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

• Market Cap: ¥342.39B
• Dividend Yield: 5.1%
• Average Volume (3M): 7.40K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.30
• Revenue Growth: -6.57%
• EPS Growth: 2.83%
• Country: JP
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: REIT - Diversified
• EPS (TTM): 3665.00
• Shares Outstanding: 2,536,216
• 10 Day Avg. Volume: 8,310
• 30 Day Avg. Volume: 7,403
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥129,766.44
• Price Target Upside: -3.88% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥130,169 ▼(-3.58% Downside)

The stock's overall score is driven by strong financial performance, underpinned by solid revenue growth and profitability. Technical analysis supports a positive outlook with bullish momentum. Valuation is fair with a strong dividend yield, making it appealing for income-focused investors. Attention to rising liabilities and negative free cash flow is necessary to maintain financial health.

Industrial & Infrastructure Fund Investment Corporation Business Overview & Revenue Model

Company Description

Industrial & Infrastructure Fund Investment Corporation (IIF) is a Japanese real estate investment trust (REIT) that specializes in industrial and infrastructure properties. The company primarily invests in logistics facilities, industrial properties, and other infrastructure-related assets, aiming to generate stable income and capital growth for its investors. IIF leverages its expertise and experience in the real estate sector to manage a diversified portfolio of high-quality properties across Japan.

How the Company Makes Money

IIF makes money primarily through the acquisition, management, and leasing of industrial and infrastructure properties. The company's revenue model is based on earning rental income from tenants who lease the spaces within their portfolio of properties. Additionally, IIF may engage in property sales to capitalize on value appreciation, contributing to its earnings. The company focuses on strategic property management and maintaining high occupancy rates to ensure consistent income streams. Partnerships with real estate developers and property management firms support IIF in optimizing the performance and value of its assets, further enhancing its revenue potential.

Industrial & Infrastructure Fund Investment Corporation Financial Statement Overview

Summary

The company's revenue growth and profitability are strong, with improved gross and net profit margins. The balance sheet shows moderate leverage, typical for the REIT industry, but rising liabilities are a concern. Cash flow statements reveal strong operational cash but negative free cash flow due to high capital expenditures, which could limit financial flexibility.

Income Statement

The company has demonstrated a solid growth trajectory in its revenue, which increased from JPY 39.16 billion in 2023 to JPY 39.23 billion in 2024. The gross profit margin improved significantly, reflecting effective cost management. Net profit margin and EBIT margin have also shown positive trends, indicating healthy profitability. However, the EBITDA margin has remained stable, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet reflects moderate leverage with a debt-to-equity ratio that has increased due to rising total debt. The equity ratio is stable, and the return on equity is strong, highlighting efficient use of equity. However, the increase in total liabilities needs monitoring to avoid potential financial strain.

Cash Flow

The operating cash flow has shown robust growth, but the free cash flow remains negative, indicating high capital expenditures. The operating cash flow to net income ratio is favorable, suggesting strong cash generation relative to net income. However, the free cash flow to net income ratio is negative, which could impact the company’s ability to finance new investments without raising additional debt.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	42.44B	39.23B	39.16B	33.69B	29.24B	22.03B
Gross Profit	19.18B	21.78B	18.27B	17.17B	18.10B	15.09B
EBITDA	24.12B	22.55B	19.26B	18.34B	18.41B	15.29B
Net Income	17.50B	15.93B	13.36B	12.28B	13.28B	10.89B
Balance Sheet
Total Assets	555.12B	555.44B	433.41B	417.43B	407.43B	342.22B
Cash, Cash Equivalents and Short-Term Investments	28.17B	25.58B	35.31B	35.58B	40.15B	13.13B
Total Debt	282.28B	282.28B	212.28B	202.78B	194.38B	170.58B
Total Liabilities	309.01B	309.23B	237.72B	228.07B	217.31B	187.12B
Stockholders Equity	246.11B	246.20B	195.69B	189.36B	190.12B	155.11B
Cash Flow
Free Cash Flow	-206.07B	-94.95B	-2.35B	-1.23B	-20.89B	-13.64B
Operating Cash Flow	33.08B	29.10B	19.42B	26.18B	28.78B	14.12B
Investing Cash Flow	-143.01B	-139.49B	-21.87B	-25.60B	-45.69B	-26.83B
Financing Cash Flow	94.35B	104.34B	2.35B	-4.74B	45.40B	16.14B

Industrial & Infrastructure Fund Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 135000.00
• 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 135000 is above the 20-day moving average (MA) of 129335.00, above the 50-day MA of 125771.29, and above the 200-day MA of 115747.78, indicating a bullish trend. The MACD of 1596.29 indicates Negative momentum. The RSI at 74.15 is Negative, neither overbought nor oversold. The STOCH value of 80.15 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	74 Outperform	172.95B	15.89	7.46%	4.88%	50.47%	26.45%
3476	74 Outperform	92.51B	18.61	5.32%	5.39%	79.23%	8.31%
3249	71 Outperform	¥342.39B	18.91	7.56%	5.10%	-6.57%	2.83%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.