TOKYU REIT (8957) AI Stock Analysis

• Market Cap: $195.52B
• Dividend Yield: 4%
• Average Volume (3M): 2.45K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.29
• Revenue Growth: 32.98%
• EPS Growth: 9.06%
• Country: JP
• Employees: 45
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Diversified
• EPS (TTM): 4812.00
• Shares Outstanding: 977,600
• 10 Day Avg. Volume: 2,011
• 30 Day Avg. Volume: 2,450
• PEG Ratio: 6.42
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 197.04
• 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: 7.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥215,232 ▲(7.29%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: 200600.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

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 200600 is above the 20-day moving average (MA) of 197340.00, above the 50-day MA of 190894.00, and above the 200-day MA of 167986.80, indicating a bullish trend. The MACD of 2763.49 indicates Positive momentum. The RSI at 70.33 is Negative, neither overbought nor oversold. The STOCH value of 80.18 is Negative, 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	¥173.59B	18.70		5.55%	13.33%	8.96%
3296	74 Outperform	¥163.75B	17.21		4.94%	57.65%	24.60%
8957	74 Outperform	$195.52B	20.74	7.49%	4.00%	32.98%	9.06%
8968	69 Neutral	¥153.73B	20.45		4.58%	6.34%	14.04%
8956	63 Neutral	¥191.18B	21.39		4.81%	13.38%	-6.44%
Sector *	59 Neutral	C$1.25B	-1.04	-8.19%	4.97%	10.83%	-22.67%

TOKYU REIT Corporate Events

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.

TOKYU REIT Announces Acquisition of Own Investment Units

TOKYU REIT, Inc. announced the status of its acquisition of own investment units, detailing the number of units acquired and the total acquisition amount. This strategic move, conducted through market purchases on the Tokyo Stock Exchange, is part of the company’s efforts to manage its investment portfolio effectively, potentially impacting its market positioning and stakeholder interests.

TOKYU REIT Amends Commitment Line for Enhanced Financial Flexibility

TOKYU REIT, Inc. has amended its commitment line agreement to extend the term by one year, aiming to enhance flexibility and stability in its fund procurement. The amendment involves a ¥2.0 billion commitment line with Sumitomo Mitsui Trust Bank, Limited, effective from April 25, 2025, to April 24, 2026. This strategic move is intended to secure operational funds without altering the company’s investment risk profile.

TOKYU REIT Announces Correction in Director Election Notice

TOKYU REIT, Inc. has announced a correction to a previous notice regarding the election of a director and changes in officers at its investment management company. The correction pertains to the career summary of Momoko Sasaki, clarifying her roles at Tokyu Malls Development Corporation before her planned transfer to Tokyu REIM as Representative Director and Executive Vice President. This announcement is significant for stakeholders as it reflects the company’s commitment to transparency and accuracy in its corporate communications.

TOKYU REIT Announces Correction to Director Election Notice

TOKYU REIT, Inc. announced a correction to a previously released document concerning the election of directors. The correction pertains to the career summary of Momoko Sasaki, clarifying her past roles at Tokyu Malls Development Corporation and her current position at Tokyu REIM. This update ensures accurate information is available to stakeholders regarding the leadership structure and management of the company.

TOKYU REIT Announces Leadership Changes for Strategic Growth

TOKYU REIT, Inc. has announced changes in its leadership structure, with Tokyu Real Estate Investment Management Inc. proposing a new director election and a change in the representative director. Effective May 1, 2025, Momoko Sasaki will assume the role of Representative Director and President, Chief Executive Officer, succeeding Yoshitaka Kimura, who will return to Tokyu Corporation. These changes are part of the company’s strategic efforts to enhance its management team and align its leadership with future growth objectives.