Nippon Building Fund Inc (JP:8951)
:8951
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Nippon Building
(8951)
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Rating:66Neutral
Price Target:
¥158,112
▲(13.02% Upside)
Action:DowngradedDate: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
Sustained Profitability
Consistently high net margins indicate the REIT’s portfolio and leasing operations generate durable operating profit. Margin resilience cushions against rent fluctuations and supports ongoing property maintenance, manager fees, and potential distributions over the medium term.
Negative Factors
Erratic Free Cash Flow
Frequently negative and volatile free cash flow points to heavy capex, acquisitions, or timing mismatches that reduce distributable cash. Over several quarters this constrains deleveraging, limits reserve buildup, and can force external financing for investments or distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Profitability
Consistently high net margins indicate the REIT’s portfolio and leasing operations generate durable operating profit. Margin resilience cushions against rent fluctuations and supports ongoing property maintenance, manager fees, and potential distributions over the medium term.
Read all positive factors
Nippon Building (8951) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.14T
Dividend Yield3.4%
Average Volume (3M)18.47K
Price to Earnings (P/E)16.0
Beta (1Y)0.14
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
¥148,100.00Price Target Upside5.86% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)5,046.2
Revenue Forecast (FY)¥89.81B
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 generates revenue primarily through rental income from its diverse portfolio of commercial properties. The company leases office spaces, retail units, and mixed-use developments to various tenants, ensuring a steady cash flow. Addi...
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
141476.00
Negative
142361.57
Negative
139844.65
Negative
Market Momentum
-1242.26
Negative
42.39
Neutral
34.91
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 136340.00, below the 50-day MA of 141476.00, and above the 200-day MA of 139844.65, indicating a bearish trend. The MACD of -1242.26 indicates Negative momentum. The RSI at 42.39 is Neutral, neither overbought nor oversold. The STOCH value of 34.91 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥137.03B | 8.79 | ― | 6.26% | 55.69% | 24.75% | |
69 Neutral | ¥866.02B | 12.44 | 6.59% | 3.83% | -1.97% | -2.16% | |
66 Neutral | ¥1.14T | 16.01 | 5.94% | 3.40% | -14.70% | -7.58% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | ¥233.42B | 10.22 | ― | 4.63% | 19.76% | 7.95% | |
63 Neutral | ¥550.34B | 9.97 | ― | 4.10% | 5.25% | 19.44% | |
62 Neutral | ¥312.67B | 11.71 | ― | 3.94% | 30.30% | -25.37% |
* Real Estate Sector Average
JP:8951
Nippon Building
129,800.00
901.09
0.70%
JP:8952
Japan Real Estate Investment
118,900.00
9,346.16
8.53%
JP:3295
Hulic Reit, Inc.
162,100.00
21,506.89
15.30%
JP:8954
ORIX JREIT Inc.
99,700.00
15,011.26
17.73%
JP:8975
Ichigo Office REIT Investment Corporation
89,700.00
9,093.33
11.28%
JP:8976
Daiwa Office Investment Corporation
334,500.00
45,227.03
15.63%
Nippon Building Corporate Events
Nippon Building Fund Raises ¥10 Billion to Refinance Maturing Debt
Feb 25, 2026
Nippon Building Fund Inc. has arranged ¥10 billion in new long-term borrowings from Mizuho Trust Banking and MUFG Bank, with floating interest rates linked to one-month and three-month Japanese Yen TIBOR. The loans, which are unsecured and u...
Nippon Building Fund outlines 2H 2025 performance and growth focus
Feb 16, 2026
Nippon Building Fund Inc. has released its investor presentation for the second half of 2025, outlining financial highlights, recent investment performance and outlook, as well as its plans for future earnings per unit and distributions per unit g...
Nippon Building Fund Posts Lower Earnings but Maintains Strong Balance Sheet and Distributions
Feb 16, 2026
Nippon Building Fund Inc. reported a decline in operating performance for the 49th fiscal period ended December 31, 2025, with total operating revenues down 5.2% to ¥48.5 billion and net income dropping 18.0% to ¥19.3 billion from the pr...
Nippon Building Fund Refinances ¥5.4 Billion Loan With New MUFG Facility
Jan 23, 2026
Nippon Building Fund Inc. has arranged a new ¥5.4 billion long-term, unsecured, unguaranteed loan from MUFG Bank at a floating interest rate currently set at 0.956%, with drawdown scheduled for January 27, 2026 and a lump-sum repayment due on...
Nippon Building Fund Fully Subscribes Third-Party Allocation to Fund Property Acquisitions
Jan 21, 2026
Nippon Building Fund Inc. has confirmed that all 7,800 new investment units to be issued via third-party allocation have been fully subscribed by Nomura Securities Co., Ltd., raising ¥1,077,414,000 at an issue price of ¥138,130 per unit....
Nippon Building Fund Sets Terms for ¥22.8 Billion Investment Unit Offering to Fund Property Acquisitions
Jan 14, 2026
Nippon Building Fund Inc. has set the pricing and key terms for a new public offering of 157,200 investment units and a secondary over-allotment offering of 7,800 units, with an issue and offer price of ¥142,492 per unit and a paid-in amount ...
Nippon Building Fund Refinances ¥2.7 Billion Loan Without Increasing Total Debt
Jan 9, 2026
Nippon Building Fund Inc. has arranged a new ¥2.7 billion long-term unsecured, unguaranteed bank loan from MUFG Bank at a floating interest rate currently set at 0.956%, with disbursement on January 14, 2026 and repayment in a lump sum on Jan...
Nippon Building Fund Hikes June 2026 Earnings Outlook and Sets Robust Forecast for Second Half
Jan 7, 2026
Nippon Building Fund Inc. has sharply raised its forecast for the six months ending June 30, 2026, projecting operating revenues of ¥53.9 billion and net income of ¥24.1 billion, up 11.6% and 25.0% respectively from its previous outlook,...
Nippon Building Fund Reshapes Portfolio With Major Office Acquisitions and Profitable Asset Sale
Jan 7, 2026
Nippon Building Fund Inc. has approved a portfolio reshuffle involving the acquisition of trust beneficiary interests in Nihonbashi Honcho M-SQUARE and an additional stake in Toyosu Bayside Cross Tower for a combined 46.9 billion yen, while simult...
Nippon Building Fund to Raise Capital via New Unit Issuance and Over-Allotment Offering
Jan 7, 2026
Nippon Building Fund Inc. has approved the issuance of 157,200 new investment units through a public offering, with final pricing to be set between January 14 and 19, 2026, based on the Tokyo Stock Exchange market price at a 0.90–1.00 multip...
Nippon Building Fund Lines Up ¥13 Billion in Long-Term Loans for Year-End Refinancing
Dec 26, 2025
Nippon Building Fund Inc. has arranged a total of ¥13 billion in new long-term borrowings, comprising a ¥10 billion unsecured, unguaranteed loan from Sumitomo Mitsui Trust Bank at a fixed interest rate of 1.952% maturing in 2033 and a &#...
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.