TOKYU REIT (8957) AI Stock Analysis

• Market Cap: $183.40B
• Dividend Yield: 3.96%
• Average Volume (3M): 1.99K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.28
• Revenue Growth: 32.98%
• EPS Growth: 9.06%
• Country: JP
• Employees: 45
• Sector: Real Estate
• Sector Strength: 60
• Industry: REIT - Diversified
• EPS (TTM): 4812.00
• Shares Outstanding: 977,600
• 10 Day Avg. Volume: 1,926
• 30 Day Avg. Volume: 1,986
• PEG Ratio: 6.01
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 184.43
• 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: 66 Neutral
• Price Target: ―

Tokyu REIT's strong profitability and operational efficiency, along with its attractive valuation, are key strengths. However, challenges such as declining revenue and negative free cash flow, combined with limited technical indicators, weigh on the overall score. Ensuring revenue growth and improving cash flow will be crucial for enhancing future performance.

TOKYU REIT Business Overview & Revenue Model

Company Description

TOKYU REIT, Inc. (8957) is a Japanese real estate investment trust focused on investing in a diversified portfolio of real estate properties primarily in urban areas across Japan. The REIT aims to generate stable income through strategic investments in office buildings, retail facilities, and other commercial properties. Managed by Tokyu REIT Management Inc., it leverages the expertise of the Tokyu Group in the real estate sector to maximize shareholder value through effective asset management and property acquisitions.

How the Company Makes Money

TOKYU REIT makes money by acquiring, managing, and leasing a portfolio of real estate properties, primarily focusing on office and retail properties in urban areas. Revenue is primarily generated through rental income from tenants occupying these properties. The REIT also aims to enhance property value and operational efficiency, which can lead to increased rental rates and occupancy levels. Additionally, TOKYU REIT may engage in property sales when strategically beneficial, contributing to their earnings. The company's close relationship with the Tokyu Group provides access to potential property acquisitions and development opportunities, further supporting its revenue growth.

TOKYU REIT Financial Statement Overview

Summary

Tokyu REIT displays strong profitability and operational efficiency, with high profit margins and a balanced capital structure. However, the recent revenue decline and negative free cash flow present challenges. Moderate leverage and reasonable equity levels provide some stability, yet increasing liabilities warrant caution.

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
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
20.79B	18.63B	20.25B	20.31B	16.68B	16.33B
	Gross Profit
10.63B	11.79B	13.87B	14.12B	10.21B	9.98B
	EBIT
10.36B	10.03B	12.01B	12.21B	8.52B	8.37B
	EBITDA
12.31B	11.93B	13.84B	13.99B	10.55B	10.30B
	Net Income Common Stockholders
9.46B	9.16B	11.15B	11.41B	7.62B	7.44B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.90B	1.10B	5.56B	3.09B	987.62M	2.98B
	Total Assets
246.61B	249.95B	241.45B	224.64B	235.04B	220.07B
	Total Debt
106.50B	111.50B	104.50B	93.00B	105.60B	92.00B
	Net Debt
103.60B	110.40B	98.94B	89.91B	104.61B	89.02B
	Total Liabilities
120.98B	125.30B	118.64B	105.10B	119.51B	105.02B
	Stockholders Equity
125.64B	124.65B	122.82B	119.54B	115.53B	115.05B
Cash Flow		Free Cash Flow
992.27M	-4.15B	-1.87B	23.68B	-9.22B	8.57B
	Operating Cash Flow
18.89B	13.78B	19.54B	53.14B	11.77B	12.91B
	Investing Cash Flow
-17.21B	-17.30B	-20.27B	-30.95B	-20.29B	-4.04B
	Financing Cash Flow
-5.38B	-330.60M	3.60B	-20.00B	6.44B	-6.40B

TOKYU REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 187600.00
• 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 187600 is above the 20-day moving average (MA) of 184795.00, above the 50-day MA of 179706.00, and above the 200-day MA of 161116.38, indicating a bullish trend. The MACD of 2135.94 indicates Positive momentum. The RSI at 66.34 is Neutral, neither overbought nor oversold. The STOCH value of 72.58 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
8968	69 Neutral	¥145.19B	19.31		4.77%	6.34%	14.04%
8957	66 Neutral	$183.40B	19.40	7.49%	3.96%	32.98%	9.06%
Sector *	61 Neutral	$2.83B	10.92	0.41%	8438.90%	5.75%	-21.03%
8956	58 Neutral	¥190.74B	22.24		4.50%	-25.89%	-19.24%

TOKYU REIT Corporate Events

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.

TOKYU REIT Announces Acquisition of Own Investment Units

TOKYU REIT, Inc. announced the acquisition of its own investment units, purchasing 1,760 units for a total of 306,180,100 yen through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the Board of Directors to acquire up to 24,000 units, reflecting 2.5% of the total outstanding units, with a maximum budget of 3,000 million yen, aimed at optimizing the capital structure and potentially enhancing shareholder value.

TOKYU REIT Announces Officer Change in Investment Management

TOKYU REIT announced a change in its investment management company’s officer, with Masayuki Asaba maintaining his role as Executive Officer, Chief Compliance Officer, and General Manager of the Compliance Office, but no longer serving as Executive Secretary to Statutory Auditors. This change, effective April 1, 2025, will be reported to relevant authorities in compliance with Japanese financial and real estate regulations, ensuring adherence to legal requirements.

Tokyu Corporation to Increase Stake in TOKYU REIT

TOKYU REIT announced that its parent company, Tokyu Corporation, plans to acquire additional investment units, increasing its ownership stake to 15%. This move highlights Tokyu’s commitment to supporting TOKYU REIT’s growth and aligns the interests of unitholders with the sponsor, potentially enhancing the company’s medium- to long-term growth prospects.

TOKYU REIT Secures Green Loan for Sustainable Debt Refinancing

TOKYU REIT, Inc. has announced a strategic move to undertake long-term debt financing through a Green Loan, aimed at refinancing its existing debt associated with the acquisition of a green-eligible asset, Kojimachi Square. This initiative aligns with TOKYU REIT’s commitment to sustainable finance and is expected to enhance its financial stability by maintaining its total debt levels while supporting environmentally responsible investments.

TOKYU REIT Announces Acquisition and Cancellation of Investment Units

TOKYU REIT, Inc. has announced a resolution to acquire and subsequently cancel its own investment units, aiming to improve capital efficiency and enhance value for unitholders. The acquisition will be conducted through market purchases on the Tokyo Stock Exchange, with a maximum of 24,000 units or 3,000 million yen, and is set to occur between March 18 and July 24, 2025. This strategic move is expected to positively impact the company’s financial standing and provide long-term benefits to its stakeholders.

TOKYU REIT Announces Strategic Disposition of Toranomon Building

TOKYU REIT announced the disposition of its Toranomon Building in Tokyo, a strategic move to improve its portfolio’s quality and cash flow potential. The sale, conducted in three phases, is expected to yield significant gains and will be used to acquire investment units, repay borrowings, or acquire replacement properties, reflecting the company’s adaptive strategy in response to market conditions.

TOKYU REIT Revises Forecasts with Positive Outlook

TOKYU REIT has revised its expected operating conditions and distribution forecast for the fiscal period ending July 2025, reflecting a significant increase in revenue and income due to a gain on the sale of real estate. The company also announced its forecast for the fiscal period ending January 2026, indicating continued strong performance, which suggests a positive outlook for stakeholders and reinforces its market position.

TOKYU REIT Reports Stable Revenues Amid Minor Income Decline

TOKYU REIT reported its financial results for the fiscal period ending January 2025, showing a slight increase in operating revenues but a decrease in operating and ordinary income compared to the previous period. The company maintained a stable distribution per unit, reflecting its commitment to providing consistent returns to its investors, despite facing minor declines in net income and overall financial performance.