Frontier Real Estate Investment Corporation (JP:8964)
:8964
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Frontier Real Estate Investment Corporation
(8964)
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Rating:63Neutral
Price Target:
¥84,881.00
▼(-9.70% Downside)
Action:Downgraded
Date:03/03/26
The score is mainly constrained by softening financial performance (sharp 2025 revenue decline, rising leverage, and weaker 2025 cash conversion) and bearish technical momentum (negative MACD and price below key moving averages). These are partially offset by supportive income characteristics from the ~4.87% dividend yield and a moderate P/E.
Positive Factors
High Profitability
The REIT has historically delivered very high operating and net margins (roughly 41%–53%), which provide a structural buffer to absorb revenue volatility. Persistently strong margins support durable distributable income and reinvestment capacity, sustaining cash returns even if top-line growth is soft.
Negative Factors
Sharp Revenue Decline
Two consecutive years of declining top-line undermine long-term cash generation and indicate weaker leasing/pricing or occupancy mix. Sustained revenue contraction puts pressure on distributable cash, makes reinvestment harder, and requires either margin recovery or asset rotation to restore growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
The REIT has historically delivered very high operating and net margins (roughly 41%–53%), which provide a structural buffer to absorb revenue volatility. Persistently strong margins support durable distributable income and reinvestment capacity, sustaining cash returns even if top-line growth is soft.
Read all positive factors
Frontier Real Estate Investment Corporation (8964) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥220.46B
Dividend Yield4.67%
Average Volume (3M)4.31K
Price to Earnings (P/E)18.7
Beta (1Y)0.20
Revenue Growth-14.95%
EPS Growth-8.84%
CountryJP
Employees21
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)4357.95
Shares Outstanding2,705,000
10 Day Avg. Volume3,454
30 Day Avg. Volume4,307
Financial Highlights & Ratios
PEG Ratio-2.41
Price to Book (P/B)1.43
Price to Sales (P/S)10.56
P/FCF Ratio59.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4,405.94
Revenue Forecast (FY)¥24.84B
Frontier Real Estate Investment Corporation Business Overview & Revenue Model
Company Description
Frontier Real Estate Investment Corporation (FRI) functions as a Real Estate Investment Trust with a primary emphasis on commercial retail properties. Its strategic aim is to cultivate consistent and reliable earnings over an extended period. A co...
How the Company Makes Money
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Frontier Real Estate Investment Corporation Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
58
Neutral
| Breakdown | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 23.82B | 24.45B | 29.08B | 25.76B | 22.16B |
| Gross Profit | 8.98B | 15.22B | 12.74B | 12.95B | 13.41B |
| EBITDA | 16.69B | 17.54B | 16.26B | 16.64B | 16.09B |
| Net Income | 11.79B | 12.93B | 11.85B | 12.07B | 11.43B |
Balance Sheet | |||||
| Total Assets | 343.93B | 333.31B | 336.33B | 329.73B | 330.06B |
| Cash, Cash Equivalents and Short-Term Investments | 18.32B | 12.86B | 17.62B | 17.54B | 8.10B |
| Total Debt | 137.70B | 127.70B | 130.10B | 123.20B | 123.40B |
| Total Liabilities | 168.39B | 157.66B | 161.94B | 155.16B | 155.61B |
| Stockholders Equity | 175.54B | 175.65B | 174.39B | 174.57B | 174.45B |
Cash Flow | |||||
| Free Cash Flow | 4.19B | 14.23B | 5.37B | 18.64B | -6.35B |
| Operating Cash Flow | 16.36B | 21.14B | 21.15B | 19.28B | 15.02B |
| Investing Cash Flow | -12.62B | -7.78B | -16.36B | -1.52B | -23.78B |
| Financing Cash Flow | -1.90B | -14.07B | -5.13B | -12.15B | 10.51B |
Frontier Real Estate Investment Corporation Technical Analysis
Neutral
94000.00
Price Trends
84346.00
Negative
87434.00
Negative
88279.77
Negative
Market Momentum
-1066.82
Negative
44.97
Neutral
66.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8964, the sentiment is Neutral. The current price of 94000 is above the 20-day moving average (MA) of 81425.00, above the 50-day MA of 84346.00, and above the 200-day MA of 88279.77, indicating a neutral trend. The MACD of -1066.82 indicates Negative momentum. The RSI at 44.97 is Neutral, neither overbought nor oversold. The STOCH value of 66.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8964.
Frontier Real Estate Investment Corporation Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | ¥319.38B | 22.32 | 5.35% | 4.18% | 2.53% | 1.49% | |
66 Neutral | ¥382.97B | 18.92 | 7.08% | 3.74% | -6.29% | 21.95% | |
66 Neutral | ¥636.58B | 18.86 | 5.51% | 4.64% | 50.40% | -30.38% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | ¥220.46B | 18.70 | ― | 4.67% | -14.95% | -8.84% | |
63 Neutral | ¥513.28B | 20.37 | 6.80% | 4.46% | -0.32% | 1.93% | |
63 Neutral | ¥155.21B | 11.78 | ― | 4.70% | 73.49% | 34.06% |
* Real Estate Sector Average
JP:8964
Frontier Real Estate Investment Corporation
81,500.00
2,070.51
2.61%
JP:3279
Activia Properties
134,400.00
19,273.88
16.74%
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Japan Prime Realty Investment
94,600.00
5,588.54
6.28%
JP:8960
United Urban Investment
160,400.00
11,254.92
7.55%
JP:8972
Kenedix Office Investment Corporation
157,600.00
8,734.05
5.87%
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NIPPON REIT Investment Corp
84,800.00
-35.55
-0.04%
Frontier Real Estate Investment Corporation Corporate Events
Frontier REIT to Rebrand as Mitsui Fudosan Retail Fund in July
May 26, 2026
Frontier Real Estate Investment Corporation will change its name to Mitsui Fudosan Retail Fund Investment Corporation on July 1, 2026, following approval at its March 2026 general meeting of unitholders. The asset manager, currently Mitsui Fudosan...
Frontier REIT Rolls Over ¥2 Billion Short-Term Loan With No Change in Debt Level
May 7, 2026
Frontier Real Estate Investment Corporation has arranged a new short-term unsecured, unguaranteed loan of ¥2 billion from The Bank of Fukuoka, Ltd., to be drawn down on May 11, 2026, at a fixed interest rate of 0.93936% and maturing on June 1...
Frontier REIT Rolls Over ¥2 Billion Short-Term Loan With Bank of Fukuoka
Apr 7, 2026
Frontier Real Estate Investment Corporation has arranged a new ¥2 billion short-term unsecured, unguaranteed loan from The Bank of Fukuoka, Ltd., to be drawn on April 9, 2026, at a fixed interest rate of 0.97373% and maturing on May 11, 2026....
Frontier REIT Expands Mizuho Commitment Line, Lifts Total Credit to ¥20 Billion
Mar 31, 2026
Frontier Real Estate Investment Corporation has increased the maximum loan amount under its commitment line with Mizuho Bank from 1.5 billion yen to 2.5 billion yen, effective July 24, 2026. This move is intended to reinforce the REIT’s abil...
Frontier REIT Announces Auditor Transition at Asset Management Company
Mar 16, 2026
Frontier Real Estate Investment Corporation announced that its asset manager, Mitsui Fudosan Frontier REIT Management Inc., plans to appoint Hideyuki Hagiwara as auditor effective April 1, 2026, subject to shareholder approval. Current auditor Hir...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.