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Mori Hills Reit Investment Corporation (JP:3234)
:3234
Japanese Market

Mori Hills Reit Investment Corporation (3234) AI Stock Analysis

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JP

Mori Hills Reit Investment Corporation

(3234)

Rating:67Neutral
Price Target:
Mori Hills Reit Investment Corporation scores well due to strong profitability and stable dividend yield, despite the challenges of declining revenue and free cash flow. Technical analysis shows a neutral stance, with no clear momentum. While the valuation is fair, the company's leveraged balance sheet requires monitoring. Overall, the stock presents a moderate investment opportunity, with profitability and dividends providing strengths, but caution warranted due to revenue and cash flow trends.

Mori Hills Reit Investment Corporation (3234) vs. iShares MSCI Japan ETF (EWJ)

Mori Hills Reit Investment Corporation Business Overview & Revenue Model

Company DescriptionMori Hills REIT Investment Corporation (3234) is a Japanese real estate investment trust primarily focused on investing in and managing a diversified portfolio of office buildings, residential properties, and commercial facilities. The company aims to maximize investor returns through strategic acquisitions and effective property management practices, primarily within the Tokyo metropolitan area. Mori Hills REIT leverages its expertise in the real estate sector to provide consistent income and capital appreciation to its stakeholders.
How the Company Makes MoneyMori Hills REIT Investment Corporation generates revenue primarily through rental income derived from its portfolio of real estate properties. The key revenue streams include leasing office spaces, retail spaces, and residential units to tenants. The company employs a strategic approach to property acquisitions and developments to ensure high occupancy rates and competitive lease terms. Additionally, Mori Hills REIT may engage in property sales or redevelopment projects that contribute to capital gains. The trust's earnings are also influenced by factors such as property market conditions, economic trends, and strategic partnerships with property management firms and real estate developers.

Mori Hills Reit Investment Corporation Financial Statement Overview

Summary
Mori Hills Reit Investment Corporation exhibits strong profitability and efficient operations, with high margins and returns on equity. However, the sharp decline in revenue and free cash flow highlights potential vulnerabilities. The balance sheet reflects a leveraged position, which could pose risks if income streams continue to fluctuate. Overall, while the company is profitable and stable, attention to revenue and cash flow trends is crucial for sustaining long-term growth.
Income Statement
72
Positive
The company displays strong profitability with a consistently high gross profit margin, evidenced by 100% in the latest annual report. However, revenue has declined significantly by over 50% in the most recent year, indicating potential instability in income streams. Despite the revenue drop, the net profit margin remains robust at 55.6%, suggesting effective cost management. The EBIT margin is 61.0%, reflecting strong operational efficiency.
Balance Sheet
68
Positive
The balance sheet shows a stable financial position with a healthy equity ratio of 49.8%. However, the debt-to-equity ratio is relatively high at 0.80, indicating significant leverage, which could pose risks in a volatile market environment. The return on equity is impressive at 30.0%, signaling strong returns on investments.
Cash Flow
65
Positive
Cash flow analysis reveals a substantial decline in free cash flow, with a negative growth rate of -45.8%. Despite this, the operating cash flow to net income ratio is 1.49, indicating efficient cash conversion. However, the free cash flow to net income ratio is at 1.49, suggesting room for improvement in cash generation relative to net income.
BreakdownMar 2025Mar 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue11.09B22.35B22.43B21.02B19.66B
Gross Profit11.09B15.17B15.43B14.17B13.02B
EBITDA0.0015.84B15.82B14.95B14.14B
Net Income6.16B12.63B12.83B11.96B11.16B
Balance Sheet
Total Assets413.18B413.26B414.89B412.89B404.95B
Cash, Cash Equivalents and Short-Term Investments19.64B18.22B16.05B10.64B8.31B
Total Debt165.23B189.92B192.42B192.42B186.22B
Total Liabilities207.53B207.69B210.09B210.10B204.13B
Stockholders Equity205.65B205.58B204.80B202.80B200.82B
Cash Flow
Free Cash Flow9.19B16.96B17.31B7.40B291.38M
Operating Cash Flow9.19B17.91B18.09B16.22B13.79B
Investing Cash Flow-225.71M-963.86M-673.83M-8.75B-13.40B
Financing Cash Flow-6.85B-15.23B-11.63B-5.00B1.17B

Mori Hills Reit Investment Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price133800.00
Price Trends
50DMA
132636.00
Positive
100DMA
131944.00
Positive
200DMA
127284.31
Positive
Market Momentum
MACD
945.35
Negative
RSI
59.30
Neutral
STOCH
49.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3234, the sentiment is Positive. The current price of 133800 is above the 20-day moving average (MA) of 133245.00, above the 50-day MA of 132636.00, and above the 200-day MA of 127284.31, indicating a bullish trend. The MACD of 945.35 indicates Negative momentum. The RSI at 59.30 is Neutral, neither overbought nor oversold. The STOCH value of 49.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3234.

Mori Hills Reit Investment Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (70)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥522.74B23.21
4.13%-17.31%15.83%
76
Outperform
$1.12T24.446.37%3.61%21.60%18.44%
75
Outperform
¥671.13B27.10
4.68%3.50%5.40%
72
Outperform
¥485.86B20.296.54%743.88%51.12%17.94%
70
Neutral
¥738.70B20.475.50%5.41%-8.21%9.33%
70
Neutral
¥231.46B14.1510.67%19.63%17.32%17.90%
67
Neutral
¥258.51B20.67
4.57%5.93%-1.63%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3234
Mori Hills Reit Investment Corporation
134,300.00
9,631.31
7.73%
JP:3283
Nippon Prologis REIT, Inc.
79,500.00
1,323.33
1.69%
JP:8954
ORIX JREIT Inc.
189,400.00
38,419.80
25.45%
JP:8960
United Urban Investment
155,600.00
20,971.40
15.58%
JP:8953
Japan Retail Investment
103,400.00
18,250.48
21.43%
JP:8951
Nippon Building
133,600.00
24,998.52
23.02%

Mori Hills Reit Investment Corporation Corporate Events

Mori Hills REIT Reports April Investment Unit Repurchase
May 1, 2025

Mori Hills REIT Investment Corporation announced the repurchase of 9,121 of its own investment units in April 2025, amounting to approximately 1.2 billion yen. This move is part of a broader strategy approved by the board to repurchase up to 30,700 units, aiming to enhance shareholder value and optimize capital structure.

Mori Hills REIT Announces Investment Unit Repurchase
Apr 1, 2025

Mori Hills REIT Investment Corporation announced the repurchase of 4,005 of its own investment units in March 2025, amounting to 545,986,100 yen. This move is part of a broader strategy approved by the board to repurchase up to 30,700 units by July 2025, aiming to enhance shareholder value and optimize capital structure.

Mori Hills REIT Sets Interest Rates for New Borrowings
Mar 27, 2025

Mori Hills REIT Investment Corporation announced the interest rates for its recent borrowings, which are set to be drawn down on March 31, 2025. The borrowings, totaling 3,400 million yen, are unsecured and unguaranteed, with interest rates set at 1.56250% and 1.85375% for different lenders. This financial move is likely to impact MHR’s financial strategy and stakeholder interests by securing necessary funds for its operations.

Mori Hills REIT Proposes Amendments and Director Appointments
Mar 17, 2025

Mori Hills REIT Investment Corporation has announced plans to amend its Articles of Incorporation and appoint new directors, subject to approval at its upcoming general meeting of unitholders. These changes aim to update operational procedures and leadership roles, potentially impacting the company’s governance and strategic direction.

Mori Hills REIT Secures 8,200 Million Yen in New Borrowings
Mar 17, 2025

Mori Hills REIT Investment Corporation announced new borrowings totaling 8,200 million yen to enhance cash reserves and refinance existing long-term loans. The borrowings include green loans, which will be used to refinance loans associated with the acquisition of the Roppongi Hills Mori Tower, aligning with the company’s sustainability framework. This move is expected to strengthen MHR’s financial position and support its ongoing investment strategies.

Mori Hills REIT to Repurchase Investment Units and Amend Guidelines
Mar 17, 2025

Mori Hills REIT Investment Corporation announced its decision to repurchase its own investment units to increase capital efficiency and return profits to unitholders, following a comprehensive review of financial conditions and market trends. The asset management company also amended its management guidelines to include provisions for the repurchase and retirement of investment units, aiming to enhance unitholder value over the medium to long term.

Mori Hills REIT Renews Lease Agreement with Mori Building
Mar 17, 2025

Mori Hills REIT Investment Corporation has announced the renewal of a building lease and property management agreement with Mori Building Co., Ltd. for the Roppongi Hills Mori Tower. The agreement, effective from October 1, 2025, maintains the same terms as the previous lease, ensuring stability in rental income and property management. This transaction underscores the strategic relationship between MHR and Mori Building, highlighting the latter’s significant influence as a major stakeholder and service provider, which could impact MHR’s operational and financial dynamics.

Mori Hills REIT Announces Strategic Partial Asset Transfer
Mar 17, 2025

Mori Hills REIT Investment Corporation announced the partial transfer of trust beneficiary interest in the land of Laforet Harajuku. This strategic move aims to manifest unrealized gains and maintain rent income by transferring a portion of the property while retaining a significant ownership interest. The transfer is part of a broader strategy to acquire new properties and improve unitholder interests by using special tax treatments and retaining some gains as internal reserves. Mori Building Co., Ltd., the buyer, will acquire the split portion, aligning with its long-term development strategy.

Mori Hills REIT Expands Stake in Toranomon Hills Mori Tower
Mar 17, 2025

Mori Hills REIT Investment Corporation has announced an additional acquisition of a trust beneficiary interest in the Toranomon Hills Mori Tower, a premium property in Tokyo. This strategic move aims to enhance profitability and stability by expanding their ownership in this landmark, which is expected to continue being a competitive asset due to its prime location and top-level facilities.

Mori Hills REIT Announces 37th Fiscal Period Results
Mar 17, 2025

Mori Hills REIT Investment Corporation announced the results of its 37th fiscal period ending January 31, 2025. The announcement highlights the potential risks associated with fluctuations in real estate value and the financial status of the corporation, which may impact unitholders. The document also emphasizes that the information provided is for informational purposes only and not a guarantee of future performance.

Mori Hills REIT Reports Stable Financials Amid Slight Revenue Dip
Mar 17, 2025

Mori Hills REIT Investment Corporation reported a slight decrease in operating revenue and net income for the thirty-seventh fiscal period ending January 31, 2025, compared to the previous period. Despite the decline, the company maintains a stable financial position with a high dividend payout ratio. Looking ahead, the company forecasts a modest increase in operating revenue for the thirty-eighth and thirty-ninth fiscal periods, with a focus on maintaining consistent dividend distributions.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 01, 2025