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Nippon Building
(8951)
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Rating:66Neutral
Price Target:
¥137,052
▲(1.82% Upside)
Action:Downgraded
Date:03/03/26
The score is driven primarily by solid profitability and operating cash generation, tempered by volatile free cash flow and increasing leverage risk. Technicals are supportive with price above major moving averages and positive MACD, while valuation is a headwind due to a relatively high P/E despite a ~3.3% dividend yield.
Positive Factors
Stable High Profitability
Consistently high net margins indicate durable operating economics for an office REIT. Sustained profitability supports the REIT's ability to generate distributable income, underpins credit metrics, and provides a buffer against cyclical revenue swings over the next several months.
Negative Factors
Rising Leverage
An upward drift in debt increases financial risk and reduces flexibility to absorb shocks. Higher leverage raises interest coverage sensitivity, limits ability to fund acquisitions or distributions internally, and amplifies refinancing pressure if rates or market access worsen.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable High Profitability
Consistently high net margins indicate durable operating economics for an office REIT. Sustained profitability supports the REIT's ability to generate distributable income, underpins credit metrics, and provides a buffer against cyclical revenue swings over the next several months.
Read all positive factors
Nippon Building (8951) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.19T
Dividend Yield3.65%
Average Volume (3M)18.47K
Price to Earnings (P/E)26.9
Beta (1Y)0.11
Revenue Growth-14.70%
EPS Growth-7.58%
CountryJP
Employees3,356
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)4999.75
Shares Outstanding8,815,000
10 Day Avg. Volume19,291
30 Day Avg. Volume18,469
Financial Highlights & Ratios
PEG Ratio-3.77
Price to Book (P/B)1.68
Price to Sales (P/S)9.58
P/FCF Ratio-67.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥187,400.00Price Target Upside39.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5,080.05
Revenue Forecast (FY)¥84.51B
Nippon Building Business Overview & Revenue Model
Company Description
Nippon Building Fund Inc., or NBF, operates as Japan's leading real estate investment trust (J-REIT). It strategically invests in office buildings, with a primary concentration in Tokyo, alongside a broader national presence. The company's main ob...
How the Company Makes Money
Nippon Building Fund makes money primarily by owning and leasing real estate properties and collecting rental-related cash flows. Its key revenue streams are (1) base rents from tenant lease contracts across its property portfolio and (2) property...
Nippon Building Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 127.88B | 101.96B | 97.46B | 94.12B | 101.08B |
| Gross Profit | 31.42B | 65.36B | 62.00B | 58.57B | 67.53B |
| EBITDA | 61.79B | 64.66B | 61.33B | 58.04B | 68.24B |
| Net Income | 42.85B | 46.21B | 42.86B | 39.62B | 47.17B |
Balance Sheet | |||||
| Total Assets | 1.45T | 1.38T | 1.39T | 1.37T | 1.31T |
| Cash, Cash Equivalents and Short-Term Investments | 28.51B | 21.35B | 14.18B | 11.48B | 21.75B |
| Total Debt | 628.00B | 586.30B | 592.50B | 577.50B | 550.50B |
| Total Liabilities | 719.65B | 672.51B | 679.37B | 662.22B | 634.56B |
| Stockholders Equity | 729.18B | 710.44B | 706.25B | 706.52B | 672.29B |
Cash Flow | |||||
| Free Cash Flow | -18.05B | 55.47B | 26.33B | -25.29B | -176.28B |
| Operating Cash Flow | 87.62B | 109.18B | 83.84B | 82.85B | 151.46B |
| Investing Cash Flow | -102.30B | -54.43B | -56.89B | -108.23B | -312.69B |
| Financing Cash Flow | 17.56B | -48.01B | -24.12B | 15.45B | 53.49B |
Nippon Building Technical Analysis
Negative
134600.00
Price Trends
126517.30
Positive
128802.17
Positive
134408.00
Negative
Market Momentum
1409.20
Positive
45.75
Neutral
7.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8951, the sentiment is Negative. The current price of 134600 is above the 20-day moving average (MA) of 133090.00, above the 50-day MA of 126517.30, and above the 200-day MA of 134408.00, indicating a neutral trend. The MACD of 1409.20 indicates Positive momentum. The RSI at 45.75 is Neutral, neither overbought nor oversold. The STOCH value of 7.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8951.
Nippon Building Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥147.12B | 19.02 | ― | 6.26% | -17.50% | -15.10% | |
71 Outperform | ¥569.11B | 21.16 | ― | 4.10% | 5.25% | 19.44% | |
66 Neutral | ¥1.19T | 26.94 | 5.94% | 3.65% | -14.70% | -7.58% | |
66 Neutral | ¥889.33B | 23.86 | 6.70% | 4.05% | -1.30% | -3.43% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | ¥226.80B | 18.78 | ― | 4.63% | 19.76% | 7.95% | |
62 Neutral | ¥318.75B | 20.71 | ― | 3.94% | 23.62% | 10.38% |
* Real Estate Sector Average
JP:8951
Nippon Building
129,100.00
-5,767.48
-4.28%
JP:8952
Japan Real Estate Investment
118,900.00
-1,503.61
-1.25%
JP:3295
Hulic Reit, Inc.
153,800.00
-5,882.47
-3.68%
JP:8954
ORIX JREIT Inc.
99,800.00
3,481.09
3.61%
JP:8975
Ichigo Office REIT Investment Corporation
93,600.00
1,992.89
2.18%
JP:8976
Daiwa Office Investment Corporation
330,000.00
-10,952.63
-3.21%
Nippon Building Corporate Events
Nippon Building Fund Secures ¥5 Billion Long-Term Loan for Debt Refinancing
May 28, 2026
Nippon Building Fund Inc. has arranged a new ¥5 billion long-term loan from Development Bank of Japan Inc., carrying a floating interest rate based on three-month Japanese Yen TIBOR plus a margin and maturing in June 2034. The unsecured, ungu...
Nippon Building Fund Refinances ¥6 Billion in Short-Term Debt Without Raising Leverage
May 27, 2026
Nippon Building Fund Inc. has arranged a ¥6 billion short-term refinancing, borrowing ¥4 billion from Sumitomo Mitsui Trust Bank and ¥2 billion from Resona Bank at an interest rate of 0.978%, with funds to be drawn on May 29, 2026 a...
Nippon Building Fund refinances ¥1bn loan with new floating-rate debt
May 20, 2026
Nippon Building Fund Inc. has arranged a new ¥1 billion long-term loan from The Chiba Bank at a floating interest rate based on one-month Japanese yen TIBOR plus a 0.175% spread, with a final maturity in May 2033 and repayment in a single lum...
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.