Nippon Accommodations Fund Inc. (3226) AI Stock Analysis

• Market Cap: ¥294.78B
• Dividend Yield: 3.82%
• Average Volume (3M): 5.03K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.16
• Revenue Growth: -3.25%
• EPS Growth: -2.56%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 64
• Industry: REIT - Diversified
• EPS (TTM): 4514.00
• Shares Outstanding: 2,517,360
• 10 Day Avg. Volume: 4,754
• 30 Day Avg. Volume: 5,028
• PEG Ratio: 122.61
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥131,000.00
• Price Target Upside: 11.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥131,465 ▲(12.27%Upside)

Nippon Accommodations Fund Inc. scores well due to its strong financial performance, particularly in profitability and cash management, though leverage is a concern. Technical analysis shows neutral to slightly positive momentum. Valuation is on the higher side with a decent dividend yield, offering potential income benefits. The absence of earnings call data and corporate events limits additional insights.

Nippon Accommodations Fund Inc. Business Overview & Revenue Model

Company Description

Nippon Accommodations Fund Inc. (hereinafter "NAF") was established on October 12, 2005 as an investment corporation under the Investment Trust and Investment Corporation Act of Japan with Mitsui Fudosan Accommodations Fund Management Co., Ltd. (hereinafter "MFAFM") acting as a sponsor. Registration with the Kanto Local Finance Bureau of the Ministry of Finance was completed on November 11, 2005 and NAF started acquisition of properties on November 30, 2005. NAF is an externally managed real estate fund, formed as an investment corporation. MFAFM, as NAF's asset management company, is engaged in the acquisition, management, and renovation of accommodation assets. MFAFM is a 100% subsidiary of Mitsui Fudosan Co., Ltd.

How the Company Makes Money

Nippon Accommodations Fund Inc. generates revenue primarily through rental income from its portfolio of residential properties. The company earns money by leasing its properties to tenants, which provides a steady and predictable cash flow. Additionally, NAF may increase its earnings through strategic property acquisitions aimed at expanding and diversifying its portfolio, thereby enhancing potential rental income. Management fees from property management services and occasional property sales can also contribute to its revenue. The company's success is supported by its partnerships with major real estate developers and financial institutions, which help facilitate property acquisitions and investments.

Nippon Accommodations Fund Inc. Financial Statement Overview

Summary

Nippon Accommodations Fund Inc. demonstrates consistent profitability and efficient operations, with strong income statement metrics. The balance sheet shows stability but is highly leveraged, typical for the REIT industry. Cash flow metrics indicate effective cash management despite some volatility. Overall, the company is financially stable but should monitor leverage levels to mitigate future risks.

Income Statement

The company shows stable revenue with minor fluctuations over the years. Gross profit margin is consistent at around 59%, and net profit margin is strong, averaging around 45% in recent years. EBIT and EBITDA margins are robust, reflecting efficient operations. However, the revenue growth rate is minimal, indicating limited expansion, which could be a concern for long-term growth.

Balance Sheet

The company has a relatively high debt-to-equity ratio, indicating significant leverage, which is common in the REIT industry but poses a financial risk. The equity ratio is stable, suggesting a balanced capital structure. Return on equity is strong at around 7%, indicating effective use of equity capital. Overall, the balance sheet reflects stability but highlights potential risk due to high leverage.

Cash Flow

The company maintains strong operating cash flow relative to net income, showing effective cash management. Free cash flow has fluctuated but remains positive, reflecting the company's ability to generate cash after capital expenditures. The free cash flow growth rate has been variable, indicating potential volatility in cash generation capabilities.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	25.53B	25.29B	25.39B	24.65B	23.55B	22.92B
Gross Profit	13.10B	15.01B	14.94B	14.21B	13.34B	13.17B
EBITDA	15.99B	15.96B	15.99B	15.50B	14.73B	14.64B
Net Income	11.36B	11.34B	11.32B	10.57B	9.84B	9.76B
Balance Sheet
Total Assets	326.91B	325.69B	327.05B	328.47B	327.82B	305.84B
Cash, Cash Equivalents and Short-Term Investments	13.48B	11.49B	14.86B	13.05B	12.26B	9.49B
Total Debt	167.00B	166.00B	167.50B	169.50B	169.50B	157.50B
Total Liabilities	174.61B	173.61B	175.18B	177.30B	176.90B	164.63B
Stockholders Equity	152.31B	152.08B	151.87B	151.17B	150.93B	141.21B
Cash Flow
Free Cash Flow	11.19B	9.33B	14.48B	11.24B	-9.15B	5.89B
Operating Cash Flow	15.40B	15.20B	15.97B	15.09B	14.10B	13.62B
Investing Cash Flow	-4.24B	-5.90B	-1.60B	-3.91B	-23.22B	-7.79B
Financing Cash Flow	-11.84B	-12.63B	-12.61B	-10.37B	11.84B	-6.96B

Nippon Accommodations Fund Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 117100.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3226, the sentiment is Neutral. The current price of 117100 is below the 20-day moving average (MA) of 117930.00, above the 50-day MA of 116988.00, and above the 200-day MA of 115659.01, indicating a neutral trend. The MACD of 22.08 indicates Positive momentum. The RSI at 46.80 is Neutral, neither overbought nor oversold. The STOCH value of 48.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3226.

Nippon Accommodations Fund Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3226	73 Outperform	¥294.78B	25.94		3.82%	-3.25%	-2.56%
Sector *	64 Neutral	$6.88B	17.50	-1.92%	7.08%	4.62%	-25.61%
7ZY	―	€1.76B	20.83	5.23%	9.99%	―	―
SKUEF	―	$2.18B	―	7.47%	27323325.42%	―	―
2ES	―	€1.80B	16.55	7.72%	5.99%	―	―
3234	67 Neutral	¥258.51B	20.67		4.74%	5.93%	-1.63%
8964	―	¥226.95B	17.55		5.23%	―	―

Nippon Accommodations Fund Inc. Corporate Events

Nippon Accommodations Fund Inc. Secures Green Loan for Debt Refinancing

Nippon Accommodations Fund Inc. announced a refinancing initiative through a green loan of 1 billion yen from The Keiyo Bank, Ltd., aimed at redeeming its No.3 Unsecured Investment Corporation Bonds. This move is part of NAF’s strategy to manage its debt efficiently while supporting sustainable investments, as the funds will be used for the repayment of loans related to the acquisition of a green asset, Park Cube Megro Tower. The refinancing slightly alters NAF’s debt profile, reducing its total interest-bearing debt by 1 billion yen, and maintaining a stable interest-bearing debt ratio.

The most recent analyst rating on (JP:3226) stock is a Buy with a Yen632000.00 price target. To see the full list of analyst forecasts on Nippon Accommodations Fund Inc. stock, see the JP:3226 Stock Forecast page.

Nippon Accommodations Fund Inc. Announces ¥100 Billion Bond Issuance Plan

Nippon Accommodations Fund Inc. has submitted a shelf registration statement for issuing investment corporation bonds worth ¥100 billion to the Kanto Local Finance Bureau. The funds raised will be used for acquiring assets, repaying borrowings, redeeming bonds, and other operational needs, which could enhance the company’s financial flexibility and market position.

The most recent analyst rating on (JP:3226) stock is a Hold with a Yen131000.00 price target. To see the full list of analyst forecasts on Nippon Accommodations Fund Inc. stock, see the JP:3226 Stock Forecast page.

Nippon Accommodations Fund Extends Commitment Line Agreements

Nippon Accommodations Fund Inc. has announced an extension of the termination dates for its commitment line agreements with Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, and Mizuho Bank. The new termination date is set for July 31, 2028, providing the company with an additional year of financial flexibility. This move is expected to enhance NAF’s financial stability and operational capacity, with no significant changes to its investment risk profile.

The most recent analyst rating on (JP:3226) stock is a Hold with a Yen131000.00 price target. To see the full list of analyst forecasts on Nippon Accommodations Fund Inc. stock, see the JP:3226 Stock Forecast page.

Nippon Accommodations Fund Secures 2 Billion Yen Loan

Nippon Accommodations Fund Inc. announced a borrowing of 2.0 billion yen from Sumitomo Mitsui Trust Bank, Limited, with an interest rate of 0.64864%, to be repaid by August 29, 2025. This borrowing does not alter the company’s total interest-bearing debt, which remains at 169.5 billion yen, indicating stable financial management and no significant change in investment risks.

The most recent analyst rating on (JP:3226) stock is a Buy with a Yen632000.00 price target. To see the full list of analyst forecasts on Nippon Accommodations Fund Inc. stock, see the JP:3226 Stock Forecast page.

Nippon Accommodations Fund Inc. Secures 3.0 Billion Yen Loan

Nippon Accommodations Fund Inc. has announced a borrowing of 3.0 billion yen from Sumitomo Mitsui Banking Corporation, with an interest rate of 1.069%, to be repaid by May 2029. This borrowing does not alter the company’s total interest-bearing debt, which remains at 169.5 billion yen, and there is no significant change in the loan repayment risk as per the latest securities report.

The most recent analyst rating on (JP:3226) stock is a Buy with a Yen632000.00 price target. To see the full list of analyst forecasts on Nippon Accommodations Fund Inc. stock, see the JP:3226 Stock Forecast page.