NTT UD REIT Investment Corporation (8956) AI Stock Analysis

• Market Cap: ¥210.75B
• Dividend Yield: 4.51%
• Average Volume (3M): 2.29K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.24
• Revenue Growth: 65.46%
• EPS Growth: -0.92%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 2645.00
• Shares Outstanding: 1,482,035
• 10 Day Avg. Volume: 1,763
• 30 Day Avg. Volume: 2,291
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥148,458 ▲(7.50% Upside)

The overall stock score reflects strong financial performance, particularly in revenue growth and cash flow, despite challenges in profitability. The technical analysis indicates a neutral trend with no clear momentum, while the valuation suggests moderate pricing with an attractive dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Robust revenue growth indicates strong demand for NTT UD REIT's properties, enhancing its market position and potential for future expansion.

Cash Flow Improvements

Improved cash generation strengthens the company's ability to reinvest in property acquisitions and maintain financial stability.

Leverage Management

Better leverage management indicates prudent financial practices, reducing risk and enhancing long-term financial health.

Negative Factors

Declining Profit Margins

Decreasing profit margins suggest rising costs, which could pressure profitability and limit reinvestment capacity.

Reduced Cash Conversion Efficiency

Lower cash conversion efficiency may impact liquidity, affecting the company's ability to fund operations and growth initiatives.

Declining Return on Equity

Reduced ROE indicates declining efficiency in generating shareholder returns, potentially impacting investor confidence.

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

The company demonstrates strong revenue growth and cash flow improvements, but faces challenges with declining profit margins and return on equity. The company has managed its leverage effectively, maintaining a stable balance sheet. While profitability has been under pressure, the company's cash generation capabilities remain robust, supporting its financial stability.

Income Statement

The company has shown strong revenue growth of 26.48% in the latest period, indicating robust top-line expansion. However, gross profit margins have decreased over the years, from 54.23% in 2021 to 26.85% in 2025, suggesting increased cost pressures. Net profit margins have also declined, from 43.99% in 2021 to 21.45% in 2025, reflecting reduced profitability. Despite these challenges, the company maintains a solid EBIT margin of 24.80% and an EBITDA margin of 33.54%.

Balance Sheet

The company's debt-to-equity ratio has improved slightly from 1.01 in 2021 to 0.96 in 2025, indicating better leverage management. However, the return on equity has decreased from 7.78% in 2021 to 5.76% in 2025, suggesting declining efficiency in generating returns for shareholders. The equity ratio remains stable, reflecting a balanced capital structure.

Cash Flow

Free cash flow has shown significant growth of 60.77% in the latest period, a positive sign of improved cash generation. However, the operating cash flow to net income ratio has decreased from 97.29% in 2023 to 86.30% in 2025, indicating reduced cash conversion efficiency. The free cash flow to net income ratio is healthy at 74.57%, suggesting strong cash flow relative to earnings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	39.34B	23.78B	24.53B	23.21B	22.21B
Gross Profit	10.56B	11.21B	12.45B	11.94B	12.04B
EBITDA	13.20B	13.14B	14.08B	13.62B	13.69B
Net Income	8.44B	8.58B	10.05B	9.59B	9.77B
Balance Sheet
Total Assets	307.48B	311.66B	274.96B	277.45B	266.71B
Cash, Cash Equivalents and Short-Term Investments	26.90B	5.96B	6.61B	6.76B	7.06B
Total Debt	140.05B	141.14B	122.15B	125.95B	126.50B
Total Liabilities	160.99B	163.03B	135.67B	139.79B	141.12B
Stockholders Equity	146.49B	148.62B	139.29B	137.66B	125.58B
Cash Flow
Free Cash Flow	19.34B	-27.19B	12.22B	-4.20B	-1.06B
Operating Cash Flow	25.93B	12.23B	20.78B	26.07B	19.86B
Investing Cash Flow	-7.35B	-39.23B	-9.15B	-28.99B	-20.48B
Financing Cash Flow	-12.27B	27.54B	-12.21B	1.91B	4.52B

NTT UD REIT Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 138100.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 138100 is below the 20-day moving average (MA) of 140155.00, below the 50-day MA of 139122.00, and above the 200-day MA of 132028.45, indicating a bullish trend. The MACD of 1110.30 indicates Negative momentum. The RSI at 70.19 is Negative, neither overbought nor oversold. The STOCH value of 80.00 is Negative, 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	¥174.19B	16.01	―	4.70%	50.47%	26.45%
8966	75 Outperform	¥199.24B	21.26	―	4.96%	13.33%	8.96%
8964	72 Outperform	¥254.27B	20.58	―	4.67%	4.11%	2.05%
8957	69 Neutral	¥199.00B	20.79	7.82%	3.87%	21.72%	5.02%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8956	65 Neutral	¥210.75B	24.95	―	4.51%	65.46%	-0.92%

NTT UD REIT Investment Corporation Corporate Events

NTT UD REIT Maps Out Growth, Capital Strategy and ESG Focus for October 2025 Fiscal Period

The release outlines NTT UD REIT’s earnings presentation for the six‑month period ended October 2025, highlighting its financial summary, internal and external growth strategies, and medium‑term earnings per unit growth targets. Management details initiatives to raise office and residential rents, improve tenant turnover and occupancy, and invest in renovations and value‑enhancement projects, alongside efforts to manage interest‑bearing liabilities, control loan‑to‑value ratios, and preserve unrealized gains. The document also emphasizes the REIT’s ESG agenda in environment, social, and governance areas, and underscores how strengthened ties with NTT UD and access to its broad property portfolio are expected to expand external growth opportunities and support the REIT’s competitive positioning in Japan’s office and residential real estate market.

The most recent analyst rating on (JP:8956) stock is a Hold with a Yen148458.00 price target. To see the full list of analyst forecasts on NTT UD REIT Investment Corporation stock, see the JP:8956 Stock Forecast page.

NTT UD REIT Reports No Self-Unit Purchases in December Despite Buyback Authorization

NTT UD REIT Investment Corporation reported that it did not acquire any of its own investment units in December 2025, despite having board authorization to conduct buybacks via market purchases on the Tokyo Stock Exchange. The board had previously approved a unit repurchase program allowing for the acquisition of up to 21,000 units or 2 billion yen through April 22, 2026, so the absence of activity in December indicates that management is taking a cautious, opportunistic approach to capital deployment and has yet to use this tool to support unit price or adjust capital structure during the initial phase of the program.

The most recent analyst rating on (JP:8956) stock is a Hold with a Yen148458.00 price target. To see the full list of analyst forecasts on NTT UD REIT Investment Corporation stock, see the JP:8956 Stock Forecast page.

NTT UD REIT to Acquire and Cancel Own Investment Units for Enhanced Capital Efficiency

NTT UD REIT Investment Corporation has announced a strategic decision to acquire and subsequently cancel its own investment units, aiming to enhance capital efficiency and unitholder returns. This move is part of the company’s broader strategy to improve management indicators and unitholder value by utilizing available cash and responding to market conditions.

The most recent analyst rating on (JP:8956) stock is a Buy with a Yen154550.00 price target. To see the full list of analyst forecasts on NTT UD REIT Investment Corporation stock, see the JP:8956 Stock Forecast page.

NTT UD REIT Acquires Osaka Residential Property to Boost Portfolio

NTT UD REIT Investment Corporation announced the acquisition of a residential property, La Douceur Miyakojima Takakuracho, in Osaka City for 1,140 million yen. This acquisition aims to improve the company’s portfolio quality and contribute to its medium-to-long-term profitability, leveraging proceeds from the sale of existing properties.

The most recent analyst rating on (JP:8956) stock is a Buy with a Yen154550.00 price target. To see the full list of analyst forecasts on NTT UD REIT Investment Corporation stock, see the JP:8956 Stock Forecast page.

NTT UD REIT Reports Decline in Fiscal Performance but Maintains Investor Returns

NTT UD REIT Investment Corporation reported a decline in its financial performance for the fiscal period ending October 31, 2025, with decreases in operating revenues, operating income, ordinary income, and net income compared to the previous period. Despite the downturn, the company has maintained its distribution per unit, reflecting a strategic focus on sustaining investor returns amidst challenging market conditions.

The most recent analyst rating on (JP:8956) stock is a Buy with a Yen154550.00 price target. To see the full list of analyst forecasts on NTT UD REIT Investment Corporation stock, see the JP:8956 Stock Forecast page.