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Sekisui House Reit Inc (JP:3309)
:3309
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Sekisui House Reit (3309) AI Stock Analysis

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JP:3309

Sekisui House Reit

(OTC:3309)

Rating:76Outperform
Price Target:
¥85,767.00
▲(7.48% Upside)
Sekisui House Reit scores well due to its strong financial performance and attractive valuation. The company's robust revenue growth, profitability, and liquidity position it favorably. While technical indicators show mixed signals, the stock's valuation and dividend yield provide solid investor appeal. The absence of earnings call and corporate events data does not impact the score significantly.

Sekisui House Reit (3309) vs. iShares MSCI Japan ETF (EWJ)

Sekisui House Reit Business Overview & Revenue Model

Company DescriptionSekisui House Reit, Inc. (3309) is a Japanese real estate investment trust (REIT) that primarily invests in residential properties. The company focuses on acquiring, managing, and leasing a diversified portfolio of real estate assets, including condominiums, rental apartments, and detached houses. As a REIT, Sekisui House Reit aims to provide stable and growing returns to its investors by efficiently managing its property assets and optimizing rental income.
How the Company Makes MoneySekisui House Reit generates revenue primarily through the rental income derived from its portfolio of residential properties. By leasing out these properties to tenants, the company earns a steady stream of income, which constitutes the majority of its revenue. Additionally, Sekisui House Reit may engage in property sales or development activities to capitalize on market opportunities, though this is not its primary focus. The company benefits from partnerships with Sekisui House, Ltd., a leading homebuilder, which provides strategic support in property acquisition and management. Factors contributing to its earnings include effective property management strategies, high occupancy rates, and favorable market conditions in the real estate sector.

Sekisui House Reit Financial Statement Overview

Summary
Sekisui House Reit demonstrates strong financial performance with excellent revenue growth and profitability. The income statement highlights robust demand and cost management, while the balance sheet reflects a stable equity position with manageable leverage. The cash flow generation is impressive, indicating significant liquidity and financial flexibility.
Income Statement
85
Very Positive
Sekisui House Reit shows strong revenue growth of 37.6% from the previous year, indicating robust demand for its services. The gross profit margin stands at an impressive 61.1%, signaling effective cost management. Net profit margin is high at 38.3%, showcasing substantial profitability. Both EBIT margin at 42.8% and EBITDA margin at 53.7% reflect solid operational efficiency and profitability. Overall, the company demonstrates excellent revenue growth and profitability metrics.
Balance Sheet
72
Positive
The balance sheet reveals a stable equity position with a debt-to-equity ratio of 0.87, indicating manageable leverage relative to equity. The return on equity (ROE) is strong at 5.7%, suggesting efficient use of equity to generate profits. The equity ratio is 51.8%, highlighting a solid foundation of equity relative to total assets. While leverage is present, it is not excessively high, providing a balanced risk profile.
Cash Flow
78
Positive
Sekisui House Reit demonstrates a remarkable free cash flow growth rate of 227.7%, reflecting a significant increase in liquidity. The operating cash flow to net income ratio of 0.84 indicates substantial cash generation relative to profit. The free cash flow to net income ratio of 4.65 shows an exceptional ability to convert income into free cash. The cash flow metrics underscore strong cash generation capabilities and financial flexibility.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue43.83B43.83B31.85B30.55B32.35B29.42B
Gross Profit26.80B26.80B18.71B18.39B20.51B18.38B
EBITDA28.88B23.52B21.11B20.42B21.99B20.29B
Net Income21.95B16.78B14.05B13.95B15.62B13.98B
Balance Sheet
Total Assets577.56B568.35B569.48B571.00B555.64B554.07B
Cash, Cash Equivalents and Short-Term Investments26.91B14.65B15.06B11.42B23.04B9.42B
Total Debt271.44B257.24B257.24B258.24B249.94B249.94B
Total Liabilities287.04B273.69B276.25B276.51B268.00B267.81B
Stockholders Equity290.52B294.66B293.23B294.48B287.64B286.26B
Cash Flow
Free Cash Flow32.73B78.13B23.84B-10.56B24.23B12.06B
Operating Cash Flow97.16B141.40B26.14B41.13B36.05B19.32B
Investing Cash Flow-84.24B-123.25B-2.76B-52.53B-11.96B-7.04B
Financing Cash Flow546.12M-22.83B-16.31B1.07B-14.43B-8.54B

Sekisui House Reit Technical Analysis

Technical Analysis Sentiment
Positive
Last Price79800.00
Price Trends
50DMA
76970.00
Positive
100DMA
77039.80
Positive
200DMA
75134.30
Positive
Market Momentum
MACD
988.78
Negative
RSI
67.50
Neutral
STOCH
70.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3309, the sentiment is Positive. The current price of 79800 is above the 20-day moving average (MA) of 77990.00, above the 50-day MA of 76970.00, and above the 200-day MA of 75134.30, indicating a bullish trend. The MACD of 988.78 indicates Negative momentum. The RSI at 67.50 is Neutral, neither overbought nor oversold. The STOCH value of 70.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3309.

Sekisui House Reit Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$351.83B16.007.47%4.70%18.76%77.88%
72
Outperform
¥402.21B24.935.84%3.94%44.54%5.60%
71
Outperform
€323.87B18.277.72%5.43%30.28%0.44%
71
Outperform
¥314.86B23.055.23%9.24%-5.01%-13.61%
67
Neutral
¥308.38B27.14
3.71%-3.25%-2.56%
64
Neutral
C$1.99B4.85-0.88%5.20%1.67%-56.01%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3309
Sekisui House Reit
79,800.00
3,301.84
4.32%
JP:3226
Nippon Accommodations Fund Inc.
121,600.00
-6,013.81
-4.71%
JP:3279
Activia Properties
132,100.00
22,302.53
20.31%
JP:3249
Industrial & Infrastructure Fund Investment Corporation
127,000.00
11,345.59
9.81%
JP:8955
Japan Prime Realty Investment
100,900.00
22,477.33
28.66%

Sekisui House Reit Corporate Events

Sekisui House Reit Announces Progress in Investment Units Buyback Program
Aug 1, 2025

Sekisui House Reit, Inc. announced the status of its investment units buyback program, revealing that as of July 2025, it acquired 17,909 units at a total price of 1,366,042,500 yen through market purchases on the Tokyo Stock Exchange. This buyback is part of a larger plan approved by the Board of Directors to acquire up to 60,000 units by September 2025, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen91000.00 price target. To see the full list of analyst forecasts on Sekisui House Reit stock, see the JP:3309 Stock Forecast page.

Sekisui House Reit Announces Correction to Financial Results Briefing
Jul 22, 2025

Sekisui House Reit, Inc. announced a correction to its financial results briefing for the fiscal period ended April 2025. The correction involves a change in the description of capital expenditures from ‘Avg. Length of Occupancy’ to ‘Average Building Age,’ which could impact stakeholders’ understanding of the company’s operational metrics.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen91000.00 price target. To see the full list of analyst forecasts on Sekisui House Reit stock, see the JP:3309 Stock Forecast page.

Sekisui House Reit Expands Portfolio with Strategic Acquisition in Saitama
Jun 27, 2025

Sekisui House Reit, Inc. announced the acquisition of a trust beneficiary interest in the Esty Maison Yashio property, located in Yashio City, Saitama. This acquisition, valued at 1,000 million yen, is part of the company’s strategy to expand its residential portfolio and improve its market position in the Greater Tokyo area. The property, which offers excellent transportation access and amenities, is expected to attract demand from singles seeking proximity to central Tokyo, thereby enhancing the company’s earnings potential.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen91000.00 price target. To see the full list of analyst forecasts on Sekisui House Reit stock, see the JP:3309 Stock Forecast page.

Sekisui House Reit Corrects Financial Report Dates
Jun 16, 2025

Sekisui House Reit, Inc. announced a correction to its financial report for the fiscal period ended April 30, 2025. The correction pertains to the expected gain on the disposition of real estate, which remains at 3,086 million yen, but the fiscal period was corrected to reflect the accurate dates from May 1, 2025, to October 31, 2025. This correction ensures the accuracy of the company’s financial disclosures, maintaining transparency and reliability for stakeholders.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen91000.00 price target. To see the full list of analyst forecasts on Sekisui House Reit stock, see the JP:3309 Stock Forecast page.

Sekisui House Reit Announces Strategic Buyback Program to Enhance Unitholder Value
Jun 13, 2025

Sekisui House Reit, Inc. announced a buyback program of its investment units, aiming to increase the Net Asset Value (NAV) per unit and improve distribution per unit (DPU) for unitholders. The buyback, set to occur between June and September 2025, involves acquiring up to 60,000 units and is expected to positively impact the DPU forecasts for the fiscal periods ending in October 2025 and April 2026.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen91000.00 price target. To see the full list of analyst forecasts on Sekisui House Reit stock, see the JP:3309 Stock Forecast page.

Sekisui House Reit Expands Portfolio with New Property Acquisitions
May 30, 2025

Sekisui House Reit, Inc. has announced the acquisition of trust beneficiary interests in three domestic real estate properties: Esty Maison Nishiyokohama, Esty Maison Urawa II, and Esty Maison Kawagoe. This strategic move, finalized through trust agreements and master lease/property management agreements, aims to enhance the company’s portfolio and strengthen its market position in the residential real estate sector. The acquisition, funded through the company’s own resources, is expected to contribute to stable income generation and long-term growth, benefiting stakeholders by potentially increasing the value of the trust’s assets.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen91000.00 price target. To see the full list of analyst forecasts on Sekisui House Reit stock, see the JP:3309 Stock Forecast page.

Sekisui House Reit Implements Interest Rate Swaps for Financial Stability
May 28, 2025

Sekisui House Reit, Inc. announced the establishment of interest rate swaps to hedge against the risk of interest rate fluctuations on its long-term borrowings. By converting floating interest rates to fixed rates, the company aims to stabilize its financial costs and enhance predictability in its financial planning, which could positively impact its operational stability and investor confidence.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen91000.00 price target. To see the full list of analyst forecasts on Sekisui House Reit stock, see the JP:3309 Stock Forecast page.

Sekisui House Reit Announces Strategic Borrowing to Refinance Existing Debt
May 27, 2025

Sekisui House Reit, Inc. announced a new borrowing arrangement totaling 5,580 million yen to refinance existing short-term and long-term borrowings due for repayment on May 30, 2025. This strategic financial move aims to maintain the company’s liquidity and financial stability, ensuring continued operations and potentially enhancing its market position.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen91000.00 price target. To see the full list of analyst forecasts on Sekisui House Reit stock, see the JP:3309 Stock Forecast page.

Sekisui House Reit Executes Forward Exchange Transaction to Hedge Currency Risk
May 26, 2025

Sekisui House Reit, Inc. has executed a forward exchange transaction to hedge against currency fluctuations related to revenue from its U.S.-based properties, ‘The Ivey on Boren’ and ‘City Ridge.’ This strategic move aims to stabilize the company’s financial performance by securing a fixed exchange rate for a portion of its expected revenue. The transaction is not expected to significantly impact the company’s financial results for the fiscal period ending October 31, 2025, indicating a stable outlook for stakeholders.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen91000.00 price target. To see the full list of analyst forecasts on Sekisui House Reit stock, see the JP:3309 Stock Forecast page.

Sekisui House Reit Restructures Debt with New Borrowing
May 22, 2025

Sekisui House Reit, Inc. announced a strategic financial move involving new borrowings of 500 million yen to facilitate the early repayment of existing short-term borrowings. This decision aims to optimize the company’s debt structure by shifting from short-term to long-term liabilities, potentially improving financial stability and operational flexibility.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen91000.00 price target. To see the full list of analyst forecasts on Sekisui House Reit stock, see the JP:3309 Stock Forecast page.

Sekisui House Reit Implements Interest Rate Swaps for Financial Stability
May 21, 2025

Sekisui House Reit, Inc. announced the establishment of interest rate swaps to hedge against fluctuations in interest rates for its long-term borrowings. This strategic financial move aims to stabilize the company’s interest expenses by converting floating interest rates to fixed rates, thus ensuring more predictable financial outcomes. The swaps involve significant notional principals and are set with major financial institutions, indicating a robust approach to managing financial risks associated with interest rate volatility.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen91000.00 price target. To see the full list of analyst forecasts on Sekisui House Reit stock, see the JP:3309 Stock Forecast page.

Sekisui House Reit Executes Forward Exchange Transaction to Hedge Currency Risks
May 19, 2025

Sekisui House Reit, Inc. announced the execution of a forward exchange transaction to hedge against currency fluctuations for revenue from its overseas properties, ‘The Ivey on Boren’ and ‘City Ridge’ in the United States. This strategic move aims to stabilize the company’s financial performance by mitigating risks associated with USD-JPY exchange rate changes, although it is expected to have minimal impact on the company’s overall financial results for the fiscal period ending October 31, 2025.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen91000.00 price target. To see the full list of analyst forecasts on Sekisui House Reit stock, see the JP:3309 Stock Forecast page.

Sekisui House Reit Executes Forward Exchange Transaction to Hedge Currency Risk
May 12, 2025

Sekisui House Reit, Inc. has executed a forward exchange transaction to hedge against currency fluctuations for revenue from its overseas properties, ‘The Ivey on Boren’ and ‘City Ridge’, located in the United States. The transaction aims to stabilize the company’s financial outcomes by converting expected USD revenue into JPY, with minimal impact anticipated on the company’s financial forecasts for the fiscal period ending October 31, 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 15, 2025