Nippon Accommodations Fund Inc. (3226) AI Stock Analysis

• Market Cap: ¥334.05B
• Dividend Yield: 3.56%
• Average Volume (3M): 5.48K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 0.20
• Revenue Growth: 2.91%
• EPS Growth: 2.68%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): N/A
• Shares Outstanding: 2,517,360
• 10 Day Avg. Volume: 3,998
• 30 Day Avg. Volume: 5,480
• PEG Ratio: 19.75
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 23.56
• P/FCF Ratio: 107.06
• 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: ¥125,000.00
• Price Target Upside: -6.02% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥135,328 ▲(1.75% Upside)

The overall stock score is primarily influenced by the company's strong profitability metrics, despite significant declines in revenue and free cash flow. Technical analysis indicates a bearish trend with weak momentum, while the valuation suggests the stock may be overvalued, though it offers a decent dividend yield. The absence of earnings call data and notable corporate events means these factors do not impact the score.

Positive Factors

Strong Profitability

High profitability margins indicate efficient operations and cost management, providing a buffer against revenue fluctuations and supporting long-term financial health.

Stable Balance Sheet

A stable balance sheet with moderate leverage ensures financial flexibility and the ability to withstand economic downturns, supporting sustainable growth.

Market Position

Focusing on urban residential properties positions the company to benefit from ongoing urbanization trends and growing rental demand, ensuring long-term revenue potential.

Negative Factors

Revenue Decline

A significant decline in revenue can impact the company's ability to invest in growth opportunities and maintain profitability, posing risks to long-term stability.

Free Cash Flow Decline

A sharp decline in free cash flow limits the company's ability to fund operations, service debt, and invest in future growth, potentially affecting financial resilience.

Reduced Return on Equity

A lower return on equity indicates challenges in generating returns from investments, which could hinder the company's ability to attract new capital and sustain growth.

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. exhibits strong profitability metrics but faces significant revenue and free cash flow declines, which could pose risks to future financial stability. The balance sheet remains stable with moderate leverage, but the reduced return on equity suggests challenges in generating returns from equity investments.

Income Statement

The company shows strong profitability with a consistent gross profit margin around 59% and a net profit margin above 44%. However, the revenue has significantly declined by 47.82% in the latest year, indicating potential challenges in revenue generation. EBIT and EBITDA margins remain robust, reflecting efficient cost management.

Balance Sheet

The balance sheet demonstrates a stable financial structure with a debt-to-equity ratio slightly above 1, indicating moderate leverage. Return on equity has decreased to 3.84%, suggesting reduced profitability from equity. The equity ratio is stable, showing a balanced asset financing strategy.

Cash Flow

The cash flow statement reveals a concerning decline in free cash flow by 74.04%, which could impact future investments and debt servicing. The operating cash flow to net income ratio is low at 0.29, indicating potential cash flow challenges. The free cash flow to net income ratio is moderate, reflecting some ability to generate cash from operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.02B	13.20B	25.29B	25.39B	24.65B	23.55B
Gross Profit	7.84B	7.84B	15.01B	14.94B	14.21B	13.34B
EBITDA	16.38B	8.28B	15.96B	15.99B	15.50B	14.73B
Net Income	11.64B	5.85B	11.34B	11.32B	10.57B	9.84B
Balance Sheet
Total Assets	328.69B	328.69B	325.69B	327.05B	328.47B	327.82B
Cash, Cash Equivalents and Short-Term Investments	9.91B	9.91B	11.49B	14.86B	13.05B	12.26B
Total Debt	168.50B	168.50B	166.00B	167.50B	169.50B	169.50B
Total Liabilities	176.32B	176.32B	173.61B	175.18B	177.30B	176.90B
Stockholders Equity	152.37B	152.37B	152.08B	151.87B	151.17B	150.93B
Cash Flow
Free Cash Flow	7.36B	2.90B	9.33B	14.48B	11.24B	-9.15B
Operating Cash Flow	15.57B	8.06B	15.20B	15.97B	15.09B	14.10B
Investing Cash Flow	-8.18B	-5.17B	-5.90B	-1.60B	-3.91B	-23.22B
Financing Cash Flow	-8.86B	-4.29B	-12.63B	-12.61B	-10.37B	11.84B

Nippon Accommodations Fund Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 133000.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3226, the sentiment is Positive. The current price of 133000 is above the 20-day moving average (MA) of 131425.00, above the 50-day MA of 131412.00, and above the 200-day MA of 120544.53, indicating a bullish trend. The MACD of 145.59 indicates Negative momentum. The RSI at 58.35 is Neutral, neither overbought nor oversold. The STOCH value of 85.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3309	73 Outperform	¥367.99B	18.92	6.92%	5.31%	-27.01%	18.03%
8964	72 Outperform	¥254.81B	20.58	―	4.66%	4.11%	2.05%
3249	68 Neutral	¥380.43B	21.01	7.56%	4.61%	-6.57%	2.83%
3279	68 Neutral	¥332.45B	23.58	5.23%	4.22%	-5.01%	―
3234	67 Neutral	¥284.38B	23.12	―	4.14%	-0.15%	-2.63%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3226	59 Neutral	¥334.05B	28.69	―	3.56%	2.91%	2.68%

Nippon Accommodations Fund Inc. Corporate Events

Mitsui Fudosan Accommodations Fund Inc. Announces New Borrowing for Loan Repayment

Mitsui Fudosan Accommodations Fund Inc. has announced a new borrowing of 0.7 billion yen from The Chiba Bank, Ltd., with the funds being allocated to repay a previous loan of 1.0 billion yen. This transaction slightly reduces the company’s total interest-bearing debt from 168.5 billion yen to 168.2 billion yen, maintaining a stable interest-bearing debt ratio and indicating a strategic financial management approach.

The most recent analyst rating on (JP:3226) stock is a Hold with a Yen127605.00 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 Green Loan Refinancing

Nippon Accommodations Fund Inc. has announced a refinancing initiative involving a green loan to manage its debt obligations. This move is part of its strategy to enhance its financial structure by utilizing funds for the repayment of loans associated with green assets, thereby supporting its sustainability goals and potentially improving its market positioning.

The most recent analyst rating on (JP:3226) stock is a Hold with a Yen127605.00 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 New Loan and Interest Rate Swap

Nippon Accommodations Fund Inc. has announced a new borrowing of 2.0 billion yen from Shinkin Central Bank, with the funds allocated for repaying existing loans. Additionally, NAF has entered into an interest rate swap agreement with Nomura Securities to mitigate the risks associated with interest rate fluctuations by fixing the interest rate at 1.9169%. This strategic financial move is expected to stabilize NAF’s financial obligations and enhance its financial management by reducing exposure to variable interest rates, thereby potentially benefiting stakeholders by ensuring more predictable financial outcomes.

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 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.