Mori Hills Reit Investment Corporation (3234) AI Stock Analysis

• Market Cap: ¥258.51B
• Dividend Yield: 4.74%
• Average Volume (3M): 3.85K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.28
• Revenue Growth: 5.93%
• EPS Growth: -1.63%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 59
• Industry: REIT - Diversified
• EPS (TTM): 3216.00
• Shares Outstanding: 1,916,330
• 10 Day Avg. Volume: 2,787
• 30 Day Avg. Volume: 3,845
• PEG Ratio: 5.85
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.51
• 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

• Rating: 67 Neutral
• 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 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	Mar 2025	Mar 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	11.09B	22.35B	22.43B	21.02B	19.66B
Gross Profit	11.09B	15.17B	15.43B	14.17B	13.02B
EBITDA	0.00	15.84B	15.82B	14.95B	14.14B
Net Income	6.16B	12.63B	12.83B	11.96B	11.16B
Balance Sheet
Total Assets	413.18B	413.26B	414.89B	412.89B	404.95B
Cash, Cash Equivalents and Short-Term Investments	19.64B	18.22B	16.05B	10.64B	8.31B
Total Debt	165.23B	189.92B	192.42B	192.42B	186.22B
Total Liabilities	207.53B	207.69B	210.09B	210.10B	204.13B
Stockholders Equity	205.65B	205.58B	204.80B	202.80B	200.82B
Cash Flow
Free Cash Flow	9.19B	16.96B	17.31B	7.40B	291.38M
Operating Cash Flow	9.19B	17.91B	18.09B	16.22B	13.79B
Investing Cash Flow	-225.71M	-963.86M	-673.83M	-8.75B	-13.40B
Financing Cash Flow	-6.85B	-15.23B	-11.63B	-5.00B	1.17B

Mori Hills Reit Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 134900.00
• 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 Neutral. The current price of 134900 is above the 20-day moving average (MA) of 134765.00, above the 50-day MA of 133350.00, and above the 200-day MA of 128189.75, indicating a neutral trend. The MACD of 288.64 indicates Positive momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 41.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
3234	67 Neutral	¥258.51B	20.67		4.74%	5.93%	-1.63%
Sector *	54 Neutral	$1.22B	3.74	0.67%	6.15%	-2.39%	-129.28%
7ZY	―	€1.76B	20.83	5.23%	9.99%	―	―
2ES	―	€1.80B	16.55	7.72%	5.99%	―	―
3226	68 Neutral	¥294.78B	25.94		3.82%	-3.25%	-2.56%
8956	63 Neutral	¥191.48B	21.43		4.58%	13.38%	-6.44%
8964	―	¥226.95B	17.55		5.23%	―	―

Mori Hills Reit Investment Corporation Corporate Events

Mori Hills REIT Reports April Investment Unit Repurchase

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

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

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

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

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

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

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

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

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

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

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.