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

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JP

Sekisui House Reit

(OTC:3309)

Rating:76Outperform
Price Target:
¥85,767.00
▲(13.00%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. is a real estate investment trust externally managed by Sekisui House Asset Management, Ltd. It invests in the real estate markets of Japan. The firm primarily invests in office buildings, along with such commercial properties as retail properties and hotels. Sekisui House Reit, Inc. was formed on September 8, 2014 and is based in Tokyo, Japan.
How the Company Makes MoneySekisui House Reit generates revenue through the rental income derived from its portfolio of residential properties. The company acquires high-quality residential real estate assets, which are then leased to tenants, providing a steady stream of rental income. This income is the primary source of revenue for the REIT. Additionally, Sekisui House Reit may engage in strategic property sales, contributing to its earnings through capital gains. The company benefits from its affiliation with Sekisui House, Ltd., a leading homebuilder in Japan, which provides a pipeline of potential property acquisitions and development opportunities. Furthermore, the REIT's performance is supported by effective property management strategies aimed at maintaining high occupancy rates and optimizing rental yields.

Sekisui House Reit Financial Statement Overview

Summary
The company showcases strong revenue growth and profitability metrics, with a gross profit margin of 61.1% and a net profit margin of 38.3%. The balance sheet is stable, with a debt-to-equity ratio of 0.87, indicating manageable leverage. Cash flow metrics are impressive, with a free cash flow growth rate of 227.7%, highlighting 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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue43.83B31.85B30.55B32.35B29.42B
Gross Profit26.80B18.71B18.39B20.51B18.38B
EBITDA23.52B21.11B20.42B21.99B20.29B
Net Income16.78B14.05B13.95B15.62B13.98B
Balance Sheet
Total Assets568.35B569.48B571.00B555.64B554.07B
Cash, Cash Equivalents and Short-Term Investments14.65B15.06B11.42B23.04B9.42B
Total Debt257.24B257.24B258.24B249.94B249.94B
Total Liabilities273.69B276.25B276.51B268.00B267.81B
Stockholders Equity294.66B293.23B294.48B287.64B286.26B
Cash Flow
Free Cash Flow78.13B23.84B-10.56B24.23B12.06B
Operating Cash Flow141.40B26.14B41.13B36.05B19.32B
Investing Cash Flow-123.25B-2.76B-52.53B-11.96B-7.04B
Financing Cash Flow-22.83B-16.31B1.07B-14.43B-8.54B

Sekisui House Reit Technical Analysis

Technical Analysis Sentiment
Positive
Last Price75900.00
Price Trends
50DMA
76506.00
Negative
100DMA
76512.25
Negative
200DMA
74650.11
Positive
Market Momentum
MACD
-106.46
Negative
RSI
51.23
Neutral
STOCH
66.67
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 75900 is above the 20-day moving average (MA) of 75860.00, below the 50-day MA of 76506.00, and above the 200-day MA of 74650.11, indicating a neutral trend. The MACD of -106.46 indicates Negative momentum. The RSI at 51.23 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥332.55B15.127.47%4.94%18.76%77.88%
73
Outperform
¥295.54B26.01
3.81%-3.25%-2.56%
72
Outperform
$377.76B23.415.84%16.58%44.54%5.60%
71
Outperform
€310.69B17.537.72%5.58%30.28%0.44%
70
Outperform
€303.69B22.235.23%9.55%-5.01%-13.61%
61
Neutral
C$14.93B6.4922.28%5.43%30.07%-22.51%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3309
Sekisui House Reit
76,200.00
364.57
0.48%
JP:3226
Nippon Accommodations Fund Inc.
117,400.00
-4,816.25
-3.94%
JP:3279
Activia Properties
127,200.00
15,822.71
14.21%
JP:3249
Industrial & Infrastructure Fund Investment Corporation
122,400.00
3,321.42
2.79%
JP:8955
Japan Prime Realty Investment
96,400.00
19,051.61
24.63%

Sekisui House Reit Corporate Events

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.

Sekisui House Reit Expands Tokyo Portfolio with New Acquisition
Apr 28, 2025

Sekisui House Reit, Inc., a real estate investment trust, has announced the acquisition of Esty Maison Otsuka, a residential property located in Toshima-ku, Tokyo. This acquisition, valued at 1,160 million yen, aims to enhance the company’s residential portfolio and strengthen its earnings base in the Greater Tokyo area. The property is strategically located with convenient access to multiple train lines and offers a favorable living environment, appealing primarily to single residents. The acquisition is expected to support Sekisui House Reit’s growth strategy by capitalizing on the demand for well-located residential properties.

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