Industrial & Infrastructure Fund Investment Corporation (3249) AI Stock Analysis

• Market Cap: ¥390.32B
• Dividend Yield: 4.52%
• Average Volume (3M): 8.64K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.29
• Revenue Growth: -6.57%
• EPS Growth: 2.83%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 3665.00
• Shares Outstanding: 2,536,216
• 10 Day Avg. Volume: 8,179
• 30 Day Avg. Volume: 8,637
• PEG Ratio: 31.56
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 7.78
• P/FCF Ratio: 9.36
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥161,102 ▲(4.68% Upside)

The stock's overall score reflects strong financial performance driven by revenue growth and profitability, tempered by high leverage and negative cash flow trends. Technical indicators show moderate strength, and valuation metrics are favorable, offering a balanced investment opportunity.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective business strategies and expanding market presence, supporting long-term sustainability.

Profitability

High profitability margins reflect efficient operations and pricing power, contributing to robust financial health and shareholder value.

Asset Management

Effective asset management and cash conversion enhance liquidity, providing flexibility for reinvestment and debt reduction.

Negative Factors

High Leverage

High leverage can increase financial risk and limit growth opportunities, necessitating careful debt management to ensure stability.

Negative Cash Flow Growth

Declining cash flow growth may constrain operational flexibility and investment capacity, impacting long-term financial health.

Declining Gross Profit Margin

A declining gross profit margin could signal rising costs or pricing pressures, potentially affecting future profitability if not addressed.

Industrial & Infrastructure Fund Investment Corporation Business Overview & Revenue Model

Company Description

Industrial and Infrastructure Fund Investment Corporation ("IIF") is the first J-REIT focused on acquiring and operating both industrial and infrastructure properties in Japan-properties that play a vital role in the Japanese economy, and for which IIF expects to see stable demand in the mid to long term. With respect to industrial properties, IIF intends to invest in a diverse portfolio of properties, including manufacturing and research and development facilities.

How the Company Makes Money

The company generates revenue through rental income from its owned assets, management fees, and returns on investments in various infrastructure projects. Key revenue streams include long-term leases from logistics and industrial properties, as well as income from energy production in renewable and traditional power generation facilities. Significant partnerships with industry leaders and local governments enhance its investment strategy, enabling the company to capitalize on infrastructure development opportunities. Additionally, the fund may realize capital gains by selling mature assets or by increasing the value of its holdings through effective asset management.

Industrial & Infrastructure Fund Investment Corporation Financial Statement Overview

Summary

The company shows strong revenue growth and profitability with healthy margins. However, high leverage and negative free cash flow growth are concerns that need addressing for long-term stability.

Income Statement

The company shows a strong revenue growth rate of 8.41% in the latest year, indicating a positive trajectory. Gross profit margin and net profit margin are healthy at 45.72% and 43.94% respectively, showcasing strong profitability. However, there is a slight decline in gross profit margin compared to previous periods, which could be a concern if the trend continues.

Balance Sheet

The debt-to-equity ratio is 1.15, which is relatively high, indicating significant leverage. However, the return on equity (ROE) is reasonable at 7.11%, suggesting efficient use of equity. The equity ratio stands at 44.34%, reflecting a balanced capital structure but with room for improvement in reducing leverage.

Cash Flow

The cash flow statement shows a concerning trend with negative free cash flow growth of -115.11%, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.85, which is decent but could be improved. The free cash flow to net income ratio is 1.0, suggesting that all net income is being converted into free cash flow, which is positive.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.57B	39.82B	39.23B	39.16B	33.69B	29.24B
Gross Profit	20.46B	18.20B	21.78B	18.27B	17.17B	18.10B
EBITDA	25.16B	23.11B	22.55B	19.26B	18.34B	18.41B
Net Income	18.10B	17.49B	15.93B	13.36B	12.28B	13.28B
Balance Sheet
Total Assets	554.13B	555.12B	555.44B	433.41B	417.43B	407.43B
Cash, Cash Equivalents and Short-Term Investments	15.79B	17.24B	25.58B	35.31B	35.58B	40.15B
Total Debt	281.33B	282.28B	282.28B	212.28B	202.78B	194.38B
Total Liabilities	307.66B	309.01B	309.23B	237.72B	228.07B	217.31B
Stockholders Equity	246.47B	246.11B	246.20B	195.69B	189.36B	190.12B
Cash Flow
Free Cash Flow	12.20B	33.08B	-94.95B	-2.35B	-1.23B	-20.89B
Operating Cash Flow	28.72B	33.08B	29.10B	19.42B	26.18B	28.78B
Investing Cash Flow	-19.77B	-19.77B	-139.49B	-21.87B	-25.60B	-45.69B
Financing Cash Flow	-18.81B	-18.81B	104.34B	2.35B	-4.74B	45.40B

Industrial & Infrastructure Fund Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 153900.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3249, the sentiment is Positive. The current price of 153900 is above the 20-day moving average (MA) of 149545.00, above the 50-day MA of 147450.00, and above the 200-day MA of 127302.70, indicating a bullish trend. The MACD of 1862.16 indicates Negative momentum. The RSI at 74.96 is Negative, neither overbought nor oversold. The STOCH value of 95.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3249.

Industrial & Infrastructure Fund Investment Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3296	79 Outperform	¥178.96B	16.45	―	4.70%	50.47%	26.45%
3476	75 Outperform	¥96.33B	19.09	―	5.26%	105.75%	8.11%
3249	68 Neutral	¥390.32B	21.56	7.56%	4.52%	-6.57%	2.83%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Industrial & Infrastructure Fund Investment Corporation Corporate Events

Industrial & Infrastructure Fund Announces Strategic Property Disposition and Investment Plans

Industrial & Infrastructure Fund Investment Corporation announced the disposition of the IIF Higashi-Osaka Logistics Center at a price significantly above its book and appraisal values, resulting in a substantial gain. The proceeds from this sale will be used to repurchase investment units, repay loans, and invest in future growth opportunities, aiming to enhance unitholder value.

Industrial & Infrastructure Fund Extends Commitment Line Contracts

Industrial & Infrastructure Fund Investment Corporation has extended the contract periods for its commitment line contracts by one year, enhancing its financial flexibility and stability. This extension involves major banks and maintains the unsecured and unguaranteed nature of the loans, potentially strengthening the company’s liquidity position in the market.

IIF Secures Future Growth with Strategic Logistics Acquisition

IIF announced its decision to invest in a silent partnership, acquiring equity interests in logistics facilities managed by ALPS LOGISTICS CO., LTD. This strategic acquisition aims to secure future property acquisition opportunities and enhance profitability with an anticipated average dividend payout ratio of 6.7%. By introducing CPI-linked rents, IIF ensures inflation resistance and potential for high returns, strengthening its position in the logistics real estate market.

IIF Announces Restructuring of Asset Management Affiliates

Industrial & Infrastructure Fund Investment Corporation has announced changes in the parent and specified affiliated companies of its asset management company, KJR Management. This restructuring, effective from June 13, 2025, simplifies the shareholding structure, with KKR Group Assets Holdings III L.P. becoming the wholly-owning parent company of KJRM Holdings. This change impacts the capital and business relationships of the asset management company, aligning it more closely with KKR’s strategic objectives.

IIF Secures Interest Rate Stability with New Swap Agreement

Industrial & Infrastructure Fund Investment Corporation has entered into an interest rate swap agreement to hedge against future interest rate fluctuations related to a loan scheduled for May 30, 2025. This financial maneuver is not expected to materially impact IIF’s operating status for the fiscal periods ending July 2025 and January 2026, indicating stability in its financial forecasts.