AEON REIT Investment Corp. (3292) AI Stock Analysis

• Market Cap: ¥285.11B
• Dividend Yield: 4.98%
• Average Volume (3M): 3.96K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 0.18
• Revenue Growth: 0.59%
• EPS Growth: 3.29%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 3365.29
• Shares Outstanding: 2,102,569
• 10 Day Avg. Volume: 3,253
• 30 Day Avg. Volume: 3,965
• PEG Ratio: -35.63
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 6.26
• P/FCF Ratio: 11.04
• 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: ¥133,600.00
• Price Target Upside: -1.47% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥139,536 ▲(2.90% Upside)

AEON REIT Investment Corp. has a solid financial foundation with strong profitability and efficient operations, which is the most significant factor in its overall score. The technical analysis suggests a bearish trend, impacting the score negatively. The valuation is reasonable with an attractive dividend yield, but not significantly undervalued. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Business Model Strength

The strategic focus on retail properties and leveraging AEON Group's operational expertise provides a durable competitive advantage, ensuring stable rental income and high occupancy rates, which are crucial for long-term financial stability.

Cash Generation Ability

Stable cash flow and positive Free Cash Flow indicate strong cash generation ability, ensuring the company can meet its obligations, invest in growth opportunities, and provide returns to investors over the long term.

Margin Sustainability

Healthy Gross Profit Margin demonstrates effective cost management and operational efficiency, which are critical for sustaining profitability and competitive positioning in the retail REIT sector.

Negative Factors

Revenue Growth Concerns

Slowing revenue growth could impact long-term financial performance and investor returns, as it may indicate challenges in expanding the portfolio or increasing rental income.

Leverage Risks

High leverage can pose risks during economic downturns, potentially affecting financial flexibility and increasing the cost of capital, which could limit future growth and investment opportunities.

Inconsistent Free Cash Flow Growth

Inconsistent Free Cash Flow Growth reflects fluctuations in capital expenditures, which may impact the company's ability to consistently fund new investments or return capital to shareholders.

AEON REIT Investment Corp. Business Overview & Revenue Model

Company Description

AEON REIT Investment Corporation (hereinafter, AEON REIT) invests primarily in retail and related properties which, as an integral part of the communities in which they are located, form the backbone of communities and their retail business infrastructure. Through said investment, we aim to ensure stable earnings over the medium to long term and achieve steady portfolio growth. AEON REIT was established on November 30, 2012, in accordance with the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951, as amended; hereinafter, the Investment Trusts Act), with AEON Reit Management Co., Ltd. (hereinafter, the Asset Manager) serving as the organizer. AEON REIT was listed on the Real Estate Investment Trust Securities Market (J-REIT market) of the Tokyo Stock Exchange (securities code: 3292) on November 22, 2013. In the fiscal period under review (15th fiscal period), AEON REIT acquired AEON MALL Tamadaira woods (acquisition price: ¥9,667 million) in February 2020 by using borrowings. The real estate held by AEON REIT as of July 31, 2020, totaled 42 properties in Japan and overseas, including AEON MALL SEREMBAN 2 it owns through an overseas real estate holding corporation established in Malaysia (hereinafter, the Overseas SPC), with a total acquisition price of ¥390,185 million. Total leasable area is 3,597,112.78 m2 and the occupancy rate of the entire portfolio is 100.0% as of the same date.

How the Company Makes Money

AEON REIT generates revenue primarily through rental income from its portfolio of retail and commercial properties. The company leases space to a variety of tenants, including supermarkets, specialty shops, and other retailers, benefitting from the established presence of AEON Group. This relationship provides stability and potential for growth in rental income. Additionally, AEON REIT may earn income through property management fees and potentially by engaging in property redevelopment or enhancements that can increase property value and rental income. The company's financial performance is also influenced by market demand for retail space, occupancy rates, and overall economic conditions in Japan.

AEON REIT Investment Corp. Financial Statement Overview

Summary

AEON REIT Investment Corp. demonstrates strong financial performance with solid profitability and efficient operations. The balance sheet is stable but moderately leveraged, and cash flow is robust despite some volatility in free cash generation. Monitoring revenue growth and leverage is advisable to maintain financial health.

Income Statement

AEON REIT Investment Corp. has shown solid financial performance with a stable revenue growth trend over the years. The Gross Profit Margin remains healthy, indicating efficient cost management. The Net Profit Margin is strong, showcasing profitability. While EBIT and EBITDA margins are robust, they reflect the company's operational efficiency. However, the revenue growth rate has slowed down in recent periods, which is a potential area of concern.

Balance Sheet

The company's balance sheet is strong, with a moderate Debt-to-Equity ratio reflecting reasonable leverage. Return on Equity is commendable, suggesting effective use of shareholders' equity. However, the Equity Ratio indicates that a substantial portion of assets is financed by debt, which could pose risks in economic downturns.

Cash Flow

The company's cash flow is stable with a positive Free Cash Flow. The Operating Cash Flow to Net Income Ratio indicates good cash conversion, though Free Cash Flow Growth has been inconsistent, reflecting fluctuations in capital expenditures. Despite these fluctuations, the overall cash generation remains strong.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.76B	42.35B	42.22B	41.00B	40.05B	35.40B
Gross Profit	16.68B	16.12B	18.08B	17.91B	17.47B	15.54B
EBITDA	26.86B	26.40B	25.88B	25.89B	25.29B	22.44B
Net Income	13.94B	13.46B	13.59B	13.77B	13.55B	11.83B
Balance Sheet
Total Assets	456.18B	451.15B	458.58B	452.49B	434.63B	385.98B
Cash, Cash Equivalents and Short-Term Investments	38.51B	26.93B	31.35B	23.94B	21.40B	18.19B
Total Debt	193.90B	188.40B	188.40B	188.40B	179.10B	159.80B
Total Liabilities	212.36B	207.34B	211.83B	205.09B	198.03B	175.07B
Stockholders Equity	243.82B	243.81B	246.75B	247.39B	236.61B	210.91B
Cash Flow
Free Cash Flow	16.60B	24.03B	21.58B	-3.52B	-28.58B	13.18B
Operating Cash Flow	26.55B	24.03B	25.64B	22.11B	25.29B	21.74B
Investing Cash Flow	-17.31B	-9.04B	-3.85B	-25.63B	-53.04B	-8.56B
Financing Cash Flow	-11.37B	-16.92B	-14.23B	6.28B	31.39B	-12.04B

AEON REIT Investment Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 135600.00
• 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:3292, the sentiment is Positive. The current price of 135600 is above the 20-day moving average (MA) of 134240.00, above the 50-day MA of 132352.00, and above the 200-day MA of 126814.81, indicating a bullish trend. The MACD of 575.35 indicates Negative momentum. The RSI at 60.57 is Neutral, neither overbought nor oversold. The STOCH value of 85.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3292.

AEON REIT Investment Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8953	73 Outperform	¥881.12B	21.18	6.41%	4.62%	40.15%	27.43%
8964	72 Outperform	¥254.81B	20.58	―	4.66%	4.11%	2.05%
8954	71 Outperform	¥580.15B	24.68	―	4.10%	-31.88%	2.02%
3292	66 Neutral	¥285.11B	20.46	―	4.98%	0.59%	3.29%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3462	60 Neutral	¥794.53B	24.78	5.22%	4.21%	2.76%	6.04%

AEON REIT Investment Corp. Corporate Events

AEON REIT Finalizes Debt Financing and Interest Rate Swaps

AEON REIT Investment Corporation has finalized the details of its debt financing arrangements, which were initially announced in September 2025. The financing involves multiple long-term loans totaling billions of yen, secured through a lending syndicate with major banks. The company has also established interest rate swaps to manage financial risks. This strategic move is expected to enhance AEON REIT’s financial stability and operational flexibility, potentially benefiting stakeholders by ensuring continued growth and investment in the real estate sector.

AEON REIT Announces Green Debt Financing Initiative

AEON REIT Investment Corporation has announced a debt financing initiative through a jointly operated specified money trust, known as the Green J-REIT Trust, with Mitsubishi UFJ Trust and Banking Corporation. This move is part of the company’s strategy to refinance 2.0 billion yen of its existing 29.7 billion yen debt, aiming to attract ESG-focused investors and strengthen its position in the green finance market.

AEON REIT Announces 21.7 Billion Yen Debt Refinancing Plan

AEON REIT Investment Corporation announced plans to refinance 21.7 billion yen of its existing loans, part of a total refinancing effort of 29.7 billion yen. This move aims to manage upcoming maturities of investment corporation bonds and loans, ensuring financial stability and operational continuity. The refinancing strategy involves a combination of new borrowings and utilizing cash reserves, reflecting the company’s proactive approach to debt management.

AEON REIT Reports Modest Growth Amid Forecasted Challenges

AEON REIT Investment Corporation reported a slight increase in its financial results for the fiscal period ended July 31, 2025, with operating revenue and net income showing modest growth compared to the previous period. The company maintains a stable financial position with a high payout ratio, reflecting its commitment to returning value to its investors. Despite the positive results, the forecast for the upcoming fiscal periods indicates a potential decline in operating revenue and net income, which could impact future distribution payments.