Nippon Building Fund Inc (JP:8951)
:8951
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Nippon Building
(8951)
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Rating:66Neutral
Price Target:
¥133,812
▼(-4.35% Downside)
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
High Operating Profitability
Sustained high net margins indicate durable operating leverage in the portfolio and efficient property operations. For a REIT, consistent margins support steady distributable income, provide a cushion against temporary rent pressures, and underpin mid-single-digit ROE that helps retain investor confidence over months.
Negative Factors
Erratic Free Cash Flow & Revenue Volatility
Repeated negative free cash flow and notable revenue declines reduce internal funding for capex, acquisitions, or de-leveraging. Over a multi-month horizon this elevates the probability of needing external financing or cutting distributions, constraining strategic flexibility and increasing refinancing dependency.
Read all positive and negative factors
Positive Factors
Negative Factors
High Operating Profitability
Sustained high net margins indicate durable operating leverage in the portfolio and efficient property operations. For a REIT, consistent margins support steady distributable income, provide a cushion against temporary rent pressures, and underpin mid-single-digit ROE that helps retain investor confidence over months.
Read all positive factors
Nippon Building (8951) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.09T
Dividend Yield3.4%
Average Volume (3M)18.47K
Price to Earnings (P/E)25.7
Beta (1Y)0.13
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
¥152,500.00Price Target Upside9.01% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)5,054.77
Revenue Forecast (FY)¥92.27B
Nippon Building Business Overview & Revenue Model
Company Description
NBF (Nippon Building Fund Inc.) is Japan's largest real estate investment trust (J-REIT) which invests in office buildings primarily in Tokyo as well as nationwide. its objective is to source the solid growth of the stable revenues from its assets...
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
139900.00
Price Trends
132826.00
Negative
138699.95
Negative
139419.74
Negative
Market Momentum
-3209.90
Negative
40.60
Neutral
45.79
Neutral
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 139900 is above the 20-day moving average (MA) of 126085.00, above the 50-day MA of 132826.00, and above the 200-day MA of 139419.74, indicating a bearish trend. The MACD of -3209.90 indicates Negative momentum. The RSI at 40.60 is Neutral, neither overbought nor oversold. The STOCH value of 45.79 is Neutral, 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 | ¥131.54B | 14.37 | ― | 6.26% | 55.69% | 24.75% | |
69 Neutral | ¥824.50B | 22.33 | 6.59% | 3.83% | -4.44% | -3.43% | |
66 Neutral | ¥1.09T | 25.72 | 5.94% | 3.40% | -14.70% | -7.58% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | ¥224.06B | 18.63 | ― | 4.63% | 19.76% | 7.95% | |
63 Neutral | ¥526.06B | 19.72 | ― | 4.10% | 5.25% | 19.44% | |
62 Neutral | ¥293.98B | 20.64 | ― | 3.94% | 30.30% | -25.37% |
* Real Estate Sector Average
JP:8951
Nippon Building
127,400.00
430.70
0.34%
JP:8952
Japan Real Estate Investment
114,300.00
1,961.71
1.75%
JP:3295
Hulic Reit, Inc.
156,200.00
11,789.02
8.16%
JP:8954
ORIX JREIT Inc.
96,100.00
10,550.99
12.33%
JP:8975
Ichigo Office REIT Investment Corporation
86,900.00
5,250.18
6.43%
JP:8976
Daiwa Office Investment Corporation
318,000.00
29,648.75
10.28%
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...
Nippon Building Fund Lifts Stake in Nishi-Shinjuku Mitsui Building
Apr 28, 2026
Nippon Building Fund Management Ltd., asset manager for Nippon Building Fund, Inc., has agreed to acquire an additional condominium interest in the Nishi-Shinjuku Mitsui Building in Tokyo for ¥246 million, funded with the REIT’s own cap...
Nippon Building Fund to Refinance ¥6 Billion in Short-Term Debt Without Raising Leverage
Apr 27, 2026
Nippon Building Fund Inc. has decided to refinance ¥6 billion in short-term borrowings maturing in April 2026 through new unsecured, unguaranteed loans from Sumitomo Mitsui Trust Bank and Resona Bank, bearing an interest rate of 0.981% and sc...
Nippon Building Fund Secures ¥10 Billion Loan for April Refinancing
Apr 6, 2026
Nippon Building Fund Inc. has arranged a new ¥10 billion long-term loan from Development Bank of Japan Inc. at a floating rate currently indicated at 1.369%, with the borrowing scheduled for April 8, 2026 and a lump-sum repayment due on April...
Nippon Building Fund Secures ¥27 Billion in Green-Linked Loans for Property Acquisitions
Mar 26, 2026
Nippon Building Fund Inc. has arranged a total of ¥27 billion in new debt, combining ¥6 billion in short-term unsecured borrowings and ¥21 billion in long-term loans from a syndicate of major Japanese banks. A significant portion of...
Nippon Building Fund Management Names New Compliance Officer
Mar 17, 2026
Nippon Building Fund Management Ltd., the asset manager for Nippon Building Fund Inc., has announced a change in its key personnel, appointing Rei Atsumi as Compliance Officer effective April 1, 2026, succeeding Kazuhiro Fujita, who will resign on...
Nippon Building Fund Management Overhauls Director and Auditor Lineup
Mar 17, 2026
Nippon Building Fund Management, the asset manager for Nippon Building Fund Inc., announced boardroom changes with the planned appointment of one part-time director and two part-time auditors, effective April 1, 2026, subject to shareholder approv...
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.