NTT UD REIT Investment Corporation (8956) AI Stock Analysis

• Market Cap: ¥203.63B
• Dividend Yield: 4.39%
• Average Volume (3M): 2.65K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.23
• Revenue Growth: 13.38%
• EPS Growth: -6.44%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 48
• Industry: REIT - Diversified
• EPS (TTM): 3090.00
• Shares Outstanding: 1,482,035
• 10 Day Avg. Volume: 2,464
• 30 Day Avg. Volume: 2,646
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥139,207.00
• Price Target Upside: 3.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥139,207 ▲(3.42% Upside)

The stock score reflects mixed financial performance with stable gross profit margins but declining revenue and negative free cash flow. Valuation metrics show moderate attractiveness, with a solid dividend yield. Technical analysis indicates a neutral market sentiment.

NTT UD REIT Investment Corporation Business Overview & Revenue Model

Company Description

Premier Investment Corporation (PIC) is a J-REIT (real estate investment trust) that manages a portfolio comprised of office buildings and residential properties, investing primarily in the Tokyo Economic Bloc. PIC was the sixth J-REIT listed on the Tokyo Stock Exchange (securities code: 8956) in September 2002. Since then, PIC has steadily expanded its portfolio valued at over 200 billion yen on an acquisition price basis. PIC utilizes a hedged strategy that minimizes risk by combining the strengths of office buildings and residential properties against economic cycles, as well as employing a strategic focus on the Tokyo Economic Bloc and prudent management of debt and equity financing. This approach has enabled PIC to successfully achieve steady dividends at a high level over the past fiscal periods. PIC outsources management of its assets to Premier REIT Advisors, Co., Ltd. (PRA). Both PIC and PRA are committed to realizing stable operations over the medium to long term while working to improve the quality of the owned assets.

How the Company Makes Money

NTT UD REIT Investment Corporation generates revenue primarily through rental income from its diverse portfolio of properties. The company acquires income-producing real estate assets, which are then leased to tenants, providing a steady stream of rental income. Additionally, the REIT may engage in the buying and selling of properties to capitalize on market opportunities, potentially leading to capital gains. The corporation's earnings are further supported by strategic partnerships with real estate developers and property management firms, which help optimize property performance and enhance value. Dividends distributed to investors are derived from the net income generated by these activities.

NTT UD REIT Investment Corporation Financial Statement Overview

Summary

NTT UD REIT Investment Corporation shows stable gross profit margins and strong operating cash flow. However, declining revenue and profitability, increased leverage, and negative free cash flow highlight potential risks.

Income Statement

The company shows a stable gross profit margin of around 47% in the latest year, indicating efficient cost management. However, the net profit margin has decreased from 41% in the previous year to 36% in the current year, suggesting a decline in profitability. Revenue has shrunk by 3% from the previous year, which is concerning in terms of growth trajectory.

Balance Sheet

The debt-to-equity ratio has increased to 0.95, reflecting a higher leverage level, which may pose a risk if not managed well. However, the equity ratio stands at a solid 48%, indicating a balanced capital structure. ROE has slightly decreased to 5.77%, showing a mild decline in shareholder returns.

Cash Flow

The free cash flow has turned negative, signifying potential challenges in sustaining operations without external financing. The operating cash flow to net income ratio is healthy at 1.43, indicating strong cash generation relative to accounting profits. There is a significant drop in free cash flow compared to the previous year, highlighting potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.11B	23.78B	24.53B	23.21B	22.21B	18.72B
Gross Profit	5.24B	11.21B	12.45B	11.94B	12.04B	9.64B
EBITDA	13.70B	13.14B	14.08B	13.62B	13.69B	11.34B
Net Income	8.91B	8.58B	10.05B	9.59B	9.77B	7.63B
Balance Sheet
Total Assets	310.03B	311.66B	274.96B	277.45B	266.71B	249.24B
Cash, Cash Equivalents and Short-Term Investments	21.04B	5.96B	6.61B	6.76B	7.06B	3.78B
Total Debt	148.95B	141.14B	122.15B	125.95B	126.50B	112.80B
Total Liabilities	162.86B	163.03B	135.67B	139.79B	141.12B	124.27B
Stockholders Equity	147.17B	148.62B	139.29B	137.66B	125.58B	124.96B
Cash Flow
Free Cash Flow	12.03B	-27.19B	12.22B	-4.20B	-1.06B	5.29B
Operating Cash Flow	19.13B	12.23B	20.78B	26.07B	19.86B	12.27B
Investing Cash Flow	-7.65B	-39.23B	-9.15B	-28.99B	-20.48B	-6.63B
Financing Cash Flow	-10.23B	27.54B	-12.21B	1.91B	4.52B	-4.90B

NTT UD REIT Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 134600.00
• 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:8956, the sentiment is Neutral. The current price of 134600 is below the 20-day moving average (MA) of 134810.00, above the 50-day MA of 131628.00, and above the 200-day MA of 126266.73, indicating a neutral trend. The MACD of 1286.03 indicates Positive momentum. The RSI at 52.50 is Neutral, neither overbought nor oversold. The STOCH value of 42.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8956.

NTT UD REIT Investment Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8956	64 Neutral	¥203.63B	22.79		4.39%	13.38%	-6.44%
Sector *	63 Neutral	$7.02B	13.29	-0.50%	6.92%	4.08%	-25.24%
TKURF	―	$1.27B	20.96	7.49%	4.70%	―	―
3296	74 Outperform	¥171.89B	15.89		4.88%	50.47%	26.45%
3468	―	¥160.68B	18.44		5.81%	―	―
8964	―	¥236.96B	19.20		5.01%	―	―
8966	77 Outperform	¥185.48B	19.74		4.92%	13.33%	8.96%

NTT UD REIT Investment Corporation Corporate Events

NTT UD REIT Announces Early Loan Repayment Strategy

NTT UD REIT Investment Corporation has announced an early repayment of 1,700 million yen in short-term loans, scheduled for June 30, 2025. This repayment is part of a strategic financial move, utilizing proceeds from the sale of an office building, and will reduce the company’s total interest-bearing liabilities, potentially strengthening its financial position.

NTT UD REIT Announces Director and Personnel Changes

NTT Urban Development Asset Management Corporation announced changes in the duties of its directors and personnel, effective June 17, 2025, and July 1, 2025, respectively. These changes are aimed at enhancing the company’s operational efficiency and strategic management, potentially impacting its market positioning and stakeholder relations.

NTT UD REIT Secures 2 Billion Yen Loan for Debt Repayment

NTT UD REIT Investment Corporation announced a new debt finance arrangement to secure a 2,000 million yen short-term loan from Mizuho Bank. This loan will be used to repay an existing loan maturing at the end of June 2025. The transaction will not alter the company’s total interest-bearing liabilities, maintaining its current financial structure and risk profile.

NTT UD REIT Reports Growth but Forecasts Challenges Ahead

NTT UD REIT Investment Corporation reported an increase in operating revenues and net income for the fiscal period ended April 30, 2025, compared to the previous period. Despite this growth, the company forecasts a decrease in operating income and net income for the upcoming fiscal periods, indicating potential challenges ahead. The announcement highlights the company’s stable distribution payout ratio and its strategic financial management, which may impact investor confidence and market positioning.

NTT UD REIT Announces Director Changes to Bolster Management

NTT Urban Development Asset Management Corporation has announced a change in its board of directors, with Keiji Saito and Yusuke Baba being appointed as new directors. This change, set to be formalized on June 17, 2025, reflects the company’s ongoing efforts to strengthen its management team and enhance its focus on engineering and sustainability management, potentially impacting its strategic direction and stakeholder relations.

NTT UD REIT Announces Executive Leadership Change

NTT UD REIT Investment Corporation announced the resignation of its Executive Director, Takeshi Oodera, effective June 16, 2025. Kazuhiro Kimura, who has been serving as a substitute executive director, will take over the role on June 17, 2025. This leadership change is expected to maintain continuity in the company’s operations, given Kimura’s extensive experience within the organization and the industry.

NTT UD REIT Announces Sale of Kanagawa Science Park R&D Building

NTT UD REIT Investment Corporation announced the transfer of its interest in the Kanagawa Science Park R&D Building, citing increasing maintenance costs and favorable market conditions as reasons for the sale. The transaction is expected to result in a financial loss, but it aligns with the company’s strategic decision to optimize its portfolio and manage future revenue projections.

NTT UD REIT Sets Interest Rate for New Loan

NTT UD REIT Investment Corporation has announced the interest rate for a new term loan of 3,300 million yen, set at a fixed rate of 1.62625%. This loan, borrowed from Sumitomo Mitsui Trust Bank, will mature in seven years, potentially impacting the company’s financial strategy and stakeholder interests.

NTT UD REIT Secures Debt Finance for Loan Repayment

NTT UD REIT Investment Corporation has announced a decision to undertake a debt finance initiative to repay a maturing loan of 3,300 million yen. This move involves securing a long-term loan from Sumitomo Mitsui Trust Bank, Limited, with a fixed interest rate yet to be determined. The transaction will not alter the company’s total interest-bearing liabilities, and there are no changes to the investment risk profile as per their latest securities report.