Activia Properties (3279) AI Stock Analysis

• Market Cap: €329.83B
• Dividend Yield: 4.24%
• Average Volume (3M): 4.88K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.31
• Revenue Growth: -5.01%
• EPS Growth: N/A
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 2909.00
• Shares Outstanding: 2,376,318
• 10 Day Avg. Volume: 4,809
• 30 Day Avg. Volume: 4,875
• PEG Ratio: -0.34
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 2.69
• P/FCF Ratio: 4.62
• 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: €145,573.77
• Price Target Upside: 5.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥155,621 ▲(12.61% Upside)

Activia Properties shows strong financial performance with high profitability and efficient leverage, though revenue and net income declines suggest growth challenges. Technical analysis indicates strong bullish momentum, but overbought conditions may lead to a pullback. Valuation is relatively high, but the dividend yield offers a compensatory return. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong Profitability

A high gross profit margin reflects efficient cost management and pricing power, contributing to sustained profitability and competitive advantage.

Efficient Leverage

Balanced leverage suggests prudent financial management, allowing the company to fund growth initiatives while maintaining financial stability.

High ROE

A high ROE indicates effective use of shareholders' equity to generate profits, enhancing investor confidence and supporting long-term growth.

Negative Factors

Revenue Decline

Declining revenue suggests potential challenges in market demand or competitive pressures, necessitating strategic initiatives to stimulate growth.

Net Income Decline

Decreasing net income may indicate rising costs or declining sales, impacting profitability and requiring cost control measures or revenue enhancement strategies.

Free Cash Flow Fluctuations

Fluctuating free cash flow can affect liquidity and limit the ability to fund new projects or return capital to shareholders, posing a risk to financial flexibility.

Activia Properties Business Overview & Revenue Model

Company Description

Activia Properties (3279) is a real estate investment and management company specializing in the acquisition, development, and leasing of commercial properties. The company operates primarily in the commercial real estate sector, focusing on office spaces, retail centers, and mixed-use developments. Activia Properties is committed to enhancing property value through strategic acquisitions, renovations, and effective property management, ensuring high occupancy rates and tenant satisfaction.

How the Company Makes Money

Activia Properties generates revenue through several key streams. The primary source of income is rental income derived from leasing commercial spaces to various tenants, which includes long-term leases with established businesses and short-term leases for retail spaces. Additionally, the company profits from property management services, which involve overseeing the operations and maintenance of its properties, often charging fees to property owners for these services. Furthermore, Activia Properties may engage in property sales, realizing capital gains from appreciated assets. Strategic partnerships with local businesses and contractors also contribute to the company's earnings, enhancing service offerings and expanding its market reach.

Activia Properties Financial Statement Overview

Summary

Activia Properties demonstrates solid financial health with strong profitability and efficient leverage. While the income statement shows high margins, revenue and net income declines indicate a need for growth initiatives. The balance sheet is robust, with a balanced debt-to-equity ratio and high ROE, suggesting effective asset utilization. Cash flow stability is a positive, but recent fluctuations warrant careful liquidity management.

Income Statement

The income statement shows a generally stable revenue trend with minor fluctuations. The gross profit margin for the latest year is approximately 59.5%, indicating strong profitability. However, revenue has shown a slight decline from 34.8 billion to 31.6 billion yen, which suggests a need for growth stimulation. Net profit margin is healthy at 44.8%, though a decline in net income from the previous year suggests potential challenges in maintaining growth.

Balance Sheet

The balance sheet reflects a solid equity base with a debt-to-equity ratio of about 0.99, indicating balanced leverage. The equity ratio stands at 47.8%, showing a strong asset base funded by equity. ROE is robust at 52.9%, underscoring strong returns on equity. However, total assets and stockholders' equity have slightly decreased, indicating potential stagnation in asset growth.

Cash Flow

Cash flow analysis reveals a strong operating cash flow, though free cash flow has seen fluctuations due to varying capital expenditures. The free cash flow to net income ratio is 1.3, indicating efficient cash generation relative to net income. However, the recent reduction in free cash flow compared to the previous year highlights potential liquidity management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.59B	31.62B	34.83B	31.69B	30.36B	30.06B
Gross Profit	7.93B	18.80B	19.88B	20.24B	19.44B	19.00B
EBITDA	19.02B	18.86B	21.91B	20.29B	19.60B	19.11B
Net Income	13.66B	14.16B	17.47B	15.58B	15.00B	14.70B
Balance Sheet
Total Assets	560.10B	560.21B	568.92B	561.68B	566.26B	525.38B
Cash, Cash Equivalents and Short-Term Investments	19.80B	16.84B	21.37B	18.68B	15.99B	14.13B
Total Debt	264.85B	264.85B	265.85B	260.35B	260.35B	244.37B
Total Liabilities	292.77B	292.43B	294.12B	286.78B	287.54B	269.67B
Stockholders Equity	267.33B	267.78B	274.80B	274.91B	278.72B	255.71B
Cash Flow
Free Cash Flow	13.96B	18.42B	14.61B	23.47B	-22.48B	5.85B
Operating Cash Flow	17.29B	21.63B	62.48B	24.49B	29.75B	38.52B
Investing Cash Flow	-4.14B	-3.26B	-46.75B	-2.55B	-50.45B	-31.87B
Financing Cash Flow	-16.19B	-22.54B	-12.37B	-19.81B	23.21B	-5.29B

Activia Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 138200.00
• 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:3279, the sentiment is Positive. The current price of 138200 is below the 20-day moving average (MA) of 140561.88, above the 50-day MA of 137793.91, and above the 200-day MA of 123116.10, indicating a neutral trend. The MACD of 227.52 indicates Positive momentum. The RSI at 48.95 is Neutral, neither overbought nor oversold. The STOCH value of 26.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3279.

Activia Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8964	72 Outperform	¥246.70B	19.92	―	4.70%	4.11%	2.05%
8956	70 Outperform	¥204.52B	22.88	―	4.51%	13.38%	-6.44%
3249	68 Neutral	€367.50B	20.30	7.56%	4.62%	-6.57%	2.83%
3279	68 Neutral	€329.83B	23.39	5.23%	4.24%	-5.01%	―
3234	67 Neutral	¥279.02B	22.68	―	4.21%	-0.15%	-2.63%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3226	59 Neutral	¥330.28B	28.36	―	3.56%	2.91%	2.68%

Activia Properties Corporate Events

Activia Properties Announces Key Leadership Change

Activia Properties Inc. announced a key personnel change at TLC REIT Management Inc., the asset management company it collaborates with. Yoshiya Kira will take over as Executive Director and Compliance Officer, effective December 1, 2025, replacing Hidekazu Omi. This change is part of the company’s compliance with relevant financial and real estate regulations, potentially impacting its operational efficiency and stakeholder confidence.

Activia Properties Renews Lease Agreement with Times24

Activia Properties Inc. has announced the renewal of a lease agreement with Times24 Co., Ltd. for the Kyoto Karasuma Parking Building, effective from August 1, 2026, to July 31, 2031. This renewal is expected to improve the profitability of Activia Properties, although it will have minimal impact on the company’s management performance for the fiscal periods ending November 2025 and May 2026.

Activia Properties Secures New Commitment Line Agreement

Activia Properties Inc. has entered into a new commitment line agreement to ensure flexible and stable financing for potential future property acquisitions. This new agreement, replacing an existing ¥9 billion line, increases the total commitment line limit to ¥21 billion, involving Sumitomo Mitsui Trust Bank, Mizuho Bank, and MUFG Bank, and is set to run from October 2025 to September 2026.

Activia Properties Secures Financial Stability with Interest Rate Swap Agreement

Activia Properties Inc. has entered into an interest rate swap agreement to mitigate the risks associated with fluctuating interest rates on a long-term borrowing of 9.85 billion yen. This strategic move aims to convert the variable interest rate into a fixed rate of 1.85160%, ensuring financial stability and predictability in its interest payments over the term of the loan, which extends until 2033.

Activia Properties Sets Interest Rate for New Borrowing

Activia Properties Inc. has set the interest rate for a fixed-rate borrowing of 1.15 billion yen from the Development Bank of Japan Inc. at 1.50750%, with a drawdown date of September 16, 2025, and a due date of September 10, 2029. This borrowing, which is unsecured and unguaranteed, is part of the company’s strategy to manage its financial operations effectively, potentially impacting its financial stability and stakeholder confidence.