Sekisui House Reit (3309) AI Stock Analysis

• Market Cap: ¥390.80B
• Dividend Yield: 5.16%
• Average Volume (3M): 9.52K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.24
• Revenue Growth: -27.01%
• EPS Growth: 18.03%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 2199.00
• Shares Outstanding: 4,303,970
• 10 Day Avg. Volume: 8,244
• 30 Day Avg. Volume: 9,518
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥86,000.00
• Price Target Upside: 8.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥97,160.00 ▲(22.99% Upside)

Sekisui House Reit demonstrates strong financial performance with robust revenue growth and profitability, which is the most significant factor in its overall score. The technical analysis indicates bullish momentum, though caution is advised due to overbought signals. The valuation is fair, with an attractive dividend yield, supporting the stock's appeal in the REIT sector.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and expansion capabilities, enhancing long-term business sustainability and competitive positioning.

Cash Flow Management

Efficient cash flow management supports reinvestment and dividend payouts, ensuring financial flexibility and stability in the long term.

Profitability Margins

Strong profitability margins reflect efficient cost management and operational efficiency, contributing to sustained financial health and investor confidence.

Negative Factors

Rising Operational Costs

Decreasing EBIT and EBITDA margins suggest rising operational costs, which could pressure future profitability if not managed effectively.

Return on Equity

A modest return on equity indicates potential inefficiencies in generating shareholder returns, which could impact long-term investor appeal.

Revenue Growth Volatility

Volatile revenue growth can signal market instability or operational challenges, potentially affecting long-term growth prospects and strategic planning.

Sekisui House Reit Business Overview & Revenue Model

Company Description

Sekisui House Reit (3309) is a real estate investment trust (REIT) based in Japan, primarily focused on the residential sector. The company invests in income-generating properties, including apartment complexes and residential developments, leveraging the expertise of its parent company, Sekisui House, which is one of Japan's largest homebuilders. Sekisui House Reit aims to provide stable returns to its investors through strategic acquisitions and property management.

How the Company Makes Money

Sekisui House Reit generates revenue primarily through rental income from its portfolio of residential properties. The company leases apartments and residential units to tenants, which provides a consistent cash flow. Additionally, the REIT may benefit from property appreciation, allowing for capital gains upon sale. Key revenue streams include lease agreements, property management fees, and potential partnerships with local developers for new residential projects. The company's relationship with its parent company, Sekisui House, enhances its operational capabilities, providing access to high-quality properties and development expertise, which contributes to its overall earnings.

Sekisui House Reit Financial Statement Overview

Summary

Sekisui House Reit presents a strong financial profile with impressive revenue growth and solid profitability margins. The balance sheet is stable with a balanced leverage position, and cash flow generation is robust, supporting future growth and shareholder returns. While there are some areas for improvement, such as enhancing return on equity and managing operational costs, the company's financial health is sound and positions it well for continued success in the REIT sector.

Income Statement

Sekisui House Reit has demonstrated impressive revenue growth with a 157% increase in the latest year, indicating strong market demand and expansion. The company maintains healthy margins, with a gross profit margin of 61.16% and a net profit margin of 38.28%. These figures suggest efficient cost management and profitability. However, the EBIT and EBITDA margins have slightly decreased over the years, which could indicate rising operational costs.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.87, indicating a balanced approach to leveraging. The return on equity is modest at 5.69%, suggesting room for improvement in generating returns for shareholders. The equity ratio stands at 50.77%, showing a solid equity base relative to total assets, which enhances financial stability.

Cash Flow

Sekisui House Reit exhibits strong cash flow management, with a significant free cash flow growth rate of 164.58% in the latest year. The operating cash flow to net income ratio is robust at 2.58, indicating efficient cash generation from operations. The free cash flow to net income ratio is 0.55, suggesting that a substantial portion of earnings is converted into free cash flow, supporting potential reinvestment and dividend payouts.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	112.67B	43.83B	31.85B	30.55B	32.35B
Gross Profit	25.51B	26.80B	18.71B	18.39B	20.51B
EBITDA	27.12B	23.52B	20.82B	20.42B	21.99B
Net Income	19.64B	16.78B	14.05B	13.95B	15.62B
Balance Sheet
Total Assets	566.47B	568.35B	569.48B	571.00B	555.64B
Cash, Cash Equivalents and Short-Term Investments	22.36B	14.65B	15.06B	11.42B	23.04B
Total Debt	266.44B	257.24B	257.24B	258.24B	249.94B
Total Liabilities	278.85B	273.69B	276.25B	276.51B	268.00B
Stockholders Equity	287.62B	294.66B	293.23B	294.48B	287.64B
Cash Flow
Free Cash Flow	86.60B	78.13B	23.84B	-10.56B	24.23B
Operating Cash Flow	95.71B	141.40B	26.14B	41.13B	36.05B
Investing Cash Flow	-93.40B	-123.25B	-2.76B	-52.53B	-11.96B
Financing Cash Flow	-10.10B	-22.83B	-16.31B	1.07B	-14.43B

Sekisui House Reit Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 79000.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 79000 is below the 20-day moving average (MA) of 87630.00, below the 50-day MA of 82869.42, and above the 200-day MA of 77673.80, indicating a bullish trend. The MACD of 2494.48 indicates Negative momentum. The RSI at 80.57 is Negative, neither overbought nor oversold. The STOCH value of 84.35 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3309	73 Outperform	¥390.80B	20.00	6.92%	5.16%	-27.01%	18.03%
8955	72 Outperform	¥425.47B	21.89	7.12%	3.74%	78.62%	28.76%
3279	68 Neutral	¥348.84B	24.51	5.23%	4.18%	-5.01%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3249	64 Neutral	¥398.19B	22.05	7.56%	4.52%	-6.57%	2.83%
3226	59 Neutral	¥344.63B	29.94	―	3.56%	2.91%	2.68%

Sekisui House Reit Corporate Events

Sekisui House Reit Announces Amendments and Director Appointments

Sekisui House Reit, Inc. has announced a resolution to amend its Articles of Incorporation and appoint new directors, which will be proposed at the upcoming General Meeting of Unitholders. The amendments will allow investments in credit unions, expanding the types of assets eligible for management. Additionally, new executive and supervisory directors are to be appointed, ensuring continuity in leadership and compliance with legal requirements.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen86963.00 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 Major Real Estate Transaction

Sekisui House Reit, Inc. announced a significant transaction involving the disposition of 12 properties and the acquisition of seven new properties. This strategic move aims to optimize their portfolio by divesting certain assets and acquiring new ones with potentially higher yields. The transaction is expected to impact the company’s market positioning by enhancing its asset base and potentially improving returns for stakeholders.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen86963.00 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 Reports Improved Results and Upward Forecast Revisions

Sekisui House Reit, Inc. reported a slight increase in actual operating results and distributions for the fiscal period ended October 31, 2025, compared to previous forecasts. The company also announced significant revisions to its forecast for the fiscal period ending April 30, 2026, with expected substantial increases in operating revenue, income, and distributions, indicating a positive outlook and potential growth in stakeholder returns.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen86963.00 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 Reports Slight Decline in Fiscal Performance

Sekisui House Reit reported a slight decline in its financial performance for the fiscal period ended October 31, 2025, with operating revenue and net income both experiencing decreases compared to the previous period. Despite this, the company maintains a stable financial position with a high equity ratio and plans for future distributions, indicating a steady approach to managing its assets and investor returns.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen86963.00 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 Secures New Borrowing to Refinance Existing Debt

Sekisui House Reit, Inc. has announced a new borrowing of 3,300 million yen to refinance existing borrowings due for repayment. This financial maneuver is aimed at maintaining the company’s current borrowing levels without increasing its total interest-bearing liabilities, ensuring stability in its financial operations.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen86963.00 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 Swap for Financial Stability

Sekisui House Reit, Inc. has established an interest rate swap to hedge against interest rate fluctuations for a long-term floating interest rate borrowing. This financial strategy aims to stabilize the interest rate payable by converting it into a fixed rate, thereby mitigating potential financial risks associated with variable interest rates. The swap agreement, with a notional principal of 9,200 million yen, is set for a six-year term with Daiwa Securities Co. Ltd. as the counterparty. This move is part of the company’s broader strategy to manage its financial exposure and ensure stability in its financial operations.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen86963.00 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 Secures Sustainability Linked Loan for Debt Repayment

Sekisui House Reit, Inc. has announced its decision to undertake new borrowings through a Sustainability Linked Loan, marking its first financing of this kind. The loan, amounting to 9,200 million yen, is intended to repay existing borrowings due on November 13, 2025. This move aligns with the company’s commitment to sustainable business practices, as the loan terms are linked to achieving specific sustainability performance targets, such as the CDP Climate Change Score, which supports the company’s efforts towards achieving net zero by 2050.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen86963.00 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

Sekisui House Reit, Inc. announced the execution of a forward exchange transaction to hedge against currency fluctuations for revenue expected from two U.S.-based properties. This strategic move aims to stabilize financial outcomes for the fiscal period ending April 2026, with minimal impact on the company’s overall financial forecasts.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen86963.00 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 Secures New Commitment Line for Financial Flexibility

Sekisui House Reit, Inc. has announced the establishment of a new commitment line agreement to ensure flexible and stable funding, replacing the expiring agreement on October 31, 2025. The new agreement, effective from November 1, 2025, to October 31, 2026, involves a total commitment of 15,000 million yen from major banks and will support property acquisitions, refinancing, and renovation projects, maintaining the company’s operational stability.

The most recent analyst rating on (JP:3309) stock is a Hold with a Yen86963.00 price target. To see the full list of analyst forecasts on Sekisui House Reit stock, see the JP:3309 Stock Forecast page.