Mori Hills Reit Investment Corporation (3234) AI Stock Analysis

• Market Cap: ¥287.07B
• Dividend Yield: 4.15%
• Average Volume (3M): 3.19K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.29
• Revenue Growth: -0.15%
• EPS Growth: -2.63%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 3202.00
• Shares Outstanding: 1,916,330
• 10 Day Avg. Volume: 3,521
• 30 Day Avg. Volume: 3,194
• PEG Ratio: -0.76
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 21.71
• P/FCF Ratio: 26.20
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥160,607 ▲(11.22% Upside)

The score is driven primarily by moderate financial performance: stable balance sheet and historically strong margins are offset by a sharp recent revenue drop and uneven free cash flow. Technicals add support with the price above major moving averages and positive momentum. Valuation is mixed, with a strong dividend yield tempered by a relatively high P/E.

Positive Factors

Sustainable Investment

Issuing green bonds for sustainable projects indicates a commitment to environmental responsibility, enhancing long-term asset value and appeal to ESG-conscious investors.

Financial Flexibility

The ability to issue significant bonds provides Mori Hills REIT with enhanced financial flexibility, supporting strategic acquisitions and operational stability.

Strategic Acquisitions

Acquiring high-profile assets like Toranomon Hills Mori Tower strengthens the portfolio and market position, aligning with sustainable investment strategies.

Negative Factors

Revenue Decline

A significant revenue drop can pressure earnings and limit growth potential, raising concerns about the REIT's ability to maintain its financial performance.

Volatile Cash Flow

Inconsistent cash flow generation can undermine financial stability and limit the ability to fund operations and distributions reliably.

Leverage Dependency

Reliance on leverage increases financial risk, potentially impacting the REIT's ability to navigate economic downturns and interest rate fluctuations.

Mori Hills Reit Investment Corporation Business Overview & Revenue Model

Company Description

MHR aims to further enhance the profitability and asset value of its portfolio through growth created by making targeted investment in the "City," while paying close attention to the competitiveness of the "City" concentrating on central Tokyo, and on the portfolio's ability to create value. "City" in MHR's definition is not merely a geographic location with an aggregation of buildings, but a "space" with multiple uses, such as for work, residence, recreation, rest and study that integrates various economic and cultural activities of the people that gather there. MHR believes that the provision of all urban elements will result in people, products and information concentrating and merging to generate new business models and lifestyles. MHR recognizes its Sponsor, the Mori Building Group, (Mori Building Co., Ltd. being its core company), as being uniquely positioned to realize investments in the "City." By optimally utilizing the comprehensive strengths of the Mori Building Group, which has completed successive large-scale redevelopments in central Tokyo, MHR aims to acquire scarce, premium properties and to enhance the asset value of its portfolio.

How the Company Makes Money

Mori 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.28B	11.09B	22.35B	22.43B	21.02B	19.66B
Gross Profit	6.98B	11.09B	15.17B	15.43B	14.17B	13.02B
EBITDA	7.87B	0.00	15.62B	15.82B	14.95B	14.14B
Net Income	5.91B	6.16B	12.63B	12.83B	11.96B	11.16B
Balance Sheet
Total Assets	407.95B	413.18B	413.26B	414.89B	412.89B	404.95B
Cash, Cash Equivalents and Short-Term Investments	14.18B	19.64B	18.22B	16.05B	10.64B	8.31B
Total Debt	188.19B	165.23B	189.92B	192.42B	192.42B	186.22B
Total Liabilities	206.12B	207.53B	207.69B	210.09B	210.10B	204.13B
Stockholders Equity	201.83B	205.65B	205.58B	204.80B	202.80B	200.82B
Cash Flow
Free Cash Flow	350.96M	9.19B	16.96B	17.31B	7.40B	291.38M
Operating Cash Flow	8.91B	9.19B	17.91B	18.09B	16.22B	13.79B
Investing Cash Flow	-7.73B	-225.71M	-963.86M	-673.83M	-8.75B	-13.40B
Financing Cash Flow	-11.22B	-6.85B	-15.23B	-11.63B	-5.00B	1.17B

Mori Hills Reit Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 144400.00
• 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:3234, the sentiment is Positive. The current price of 144400 is below the 20-day moving average (MA) of 149560.00, below the 50-day MA of 148506.00, and above the 200-day MA of 138773.42, indicating a bullish trend. The MACD of 689.71 indicates Positive momentum. The RSI at 53.80 is Neutral, neither overbought nor oversold. The STOCH value of 59.37 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8964	72 Outperform	¥254.81B	20.58	―	4.67%	4.11%	2.05%
3279	68 Neutral	¥349.32B	24.78	5.23%	4.18%	-5.01%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8956	65 Neutral	¥213.56B	25.12	―	4.51%	65.46%	-0.92%
3234	64 Neutral	¥287.07B	23.34	―	4.15%	-0.15%	-2.63%
3249	64 Neutral	¥399.45B	22.06	7.56%	4.52%	-6.57%	2.83%
3226	59 Neutral	¥348.91B	29.96	―	3.56%	2.91%	2.68%

Mori Hills Reit Investment Corporation Corporate Events

Mori Hills REIT Submits Shelf Registration for 100 Billion Yen Bonds

Mori Hills REIT Investment Corporation announced the submission of a shelf registration statement for investment corporation bonds, aiming to issue up to 100 billion yen. The funds are intended for asset acquisition, debt repayment, and other operational needs, which could enhance MHR’s financial flexibility and market positioning.

The most recent analyst rating on (JP:3234) stock is a Hold with a Yen148000.00 price target. To see the full list of analyst forecasts on Mori Hills Reit Investment Corporation stock, see the JP:3234 Stock Forecast page.

Mori Hills REIT Secures Green Loans for Strategic Acquisitions

Mori Hills REIT Investment Corporation announced new borrowings, including green loans, to enhance its cash reserves and refinance existing long-term loans. The funds will also support the acquisition of Toranomon Hills Mori Tower, reflecting the company’s commitment to sustainable investment practices and strengthening its asset portfolio.

The most recent analyst rating on (JP:3234) stock is a Hold with a Yen148000.00 price target. To see the full list of analyst forecasts on Mori Hills Reit Investment Corporation stock, see the JP:3234 Stock Forecast page.

Mori Hills REIT Issues 2 Billion Yen Green Bond for Sustainable Projects

Mori Hills REIT Investment Corporation announced the issuance of a 2 billion yen green bond to fund environmentally focused projects and refinance existing bonds. This move aligns with the company’s strategy to enhance sustainability and maximize unitholder value over the medium to long term, reflecting its commitment to sustainable finance and environmental responsibility.

The most recent analyst rating on (JP:3234) stock is a Hold with a Yen148000.00 price target. To see the full list of analyst forecasts on Mori Hills Reit Investment Corporation stock, see the JP:3234 Stock Forecast page.