NTT UD REIT Investment Corporation (8956) AI Stock Analysis

• Market Cap: ¥204.52B
• Dividend Yield: 4.46%
• 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: 64 Neutral
• Price Target: ¥139,207 ▼(-0.57% Downside)

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 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: Positive
• Last Price: 140000.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8956, the sentiment is Positive. The current price of 140000 is above the 20-day moving average (MA) of 136492.65, above the 50-day MA of 134671.11, and above the 200-day MA of 128921.86, indicating a bullish trend. The MACD of 1254.60 indicates Negative momentum. The RSI at 70.24 is Negative, neither overbought nor oversold. The STOCH value of 66.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥176.48B	16.22	―	4.71%	50.47%	26.45%
8966	75 Outperform	¥194.86B	20.71	―	4.65%	13.33%	8.96%
8957	74 Outperform	¥193.43B	20.18	7.82%	3.98%	21.72%	5.02%
8964	72 Outperform	¥246.70B	19.92	―	4.76%	4.11%	2.05%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8956	64 Neutral	¥204.52B	22.88	―	4.46%	13.38%	-6.44%

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.