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Nippon Building Fund Inc (JP:8951)
:8951

Nippon Building (8951) AI Stock Analysis

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JP

Nippon Building

(OTC:8951)

Rating:76Outperform
Price Target:
Nippon Building's strong financial performance, characterized by robust profitability and efficient operations, is the primary driver of its stock score. The positive technical trend supports the strength of this score, despite the lack of detailed market momentum indicators. Valuation metrics suggest the stock is fairly priced, with a good dividend yield enhancing its attractiveness. Overall, the company is well-positioned for steady growth, with financial health and technical trends providing a solid foundation.

Nippon Building (8951) vs. iShares MSCI Japan ETF (EWJ)

Nippon Building Business Overview & Revenue Model

Company DescriptionNippon Building Fund Inc. (NBF) is a Japanese real estate investment trust (REIT) that focuses on investing primarily in office buildings located in Tokyo and other major cities across Japan. Established in 2001, NBF aims to provide stable returns to its investors by acquiring and managing a diversified portfolio of high-quality, income-producing real estate assets. The company is one of the largest REITs in Japan by market capitalization and is managed by Nippon Building Fund Management Ltd., a subsidiary of Mitsui Fudosan Co., Ltd.
How the Company Makes MoneyNippon Building Fund Inc. generates revenue mainly through leasing its office properties to a diverse range of tenants, including corporations and government entities. Rental income from these properties forms the core of its revenue model, providing a steady stream of cash flow. The REIT strategically acquires properties in prime locations to ensure high occupancy rates and stable rental income. Additionally, NBF may engage in property sales and acquisitions to optimize its portfolio and generate capital gains. The company benefits from its relationship with Mitsui Fudosan, which provides access to potential property acquisitions and market insights, enhancing its competitive positioning in the real estate market.

Nippon Building Financial Statement Overview

Summary
Nippon Building presents a solid financial performance across all verticals. The income statement highlights strong profitability and operational efficiency, while the balance sheet shows a stable financial position with effective leverage and equity use. Cash flow statements indicate robust cash generation, though financing activities require monitoring. Overall, the company is in a healthy financial state with potential for continued growth.
Income Statement
85
Very Positive
The company shows a strong gross profit margin and consistent net profit margin over the years. Revenue growth is positive, highlighting robust business operations. EBIT and EBITDA margins are solid, indicating efficient core operations and good cash generation capability.
Balance Sheet
78
Positive
The balance sheet is stable with a manageable debt-to-equity ratio, which suggests prudent financial leverage. The return on equity is consistently strong, indicating effective use of equity financing. The equity ratio is stable, reflecting a balanced asset structure.
Cash Flow
80
Positive
The company demonstrates a healthy operating cash flow to net income ratio, indicating good cash conversion. Free cash flow has grown significantly, showcasing efficient capital expenditure management. However, there are fluctuations in financing activities that could impact future cash flow stability.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
101.06B123.28B99.58B96.55B80.34B
Gross Profit
53.10B42.69B52.71B50.13B38.95B
EBIT
48.71B41.41B48.40B45.78B35.47B
EBITDA
64.40B57.26B64.05B60.61B49.83B
Net Income Common Stockholders
46.01B38.85B45.73B43.15B32.79B
Balance SheetCash, Cash Equivalents and Short-Term Investments
21.35B18.88B11.48B21.75B133.73B
Total Assets
1.38T1.39T1.37T1.31T1.20T
Total Debt
586.30B592.50B577.50B550.50B459.50B
Net Debt
564.95B573.62B566.02B528.75B325.77B
Total Liabilities
672.51B679.37B662.22B634.56B530.81B
Stockholders Equity
710.44B706.25B706.52B672.29B666.62B
Cash FlowFree Cash Flow
55.47B26.33B-25.29B-176.28B-306.63M
Operating Cash Flow
109.18B83.84B82.85B151.46B53.61B
Investing Cash Flow
-54.43B-56.89B-108.23B-312.69B-52.84B
Financing Cash Flow
-48.01B-24.12B15.45B53.49B117.56B

Nippon Building Technical Analysis

Technical Analysis Sentiment
Positive
Last Price132900.00
Price Trends
50DMA
131474.00
Positive
100DMA
127291.00
Positive
200DMA
126718.64
Positive
Market Momentum
MACD
102.47
Negative
RSI
53.71
Neutral
STOCH
80.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8951, the sentiment is Positive. The current price of 132900 is above the 20-day moving average (MA) of 132050.00, above the 50-day MA of 131474.00, and above the 200-day MA of 126718.64, indicating a bullish trend. The MACD of 102.47 indicates Negative momentum. The RSI at 53.71 is Neutral, neither overbought nor oversold. The STOCH value of 80.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8951.

Nippon Building Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥497.35B22.08
4.33%-17.31%15.83%
77
Outperform
¥218.88B19.57
5.04%-29.52%9.41%
76
Outperform
$1.13T24.496.37%3.64%21.60%18.44%
70
Outperform
$842.34B22.346.87%3.91%6.93%5.52%
70
Neutral
¥288.66B21.68
4.51%-16.54%47.97%
66
Neutral
¥173.66B21.93
4.29%-16.98%1.05%
61
Neutral
$2.82B10.840.42%8439.00%5.74%-20.95%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8951
Nippon Building
132,900.00
20,291.44
18.02%
JP:3295
Hulic Reit, Inc.
151,700.00
12,578.80
9.04%
JP:8954
ORIX JREIT Inc.
179,500.00
26,897.37
17.63%
JP:8976
Daiwa Office Investment Corporation
304,500.00
36,122.30
13.46%
JP:8987
Japan Excellent, Inc.
132,000.00
14,874.47
12.70%
JP:8952
Japan Real Estate Investment
119,000.00
19,225.20
19.27%

Nippon Building Corporate Events

Nippon Building Fund Acquires Strategic Musashikosugi Properties
May 30, 2025

Nippon Building Fund Management Ltd. announced the acquisition of the Frontier Musashikosugi N and S Buildings for 29,000 million yen, with the transaction set to be completed by July 2, 2025. This acquisition is expected to enhance the company’s portfolio profitability, leveraging the strategic location and high demand for office spaces in the Musashikosugi area, which is well-connected to major cities and serves as a hub for IT and education-related tenants.

The most recent analyst rating on (JP:8951) stock is a Hold with a Yen125000.00 price target. To see the full list of analyst forecasts on Nippon Building stock, see the JP:8951 Stock Forecast page.

Nippon Building Fund Inc. Announces Debt Refinancing Strategy
May 28, 2025

Nippon Building Fund Inc. announced its decision to refinance a short-term borrowing of ¥5 billion from Mizuho Bank, Ltd. at an interest rate of 0.643%, with the repayment due on June 30, 2025. This refinancing is part of the company’s strategic financial management to maintain its current borrowing levels while slightly adjusting its long-term borrowing structure, with no significant change in its total debt profile. The move is expected to have no impact on the investment risks previously reported, ensuring stability for stakeholders.

The most recent analyst rating on (JP:8951) stock is a Hold with a Yen125000.00 price target. To see the full list of analyst forecasts on Nippon Building stock, see the JP:8951 Stock Forecast page.

Nippon Building Fund Secures ¥1 Billion Loan for Refinancing
May 28, 2025

Nippon Building Fund Inc. announced a long-term borrowing of ¥1 billion from SBI Shinsei Bank, Limited, with an interest rate of 0.87%, to refinance a maturing loan. This move maintains the company’s overall borrowing level, reflecting a strategic approach to managing its financial obligations without altering its investment risk profile.

The most recent analyst rating on (JP:8951) stock is a Hold with a Yen125000.00 price target. To see the full list of analyst forecasts on Nippon Building stock, see the JP:8951 Stock Forecast page.

Nippon Building Fund Updates Earthquake Risk Assessment for Yokohama Mitsui Building
May 14, 2025

Nippon Building Fund, Inc. announced a correction to its previous notice regarding the acquisition and disposition of domestic real estate trust beneficiary interests. The correction pertains to the earthquake resistance details of the Yokohama Mitsui Building, with the Earthquake PML adjusted from 1.8% to 2.4%, impacting the building’s risk assessment.

The most recent analyst rating on (JP:8951) stock is a Hold with a Yen125000.00 price target. To see the full list of analyst forecasts on Nippon Building stock, see the JP:8951 Stock Forecast page.

Nippon Building Fund Inc. Announces ¥5 Billion Debt Refinancing
Apr 25, 2025

Nippon Building Fund Inc. announced a debt refinancing decision involving a ¥5 billion short-term borrowing from Mizuho Bank, Ltd., with an interest rate of 0.660%. This refinancing is aimed at maintaining their current financial structure without altering the total amount of borrowings, ensuring stability in their financial operations and minimizing risks for stakeholders.

Nippon Building Fund Inc. Announces ¥5 Billion Debt Refinancing
Mar 27, 2025

Nippon Building Fund Inc. announced a refinancing decision for a short-term borrowing of ¥5 billion from Mizuho Bank, Ltd., with an interest rate of 0.686%, to be implemented on March 31, 2025. This refinancing will not alter the company’s overall debt structure, maintaining its total borrowings at ¥603 billion, and does not affect the investment risks previously reported.

Nippon Building Fund Secures ¥21 Billion in Green Loans for Asset Acquisition
Mar 26, 2025

Nippon Building Fund Inc. announced a decision to secure long-term borrowings totaling ¥21 billion from various financial institutions. This financing, structured as a green loan in line with their Green Finance Framework, will be used to fund the acquisition of assets, including the Yokohama Mitsui Building, as part of their strategic asset management plan. The move is expected to strengthen NBF’s portfolio and enhance its position in the real estate market.

Nippon Building Fund Management Announces Auditor Changes
Mar 13, 2025

Nippon Building Fund Management Ltd. has announced a change in its auditors, with Kenji Mizoguchi and Tomohiro Tange set to join as part-time auditors on April 1, 2025. This change is part of a strategic move to ensure compliance with relevant laws and regulations, potentially impacting the company’s governance and operational oversight.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.