Japan Real Estate Investment (8952) AI Stock Analysis

• Market Cap: ¥835.22B
• Dividend Yield: 4.17%
• Average Volume (3M): 17.04K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.24
• Revenue Growth: 6.93%
• EPS Growth: 5.52%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 2651.00
• Shares Outstanding: 7,114,320
• 10 Day Avg. Volume: 15,353
• 30 Day Avg. Volume: 17,042
• PEG Ratio: 19.98
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 70.51
• 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: ¥123,288.14
• Price Target Upside: 5.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: ¥133,533 ▲(14.33%Upside)

Japan Real Estate Investment scores well overall due to its strong financial performance and bullish technical indicators, though valuation concerns and potential overbought conditions temper the score. The absence of recent earnings call insights or notable corporate events leaves the analysis primarily focused on the core financial and market aspects.

Japan Real Estate Investment Business Overview & Revenue Model

Company Description

Japan Real Estate Investment (8952) is a real estate investment trust (REIT) based in Japan. The company focuses on investing in and managing a diversified portfolio of real estate properties, primarily commercial properties such as office buildings, retail spaces, and residential properties. By leveraging its expertise in real estate investment and management, Japan Real Estate Investment aims to provide stable and sustainable returns to its investors.

How the Company Makes Money

Japan Real Estate Investment makes money primarily through rental income generated from its portfolio of properties. The company leases its commercial and residential properties to tenants, which provides a steady stream of rental revenues. Additionally, the company may engage in property sales when strategically beneficial, contributing to its revenue streams. The trust's performance and profitability are also influenced by factors such as property valuation increases, occupancy rates, and effective property management practices. Partnerships with property management firms and real estate developers can enhance operational efficiency and maximize rental yields, further supporting the company's earnings.

Japan Real Estate Investment Financial Statement Overview

Summary

Japan Real Estate Investment exhibits solid financial performance with strong profitability and growth on the income statement, a stable balance sheet with controlled leverage, and improving cash flow. The company is well-positioned, though further enhancements in cash flow conversion would bolster financial resilience.

Income Statement

The company has demonstrated solid revenue growth with a 10.5% increase in revenue over the past year. Gross profit margin remains robust at 54.8%, and net profit margin is impressive at 44.6%. The EBIT margin of 48.8% and EBITDA margin of 63.5% indicate strong operational efficiency. Overall, the income statement reflects healthy profitability and growth.

Balance Sheet

The balance sheet shows a stable equity ratio of 50.6%, indicating a balanced asset-to-equity structure. The debt-to-equity ratio stands at 0.85, reflecting manageable leverage levels. Return on Equity (ROE) is strong at 6.9%, signifying effective utilization of shareholders' equity. While the leverage is under control, maintaining this balance will be crucial to sustain financial health.

Cash Flow

Free cash flow has improved significantly to 22.1 billion yen compared to a negative position in the previous year, showcasing strong cash generation capabilities. The operating cash flow to net income ratio is 1.93, indicating robust conversion of income to cash. However, the free cash flow to net income ratio of 0.59 suggests room for improvement in translating earnings into free cash.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	95.29B	84.00B	75.97B	74.11B	71.85B	70.96B
Gross Profit	21.09B	46.01B	35.80B	39.24B	38.78B	37.50B
EBITDA	53.60B	53.33B	47.55B	47.75B	47.67B	46.90B
Net Income	37.70B	37.48B	33.24B	32.84B	32.43B	31.35B
Balance Sheet
Total Assets	1.09T	1.07T	1.06T	1.01T	1.00T	1.00T
Cash, Cash Equivalents and Short-Term Investments	32.78B	23.26B	29.09B	20.47B	37.57B	21.50B
Total Debt	474.69B	457.89B	450.19B	423.39B	419.49B	418.99B
Total Liabilities	547.98B	528.13B	518.89B	491.21B	487.14B	484.95B
Stockholders Equity	542.72B	541.42B	538.40B	517.76B	516.45B	515.30B
Cash Flow
Free Cash Flow	1.26B	22.15B	-4.67B	11.72B	46.54B	-7.96B
Operating Cash Flow	70.92B	72.51B	59.89B	68.59B	49.98B	47.94B
Investing Cash Flow	-31.27B	-51.20B	-64.73B	-58.61B	-3.41B	-53.02B
Financing Cash Flow	-767.41M	-26.76B	14.17B	-27.62B	-30.83B	180.30M

Japan Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 116800.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8952, the sentiment is Positive. The current price of 116800 is below the 20-day moving average (MA) of 118420.00, below the 50-day MA of 117148.00, and above the 200-day MA of 110259.43, indicating a neutral trend. The MACD of -97.95 indicates Positive momentum. The RSI at 48.00 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8952.

Japan Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8954	78 Outperform	¥529.92B	23.53		4.04%	-17.31%	15.83%
8976	75 Outperform	¥305.23B	22.93		4.29%	-16.54%	47.97%
8951	74 Outperform	$1.12T	24.01	6.37%	3.69%	21.60%	18.44%
3295	74 Outperform	¥227.95B	20.38		5.05%	-29.52%	9.41%
8952	72 Outperform	¥835.22B	22.15	6.87%	4.17%	6.93%	5.52%
8987	71 Outperform	¥176.70B	22.31		4.48%	-16.98%	1.05%
Sector *	70 Neutral	¥232.48B	14.32	10.62%	4.23%	17.83%	19.65%

Japan Real Estate Investment Corporate Events

Japan Real Estate Investment Corporation Announces Debt Refinancing

Japan Real Estate Investment Corporation has announced a new debt financing arrangement to repay an existing short-term loan of JPY 2 billion. The loan, secured from Mizuho Bank, Ltd., is set for repayment by July 10, 2026, with interest calculated based on the JPY TIBOR rate. This refinancing move maintains the company’s current level of interest-bearing debt, indicating a stable financial strategy without altering its debt profile.

The most recent analyst rating on (JP:8952) stock is a Hold with a Yen119000.00 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 Refinancing

Japan Real Estate Investment Corporation announced a debt financing initiative to repay an existing long-term loan of JPY 7 billion. This move, involving a new loan from Sumitomo Mitsui Trust Bank, is structured as an unsecured and unguaranteed loan with a variable interest rate. The refinancing is expected to maintain the company’s total interest-bearing debt at its current level, indicating a stable financial strategy without altering its risk profile.

The most recent analyst rating on (JP:8952) stock is a Hold with a Yen114340.00 price target. To see the full list of analyst forecasts on Japan Real Estate Investment stock, see the JP:8952 Stock Forecast page.

JRE Announces Auditor Resignation

Japan Real Estate Investment Corporation announced the resignation of Takuro Yamanaka, a part-time auditor at its asset management subsidiary, effective June 20, 2025. The company will undertake necessary legal procedures following this change, which may impact its compliance and operational oversight.

The most recent analyst rating on (JP:8952) stock is a Hold with a Yen114340.00 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 Strategic Loan Prepayment and New Debt Financing

Japan Real Estate Investment Corporation announced a strategic financial move involving the prepayment of a short-term loan amounting to JPY 1,000 million and securing new debt financing of the same amount from The Kagoshima Bank, Ltd. This decision is expected to optimize their debt structure without incurring early repayment fees, maintaining the total interest-bearing debt unchanged. The move reflects the company’s proactive approach to managing its financial obligations and sustaining its market position.

The most recent analyst rating on (JP:8952) stock is a Hold with a Yen114340.00 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 Loan Repayment

Japan Real Estate Investment Corporation has announced a new debt financing arrangement to repay part of an existing long-term loan. This strategic move involves securing a JPY 1,000 million loan from The 77 Bank, Ltd., which will adjust the company’s balance of interest-bearing debt, reflecting a decrease in total loans by JPY 500 million. This financial maneuver is expected to streamline the company’s debt structure without altering the investment risks previously reported.

The most recent analyst rating on (JP:8952) stock is a Hold with a Yen114340.00 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 Reports Stable Financial Performance Amid Unit Split

Japan Real Estate Investment Corporation reported its financial results for the fiscal period ending March 2025, showing a slight increase in operating revenues and profits compared to the previous period. The company also conducted a 5-for-1 split of its investment units, effective January 2025, which impacted profit per unit calculations. Despite a stable financial performance, the company forecasts a decrease in operating revenues and profits for the upcoming periods, indicating potential challenges in maintaining growth momentum.

The most recent analyst rating on (JP:8952) stock is a Hold with a Yen114340.00 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

Japan Real Estate Investment Corporation announced a debt financing move to repay an existing short-term loan of JPY 11 billion. The loan, secured from MUFG Bank, Ltd., is set to be repaid by August 18, 2025, with a fixed interest rate of 0.81000%. This strategic financial maneuver ensures stability in the company’s financial operations without altering its overall debt levels, maintaining its position in the real estate investment sector.

The most recent analyst rating on (JP:8952) stock is a Hold with a Yen114340.00 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

Japan Real Estate Investment Corporation 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 working capital, potentially impacting the company’s financial flexibility and market positioning.

The most recent analyst rating on (JP:8952) stock is a Hold with a Yen114340.00 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 Early Loan Prepayment

Japan Real Estate Investment Corporation announced the prepayment of a JPY 1,000 million short-term loan from Mizuho Bank, Ltd., originally due in March 2026, using cash on hand. This prepayment reduces the company’s total interest-bearing debt by JPY 1,000 million, with no early repayment fees incurred, and does not materially change the company’s investment risk profile.