NTT UD REIT Investment Corporation (8956) AI Stock Analysis

• Market Cap: ¥204.52B
• Dividend Yield: 4.51%
• Average Volume (3M): 2.29K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.23
• Revenue Growth: 13.38%
• EPS Growth: -6.44%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 3090.00
• Shares Outstanding: 1,482,035
• 10 Day Avg. Volume: 1,763
• 30 Day Avg. Volume: 2,291
• PEG Ratio: -0.98
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 6.81
• P/FCF Ratio: -5.95
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥154,550 ▲(11.67% Upside)

The stock's overall score is driven by strong technical analysis indicators and a solid dividend yield, which are offset by financial performance concerns such as declining revenue and profitability, increased leverage, and negative free cash flow. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Stable Gross Profit Margins

Maintaining a stable gross profit margin indicates efficient cost management, which is crucial for long-term profitability and competitiveness.

Early Loan Repayment Strategy

Early loan repayment reduces interest-bearing liabilities, strengthening financial position and enhancing long-term financial stability.

Strategic Management Changes

Strategic management changes can improve operational efficiency and strategic direction, positively impacting long-term market positioning.

Negative Factors

Declining Revenue

A decline in revenue growth can signal challenges in market demand or competitive positioning, affecting long-term growth prospects.

Increased Leverage

Higher leverage increases financial risk and can constrain future investment flexibility, impacting long-term financial health.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity challenges, which can affect the company's ability to sustain operations without external financing.

NTT UD REIT Investment Corporation Business Overview & Revenue Model

Company Description

NTT UD REIT Investment Corporation (8956) is a real estate investment trust (REIT) based in Japan, primarily focusing on the acquisition, management, and leasing of commercial properties, particularly office buildings and retail spaces. The company aims to provide stable returns to its investors by investing in high-quality properties located in prime urban areas, leveraging the expertise of the NTT Group in the telecommunications and technology sectors to enhance operational efficiencies and tenant experiences.

How the Company Makes Money

NTT UD REIT generates revenue primarily through rental income from its portfolio of commercial properties. The company leases office and retail spaces to a diverse range of tenants, including those in the technology, finance, and retail sectors. This rental income is the core revenue stream, supported by long-term lease agreements that provide stability and predictability in cash flows. Additionally, NTT UD REIT may benefit from property appreciation over time, enhancing its overall asset value. The company's strategic partnerships with the NTT Group and other real estate entities may contribute to its operational efficiencies, tenant acquisition, and property management, further solidifying its revenue-generating capabilities.

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: 138400.00
• 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 138400 is below the 20-day moving average (MA) of 139075.00, above the 50-day MA of 136476.05, and above the 200-day MA of 130173.55, indicating a neutral trend. The MACD of 881.41 indicates Positive momentum. The RSI at 50.55 is Neutral, neither overbought nor oversold. The STOCH value of 35.77 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
3296	79 Outperform	¥182.32B	16.76	―	4.72%	50.47%	26.45%
8966	75 Outperform	¥194.86B	20.71	―	5.02%	13.33%	8.96%
8957	74 Outperform	$197.56B	20.61	7.82%	3.93%	21.72%	5.02%
8964	72 Outperform	¥246.70B	19.92	―	4.65%	4.11%	2.05%
8956	70 Outperform	¥204.52B	22.88	―	4.51%	13.38%	-6.44%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

NTT UD REIT Investment Corporation Corporate Events

NTT UD REIT Renews Commitment Line Agreement for Financial Flexibility

NTT UD REIT Investment Corporation has renewed its commitment line agreement to ensure flexible and stable funding for acquiring new properties and repaying loans. This renewal involves a 5,000 million yen agreement with NTT TC Leasing Co., Ltd., effective from October 1, 2025, to September 30, 2026, and remains unsecured and non-guaranteed.

The most recent analyst rating on (JP:8956) stock is a Hold with a Yen139207.00 price target. To see the full list of analyst forecasts on NTT UD REIT Investment Corporation stock, see the JP:8956 Stock Forecast page.