NIPPON REIT Investment Corp (3296) AI Stock Analysis

• Market Cap: ¥171.89B
• Dividend Yield: 4.92%
• Average Volume (3M): 4.29K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.26
• Revenue Growth: 50.47%
• EPS Growth: 26.45%
• Country: JP
• Employees: 2,628
• Sector: Real Estate
• Sector Strength: 47
• Industry: REIT - Diversified
• EPS (TTM): 3436.00
• Shares Outstanding: 1,768,380
• 10 Day Avg. Volume: 5,712
• 30 Day Avg. Volume: 4,285
• 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: ¥106,500.00
• Price Target Upside: 9.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: ¥101,472 ▲(4.40% Upside)

Nippon REIT Investment Corp has a strong financial foundation with impressive revenue and profitability metrics, underpinned by robust cash flow management. The technical analysis suggests a potential overbought condition, which poses a short-term risk. Valuation metrics indicate the stock is fairly valued, supported by a healthy dividend yield. The absence of earnings call data and notable corporate events focuses the analysis on these core strengths and risks.

NIPPON REIT Investment Corp Business Overview & Revenue Model

Company Description

NIPPON REIT Investment Corporation focuses on income growth and stability by making full use of the characteristics as a diversified REIT, and endeavors to maximize unitholder value through conducting dynamic and timely investments and acting in the best interests of unitholders.

How the Company Makes Money

NIPPON REIT Investment Corp generates revenue primarily through rental income derived from its portfolio of office buildings and residential properties. The company collects rent from tenants occupying these properties, which forms the core of its earnings. Additionally, NIPPON REIT may engage in the strategic sale of properties to realize capital gains, further enhancing its revenue. The company's earnings are influenced by factors such as property acquisition strategies, occupancy rates, rental income stability, property management efficiency, and market conditions in the real estate sector. Collaborations with property management firms and financial institutions may also play a role in optimizing the performance and profitability of its property portfolio.

NIPPON REIT Investment Corp Financial Statement Overview

Summary

Nippon REIT Investment Corp shows strong financial health with consistent revenue growth, effective cost management, and robust cash flow generation. The moderate leverage is offset by a solid equity base, reflecting a well-managed REIT with strong profitability and cash flow metrics.

Income Statement

The income statement shows strong performance with a notable increase in total revenue, growing from 17.69 billion to 19.83 billion yen, reflecting a revenue growth rate of 12.06%. Gross profit margin stands at 65.43%, and the net profit margin is a robust 48.71%. This is complemented by a high EBIT margin of 56.23% and an EBITDA margin of 63.58%. These metrics indicate effective cost management and strong profitability, characteristic of a well-performing REIT.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 1.02, suggesting a moderate level of leverage typical in the REIT industry. The return on equity is strong at 7.46%, reflecting efficient management of shareholder funds. The equity ratio is 47.16%, indicating a healthy proportion of equity financing. Despite high total liabilities, the company's equity position remains solid, providing a buffer against potential financial volatility.

Cash Flow

Cash flow analysis indicates strong operational cash generation with operating cash flow increasing significantly to 25.56 billion yen. The free cash flow growth rate is an impressive 146.27%, supported by substantial operating cash flows. The operating cash flow to net income ratio of 2.65 and free cash flow to net income ratio of 1.65 highlight efficient cash conversion and operational efficiency. These metrics underline the company's robust cash flow management.

Breakdown	Dec 2024	Dec 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.69B	19.83B	19.45B	18.79B	17.62B
Gross Profit	10.87B	12.98B	13.31B	12.58B	11.28B
EBITDA	10.63B	12.61B	13.00B	12.31B	10.97B
Net Income	7.75B	9.66B	10.19B	9.59B	8.33B
Balance Sheet
Total Assets	275.46B	274.66B	276.58B	277.19B	270.28B
Cash, Cash Equivalents and Short-Term Investments	10.25B	15.29B	9.80B	10.25B	9.14B
Total Debt	132.62B	132.62B	132.62B	132.62B	126.87B
Total Liabilities	144.86B	145.18B	144.71B	145.21B	139.74B
Stockholders Equity	130.61B	129.48B	131.87B	131.98B	130.54B
Cash Flow
Free Cash Flow	6.46B	15.91B	10.40B	3.77B	7.52B
Operating Cash Flow	13.49B	25.56B	24.20B	19.51B	17.53B
Investing Cash Flow	-7.16B	-9.77B	-14.25B	-15.77B	-9.93B
Financing Cash Flow	-7.53B	-10.78B	-10.31B	-2.39B	-7.47B

NIPPON REIT Investment Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 97200.00
• 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:3296, the sentiment is Positive. The current price of 97200 is above the 20-day moving average (MA) of 97170.00, above the 50-day MA of 93832.63, and above the 200-day MA of 83000.03, indicating a bullish trend. The MACD of 1224.67 indicates Positive momentum. The RSI at 56.61 is Neutral, neither overbought nor oversold. The STOCH value of 44.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3296.

NIPPON REIT Investment Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3296	74 Outperform	¥171.89B	15.89		4.92%	50.47%	26.45%
Sector *	53 Neutral	$1.21B	3.09	-6.08%	5.85%	-7.32%	-78.37%
TKURF	―	$1.27B	20.96	7.49%	4.70%	―	―
3468	―	¥160.68B	18.44		5.83%	―	―
8966	77 Outperform	¥185.48B	19.74		4.92%	13.33%	8.96%
8968	69 Neutral	¥156.96B	21.07		4.52%	6.34%	14.04%
8956	64 Neutral	¥199.48B	22.40		4.39%	13.38%	-6.44%

NIPPON REIT Investment Corp Corporate Events

NIPPON REIT Enhances Portfolio with Strategic Asset Transfers

NIPPON REIT Investment Corporation has announced the transfer of certain assets as part of its strategy to enhance portfolio quality. The company is selling older properties with limited growth potential to acquire newer, inflation-resistant buildings with better growth prospects. This move is expected to improve cash flow and increase the net operating income (NOI) of its portfolio, ultimately maximizing value for unitholders.

The most recent analyst rating on (JP:3296) stock is a Hold with a Yen104000.00 price target. To see the full list of analyst forecasts on NIPPON REIT Investment Corp stock, see the JP:3296 Stock Forecast page.

NIPPON REIT Enhances Portfolio with Strategic Asset Transfer

NIPPON REIT Investment Corporation announced the transfer of certain assets as part of its strategy to enhance portfolio quality by replacing older properties with newer, growth-oriented ones. This move is expected to generate a gain on sale of real estate, which will be partially retained for future investments and returned to unitholders, ultimately aiming to maximize unitholder value.

The most recent analyst rating on (JP:3296) stock is a Hold with a Yen104000.00 price target. To see the full list of analyst forecasts on NIPPON REIT Investment Corp stock, see the JP:3296 Stock Forecast page.

NIPPON REIT Completes Strategic Real Estate Transactions

NIPPON REIT has completed the acquisition and transfer of real estate trust beneficiary interests, enhancing its portfolio by obtaining full ownership of the URAWA GARDEN BUILDING in Saitama and transferring partial ownership of the FORECAST Shinjuku SOUTH in Tokyo. This strategic move is expected to strengthen NIPPON REIT’s market position and potentially improve returns for stakeholders by optimizing asset management and capital allocation.

The most recent analyst rating on (JP:3296) stock is a Hold with a Yen104000.00 price target. To see the full list of analyst forecasts on NIPPON REIT Investment Corp stock, see the JP:3296 Stock Forecast page.

NIPPON REIT Announces Strategic Asset Transfer to Enhance Portfolio

NIPPON REIT Investment Corporation announced a strategic asset transfer involving several properties in Tokyo, Fukuoka, and Osaka. This move is part of its growth strategy to improve portfolio quality by selling older properties with limited growth potential and acquiring newer, inflation-resistant buildings. The transfer is expected to enhance cash flow and maximize unitholder value by focusing on properties with better growth prospects and lower capital expenditure requirements.

The most recent analyst rating on (JP:3296) stock is a Buy with a Yen100000.00 price target. To see the full list of analyst forecasts on NIPPON REIT Investment Corp stock, see the JP:3296 Stock Forecast page.

NIPPON REIT Completes Strategic Real Estate Acquisitions in Japan

NIPPON REIT Investment Corporation announced the completion of the acquisition and transfer of several real estate trust beneficiary interests in Japan, including properties in Tokyo and Chiba. This strategic move is expected to enhance the company’s portfolio and strengthen its position in the real estate market, potentially impacting stakeholders by improving asset value and increasing investment opportunities.

The most recent analyst rating on (JP:3296) stock is a Buy with a Yen100000.00 price target. To see the full list of analyst forecasts on NIPPON REIT Investment Corp stock, see the JP:3296 Stock Forecast page.