TOKYU REIT (8957) AI Stock Analysis

• Market Cap: ¥191.12B
• Dividend Yield: 4%
• Average Volume (3M): 2.57K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.28
• Revenue Growth: 32.98%
• EPS Growth: 9.06%
• Country: JP
• Employees: 45
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Diversified
• EPS (TTM): 4812.00
• Shares Outstanding: 961,371
• 10 Day Avg. Volume: 3,718
• 30 Day Avg. Volume: 2,572
• PEG Ratio: N/A
• 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: ¥215,199.71
• Price Target Upside: 7.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥215,232 ▲(7.62% Upside)

Tokyu REIT's stock score is primarily driven by strong technical indicators and a solid valuation, despite financial performance challenges due to revenue decline and negative free cash flow. The overbought technical conditions suggest caution for new investments.

TOKYU REIT Business Overview & Revenue Model

Company Description

TOKYU REIT, Inc. is a Japanese real estate investment trust (REIT) that primarily invests in commercial properties, including office buildings and retail facilities. The company focuses on high-quality assets located in prime areas of Tokyo and other major cities in Japan. As a REIT, TOKYU REIT aims to provide stable income and long-term capital appreciation to its investors through strategic property acquisitions and management.

How the Company Makes Money

TOKYU REIT generates revenue primarily through the leasing of its real estate portfolio. The company earns rental income by leasing office spaces and retail properties to a diverse range of tenants, including corporations, retailers, and service providers. Additionally, TOKYU REIT may engage in property sales and acquisitions, which can contribute to capital gains. The company's revenue is also supported by its strategic partnerships with property managers and developers who help optimize the performance and value of its assets. By maintaining high occupancy rates and managing property expenses efficiently, TOKYU REIT aims to deliver consistent returns to its shareholders.

TOKYU REIT Financial Statement Overview

Summary

Tokyu REIT displays strong profitability with high gross and net profit margins. However, a revenue decline and negative free cash flow are concerning, paired with moderate leverage and increasing liabilities.

Income Statement

Tokyu REIT has shown a consistent revenue stream with some fluctuations. The Gross Profit Margin for the latest year is 63.3%, and the Net Profit Margin is 49.2%, indicating strong profitability. However, total revenue has decreased by 8.0% from 2023 to 2024, which could be a concern. The EBIT and EBITDA margins are 53.8% and 64.0% respectively, underscoring operational efficiency.

Balance Sheet

The company's Debt-to-Equity Ratio is 0.89, showing a moderate level of leverage. The Return on Equity (ROE) is 7.3%, reflecting decent returns for shareholders. The Equity Ratio stands at 49.9%, indicating a balanced capital structure. The slight increase in total liabilities over equity suggests some potential risk in financial stability.

Cash Flow

Operating Cash Flow to Net Income Ratio is 1.50, indicating healthy cash generation relative to net income. However, the Free Cash Flow has turned negative in the latest year, primarily due to significant capital expenditures, which could affect liquidity in the short term. The Free Cash Flow to Net Income Ratio is -0.45, suggesting challenges in converting income to free cash.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	18.63B	20.25B	20.31B	16.68B	16.33B
Gross Profit	11.79B	13.87B	14.12B	10.21B	9.98B
EBITDA	11.93B	13.84B	13.99B	10.55B	10.30B
Net Income	9.16B	11.15B	11.41B	7.62B	7.44B
Balance Sheet
Total Assets	249.95B	241.45B	224.64B	235.04B	220.07B
Cash, Cash Equivalents and Short-Term Investments	1.10B	5.56B	3.09B	987.62M	2.98B
Total Debt	111.50B	104.50B	93.00B	105.60B	92.00B
Total Liabilities	125.30B	118.64B	105.10B	119.51B	105.02B
Stockholders Equity	124.65B	122.82B	119.54B	115.53B	115.05B
Cash Flow
Free Cash Flow	-4.15B	-1.87B	23.68B	-9.22B	8.57B
Operating Cash Flow	13.78B	19.54B	53.14B	11.77B	12.91B
Investing Cash Flow	-17.30B	-20.27B	-30.95B	-20.29B	-4.04B
Financing Cash Flow	-330.60M	3.60B	-20.00B	6.44B	-6.40B

TOKYU REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 200000.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8957, the sentiment is Positive. The current price of 200000 is above the 20-day moving average (MA) of 196909.37, above the 50-day MA of 191906.58, and above the 200-day MA of 167964.50, indicating a bullish trend. The MACD of 2176.22 indicates Negative momentum. The RSI at 66.46 is Neutral, neither overbought nor oversold. The STOCH value of 79.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8957.

TOKYU REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8966	77 Outperform	¥183.47B	19.50		4.97%	13.33%	8.96%
3296	74 Outperform	¥170.29B	17.94		4.91%	57.65%	24.60%
8957	74 Outperform	¥191.12B	20.55	7.49%	4.00%	32.98%	9.06%
8968	69 Neutral	¥161.15B	21.44		4.13%	6.34%	14.04%
Sector *	65 Neutral	$1.99B	18.65	2.59%	5.12%	0.66%	-4.43%
8956	64 Neutral	¥196.67B	22.01		4.46%	13.38%	-6.44%

TOKYU REIT Corporate Events

TOKYU REIT Completes Acquisition and Cancellation of Investment Units

TOKYU REIT, Inc. announced the completion of its acquisition and cancellation of own investment units, as resolved by its Board of Directors in March 2025. The acquisition involved 16,229 units, accounting for 1.7% of the total outstanding units, with a total acquisition amount of approximately 3 billion yen. The company stated that this move would have minimal impact on its performance, maintaining its previously announced forecasts for the fiscal periods ending in July 2025 and January 2026.

TOKYU REIT Extends Commitment Line Agreement to Enhance Financial Liquidity

TOKYU REIT has amended its commitment line agreement to extend the commitment period by one year, from July 12, 2025, to July 11, 2026. This amendment aims to enhance liquidity and secure investment opportunities, with a total commitment line of ¥8,000 million from MUFG Bank, Sumitomo Mitsui Trust Bank, and Mizuho Bank. The amendment does not affect the company’s investment risks as previously reported.

TOKYU REIT Reports Acquisition of Investment Units

TOKYU REIT, Inc. announced the acquisition status of its own investment units, with a total of 13,301 units acquired from March to June 2025, amounting to approximately 2.4 billion yen. This strategic move, executed through market purchases on the Tokyo Stock Exchange, aims to optimize the company’s capital structure and potentially enhance shareholder value.

TOKYU REIT Amends Commitment Line Agreement to Enhance Liquidity

TOKYU REIT, Inc. has amended its commitment line agreement to extend the commitment period from July 2, 2025, to July 1, 2026, with the Development Bank of Japan Inc. The agreement, which is unsecured and unguaranteed, aims to enhance liquidity for financial credibility and investment opportunities. This amendment does not affect the investment risks outlined in the latest securities report.

TOKYU REIT Secures Long-Term Debt Financing for Stability

TOKYU REIT, Inc. announced a strategic move to undertake long-term debt financing to repay maturing debt, ensuring financial stability by converting to fixed interest rate borrowings and diversifying repayment dates. This decision reflects the company’s proactive approach in managing its financial obligations, maintaining its market position, and potentially impacting stakeholders by securing stable funding conditions.

TOKYU REIT Updates on Acquisition of Own Investment Units

TOKYU REIT announced the status of its acquisition of own investment units, detailing the number of units acquired and the total acquisition amount. The acquisition was conducted through market purchases on the Tokyo Stock Exchange. This move is part of the company’s strategy to enhance shareholder value and optimize its capital structure, potentially impacting its market positioning and investor relations.