Nippon Prologis REIT, Inc. (3283) AI Stock Analysis

• Market Cap: ¥784.38B
• Dividend Yield: 4.1%
• Average Volume (3M): 14.92K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.12
• Revenue Growth: 12.04%
• EPS Growth: 12.83%
• Country: JP
• Employees: 136
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 1821.00
• Shares Outstanding: 8,389,107
• 10 Day Avg. Volume: 14,961
• 30 Day Avg. Volume: 14,916
• PEG Ratio: 1.65
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 3.64
• P/FCF Ratio: 5.93
• 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: ¥91,700.00
• Price Target Upside: 3.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥99,333.00 ▲(11.61% Upside)

Nippon Prologis REIT, Inc. scores well due to its strong financial performance and positive technical indicators. The high dividend yield further enhances its attractiveness, despite a relatively high P/E ratio. The absence of earnings call data and corporate events does not impact the overall score significantly.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and maintain tenant demand, supporting long-term stability.

Cash Flow Management

Effective cash flow management enhances financial flexibility, enabling reinvestment in properties and potential for increased shareholder returns.

Profitability Margins

High profitability margins reflect efficient cost management and operational efficiency, contributing to sustained financial health.

Negative Factors

High Debt Levels

High debt levels can pose risks to financial stability, potentially limiting flexibility in downturns despite a strong equity base.

Limited Earnings Call Data

Lack of earnings call data limits transparency and investor insight into management's strategic vision and operational performance.

Valuation Concerns

High valuation ratios may indicate market expectations that are difficult to meet, potentially leading to volatility if growth slows.

Nippon Prologis REIT, Inc. Business Overview & Revenue Model

Company Description

Nippon Prologis REIT, Inc. (3283) is a leading real estate investment trust (REIT) in Japan, specializing in the acquisition, development, and management of logistics facilities. The company focuses on the industrial sector, primarily investing in high-quality logistics properties strategically located to serve major urban areas and transportation hubs. Its portfolio includes state-of-the-art warehouses and distribution centers that cater to a diverse range of tenants, including e-commerce, retail, and third-party logistics providers.

How the Company Makes Money

Nippon Prologis REIT generates revenue primarily through leasing its logistics properties to tenants on long-term contracts. The company's revenue model is based on rental income earned from these leases, which provides a consistent and stable cash flow. Additionally, the REIT may benefit from property appreciation and value creation through strategic asset management and development projects. Key revenue streams include rental income from existing properties, potential lease escalations, and income derived from new developments or acquisitions. The company's strong relationships with major logistics operators and e-commerce firms also play a pivotal role in securing long-term tenants, thereby enhancing its revenue stability. Furthermore, Nippon Prologis REIT may engage in partnerships and joint ventures to expand its portfolio and leverage market opportunities, contributing to its overall earnings.

Nippon Prologis REIT, Inc. Financial Statement Overview

Summary

Nippon Prologis REIT, Inc. demonstrates strong financial performance with consistent revenue growth, high profitability margins, and robust cash flow generation. The company's effective leverage management and strong equity base contribute to financial stability and resilience.

Income Statement

Nippon Prologis REIT, Inc. demonstrates strong profitability with a consistent increase in revenue and net income over the years. The gross profit margin for the latest year is approximately 53.5%, and the net profit margin is 40.9%, indicating efficient cost management and robust profitability. The revenue growth rate from 2023 to 2024 is 3.5%, demonstrating steady growth. The company also shows a healthy EBIT margin of 44.6% and an EBITDA margin of 67.6%, both reflecting efficient operations. Overall, the company’s income statement reflects a solid performance with consistent growth and profitability.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.66, indicating a balanced leverage strategy. The return on equity (ROE) is high at 49.4%, showcasing effective utilization of equity to generate profits. The equity ratio of 57.9% highlights a strong equity base relative to total assets, ensuring financial stability. Despite a significant debt load, the company's robust equity position mitigates potential risks, maintaining financial health.

Cash Flow

Nippon Prologis REIT, Inc. exhibits strong cash flow management with a notable improvement in free cash flow, transitioning from a negative to a positive position year over year. The free cash flow growth rate is significantly positive, reflecting effective cash generation and capital expenditure management. The operating cash flow to net income ratio is 1.61, indicating efficient cash conversion from earnings. The free cash flow to net income ratio of 1.50 further emphasizes strong cash generation capabilities, supporting potential for reinvestment and shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.61B	61.43B	59.35B	54.38B	49.96B	46.27B
Gross Profit	36.06B	32.87B	26.09B	24.23B	27.92B	26.19B
EBITDA	45.05B	41.54B	40.02B	37.06B	34.52B	32.17B
Net Income	27.99B	25.14B	23.46B	22.37B	21.61B	19.95B
Balance Sheet
Total Assets	897.31B	878.18B	881.22B	803.38B	752.32B	693.02B
Cash, Cash Equivalents and Short-Term Investments	21.29B	34.70B	33.30B	32.54B	35.00B	29.11B
Total Debt	362.30B	333.30B	333.30B	309.10B	282.50B	260.20B
Total Liabilities	398.09B	369.63B	368.63B	337.07B	313.48B	288.68B
Stockholders Equity	499.22B	508.54B	512.59B	466.31B	438.84B	404.34B
Cash Flow
Free Cash Flow	-7.67B	37.69B	-60.84B	34.96B	-30.70B	-21.49B
Operating Cash Flow	37.05B	40.51B	36.39B	35.80B	34.22B	39.64B
Investing Cash Flow	-43.63B	-2.54B	-94.50B	-63.85B	-63.05B	-59.36B
Financing Cash Flow	-10.53B	-29.20B	52.23B	26.31B	35.09B	29.86B

Nippon Prologis REIT, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 89000.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3283, the sentiment is Positive. The current price of 89000 is below the 20-day moving average (MA) of 91880.00, below the 50-day MA of 90093.52, and above the 200-day MA of 81311.01, indicating a bullish trend. The MACD of 607.36 indicates Negative momentum. The RSI at 62.40 is Neutral, neither overbought nor oversold. The STOCH value of 83.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3283.

Nippon Prologis REIT, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3283	76 Outperform	¥784.38B	28.38	―	4.10%	12.04%	12.83%
3481	68 Neutral	¥197.06B	23.23	―	4.68%	22.29%	0.88%
8967	66 Neutral	¥284.23B	24.90	8.35%	3.87%	27.77%	14.16%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3466	65 Neutral	¥283.73B	22.50	5.78%	5.26%	12.81%	1.32%

Nippon Prologis REIT, Inc. Corporate Events

Nippon Prologis REIT Secures 5,000 Million Yen for Debt Refinancing

Nippon Prologis REIT, Inc. has announced a debt financing initiative to obtain 5,000 million yen through short-term borrowing from Sumitomo Mitsui Banking Corporation and Mizuho Bank, Ltd. This borrowing is intended to refinance an existing short-term loan, ensuring the company’s financial stability and operational continuity. The refinancing will not alter the company’s total interest-bearing debt, maintaining it at 362,300 million yen, thus indicating a stable financial strategy without increasing its debt burden.

Nippon Prologis REIT Secures New Debt Financing and Interest Rate Swap

Nippon Prologis REIT, Inc. announced a new debt financing arrangement of 5,000 million yen with a syndicate of lenders arranged by Sumitomo Mitsui Banking Corporation, alongside an interest rate swap agreement to mitigate interest rate volatility. This strategic financial move aims to refinance existing long-term borrowings, maintaining the company’s stable financial structure and potentially enhancing its market position by securing fixed interest rates, which could benefit stakeholders by reducing exposure to fluctuating interest rates.