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

Japan Real Estate Investment (8952) AI Stock Analysis

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Japan Real Estate Investment

(OTC:8952)

Rating:70Outperform
Price Target:
Japan Real Estate Investment's stock score is driven by strong financial performance, underpinned by solid profitability, growth, and a stable balance sheet. The technical indicators suggest stability, while valuation metrics provide a balanced view with a reasonable P/E ratio and a high dividend yield. The absence of recent earnings call and corporate events data leaves some uncertainty, but overall, the stock remains a stable investment within the REIT - Office sector.

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

Japan Real Estate Investment Business Overview & Revenue Model

Company DescriptionJapan Real Estate Investment Corporation (JRE) is a real estate investment trust (REIT) based in Japan, primarily focused on investing in and managing a diverse portfolio of real estate properties. The company specializes in acquiring, managing, and leasing office buildings, retail spaces, and other commercial properties throughout Japan. JRE aims to provide stable and long-term returns to its investors by effectively managing its real estate assets and maintaining a high occupancy rate.
How the Company Makes MoneyJapan Real Estate Investment Corporation makes money primarily through the rental income generated from its portfolio of commercial properties, including office buildings and retail spaces. The company strategically acquires properties in prime locations to ensure high occupancy rates and stable rental income. Additionally, JRE may engage in property sales and acquisitions to optimize its portfolio and capitalize on market opportunities. The company's earnings are also influenced by factors such as property management efficiency, market demand for commercial real estate, and economic conditions affecting rental rates and property values.

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
85
Very Positive
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
78
Positive
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
72
Positive
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
Sep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
84.00B75.97B74.11B71.85B70.96B
Gross Profit
46.01B35.80B39.24B38.78B37.50B
EBIT
40.96B35.09B35.15B34.87B33.85B
EBITDA
53.33B47.55B47.75B47.67B46.90B
Net Income Common Stockholders
37.48B33.24B32.84B32.43B31.35B
Balance SheetCash, Cash Equivalents and Short-Term Investments
23.26B29.09B20.47B37.57B21.50B
Total Assets
1.07T1.06T1.01T1.00T1.00T
Total Debt
457.89B450.19B423.39B419.49B418.99B
Net Debt
434.64B421.10B402.92B381.93B397.49B
Total Liabilities
528.13B518.89B491.21B487.14B484.95B
Stockholders Equity
541.42B538.40B517.76B516.45B515.30B
Cash FlowFree Cash Flow
22.15B-4.67B11.73B46.54B-7.96B
Operating Cash Flow
72.51B59.89B68.59B49.98B47.94B
Investing Cash Flow
-51.20B-64.73B-58.61B-3.41B-53.02B
Financing Cash Flow
-26.76B14.17B-27.62B-30.83B180.30M

Japan Real Estate Investment Technical Analysis

Technical Analysis Sentiment
Positive
Last Price119400.00
Price Trends
50DMA
113099.65
Positive
100DMA
108898.16
Positive
200DMA
109143.21
Positive
Market Momentum
MACD
1781.57
Negative
RSI
73.38
Negative
STOCH
93.57
Negative
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 119400 is above the 20-day moving average (MA) of 116045.00, above the 50-day MA of 113099.65, and above the 200-day MA of 109143.21, indicating a bullish trend. The MACD of 1781.57 indicates Negative momentum. The RSI at 73.38 is Negative, neither overbought nor oversold. The STOCH value of 93.57 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥506.74B22.50
4.25%-17.31%15.83%
77
Outperform
¥219.60B19.63
5.02%-29.52%9.41%
76
Outperform
¥1.14T24.816.37%3.61%21.60%18.44%
70
Outperform
¥849.45B22.536.87%3.93%6.93%5.52%
70
Neutral
¥289.61B21.75
4.46%-16.54%47.97%
66
Neutral
¥175.11B22.11
4.25%-16.98%1.05%
61
Neutral
$2.83B10.910.42%8438.90%5.74%-20.95%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8952
Japan Real Estate Investment
119,400.00
21,348.75
21.77%
JP:3295
Hulic Reit, Inc.
152,000.00
13,068.31
9.41%
JP:8954
ORIX JREIT Inc.
183,600.00
32,238.05
21.30%
JP:8976
Daiwa Office Investment Corporation
308,500.00
39,262.40
14.58%
JP:8987
Japan Excellent, Inc.
133,000.00
16,923.64
14.58%
JP:8951
Nippon Building
134,200.00
24,277.16
22.09%

Japan Real Estate Investment Corporate Events

JRE Announces Auditor Resignation
May 30, 2025

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
May 30, 2025

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
May 27, 2025

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
May 19, 2025

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
May 15, 2025

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
May 15, 2025

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
Apr 24, 2025

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.

JRE Achieves Fifth ZEB Certification for Amagasaki Front Building
Mar 28, 2025

Japan Real Estate Investment Corporation announced that its JRE Amagasaki Front Building has received the ZEB Ready Certification with a ‘6 Stars’ rating, marking the fifth ZEB certified building in its portfolio. This achievement is significant as it is the first large-scale office building owned by a J-REIT to receive such certification, aligning with JRE’s sustainability goals and enhancing its industry positioning in energy-efficient real estate.

Japan Real Estate Investment Corporation Announces New Debt Financing Strategy
Mar 27, 2025

Japan Real Estate Investment Corporation has announced a new debt financing strategy to repay an existing long-term loan of JPY 5 billion. The new borrowing involves two loans totaling JPY 5 billion from the Development Bank of Japan Inc., with varying interest rates and repayment terms. This move is expected to maintain the company’s financial stability and support its strategic financial management without altering the overall interest-bearing debt.

Japan Real Estate Investment Corporation Secures Debt Financing for Real Estate Acquisition
Mar 24, 2025

Japan Real Estate Investment Corporation has announced a debt financing plan to secure funds for the acquisition of a domestic real estate asset, CO·MO·RE YOTSUYA, with a 13.5% ownership interest. The financing involves multiple loans from various banks, including a sustainability-linked loan aimed at reducing CO₂ emissions, reflecting the company’s commitment to sustainable practices. This strategic move is expected to strengthen the company’s asset portfolio and enhance its market position in the real estate sector.

Japan Real Estate Investment Corporation Announces JPY 2 Billion Debt Refinancing
Mar 24, 2025

Japan Real Estate Investment Corporation has announced a new debt financing initiative to secure a JPY 2 billion loan from MUFG Bank, Ltd. This loan is intended to repay an existing long-term loan of the same amount, originally executed in 2018. The new loan, which is unsecured and unguaranteed, will have a variable interest rate based on the JBA 3-month JPY TIBOR plus 0.150%. The principal repayment is scheduled for March 26, 2035. This refinancing move maintains the company’s total interest-bearing debt levels, ensuring financial stability and continuity in its investment strategy.

JRE Announces Strategic Real Estate Portfolio Adjustments
Mar 21, 2025

Japan Real Estate Investment Corporation has announced a strategic acquisition and disposition of domestic real estate properties as part of its portfolio reshuffling strategy. The acquisition of CO・MO・RE YOTSUYA in Shinjuku, Tokyo, is aimed at improving portfolio competitiveness due to its prime location and strong specifications, while the disposition of the Akasaka Park Building in Minato, Tokyo, is based on profitability and asset value assessments.

Japan Real Estate Investment Corporation Revises September 2025 Forecasts Upward
Mar 21, 2025

Japan Real Estate Investment Corporation has revised its performance forecasts for the fiscal period ending September 2025, reflecting improved financial expectations due to strategic property acquisitions and dispositions. The revised forecasts indicate significant increases in operating revenues, operating profit, ordinary profit, and net profit, suggesting a positive impact on the company’s financial health and potential benefits for stakeholders.

Japan Real Estate Announces Strategic Property Acquisition and Disposition
Mar 21, 2025

Japan Real Estate Asset Management Co., Ltd. announced the acquisition of CO・MO・RE YOTSUYA and the disposition of Akasaka Park Building. The acquisition aims to strengthen the company’s portfolio with a high-quality property expected to enhance competitiveness and profitability in the medium to long term. The disposition of the older Akasaka Park Building, with concerns over declining leasing competitiveness and increasing construction expenses, will be conducted in six stages to manage financial fluctuations. This strategic move is expected to improve the company’s market positioning and operational efficiency.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.