NIPPON REIT Investment Corp (3296) AI Stock Analysis

• Market Cap: ¥174.19B
• Dividend Yield: 4.7%
• Average Volume (3M): 3.07K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.26
• Revenue Growth: 50.47%
• EPS Growth: 26.45%
• Country: JP
• Employees: 2,628
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 3436.00
• Shares Outstanding: 1,768,380
• 10 Day Avg. Volume: 2,927
• 30 Day Avg. Volume: 3,072
• PEG Ratio: 0.54
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 6.91
• P/FCF Ratio: 8.61
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥113,813 ▲(15.20% Upside)

Nippon REIT Investment Corp scores well due to its strong financial performance, characterized by robust revenue and profit growth, effective cost management, and solid cash flow generation. Technical analysis supports a positive outlook, though caution is advised due to potential overbought signals. The valuation is fair with an attractive dividend yield, making it a compelling investment in the REIT sector.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective asset management, enhancing long-term financial stability and shareholder value.

Cash Flow Generation

Strong cash flow generation supports operational efficiency and provides flexibility for reinvestment and debt management, crucial for sustainable growth.

Profitability

High profitability margins reflect effective cost control and operational efficiency, ensuring the company can withstand economic fluctuations and maintain competitiveness.

Negative Factors

Leverage

Moderate leverage, while typical for the industry, could limit financial flexibility and increase risk during economic downturns, impacting long-term stability.

High Total Liabilities

High liabilities may pose a risk if market conditions worsen, potentially affecting the company's ability to invest in growth opportunities or manage debt effectively.

Equity Ratio

While a healthy equity ratio supports stability, reliance on equity financing could dilute shareholder value if additional equity is issued to manage debt or finance growth.

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 generates revenue primarily through rental income from its portfolio of properties. The company leases space in its residential, commercial, and logistics assets to tenants, which provides a steady cash flow. Additionally, the REIT may realize capital gains through the appreciation of its properties over time when they are sold or refinanced. Key revenue streams include long-term leases with tenants, short-term rental agreements, and potential revenue from property management fees. The company may also engage in strategic partnerships with real estate developers and management firms to optimize its asset management and enhance earnings, although specific partnerships are not disclosed.

NIPPON REIT Investment Corp Financial Statement Overview

Summary

Nippon REIT Investment Corp demonstrates strong financial health with significant revenue and profit growth, effective cost management, and robust cash flow generation. The company maintains a moderate leverage level typical for the industry, supported by a solid equity base.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.98B	19.83B	17.69B	20.28B	19.45B	18.79B
Gross Profit	13.18B	12.98B	10.87B	9.43B	13.31B	12.58B
EBITDA	14.65B	12.61B	10.63B	10.90B	13.00B	12.31B
Net Income	10.97B	9.66B	7.75B	7.74B	10.19B	9.59B
Balance Sheet
Total Assets	277.29B	274.66B	275.46B	275.41B	276.58B	277.19B
Cash, Cash Equivalents and Short-Term Investments	10.36B	15.29B	10.25B	20.15B	9.80B	10.25B
Total Debt	134.23B	132.62B	132.62B	132.62B	132.62B	132.62B
Total Liabilities	146.15B	145.18B	144.86B	145.02B	144.71B	145.21B
Stockholders Equity	131.15B	129.48B	130.61B	130.39B	131.87B	131.98B
Cash Flow
Free Cash Flow	29.91B	15.91B	6.46B	11.99B	10.40B	3.77B
Operating Cash Flow	29.91B	25.56B	13.49B	12.96B	24.20B	19.51B
Investing Cash Flow	-20.59B	-9.77B	-7.16B	-700.45M	-14.25B	-15.77B
Financing Cash Flow	-11.10B	-10.78B	-7.53B	-9.20B	-10.31B	-2.39B

NIPPON REIT Investment Corp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 98800.00
• 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 Neutral. The current price of 98800 is above the 20-day moving average (MA) of 98681.86, above the 50-day MA of 98205.06, and above the 200-day MA of 90756.71, indicating a neutral trend. The MACD of 198.24 indicates Positive momentum. The RSI at 50.89 is Neutral, neither overbought nor oversold. The STOCH value of 52.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	79 Outperform	¥174.19B	16.01	―	4.70%	50.47%	26.45%
8966	75 Outperform	¥199.24B	21.26	―	4.96%	13.33%	8.96%
8957	69 Neutral	¥199.00B	20.79	7.82%	3.87%	21.72%	5.02%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8956	65 Neutral	¥210.75B	24.95	―	4.51%	65.46%	-0.92%
8968	64 Neutral	¥166.55B	20.62	―	4.47%	17.32%	17.54%

NIPPON REIT Investment Corp Corporate Events

NIPPON REIT Extends ¥3 Billion Commitment Line by One Year

NIPPON REIT Investment Corporation has extended the maturity of its existing ¥3 billion unsecured, unguaranteed syndication-type commitment line by one year, from January 13, 2027 to January 13, 2028, under an agreement originally signed in December 2019 with MUFG Bank and Mizuho Bank. The facility, which can be used for property acquisitions, debt and bond repayment, and unexpected capital expenditures such as disaster-related repairs, strengthens the REIT’s financing flexibility and liquidity management, supporting its capacity to pursue future investments and respond to unforeseen events without altering its previously disclosed risk profile.

The most recent analyst rating on (JP:3296) stock is a Buy with a Yen113813.00 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 Files Shelf Registration to Issue Up to ¥100 Billion in Bonds

NIPPON REIT Investment Corporation has filed a shelf registration statement with the Kanto Local Finance Bureau to issue up to 100 billion yen in investment corporation bonds during a two-year period from January 9, 2026 to January 8, 2028. The proceeds are earmarked for a broad range of corporate purposes, including acquiring additional specified assets, repaying borrowings, redeeming existing bonds, refunding leasehold and security deposits, financing repair work, and providing working capital, indicating an effort to secure flexible, long-term funding to support portfolio growth, balance sheet management, and ongoing asset maintenance.

The most recent analyst rating on (JP:3296) stock is a Buy with a Yen113813.00 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 Resignation of Alternate Executive Officer and Succession Plan

NIPPON REIT Investment Corporation announced that alternate executive officer Noritaka Izumi has requested to resign from his position, effective December 31, 2025, and the resignation has been accepted. The company also clarified that in the event of a vacancy or shortfall in the number of executive officers required by law, Takamichi Kato, who was previously designated as the second-in-line alternate executive officer at the September 19, 2025 unitholders’ meeting, will assume the role of executive officer, ensuring continuity in the REIT’s governance structure.

The most recent analyst rating on (JP:3296) stock is a Buy with a Yen113813.00 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’s Asset Manager Revamps Board with New Full-Time Directors

NIPPON REIT Investment Corporation announced that its asset management company, SBI REIT Advisors, has approved a leadership reshuffle effective January 1, 2026, appointing Takamichi Kato and Nobuhiro Omura as new full-time directors while Hiroki Miyagawa and Noritaka Izumi step down. Both incoming directors bring extensive backgrounds in real estate finance, investment management and REIT-related operations from major Japanese financial groups, signaling a reinforcement of SBI REIT Advisors’ investment and finance capabilities; the company will complete all required regulatory procedures under relevant financial and real estate laws in Japan, underscoring its focus on governance and compliance as it refreshes its management structure.

The most recent analyst rating on (JP:3296) stock is a Buy with a Yen113813.00 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 Upgrades Tokyo Office Portfolio via Exchange of Ageing Asset for New Nihonbashi Property

NIPPON REIT Investment Corporation has announced an exchange transaction in which it will transfer the ageing Kudankita 325 office building and acquire CIRCLES Nihonbashi Hamacho, a relatively new office property located in Tokyo’s Chuo ward. The REIT will sell Kudankita 325, a 38-year-old building with rising capital expenditure needs and limited internal growth potential, for ¥2,740 million, and redeploy those gains into purchasing CIRCLES Nihonbashi Hamacho for ¥3,492 million, below its appraisal value of ¥3,960 million, while recording a reduced book value to lower the effective acquisition cost. The newly built asset, completed in June 2024 and expected to reach 100% occupancy by the March 2026 acquisition date, offers better unrealized gain potential, a smaller rent gap and lower depreciation and capex burdens, positioning NIPPON REIT’s portfolio for improved growth and inflation-resilient income by upgrading from an older to a newer core office asset in central Tokyo.

The most recent analyst rating on (JP:3296) stock is a Buy with a Yen113813.00 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 Sells Aging Tokyo Office, Buys Newer Asset to Refresh Portfolio and Boost Cash Flow

NIPPON REIT Investment Corporation has agreed to sell the Kudankita 325 Building in Tokyo’s Chiyoda ward to Mitsubishi Estate Co., Ltd. for ¥2.74 billion and to acquire the newer CIRCLES Nihonbashi Hamacho office property in Chuo ward from the same counterparty for ¥3.492 billion, as part of a strategic asset replacement program. By disposing of an over-30-year-old building with rising future capital expenditure needs at a price above book and appraised value, and reinvesting into a newer, relatively inflation-resistant property with stronger cash-flow potential, the REIT aims to lower the average age of its portfolio, enhance NOI, and stabilize unitholder returns; it also plans to utilize Japanese tax rules on asset exchanges to compress land book value and recognize a modest fixed asset exchange loss, optimizing tax efficiency while supporting internal growth and portfolio competitiveness.

The most recent analyst rating on (JP:3296) stock is a Buy with a Yen113813.00 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 Acquires Mezzanine Loan Claims to Boost Unitholder Value

NIPPON REIT Investment Corporation announced the acquisition of mezzanine loan claims secured by a hotel asset in Shinjuku, Tokyo. This acquisition, the company’s first in this asset class, aims to enhance unitholder value by generating interest income and maintaining a high ratio of real estate-related assets. The acquisition is expected to provide a reasonable return with low risk of impairment and a high certainty of interest payments.

The most recent analyst rating on (JP:3296) stock is a Buy with a Yen113813.00 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 Director Change at Asset Management Company

NIPPON REIT Investment Corporation announced a change in its asset management company’s board of directors, with Hidehiro Kanemoto appointed as a part-time director, replacing Shunsuke Ariizumi. This leadership change, effective December 1, 2025, is part of the company’s strategic efforts to enhance its management team and potentially influence its operational strategies and market positioning.

The most recent analyst rating on (JP:3296) stock is a Buy with a Yen113813.00 price target. To see the full list of analyst forecasts on NIPPON REIT Investment Corp stock, see the JP:3296 Stock Forecast page.