TOKYU REIT (8957) AI Stock Analysis

• Market Cap: $197.56B
• Dividend Yield: 3.93%
• Average Volume (3M): 1.55K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.26
• Revenue Growth: 21.72%
• EPS Growth: 5.02%
• Country: JP
• Employees: 45
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 5027.00
• Shares Outstanding: 961,371
• 10 Day Avg. Volume: 1,525
• 30 Day Avg. Volume: 1,547
• PEG Ratio: 4.00
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 10.84
• P/FCF Ratio: 10.29
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 14.89
• Enterprise Value/Gross Profit: 26.72
• Enterprise Value/Ebitda: 23.25
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 10,237.57
• Revenue Forecast (FY): $20.06B

• Rating: 69 Neutral
• Price Target: ¥220,196 ▲(8.05% Upside)

TOKYU REIT's overall stock score is driven by its solid financial performance and reasonable valuation. While technical indicators show a moderate upward trend, the lack of revenue growth remains a concern. The attractive dividend yield adds to the stock's appeal, balancing growth and income potential.

Positive Factors

Operational Efficiency

TOKYU REIT's strong profitability and operational efficiency indicate effective management and cost control, supporting long-term stability.

Cash Flow Performance

Improved cash flow performance enhances financial flexibility, allowing for reinvestment and debt management, crucial for sustainable growth.

Balance Sheet Health

A stable balance sheet with manageable debt levels provides a solid foundation for future investments and risk management.

Negative Factors

Revenue Growth Decline

Declining revenue growth can hinder long-term expansion and market competitiveness, potentially impacting future profitability.

Volatile Free Cash Flow

Volatility in free cash flow can affect the company's ability to fund operations and investments, posing risks to financial stability.

Decreased Return on Equity

A decrease in return on equity suggests challenges in generating shareholder returns, which may affect investor confidence over time.

TOKYU REIT Business Overview & Revenue Model

Company Description

TOKYU REIT, listed under the ticker 8957, is a real estate investment trust (REIT) based in Japan that focuses on the acquisition, management, and leasing of a diversified portfolio of income-generating properties. The company primarily invests in commercial real estate, including office buildings, retail spaces, and residential properties, predominantly located in urban areas of Japan. Its strategic focus is on enhancing the value of its assets while providing stable returns to its investors through effective property management and operational efficiencies.

How the Company Makes Money

TOKYU REIT generates revenue primarily through rental income from its portfolio of properties. The bulk of its earnings comes from leasing space to tenants in its commercial and residential properties, which provides a steady cash flow. Additionally, the company may benefit from capital appreciation of its real estate assets over time, which can positively impact the valuation of the REIT and subsequently the returns for its shareholders. TOKYU REIT's revenue model also includes potential income from property management services and fees associated with asset acquisition and disposition. Partnerships with local real estate firms and management companies may further enhance its operational capabilities and market reach, contributing to overall revenue growth.

TOKYU REIT Financial Statement Overview

Summary

TOKYU REIT demonstrates a solid financial foundation with strong profitability and operational efficiency. While revenue growth has been a challenge, the company maintains healthy margins and a stable balance sheet. Cash flow performance has improved significantly, although some volatility remains.

Income Statement

The income statement shows a mixed performance. While the company has maintained strong gross and net profit margins, there is a notable decline in revenue growth, with a -14.56% rate in the most recent year. This decline could be a concern if it continues. However, the EBIT and EBITDA margins remain robust, indicating operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio, although it has slightly increased over the years. The equity ratio is healthy, suggesting a solid capital structure. Return on equity has decreased slightly, indicating a potential area for improvement in generating returns for shareholders.

Cash Flow

The cash flow statement indicates strong free cash flow growth, rebounding significantly from previous negative figures. The operating cash flow to net income ratio is healthy, suggesting good cash generation relative to earnings. However, the free cash flow to net income ratio has been volatile, which could pose risks if not stabilized.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.54B	17.69B	18.63B	20.25B	20.31B	16.68B
Gross Profit	10.89B	9.04B	11.79B	13.87B	14.12B	10.21B
EBITDA	12.52B	10.66B	11.93B	13.84B	13.99B	10.55B
Net Income	9.59B	9.59B	9.16B	11.15B	11.41B	7.62B
Balance Sheet
Total Assets	244.31B	244.31B	249.95B	241.45B	224.64B	235.04B
Cash, Cash Equivalents and Short-Term Investments	3.68B	3.68B	1.10B	5.56B	3.09B	987.62M
Total Debt	106.50B	106.50B	111.50B	104.50B	93.00B	105.60B
Total Liabilities	120.70B	120.70B	125.30B	118.64B	105.10B	119.51B
Stockholders Equity	123.61B	123.61B	124.65B	122.82B	119.54B	115.53B
Cash Flow
Free Cash Flow	18.02B	18.64B	-4.15B	-1.87B	23.68B	-9.22B
Operating Cash Flow	19.44B	19.44B	13.78B	19.54B	53.14B	11.77B
Investing Cash Flow	-1.34B	-1.34B	-17.30B	-20.27B	-30.95B	-20.29B
Financing Cash Flow	-15.62B	-15.62B	-330.60M	3.60B	-20.00B	6.44B

TOKYU REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 203800.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 203800 is above the 20-day moving average (MA) of 202570.00, above the 50-day MA of 199998.00, and above the 200-day MA of 188685.01, indicating a bullish trend. The MACD of 321.82 indicates Positive momentum. The RSI at 56.95 is Neutral, neither overbought nor oversold. The STOCH value of 45.54 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
3296	79 Outperform	¥182.32B	16.76	―	4.77%	50.47%	26.45%
8966	75 Outperform	¥194.86B	20.71	―	5.09%	13.33%	8.96%
8956	70 Outperform	¥204.52B	22.88	―	4.51%	13.38%	-6.44%
8957	69 Neutral	$197.56B	20.61	7.82%	3.93%	21.72%	5.02%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8968	64 Neutral	¥166.12B	20.62	―	4.47%	17.32%	17.54%

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.