Ichigo Hotel REIT Investment Corp. (3463) AI Stock Analysis

• Market Cap: ¥39.53B
• Dividend Yield: 11.36%
• Average Volume (3M): 1.24K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.34
• Revenue Growth: 75.37%
• EPS Growth: 134.79%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): 4207.00
• Shares Outstanding: 327,489
• 10 Day Avg. Volume: 1,050
• 30 Day Avg. Volume: 1,241
• PEG Ratio: 0.08
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 5.51
• P/FCF Ratio: 4.18
• 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: 68 Neutral
• Price Target: ¥138,539 ▲(9.00% Upside)

The score is driven primarily by attractive valuation (low P/E and very high dividend yield). Financial performance is positive but tempered by volatility—especially in cash flows—making the latest profitability and cash generation less certain. Technical signals are mixed-to-weak, with negative MACD and the price below key medium-term moving averages.

Positive Factors

Revenue Growth

The significant acceleration in revenue growth indicates strong demand and effective management strategies, enhancing the company's market position.

Profitability Improvement

Improved profitability reflects operational efficiency and pricing power, which can support sustainable earnings and shareholder returns.

Market Demand

Strong room rates and RevPAR growth indicate robust market demand, reinforcing the REIT's earnings momentum and competitive advantage.

Negative Factors

Cash Flow Volatility

Inconsistent cash flow generation raises concerns about financial stability and the ability to sustain operations without disruptions.

Leverage Concerns

Moderate leverage levels could limit financial flexibility and increase risk during economic downturns, impacting long-term growth potential.

Occupancy Rate Decline

A decline in occupancy rates may indicate challenges in maintaining full capacity, potentially affecting revenue stability and growth.

Ichigo Hotel REIT Investment Corp. Business Overview & Revenue Model

Company Description

Ichigo Hotel REIT Investment Corporation ("Ichigo Hotel REIT") was listed on the J-REIT section of the Tokyo Stock Exchange on November 30, 2015. "Ichigo" comes from an ancient Japanese proverb, Ichigo Ichie, literally meaning "One lifetime, One encounter." The phrase was first used by a 16th-century master of the tea ceremony, Sen no Rikyu. He called upon his disciples to give total focus and sincerity to each act of the tea ceremony for every guest, because that particular moment will only exist once and must be fully lived and realized. In sharing this Ichigo name, Ichigo Office REIT embraces this philosophy of total, committed engagement to supporting the long-term success and growth of our tenants and shareholders. Ichigo Hotel REIT was established on July 22, 2015 pursuant to the Act on Investment Trusts and Investment Corporations ("Investment Trust Act"). Its assets are managed by Ichigo Investment Advisors Co., Ltd., the asset management company for the Ichigo Group and a 100% subsidiary of Ichigo Inc., in accordance with the objectives and policies of asset management specified in the Investment Trust Act and the Articles of Incorporation of Ichigo Hotel REIT. Ichigo Hotel REIT is a specialized hotel REIT formed to invest in hotel properties while making maximum use of the Ichigo Group's experience and know-how in revitalizing real estate. Ichigo Hotel REIT will deploy Ichigo's deep real estate expertise to increase asset profitability via, for example, the strategic and effective use of value-add capex. Ichigo Hotel REIT also expects to pro-actively pursue portfolio growth and economies of scale for shareholders by using the Ichigo Group's robust sourcing capabilities. Ichigo Hotel REIT listed on the Tokyo Stock Exchange in order to raise capital for executing its growth strategy for shareholders and benefit from external growth opportunities and Ichigo's deep value-add expertise and management know-how. We look forward to serving our shareholders and making a positive contribution to Japanese society.

How the Company Makes Money

Ichigo Hotel REIT Investment Corporation generates revenue primarily through the ownership and management of hotel properties. The company's key revenue streams include rental income from leasing hotel spaces to operators and income from hotel operations. Partnerships with hotel operators and management companies play a crucial role in maximizing occupancy rates and enhancing guest experiences, which in turn drive revenue. Additionally, the strategic acquisition and disposition of properties contribute to the company's earnings by optimizing the portfolio for better performance and capital appreciation.

Ichigo Hotel REIT Investment Corp. Financial Statement Overview

Summary

Income statement strength is solid (accelerating revenue growth and materially higher margins in 2025), but the balance sheet is only mid-tier with meaningful leverage and historically uneven ROE. Cash flow is the main drag due to large year-to-year swings and sharply negative free cash flow in 2023–2024 before rebounding in 2025, raising repeatability risk.

Income Statement

The top line has accelerated meaningfully, with revenue growth stepping up from ~10% (2022) to ~40% (2023–2024) and then surging to ~62% in 2025. Profitability also improved, with net margin rising from ~22% (2021) to ~56% (2025). However, profitability shows some volatility across years (notably the 2020–2021 swing), and the latest period’s margins look unusually high versus history, suggesting results may be influenced by one-offs or timing effects.

Balance Sheet

Leverage is moderate for a REIT, with debt-to-equity consistently around ~0.75–0.82 over the period, indicating a stable but meaningfully levered capital structure. Equity has grown (from ~31.9B in 2021 to ~43.0B in 2025), supporting asset growth. Return on equity has improved to ~10.0% in 2025, but it was much lower in 2021–2024 (~1.5%–4.8%), highlighting uneven earnings power relative to the balance sheet.

Cash Flow

Cash generation is inconsistent. Operating cash flow is very strong in 2020 and 2025, but much lower in 2021–2024, indicating volatility in underlying cash conversion. Free cash flow was sharply negative in 2023–2024 (including a very large outflow in 2024), then rebounded to strongly positive in 2025, with free cash flow matching net income in the latest year. The sharp swings raise execution and timing risk around investment/disposition cycles typical for REITs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.28B	7.67B	4.72B	3.33B	2.37B	2.15B
Gross Profit	9.35B	7.67B	3.29B	2.18B	1.27B	1.07B
EBITDA	401.44M	0.00	3.22B	2.26B	1.64B	1.38B
Net Income	4.69B	4.31B	1.97B	1.29B	704.49M	478.83M
Balance Sheet
Total Assets	79.17B	78.37B	74.94B	59.04B	59.36B	58.93B
Cash, Cash Equivalents and Short-Term Investments	8.00B	6.05B	1.55B	1.65B	4.58B	4.47B
Total Debt	36.02B	32.47B	32.47B	25.47B	26.34B	25.97B
Total Liabilities	38.09B	35.36B	34.24B	26.72B	27.40B	27.06B
Stockholders Equity	41.08B	43.01B	40.69B	32.32B	31.96B	31.87B
Cash Flow
Free Cash Flow	7.53B	10.10B	-13.09B	-840.15M	411.75M	1.19B
Operating Cash Flow	16.49B	10.10B	2.42B	2.21B	1.54B	1.56B
Investing Cash Flow	-12.14B	-3.20B	-15.30B	-3.03B	-1.16B	-478.03M
Financing Cash Flow	-757.66M	-1.97B	13.38B	-931.68M	-611.61M	-382.41M

Ichigo Hotel REIT Investment Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 127100.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3463, the sentiment is Negative. The current price of 127100 is above the 20-day moving average (MA) of 123807.62, above the 50-day MA of 123285.68, and above the 200-day MA of 123676.76, indicating a bearish trend. The MACD of -833.61 indicates Positive momentum. The RSI at 38.22 is Neutral, neither overbought nor oversold. The STOCH value of 14.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3463.

Ichigo Hotel REIT Investment Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8985	76 Outperform	¥427.13B	17.99	9.29%	4.54%	36.94%	37.79%
8963	71 Outperform	¥502.37B	17.02	9.62%	5.82%	19.85%	8.60%
3463	68 Neutral	¥39.53B	8.42	―	11.36%	75.37%	134.79%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3287	62 Neutral	¥151.32B	23.83	―	4.18%	42.32%	15.73%

Ichigo Hotel REIT Investment Corp. Corporate Events

Ichigo Hotel REIT Lifts November Revenue on Strong Room Rates

Ichigo Hotel REIT reported higher operating performance in November 2025 across most of its portfolio, with total revenue from 26 of its 30 hotels rising 4.3% year on year to JPY 1.42 billion, driven by increases in RevPAR and average daily rates despite largely flat occupancy. Variable-rent hotels saw a 3.7% revenue increase and solid room-rate gains, while fixed-rent hotels delivered stronger growth with an 8.3% revenue rise and double-digit RevPAR improvement, underscoring robust demand in key markets such as Sapporo and Nagoya; these trends support higher rental income and reinforce the REIT’s earnings momentum in the current period, though occupancy at some properties shows signs of stabilization rather than expansion.

Ichigo Hotel REIT Reports Strong Financial Growth in October 2025

Ichigo Hotel REIT Investment Corporation reported a significant increase in its financial metrics for October 2025 compared to the previous year. The company’s portfolio revenue rose by 12.6%, with improvements in RevPAR and ADR, although occupancy rates slightly declined. These results reflect a robust recovery in the hospitality sector, indicating strong demand and pricing power, which could positively impact stakeholders and enhance Ichigo Hotel’s market positioning.