NTT UD REIT Investment Corporation (8956) AI Stock Analysis

• Market Cap: ¥190.74B
• Dividend Yield: 4.5%
• Average Volume (3M): 2.93K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.24
• Revenue Growth: -25.89%
• EPS Growth: -19.24%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 60
• Industry: REIT - Diversified
• EPS (TTM): 2939.00
• Shares Outstanding: 1,482,035
• 10 Day Avg. Volume: 3,086
• 30 Day Avg. Volume: 2,933
• PEG Ratio: -2.26
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.03
• 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

• Rating: 58 Neutral
• Price Target: ¥135,083 ▲(4.96%Upside)

The overall stock score is primarily influenced by mixed financial performance and lackluster technical analysis. Positive cash flow and dividend yield offer some strengths, but declining profitability and revenue, combined with bearish technical indicators, are major concerns.

NTT UD REIT Investment Corporation Business Overview & Revenue Model

Company Description

NTT UD REIT Investment Corporation (8956) is a Japanese real estate investment trust (REIT) focused on generating stable income through investments in a diversified portfolio of real estate assets. The company's investment strategy primarily targets office buildings, commercial facilities, and other types of properties primarily located in urban areas of Japan. By leveraging the expertise of its sponsors, including Nippon Telegraph and Telephone Corporation (NTT) and Urban Development Corporation, the REIT aims to deliver sustainable growth and returns to its investors.

How the Company Makes Money

NTT UD REIT Investment Corporation generates revenue primarily through rental income from its portfolio of real estate properties. The REIT invests in a variety of property types, including office spaces, retail facilities, and urban development projects, to ensure a diversified and resilient income stream. Rental agreements with tenants provide predictable cash flows, which are then distributed to unit holders in the form of dividends. Additionally, the REIT may engage in strategic acquisitions and property sales to enhance its portfolio value and capitalize on market opportunities. The backing of strong sponsors such as NTT provides access to high-quality assets and operational support, contributing to the company's earning potential.

NTT UD REIT Investment Corporation Financial Statement Overview

Summary

NTT UD REIT Investment Corporation presents a mixed financial picture. While the company maintains a stable gross profit margin and strong operating cash flow, declining revenue and profitability, along with increased leverage, present risks. The negative free cash flow suggests potential liquidity issues that need addressing. Overall, the company needs to focus on revenue growth and managing leverage to improve its financial health.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
23.78B	24.53B	23.21B	22.21B	18.72B
	Gross Profit
11.21B	12.45B	11.94B	12.04B	9.64B
	EBIT
9.76B	10.93B	10.47B	10.62B	8.42B
	EBITDA
13.14B	14.08B	13.69B	13.69B	11.34B
	Net Income Common Stockholders
8.58B	10.05B	9.59B	9.77B	7.63B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.96B	6.61B	6.76B	7.06B	3.78B
	Total Assets
311.66B	274.96B	277.45B	266.71B	249.24B
	Total Debt
141.14B	122.15B	103.92B	126.50B	112.80B
	Net Debt
135.17B	107.59B	97.16B	119.44B	109.02B
	Total Liabilities
163.03B	135.67B	139.79B	141.12B	124.27B
	Stockholders Equity
148.62B	139.29B	137.66B	125.58B	124.96B
Cash Flow		Free Cash Flow
-27.19B	12.22B	-4.20B	-1.06B	5.29B
	Operating Cash Flow
12.23B	20.78B	26.07B	19.86B	12.27B
	Investing Cash Flow
-39.23B	-9.15B	-28.99B	-20.48B	-6.63B
	Financing Cash Flow
27.54B	-12.21B	1.91B	4.52B	-4.90B

NTT UD REIT Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 128700.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 128700 is below the 20-day moving average (MA) of 130690.00, below the 50-day MA of 130906.94, and above the 200-day MA of 119294.11, indicating a neutral trend. The MACD of -560.24 indicates Positive momentum. The RSI at 40.75 is Neutral, neither overbought nor oversold. The STOCH value of 12.92 is Positive, 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
8957	66 Neutral	¥183.40B	19.40	7.49%	3.96%	32.98%	9.06%
Sector *	61 Neutral	$2.83B	10.98	0.41%	8438.90%	5.81%	-21.06%
8956	58 Neutral	¥190.74B	22.24		4.50%	-25.89%	-19.24%

NTT UD REIT Investment Corporation Corporate Events

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.

NTT UD REIT Enhances Sponsor Commitment with Additional Unit Acquisition

NTT UD REIT Investment Corporation announced the completion of an additional acquisition of 34,000 investment units by its sponsor, NTT Urban Development Corporation. This acquisition aims to enhance the sponsor’s commitment and support for NUD, potentially leading to sustainable growth and improved unitholder value.

NTT UD REIT Secures Debt Finance for Loan Repayment

NTT UD REIT Investment Corporation has announced its decision to secure a debt finance arrangement to repay a maturing loan of 2,000 million yen. This financial move involves borrowing a short-term loan from Sumitomo Mitsui Trust Bank and Mizuho Bank, ensuring stability in its financial operations without altering its overall interest-bearing liabilities.

NTT UD REIT Completes Acquisition and Cancellation of Investment Units

NTT UD REIT Investment Corporation has completed the acquisition and subsequent cancellation of its own investment units, as resolved in a Board of Directors meeting. The acquisition involved purchasing 13,800 units at a total price of 1,656,228,500 yen, with the cancellation scheduled for April 30, 2025. This move is expected to have minimal impact on the company’s performance forecasts for the fiscal periods ending in April and October 2025.

NTT UD REIT Reports on Investment Unit Acquisition Status

NTT UD REIT Investment Corporation announced that no investment units were acquired in March 2025, although a total of 12,756 units were acquired from December 2024 to March 2025 for approximately 1.52 billion yen. The acquisition was conducted through market purchases on the Tokyo Stock Exchange, following a resolution to potentially acquire up to 43,000 units by April 2025. This acquisition strategy reflects the company’s efforts to manage its investment portfolio actively and could impact its market positioning and stakeholder interests.

NTT UD REIT Announces Interest Rates for New Term Loan

NTT UD REIT Investment Corporation has announced the interest rates for a term loan totaling 1,500 million yen, set to commence on March 31, 2025. The loans, provided by Sumitomo Mitsui Trust Bank, Limited, have fixed interest rates of 1.44313% and 1.47875% for terms of 3.5 and 4 years, respectively, potentially impacting the company’s financial strategy and stakeholder interests.

Leadership Change Announced at NTT Urban Development Asset Management

NTT Urban Development Asset Management Corporation has announced a leadership change with Yasutake Horinouchi set to become the new President & CEO on April 1, 2025, succeeding Yutaka Torigoe. This change is expected to bring new strategic directions to the company, potentially impacting its operations and market positioning within the real estate investment sector.

NTT UD REIT Announces New Loan Interest Rate

NTT UD REIT Investment Corporation has announced the interest rate for a term loan of 1,500 million yen, set at a fixed rate of 1.82125%. This financial move, involving Sumitomo Mitsui Banking Corporation as the lender, is scheduled for March 27, 2025, with a maturity date of March 31, 2033, and is likely to impact the company’s financial strategy and stakeholder interests.

NTT UD REIT Secures New Debt Finance for Loan Repayment

NTT UD REIT Investment Corporation announced a new debt finance plan to borrow 6,700 million yen through six term loans to repay existing loans maturing in March 2025. This strategic financial move is aimed at maintaining the company’s financial stability and ensuring the continuity of its operations without altering its total interest-bearing liabilities, which remain unchanged at 148,950 million yen.

NTT UD REIT’s Tender Offer Falls Short, Company Focuses on Growth

NTT UD REIT Investment Corporation announced the unsuccessful completion of a tender offer initiated by CITCO TRUSTEES (UT) LIMITED for its investment units, as the number of units tendered did not meet the minimum requirement. Despite this setback, the company remains committed to pursuing growth and enhancing unitholder value by strengthening its relationship with its sponsor, NTT Urban Development Corporation.