Tokyo Tatemono Co (8804) AI Stock Analysis

• Market Cap: ¥742.33B
• Dividend Yield: 2.94%
• Average Volume (3M): 745.24K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.99
• Revenue Growth: -19.09%
• EPS Growth: 16.31%
• Country: JP
• Employees: 4,925
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 141.27
• Shares Outstanding: 207,978,580
• 10 Day Avg. Volume: 964,040
• 30 Day Avg. Volume: 745,236
• PEG Ratio: -1.22
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 1.55
• P/FCF Ratio: -27.77
• 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: ¥4,799.94
• Price Target Upside: 25.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 308.8
• Revenue Forecast (FY): ¥517.09B

• Rating: 65 Neutral
• Price Target: ¥4,477.00 ▲(17.44% Upside)
• Action: Downgraded Date: 03/04/26
• Date: Action: Downgraded 03/04/26

The score is driven by strong technical momentum and solid profitability, but capped by weak cash-flow generation (frequently negative free cash flow) and high leverage, which increase financing and cyclical risk. Valuation is reasonable with a moderate dividend yield, providing partial support.

Positive Factors

Diversified Business Model

Tokyo Tatemono’s dual model—development sales plus recurring rental and management fees—creates durable earnings optionality. Over cycles, development provides upside while leasing generates steady cashflows and asset recycling opportunities, reducing single-source revenue risk and supporting long-term strategy.

Revenue Growth and Profitability

Meaningful revenue acceleration with consistently healthy operating margins indicates strong demand and pricing power in core segments. Sustained margin levels support internal reinvestment and resilience to moderate cyclical swings, underpinning longer-term cash generation and project funding capacity.

Scale and Returns

Growing asset and equity base combined with respectable ROE implies effective capital deployment and the ability to execute larger developments and leasing strategies. Scale enables cost efficiencies, stronger market positioning and bargaining power with tenants and contractors over the medium term.

Negative Factors

High Leverage

Leverage at ~2.2–2.5x equity increases interest-rate and refinancing exposure. High gearing reduces financial flexibility to fund new projects or absorb downturns without costly refinancing or asset sales, elevating structural funding risk through property cycles and tighter credit conditions.

Weak Cash Conversion

Recurring negative free cash flow forces dependence on external financing or asset disposals to fund capex and development. This structural cash shortfall limits the company’s ability to self-fund growth or build cash buffers, increasing execution and liquidity risk over the medium term.

Funding and Cycle Sensitivity

The combination of uneven operating cash flows and reliance on financing makes earnings and project returns sensitive to rate moves and property cycles. In a downturn or with higher funding costs, margins, valuations and growth plans could be materially impaired, limiting strategic optionality.

Tokyo Tatemono Co Business Overview & Revenue Model

Company Description

Tokyo Tatemono Co., Ltd. operates as a real estate company in Japan. It operates through Building Business, Housing Business, Asset Service Business, Overseas Business, and Other Business segments. The company develops, leases, and operates office buildings, commercial facilities, logistics and warehouse facilities, condominiums, detached houses, etc. It also provides real estate sales, brokerage, consulting, asset management, and real estate appraisal services; and develops, manages, and operates child-care facilities and parking lots. In addition, it operates hotels, resort facilities, super public baths, and golf courses. The company was incorporated in 1896 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tokyo Tatemono generates revenue primarily through the leasing and management of its extensive portfolio of real estate properties, which includes office buildings, commercial spaces, and residential units. The company earns rental income from tenants occupying these properties. Additionally, Tokyo Tatemono profits from property sales and development projects, where they develop land into residential or commercial spaces and sell them at a profit. The company also engages in property management services, providing maintenance and administrative support to property owners, which further contributes to its revenue. Strategic partnerships with other real estate firms, investors, and government entities enhance its project capabilities and market reach, positively impacting earnings.

Tokyo Tatemono Co Financial Statement Overview

Summary

Income statement strength (revenue acceleration and healthy operating profitability) is offset by a leveraged balance sheet and weak cash conversion. Recurring negative free cash flow and uneven operating cash flow increase reliance on financing and raise risk sensitivity to rates and property-cycle conditions.

Income Statement

Revenue has accelerated meaningfully over the period, culminating in strong growth in 2025 (annual revenue up ~20%), indicating solid demand and execution. Profitability is a clear strength: operating profit and EBITDA margins remain healthy (roughly low-20s to high-20s), and net margins stayed in the low-to-mid teens despite some year-to-year variability. The main weakness is modest margin compression in 2025 versus 2024 (notably gross and net margin), suggesting higher costs or a less favorable mix even as sales expanded.

Balance Sheet

The balance sheet shows consistent scale-up in assets and equity, and returns on equity are generally around high-single-digits to low-teens, which is respectable for the sector. However, leverage is the key constraint: debt relative to equity is consistently high (roughly ~2.2–2.5x) and absolute debt has been rising, increasing sensitivity to funding costs and property-cycle conditions. Overall, the capital structure looks workable but leaves less flexibility if market conditions weaken.

Cash Flow

Cash generation is the weakest area. Operating cash flow is positive in most years but uneven (including a negative year in 2022) and has not consistently tracked reported profits. Free cash flow is frequently negative (notably large deficits in 2024 and still negative in 2025), indicating heavy investment/capital deployment or working-capital swings that consume cash. While 2025 operating cash flow improved versus prior years, the ongoing pattern of negative free cash flow keeps financial flexibility and funding needs as a central risk.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	394.90B	474.59B	463.72B	375.95B	349.94B	340.48B
Gross Profit	83.93B	118.02B	104.01B	88.43B	82.38B	73.68B
EBITDA	115.78B	128.22B	129.54B	97.44B	88.82B	83.22B
Net Income	54.74B	58.88B	65.88B	45.08B	43.06B	34.97B
Balance Sheet
Total Assets	2.21T	2.27T	2.08T	1.91T	1.72T	1.65T
Cash, Cash Equivalents and Short-Term Investments	147.76B	152.29B	111.14B	127.31B	82.44B	87.01B
Total Debt	1.35T	1.34T	1.21T	1.09T	987.57B	954.40B
Total Liabilities	1.65T	1.67T	1.53T	1.40T	1.26T	1.22T
Stockholders Equity	544.01B	591.02B	536.06B	496.90B	445.99B	417.05B
Cash Flow
Free Cash Flow	0.00	-26.55B	-106.26B	-24.21B	-25.83B	46.50B
Operating Cash Flow	0.00	32.11B	18.89B	20.59B	-3.33B	65.89B
Investing Cash Flow	0.00	-97.39B	-142.09B	-54.03B	-21.17B	-1.64B
Financing Cash Flow	0.00	104.15B	105.64B	77.87B	18.39B	-32.19B

Tokyo Tatemono Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3812.00
• 50DMA: Negative
• 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:8804, the sentiment is Neutral. The current price of 3812 is below the 20-day moving average (MA) of 4054.45, below the 50-day MA of 3912.26, and above the 200-day MA of 3141.99, indicating a neutral trend. The MACD of -33.34 indicates Positive momentum. The RSI at 42.23 is Neutral, neither overbought nor oversold. The STOCH value of 25.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8804.

Tokyo Tatemono Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8934	73 Outperform	¥128.66B	20.19	15.81%	2.93%	84.20%	137.87%
8830	73 Outperform	¥4.06T	16.16	9.64%	0.97%	0.49%	12.19%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8804	65 Neutral	¥742.33B	12.53	10.59%	2.94%	-19.09%	16.31%
3003	65 Neutral	¥1.38T	11.39	13.29%	3.25%	45.15%	19.80%
2337	63 Neutral	¥198.74B	21.96	16.39%	2.38%	7.21%	112.45%
3231	57 Neutral	¥926.39B	17.83	7.40%	3.68%	3.52%	-17.58%

Tokyo Tatemono Co Corporate Events

Tokyo Tatemono Lifts Dividend as 2025 Profit Dips but Outlook Strengthens

Tokyo Tatemono reported consolidated operating revenues of ¥474.6 billion for the year ended December 31, 2025, up 2.3% year on year, with operating profit rising 20.2% to ¥95.8 billion and ordinary profit up 9% to ¥78.2 billion. Profit attributable to owners of the parent declined 10.6% to ¥58.9 billion, partly reflecting a swing to a ¥6.9 billion loss from entities accounted for using the equity method, even as comprehensive income surged 46.3% to ¥81.6 billion.

The company’s financial position strengthened, with total assets increasing to ¥2.27 trillion and equity-to-asset ratio edging up to 26%, while cash and cash equivalents rose to ¥152.3 billion on robust financing cash flows. Tokyo Tatemono continued to enhance shareholder returns, lifting its annual dividend to ¥105 per share for 2025 and forecasting a further increase to ¥122 for 2026, alongside guidance for 2026 revenues of ¥524 billion and a 7% rise in profit attributable to owners, signaling confidence in its earnings capacity despite recent profit volatility.

The most recent analyst rating on (JP:8804) stock is a Buy with a Yen4800.00 price target. To see the full list of analyst forecasts on Tokyo Tatemono Co stock, see the JP:8804 Stock Forecast page.

Tokyo Tatemono to Double Stock-Based Pay Ceiling for Directors in Trust Plan Revision

Tokyo Tatemono has resolved to revise its stock compensation plan, the Board Benefit Trust, for internal directors and certain executive officers to strengthen the link between executive pay and the company’s share performance. The revised plan doubles the maximum annual points granted, adjusts the target periods for the trust’s operation, and allows forfeiture of rights under specific circumstances such as dismissal, further aligning management incentives with long‑term corporate value and shareholder interests.

Under the updated framework, the company will increase the ceiling on points from 100,000 to 200,000 per fiscal year, including a significant increase for directors, and refine how funds are periodically contributed to a trust that acquires Tokyo Tatemono shares. By tying benefits primarily to retirement and recycling any remaining trust-held shares and cash into future grants, the scheme is designed to reinforce sustained performance focus while managing dilution and capital efficiency for existing shareholders.

The most recent analyst rating on (JP:8804) stock is a Buy with a Yen4162.00 price target. To see the full list of analyst forecasts on Tokyo Tatemono Co stock, see the JP:8804 Stock Forecast page.

Tokyo Tatemono Raises Year-End Dividend After Earnings Beat

Tokyo Tatemono has proposed increasing its year-end dividend for the fiscal year ended December 31, 2025, to ¥57 per share, up from the previously forecast ¥55, bringing the total annual dividend to ¥105 per share. The proposal, to be voted on at the March 26, 2026 shareholders’ meeting, implies total year-end dividends of ¥11.852 billion, funded from retained earnings, and reflects the company’s stronger-than-expected consolidated earnings.

The company’s medium-term business plan for FY2025–FY2027 targets a consolidated payout ratio of 40% in FY2027, and the revised dividend corresponds to an expected payout ratio of 37.1% for the current fiscal year. By raising dividends in line with earnings outperformance, Tokyo Tatemono signals its intention to steadily enhance shareholder returns and strengthen its position as a reliable income stock in the Japanese real estate sector.

The most recent analyst rating on (JP:8804) stock is a Buy with a Yen4162.00 price target. To see the full list of analyst forecasts on Tokyo Tatemono Co stock, see the JP:8804 Stock Forecast page.

Tokyo Tatemono Projects Further Earnings Growth on Strong 2024 Results

Tokyo Tatemono Co. reported steady growth in operating revenue and profits, with operating revenue rising from ¥340.5 billion in fiscal 2021 to ¥375.9 billion in 2023 and a further increase to ¥474.6 billion in 2024, supported by higher gross profit and relatively stable margins. Operating profit climbed from ¥58.8 billion in 2021 to ¥70.5 billion in 2023 and ¥95.8 billion in 2024, and the company forecasts continued gains in fiscal 2025, targeting ¥524.0 billion in operating revenue and ¥100.0 billion in operating profit, underscoring a trajectory of earnings expansion that may strengthen its balance sheet and competitive standing in the real estate sector.

Ordinary profit and profit attributable to owners of parent also trended upward, with ordinary profit increasing to ¥78.2 billion and net profit to ¥58.9 billion in 2024, reflecting improved core operations despite non-operating expenses and extraordinary items. The introduction of a revised “business profit” definition from 2024, which now incorporates equity-method income, investment-related gains and gains on sale of non-current assets, signals a shift toward highlighting comprehensive earnings from both domestic and overseas investment vehicles, which could offer investors a clearer view of underlying profitability and capital efficiency.

The most recent analyst rating on (JP:8804) stock is a Buy with a Yen4162.00 price target. To see the full list of analyst forecasts on Tokyo Tatemono Co stock, see the JP:8804 Stock Forecast page.

Tokyo Tatemono Lifts Dividend as 2025 Profits Dip but 2026 Outlook Improves

Tokyo Tatemono reported a 2.3% rise in operating revenues to ¥474.6 billion for the fiscal year ended December 31, 2025, with operating profit up 20.2% and ordinary profit up 9.0%, but profit attributable to owners of parent fell 10.6% to ¥58.9 billion, partly reflecting a swing to a loss from equity-method affiliates. The company’s financial position strengthened as total assets grew to ¥2.27 trillion and net assets to ¥603.1 billion, supporting higher annual dividends of ¥105 per share for 2025 and a forecast increase to ¥122 for 2026, alongside guidance for 2026 that projects double-digit revenue growth and a recovery in earnings per share, signaling continued confidence in its medium-term growth trajectory.

Operating cash flow improved to ¥32.1 billion while investing cash outflows narrowed and financing inflows remained robust, lifting cash and cash equivalents to ¥152.3 billion at year-end, which enhances liquidity for ongoing development projects and capital allocation. The equity-to-asset ratio inched up to 26.0%, and the forecast for fiscal 2026 calls for operating revenues of ¥524.0 billion and profit attributable to owners of parent of ¥63.0 billion, suggesting steady earnings expansion and a shareholder returns policy that balances higher payouts with investment in future growth.

The most recent analyst rating on (JP:8804) stock is a Buy with a Yen4162.00 price target. To see the full list of analyst forecasts on Tokyo Tatemono Co stock, see the JP:8804 Stock Forecast page.