AEON REIT Investment Corp. (3292) AI Stock Analysis

• Market Cap: ¥269.34B
• Dividend Yield: 5.28%
• Average Volume (3M): 4.00K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.16
• Revenue Growth: 4.14%
• 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: 3,809
• 30 Day Avg. Volume: 3,995
• 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: ¥139,640.00
• Price Target Upside: 9.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥139,640 ▲(9.01% Upside)

AEON REIT Investment Corp. has a strong financial foundation with solid profitability and efficient operations. However, the stock is currently experiencing bearish momentum, which impacts its short-term outlook. The valuation is reasonable with an attractive dividend yield, making it appealing for income-focused investors. Monitoring revenue growth and leverage is crucial to maintain financial health.

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 Investment Corporation generates revenue primarily through rental income derived from its portfolio of retail properties. The company leases its properties to various tenants, including retail shops, restaurants, and service providers, who pay regular rent under long-term lease agreements. Additionally, the REIT benefits from the operational support and strategic partnerships with the AEON Group, which can enhance property management and attract high-quality tenants. The company also focuses on acquiring and developing new retail properties to expand its portfolio and increase its rental income potential. By maintaining high occupancy rates and optimizing lease agreements, AEON REIT seeks to achieve stable cash flows and provide attractive returns to its investors.

AEON REIT Investment Corp. Financial Statement Overview

Summary

AEON REIT Investment Corp. has a solid financial performance with strong 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	42.35B	42.35B	42.22B	41.00B	40.05B	35.40B
Gross Profit	16.10B	16.12B	18.08B	17.91B	17.47B	15.54B
EBITDA	26.40B	26.40B	25.88B	25.89B	25.29B	22.44B
Net Income	13.46B	13.46B	13.59B	13.77B	13.55B	11.83B
Balance Sheet
Total Assets	451.15B	451.15B	458.58B	452.49B	434.63B	385.98B
Cash, Cash Equivalents and Short-Term Investments	26.93B	26.93B	31.35B	23.94B	21.40B	18.19B
Total Debt	188.40B	188.40B	188.40B	188.40B	179.10B	159.80B
Total Liabilities	207.34B	207.34B	211.83B	205.09B	198.03B	175.07B
Stockholders Equity	243.81B	243.81B	246.75B	247.39B	236.61B	210.91B
Cash Flow
Free Cash Flow	20.58B	24.03B	21.58B	-3.52B	-28.58B	13.18B
Operating Cash Flow	24.03B	24.03B	25.64B	22.11B	25.29B	21.74B
Investing Cash Flow	-9.04B	-9.04B	-3.85B	-25.63B	-53.04B	-8.56B
Financing Cash Flow	-16.92B	-16.92B	-14.23B	6.28B	31.39B	-12.04B

AEON REIT Investment Corp. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 128100.00
• 50DMA: Negative
• 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:3292, the sentiment is Neutral. The current price of 128100 is below the 20-day moving average (MA) of 130380.00, below the 50-day MA of 130692.00, and above the 200-day MA of 123798.44, indicating a neutral trend. The MACD of -650.60 indicates Positive momentum. The RSI at 43.37 is Neutral, neither overbought nor oversold. The STOCH value of 22.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$822.86B	22.81	5.50%	4.90%	-8.21%	9.33%
8954	72 Outperform	¥548.14B	24.34	―	4.30%	-17.31%	15.83%
8964	72 Outperform	¥239.12B	19.31	―	4.93%	4.11%	2.05%
3292	67 Neutral	¥269.34B	19.38	―	5.28%	4.14%	3.29%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3462	62 Neutral	$753.18B	22.53	5.46%	4.32%	28.38%	14.19%

AEON REIT Investment Corp. Corporate Events

AEON REIT Announces Change in Specified Related Parties

AEON REIT Investment Corporation announced a change in its specified related parties, with KASUMI Co. Ltd. now classified as such due to significant transactions over the past three years. This change reflects the substantial real estate dealings between the Investment Corporation and KASUMI Co. Ltd., but it does not impact the company’s financial forecasts for the upcoming fiscal periods.

The most recent analyst rating on (JP:3292) stock is a Hold with a Yen147000.00 price target. To see the full list of analyst forecasts on AEON REIT Investment Corp. stock, see the JP:3292 Stock Forecast page.