Frontier Real Estate Investment Corporation (8964) AI Stock Analysis

• Market Cap: ¥254.81B
• Dividend Yield: 4.66%
• Average Volume (3M): 4.31K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.24
• Revenue Growth: 4.11%
• EPS Growth: 2.05%
• Country: JP
• Employees: 21
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 2174.00
• Shares Outstanding: 2,705,000
• 10 Day Avg. Volume: 3,454
• 30 Day Avg. Volume: 4,307
• PEG Ratio: -0.21
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 8.60
• P/FCF Ratio: 14.77
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥99,942.00 ▲(5.76% Upside)

The stock's overall score is driven by strong financial performance, particularly in profitability and cash flow generation, despite a recent decline in revenue growth. Technical analysis supports a positive trend, and the valuation is reasonable with an attractive dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and providing a buffer against economic downturns.

Profitability

High profitability indicates efficient operations and the ability to generate substantial returns on revenue, supporting long-term financial health and shareholder value.

Balance Sheet Health

A moderate debt-to-equity ratio suggests prudent financial management, reducing risk and ensuring the company can meet its obligations while investing in growth.

Negative Factors

Revenue Decline

A decline in revenue can signal challenges in maintaining market share or demand, potentially impacting future profitability and growth prospects if not addressed.

Revenue Growth Risk

Sustained revenue growth is crucial for long-term success; a decline poses a risk to maintaining competitive positioning and achieving strategic objectives.

Market Uncertainty

Lack of recent corporate events or earnings calls may indicate uncertainty or lack of transparency, potentially affecting investor confidence and strategic clarity.

Frontier Real Estate Investment Corporation Business Overview & Revenue Model

Company Description

Frontier Real Estate Investment Corporation (8964) is a prominent entity in the real estate investment sector, primarily focused on acquiring, developing, and managing a diversified portfolio of income-generating properties. The company operates across various segments, including residential, commercial, and industrial real estate, aiming to deliver value to its shareholders through strategic investments and asset management. Frontier Real Estate leverages its expertise in market analysis and property management to optimize returns and enhance the long-term value of its holdings.

How the Company Makes Money

Frontier Real Estate Investment Corporation generates revenue primarily through rental income from its portfolio of properties. The company leases space to residential tenants and commercial businesses, thereby creating a steady stream of cash flow. Additionally, Frontier may engage in property sales or development projects that yield profits upon completion or sale. The company might also explore strategic partnerships or joint ventures with other real estate firms to enhance its investment capabilities and market reach. Key revenue streams include long-term leases, short-term rentals, property sales, and possibly management fees from any third-party properties it manages.

Frontier Real Estate Investment Corporation Financial Statement Overview

Summary

Frontier Real Estate Investment Corporation demonstrates solid profitability and cash flow generation, with strong margins and a stable balance sheet. However, the recent decline in revenue growth is a potential risk that needs monitoring. Overall, the company is financially healthy with efficient operations and a balanced capital structure.

Income Statement

The company exhibits strong profitability with a high net profit margin of 52.89% and a gross profit margin of 62.26% for the latest year. However, there is a notable revenue decline of 15.91% from the previous year, which could be a concern if it continues. The EBIT and EBITDA margins are robust, indicating efficient operations.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.73, indicating a balanced approach to leverage. The return on equity is reasonable at 7.36%, reflecting decent profitability relative to shareholder equity. The equity ratio stands at 52.71%, suggesting a stable financial structure.

Cash Flow

The cash flow statement is strong, with a significant free cash flow growth of 165.04% and a healthy operating cash flow to net income ratio of 1.31. The free cash flow to net income ratio of 67.31% indicates good cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.02B	24.45B	29.08B	25.76B	22.16B	21.45B
Gross Profit	13.50B	15.22B	12.74B	12.95B	13.41B	12.79B
EBITDA	15.16B	17.54B	16.26B	16.64B	16.09B	15.39B
Net Income	12.38B	12.93B	11.85B	12.07B	11.43B	10.84B
Balance Sheet
Total Assets	342.89B	333.31B	336.33B	329.73B	330.06B	309.41B
Cash, Cash Equivalents and Short-Term Investments	12.13B	12.86B	17.62B	17.54B	8.10B	6.52B
Total Debt	137.70B	127.70B	130.10B	123.20B	123.40B	116.90B
Total Liabilities	167.31B	157.66B	161.94B	155.16B	155.61B	150.46B
Stockholders Equity	175.58B	175.65B	174.39B	174.57B	174.45B	158.95B
Cash Flow
Free Cash Flow	5.38B	14.23B	5.37B	18.64B	-8.01B	7.14B
Operating Cash Flow	17.12B	21.14B	21.15B	19.28B	15.02B	15.41B
Investing Cash Flow	-15.55B	-7.78B	-16.36B	-1.52B	-23.78B	-9.37B
Financing Cash Flow	-1.92B	-14.07B	-5.13B	-12.15B	10.51B	-9.48B

Frontier Real Estate Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 94500.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8964, the sentiment is Positive. The current price of 94500 is above the 20-day moving average (MA) of 93295.00, above the 50-day MA of 91734.00, and above the 200-day MA of 84572.01, indicating a bullish trend. The MACD of 502.73 indicates Negative momentum. The RSI at 62.40 is Neutral, neither overbought nor oversold. The STOCH value of 85.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8964.

Frontier Real Estate Investment Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3296	79 Outperform	¥176.66B	16.24	―	4.78%	50.47%	26.45%
8966	75 Outperform	¥192.61B	20.47	―	5.09%	13.33%	8.96%
8964	72 Outperform	¥254.81B	20.58	―	4.66%	4.11%	2.05%
3234	67 Neutral	¥284.38B	23.12	―	4.14%	-0.15%	-2.63%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8956	65 Neutral	¥204.08B	24.01	―	4.51%	65.46%	-0.92%

Frontier Real Estate Investment Corporation Corporate Events

Frontier Real Estate Extends Commitment Line to Strengthen Financial Stability

Frontier Real Estate Investment Corporation has announced an extension of its commitment line agreement with Mizuho Trust & Banking Co., Ltd., extending the period from December 2028 to December 2029. This move is part of the company’s strategy to ensure stable financial ground for future asset acquisitions and refinancing, with no significant impact on investment risks as per the latest securities report.

Frontier Real Estate Executes Green Loan for Asset Acquisition

Frontier Real Estate Investment Corporation has announced the execution of a long-term green loan to refinance the acquisition of Ikebukuro GLOBE, a green asset. The loan, amounting to ¥1,500 million, is unsecured and unguaranteed, with a fixed interest rate until maturity in 2035, indicating the company’s commitment to sustainable finance initiatives.

Frontier Real Estate Extends Commitment Line for Financial Stability

Frontier Real Estate Investment Corporation has extended its commitment line agreement with Sumitomo Mitsui Trust Bank by one year, now set to expire on September 29, 2028. This extension aims to maintain financial stability for future asset acquisitions and refinancing, with no significant changes to investment risks as per the latest securities report.

Frontier Real Estate Executes Long-term Borrowing Strategy

Frontier Real Estate Investment Corporation announced the execution and repayment of a long-term borrowing agreement with The Chugoku Bank, Ltd. The company will draw down a loan of ¥1,000 million on September 12, 2025, to repay a previous borrowing from March 2020. This financial maneuver maintains the company’s long-term borrowing balance, indicating a stable financial strategy without altering its overall debt position.