively managing its portfolio through acquisitions, disposals, and exchange transactions, the REIT aims to enhance asset quality, capture growth opportunities, and improve returns for unitholders in Japan’s real estate market.
Average Trading Volume: 3,808
Technical Sentiment Signal: Buy
Current Market Cap: Yen176.7B
For a thorough assessment of 3296 stock, go to TipRanks’ Stock Analysis page.