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Japan Real Estate Investment Corp (JP:8952)
OTHER OTC:8952

Japan Real Estate Investment (8952) AI Stock Analysis

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JP:8952

Japan Real Estate Investment

(OTC:8952)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
¥137,700
▲(8.85% Upside)
The stock's overall score is driven by strong financial performance, despite cash flow volatility and modest returns on equity. Technical indicators suggest weak momentum, while valuation metrics indicate potential overvaluation, balanced by a decent dividend yield.
Positive Factors
Stable Revenue Stream
The diversified portfolio of long-term leases with corporate tenants ensures a stable revenue stream, supporting consistent income distribution and financial stability.
Strong Revenue Growth
Robust revenue growth reflects high demand for the company's properties, indicating effective asset management and a strong market position in the Japanese real estate sector.
Healthy Profit Margins
Efficient cost management and healthy profit margins enhance the company's ability to generate profits, supporting sustainable growth and shareholder returns.
Negative Factors
Cash Flow Volatility
Volatile free cash flow can hinder the company's ability to invest in new opportunities or manage debt, potentially impacting long-term growth and financial flexibility.
Modest Return on Equity
Modest return on equity indicates challenges in generating high returns on shareholder investments, which could affect investor confidence and capital raising capabilities.
Decline in Gross Profit Margin
A declining gross profit margin may signal rising operational costs, which could pressure profitability and necessitate strategic adjustments to maintain margins.

Japan Real Estate Investment (8952) vs. iShares MSCI Japan ETF (EWJ)

Japan Real Estate Investment Business Overview & Revenue Model

Company DescriptionJapan Real Estate Investment (8952) is a leading real estate investment trust (REIT) focused on acquiring and managing high-quality income-generating properties across Japan. The company primarily invests in commercial properties, including office buildings, retail spaces, and logistics facilities, aiming to deliver stable returns to its investors. With a strategic approach to asset management and a commitment to sustainability, Japan Real Estate Investment seeks to enhance property value while providing capital appreciation and income distribution to its shareholders.
How the Company Makes MoneyJapan Real Estate Investment generates revenue primarily through rental income from its diversified portfolio of properties. The company leases its commercial spaces to various tenants, which provides a steady cash flow stream. Additionally, the company benefits from property value appreciation over time, which can lead to capital gains upon the sale of assets. Key revenue streams include long-term leases with corporate tenants, short-term leases for retail spaces, and rental agreements for logistics facilities. The company may also realize income through property management services and strategic partnerships with local real estate firms, enhancing its market presence and operational efficiency. Factors contributing to its earnings include favorable market conditions in the Japanese real estate sector, effective asset management strategies, and a focus on high-demand urban locations.

Japan Real Estate Investment Financial Statement Overview

Summary
Strong revenue growth and profitability with a stable balance sheet. However, cash flow volatility and modest returns on equity are areas for improvement.
Income Statement
The company shows strong revenue growth with a 23.08% increase in the latest year, indicating robust demand. Gross profit and net profit margins are healthy, reflecting efficient cost management and profitability. However, the slight decline in gross profit margin over the years suggests potential cost pressures.
Balance Sheet
The balance sheet is stable with a moderate debt-to-equity ratio, indicating manageable leverage. The equity ratio is solid, showing a strong equity base. However, the return on equity is relatively modest, suggesting room for improvement in generating returns on shareholder investments.
Cash Flow
Operating cash flow is strong, but free cash flow has shown volatility, with a recent decline. The free cash flow to net income ratio indicates some challenges in converting profits into free cash flow, which could impact future investments or debt repayments.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue92.09B103.38B84.00B75.97B74.11B71.85B
Gross Profit40.99B40.99B46.01B35.80B39.24B38.78B
EBITDA52.39B52.39B53.33B47.55B47.75B47.67B
Net Income36.67B36.67B37.48B33.24B32.84B32.43B
Balance Sheet
Total Assets1.08T1.08T1.07T1.06T1.01T1.00T
Cash, Cash Equivalents and Short-Term Investments29.47B29.47B23.26B29.09B20.47B37.57B
Total Debt461.19B461.19B457.89B450.19B423.39B419.49B
Total Liabilities533.79B533.79B528.13B518.89B491.21B487.14B
Stockholders Equity542.83B542.83B541.42B538.40B517.76B516.45B
Cash Flow
Free Cash Flow62.06B29.19B22.15B-4.67B11.72B46.54B
Operating Cash Flow67.79B67.79B72.51B59.89B68.59B49.98B
Investing Cash Flow-37.05B-37.05B-51.20B-64.73B-58.61B-3.41B
Financing Cash Flow-31.96B-31.96B-26.76B14.17B-27.62B-30.83B

Japan Real Estate Investment Technical Analysis

Technical Analysis Sentiment
Negative
Last Price126500.00
Price Trends
50DMA
130068.00
Negative
100DMA
128203.00
Positive
200DMA
121299.59
Positive
Market Momentum
MACD
-124.78
Positive
RSI
44.65
Neutral
STOCH
28.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8952, the sentiment is Negative. The current price of 126500 is below the 20-day moving average (MA) of 130015.00, below the 50-day MA of 130068.00, and above the 200-day MA of 121299.59, indicating a neutral trend. The MACD of -124.78 indicates Positive momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 28.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8952.

Japan Real Estate Investment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥1.24T26.526.61%3.40%-7.30%7.83%
71
Outperform
¥593.95B25.264.10%-31.88%2.02%
67
Neutral
¥200.49B24.333.82%64.38%0.79%
66
Neutral
¥920.59B25.016.59%3.83%-1.97%-2.16%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
64
Neutral
¥257.76B21.544.63%-5.47%14.66%
64
Neutral
¥355.67B25.613.94%19.18%-23.37%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8952
Japan Real Estate Investment
128,900.00
28,326.96
28.17%
JP:8951
Nippon Building
144,100.00
26,778.83
22.83%
JP:3295
Hulic Reit, Inc.
178,700.00
49,549.72
38.37%
JP:8954
ORIX JREIT Inc.
107,600.00
30,295.73
39.19%
JP:8976
Daiwa Office Investment Corporation
382,000.00
107,861.20
39.35%
JP:8987
Japan Excellent, Inc.
151,700.00
39,238.13
34.89%

Japan Real Estate Investment Corporate Events

Japan Real Estate Investment Secures ¥5bn Sustainability-Linked Loan for Refinancing
Dec 24, 2025

Japan Real Estate Investment Corporation has arranged a new ¥5 billion long-term loan from Mizuho Bank to refinance an existing loan maturing on December 26, 2025, maintaining its total interest-bearing debt level while shifting ¥5 billion of borrowings from fixed to variable interest terms. The new borrowing, an unsecured 10-year sustainability-linked loan tied to a target of cutting CO₂ emissions by 80% by fiscal 2030 from a 2019 baseline, links a 0.01 percentage point interest rate reduction to achieving interim performance milestones, underscoring the REIT’s strategy to integrate sustainability goals with its funding structure without altering its overall leverage profile.

The most recent analyst rating on (JP:8952) stock is a Buy with a Yen143000.00 price target. To see the full list of analyst forecasts on Japan Real Estate Investment stock, see the JP:8952 Stock Forecast page.

Japan Real Estate Investment Locks In Fixed-Rate MUFG Loan for Medium-Term Funding
Dec 22, 2025

Japan Real Estate Investment Corporation has set the interest rate on a new fixed-rate loan connected to its previously announced debt financing, locking in a 1.46313% rate on funds to be borrowed on December 24, 2025. The JPY 5 billion loan, provided by MUFG Bank and maturing on June 25, 2029, underscores the REIT’s strategy of securing medium-term, fixed-cost funding to support its portfolio while stabilizing financing expenses, a move that may help mitigate interest rate volatility for the benefit of unitholders and other stakeholders.

The most recent analyst rating on (JP:8952) stock is a Buy with a Yen143000.00 price target. To see the full list of analyst forecasts on Japan Real Estate Investment stock, see the JP:8952 Stock Forecast page.

Japan Real Estate Investment Corporation Announces Loan Prepayment and Debt Financing
Dec 12, 2025

Japan Real Estate Investment Corporation announced its plan to prepay existing loans ahead of schedule and secure new debt financing. This strategic financial move involves repaying a total of JPY 17,000 million across multiple loans with no early repayment fees, potentially improving the company’s financial flexibility and reducing interest expenses, thereby strengthening its position in the real estate investment market.

The most recent analyst rating on (JP:8952) stock is a Hold with a Yen137700.00 price target. To see the full list of analyst forecasts on Japan Real Estate Investment stock, see the JP:8952 Stock Forecast page.

Japan Real Estate Investment Corporation Secures JPY 5 Billion Loan for Bond Redemption
Dec 10, 2025

Japan Real Estate Investment Corporation has announced a debt financing initiative to raise JPY 5,000 million through a loan from Mizuho Bank, Ltd. The funds will be used to redeem parts of its unsecured Investment Corporation Bonds maturing in September and October 2025. This move increases the company’s total interest-bearing debt to JPY 478,193 million, reflecting a strategic financial adjustment to manage its bond obligations.

The most recent analyst rating on (JP:8952) stock is a Hold with a Yen123000.00 price target. To see the full list of analyst forecasts on Japan Real Estate Investment stock, see the JP:8952 Stock Forecast page.

Japan Real Estate Investment Corporation Reports Decline in September 2025 Financial Results
Nov 19, 2025

Japan Real Estate Investment Corporation reported a decline in financial performance for the fiscal period ending September 2025, with decreases in operating revenues, operating profit, ordinary profit, and profit compared to the previous period. Despite the downturn, the company maintained a stable dividend payout ratio and equity ratio, reflecting a commitment to shareholder returns and financial stability. The forecast for the upcoming periods suggests a slight recovery in revenues and profits, indicating cautious optimism in the company’s future performance.

The most recent analyst rating on (JP:8952) stock is a Hold with a Yen123000.00 price target. To see the full list of analyst forecasts on Japan Real Estate Investment stock, see the JP:8952 Stock Forecast page.

Japan Real Estate Investment Corporation Announces Bond Issuance Plan
Nov 17, 2025

Japan Real Estate Investment Corporation has announced a comprehensive resolution to issue unsecured investment corporation bonds with a maximum amount of JPY 100 billion. The proceeds from these bonds will be used for acquiring specified assets, property maintenance, loan repayments, and other financial needs, potentially impacting the company’s financial flexibility and market positioning.

The most recent analyst rating on (JP:8952) stock is a Hold with a Yen123000.00 price target. To see the full list of analyst forecasts on Japan Real Estate Investment stock, see the JP:8952 Stock Forecast page.

Japan Real Estate Investment Corporation Announces Debt Financing for Loan Repayment
Nov 14, 2025

Japan Real Estate Investment Corporation announced a debt financing move to repay an existing short-term loan of JPY 11 billion. This financial maneuver involves a fixed interest rate loan from MUFG Bank, Ltd., with a repayment date set for February 18, 2026. The announcement indicates no change in the company’s total interest-bearing debt, suggesting a stable financial position without altering its risk profile.

The most recent analyst rating on (JP:8952) stock is a Hold with a Yen123000.00 price target. To see the full list of analyst forecasts on Japan Real Estate Investment stock, see the JP:8952 Stock Forecast page.

Japan Real Estate Investment Announces Debt Financing for Strategic Acquisition
Oct 15, 2025

Japan Real Estate Investment Corporation has announced a debt financing plan to support the acquisition of trust beneficiary interest in The Link Sapporo, a domestic real estate asset. This financing includes multiple loans totaling JPY 13,000 million from various banks, with a notable emphasis on sustainability-linked loans that aim to reduce CO₂ emissions significantly by 2030. This move is expected to enhance the company’s asset portfolio and align with its sustainability goals, potentially impacting its market position and stakeholder relations positively.

The most recent analyst rating on (JP:8952) stock is a Hold with a Yen123000.00 price target. To see the full list of analyst forecasts on Japan Real Estate Investment stock, see the JP:8952 Stock Forecast page.

Japan Real Estate Investment Corporation Acquires Prime Sapporo Office Property
Oct 14, 2025

Japan Real Estate Investment Corporation has announced the acquisition of a trust beneficiary interest in ‘The Link Sapporo,’ a prime office building located in Sapporo, for JPY 21,340 million. This acquisition aligns with JRE’s strategic goals to bolster its asset portfolio with properties in advantageous locations, enhancing long-term competitiveness. The property, completed in 2023, boasts superior location and facilities, including proximity to major transport hubs and modern amenities, which are expected to increase its value and appeal, thereby strengthening JRE’s position in the Sapporo office market.

The most recent analyst rating on (JP:8952) stock is a Hold with a Yen123000.00 price target. To see the full list of analyst forecasts on Japan Real Estate Investment stock, see the JP:8952 Stock Forecast page.

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.Date of analysis: Dec 11, 2025