Nippon Building (8951) AI Stock Analysis

• Market Cap: ¥1.26T
• Dividend Yield: 3.4%
• Average Volume (3M): 18.47K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 0.15
• Revenue Growth: -7.30%
• EPS Growth: 7.83%
• Country: JP
• Employees: 3,356
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 2768.00
• Shares Outstanding: 8,650,000
• 10 Day Avg. Volume: 19,291
• 30 Day Avg. Volume: 18,469
• PEG Ratio: 1.23
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 10.30
• P/FCF Ratio: 18.77
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥153,828 ▲(9.96% Upside)

Nippon Building's strong financial performance is the most significant factor, showcasing robust profitability and a stable financial position. Technical analysis indicates weak short-term momentum, which could pose risks. The valuation is mixed, with a high P/E ratio but an attractive dividend yield.

Nippon Building Business Overview & Revenue Model

Company Description

Nippon Building (8951) is a prominent real estate investment trust (REIT) based in Japan, focusing on the acquisition, management, and leasing of commercial properties, particularly in key urban areas. The company specializes in office buildings, retail spaces, and mixed-use developments, providing high-quality spaces for businesses and consumers. Nippon Building aims to deliver sustainable returns to its investors by leveraging its extensive portfolio and expertise in the Japanese real estate market.

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. Additionally, Nippon Building may engage in property management services, providing value-added services to its tenants and generating supplementary income. The company's revenue model is supported by long-term lease agreements, which provide stability in earnings. Strategic partnerships with local businesses and real estate developers further enhance its revenue potential, allowing Nippon Building to capitalize on market opportunities and optimize its asset management.

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.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	130.14B	101.06B	94.38B	99.58B	96.55B	80.34B
Gross Profit	32.26B	53.10B	45.60B	52.71B	50.13B	38.95B
EBITDA	64.77B	64.40B	57.26B	64.05B	60.61B	49.83B
Net Income	46.21B	46.01B	38.85B	45.73B	43.15B	32.79B
Balance Sheet
Total Assets	1.39T	1.38T	1.39T	1.37T	1.31T	1.20T
Cash, Cash Equivalents and Short-Term Investments	12.93B	21.35B	14.18B	11.48B	21.75B	129.21B
Total Debt	594.00B	586.30B	592.50B	577.50B	550.50B	459.50B
Total Liabilities	679.71B	672.51B	679.37B	662.22B	634.56B	530.81B
Stockholders Equity	713.05B	710.44B	706.25B	706.52B	672.29B	666.62B
Cash Flow
Free Cash Flow	31.33B	55.47B	26.33B	-25.29B	-176.28B	-306.63M
Operating Cash Flow	93.21B	109.18B	83.84B	82.85B	151.46B	53.61B
Investing Cash Flow	-62.09B	-54.43B	-56.89B	-108.23B	-312.69B	-52.84B
Financing Cash Flow	-36.09B	-48.01B	-24.12B	15.45B	53.49B	117.56B

Nippon Building Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 139900.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 139900 is below the 20-day moving average (MA) of 142296.70, below the 50-day MA of 142636.62, and above the 200-day MA of 135199.10, indicating a bullish trend. The MACD of 460.46 indicates Negative momentum. The RSI at 58.70 is Neutral, neither overbought nor oversold. The STOCH value of 42.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8951.

Nippon Building Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8951	71 Outperform	¥1.26T	26.76	6.61%	3.40%	-7.30%	7.83%
8954	71 Outperform	¥591.74B	25.17	―	4.10%	-31.88%	2.02%
8987	67 Neutral	¥200.22B	24.29	―	3.82%	64.38%	0.79%
8952	66 Neutral	¥922.02B	25.14	6.59%	3.83%	-1.97%	-2.16%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3295	64 Neutral	¥257.33B	21.54	―	4.63%	-5.47%	14.66%
8976	64 Neutral	¥357.54B	25.64	―	3.94%	19.18%	-23.37%

Nippon Building Corporate Events

Nippon Building Fund Refinances ¥2.7 Billion Loan Without Increasing Total Debt

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 January 15, 2027. The proceeds will be used to refinance an existing long-term borrowing maturing in January 2026, effectively shifting ¥2.7 billion from fixed- to floating-rate debt while keeping the REIT’s total interest-bearing liabilities unchanged at ¥628 billion, and the company states that this transaction does not alter its previously disclosed investment risk profile related to debt repayment.

The most recent analyst rating on (JP:8951) stock is a Buy with a Yen153828.00 price target. To see the full list of analyst forecasts on Nippon Building stock, see the JP:8951 Stock Forecast page.

Nippon Building Fund Hikes June 2026 Earnings Outlook and Sets Robust Forecast for Second Half

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, while nudging its distribution per unit to ¥2,460 despite a higher assumed unit count and increased provisioning for reserve for reduction entry. For the following half-year to December 31, 2026, the REIT forecasts operating revenues of ¥50.6 billion, net income of ¥20.0 billion and a distribution of ¥2,465 per unit, signaling expectations of continued earnings strength and stable cash returns, underpinned by reserve reversals and suggesting resilient property income and disciplined distribution policy for investors.

The most recent analyst rating on (JP:8951) stock is a Buy with a Yen153828.00 price target. To see the full list of analyst forecasts on Nippon Building stock, see the JP:8951 Stock Forecast page.

Nippon Building Fund Reshapes Portfolio With Major Office Acquisitions and Profitable Asset Sale

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 simultaneously agreeing to dispose of the Sumitomo Densetsu Building for 10.0 billion yen. The Nihonbashi Honcho M-SQUARE acquisition, structured via two interdependent trust beneficiary interests from Mitsui Fudosan and Kajima that together confer full ownership of the land and building, and the incremental 9.19% sectional ownership in Toyosu Bayside Cross Tower will be funded through loans, cash on hand and proceeds from new investment units, whereas the sale of Sumitomo Densetsu Building to Mitsui Fudosan is expected to generate a disposal gain of about 5.1 billion yen and will be used mainly to repay borrowings and bolster liquidity, highlighting NBF’s ongoing efforts to recycle capital and upgrade its office portfolio in core locations.

The most recent analyst rating on (JP:8951) stock is a Buy with a Yen153828.00 price target. To see the full list of analyst forecasts on Nippon Building stock, see the JP:8951 Stock Forecast page.

Nippon Building Fund to Raise Capital via New Unit Issuance and Over-Allotment Offering

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 multiple. The transaction, to be fully underwritten by a syndicate of securities firms, may include sales to overseas investors in Europe and Asia, and will be accompanied by a secondary offering of up to 7,800 units via over-allotment by one of the joint lead managers, allowing stabilization of market demand and liquidity once the new units are listed.

The most recent analyst rating on (JP:8951) stock is a Buy with a Yen153828.00 price target. To see the full list of analyst forecasts on Nippon Building stock, see the JP:8951 Stock Forecast page.

Nippon Building Fund Lines Up ¥13 Billion in Long-Term Loans for Year-End Refinancing

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 ¥3 billion unsecured, unguaranteed floating-rate loan from Shinkin Central Bank, based on three‑month TIBOR plus a spread, maturing in 2034. The proceeds will be used entirely to refinance existing long-term debt maturing in December 2025, resulting in no change to the REIT’s overall interest-bearing debt balance of ¥628 billion but a shift of ¥3 billion from fixed- to floating-rate borrowings, a move that fine-tunes its liability structure and extends debt maturities without altering its disclosed investment risk profile.

The most recent analyst rating on (JP:8951) stock is a Buy with a Yen153828.00 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 ¥7 Billion Loan for Refinancing

Nippon Building Fund Inc. announced a long-term borrowing of ¥7 billion from Mizuho Bank, Ltd. at an interest rate of 0.863%, with the funds intended for refinancing a maturing loan. This move is part of NBF’s strategy to maintain financial stability and ensure the seamless continuation of its investment activities, with no changes expected in its overall borrowing status or investment risk profile.

The most recent analyst rating on (JP:8951) stock is a Buy with a Yen153828.00 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 ¥12 Billion for Asset Acquisition

Nippon Building Fund Inc. announced a long-term debt financing plan totaling ¥12 billion to fund the acquisition of new assets, as part of its strategy to optimize its real estate portfolio. The financing involves unsecured, unguaranteed loans from several banks, with a significant portion structured as green loans in line with their Green Finance Framework, indicating a commitment to sustainable investment practices.

The most recent analyst rating on (JP:8951) stock is a Buy with a Yen153828.00 price target. To see the full list of analyst forecasts on Nippon Building stock, see the JP:8951 Stock Forecast page.