Heiwa Real Estate REIT, Inc. (JP:8966)
:8966
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Heiwa Real Estate REIT, Inc.
(8966)
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Rating:64Neutral
Price Target:
¥144,985
▼(-7.77% Downside)
Action:Downgraded
Date:05/29/26
The score is driven primarily by solid profitability and renewed revenue growth, offset by weaker cash flow (negative free cash flow and sub-1.0x cash coverage of earnings) and a moderately leveraged balance sheet. Technicals are a secondary drag due to a clear downtrend and negative momentum, while valuation is supported by a strong dividend yield and a moderate P/E.
Positive Factors
High Profitability / Margins
Very strong reported gross and net margins give the REIT a durable earnings cushion versus peers. High margins support stable distributable income, help absorb vacancy or rent roll timing, and enable reinvestment or selective acquisitions without immediate margin dilution.
Negative Factors
Negative Free Cash Flow / Weak Cash Conversion
Operating cash conversion below 1.0x and a materially negative free cash flow indicate cash generation lags accounting profits. That pattern can constrain internal funding for capex or acquisitions, increase reliance on external financing, and pressure distributions if sustained.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability / Margins
Very strong reported gross and net margins give the REIT a durable earnings cushion versus peers. High margins support stable distributable income, help absorb vacancy or rent roll timing, and enable reinvestment or selective acquisitions without immediate margin dilution.
Read all positive factors
Heiwa Real Estate REIT, Inc. (8966) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥182.27B
Dividend Yield4.96%
Average Volume (3M)2.34K
Price to Earnings (P/E)16.6
Beta (1Y)0.30
Revenue Growth25.21%
EPS Growth20.27%
CountryJP
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)8247.46
Shares Outstanding1,339,233
10 Day Avg. Volume1,834
30 Day Avg. Volume2,341
Financial Highlights & Ratios
PEG Ratio0.95
Price to Book (P/B)1.46
Price to Sales (P/S)9.33
P/FCF Ratio-20.37
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)6,682
Revenue Forecast (FY)¥20.05B
Heiwa Real Estate REIT, Inc. Business Overview & Revenue Model
Company Description
Heiwa Real Estate REIT, Inc. functions as an investment enterprise, accumulating capital from various investors. This capital is then predominantly allocated to real estate holdings. The company's primary objectives are to foster the expansion of ...
How the Company Makes Money
Heiwa Real Estate REIT, Inc. makes money primarily by earning rental revenue from tenants leasing space in the properties it owns. Its core revenue stream is lease-related income (base rent and other tenant charges such as common-area or property-...
Heiwa Real Estate REIT, Inc. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
67
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.93B | 20.86B | 17.78B | 16.71B | 15.16B | 13.61B |
| Gross Profit | 11.43B | 13.67B | 11.15B | 10.40B | 9.39B | 8.29B |
| EBITDA | 13.74B | 13.57B | 11.09B | 10.54B | 9.42B | 8.49B |
| Net Income | 10.09B | 10.09B | 8.04B | 7.55B | 6.76B | 5.89B |
Balance Sheet | ||||||
| Total Assets | 272.94B | 272.94B | 249.19B | 240.87B | 221.53B | 203.21B |
| Cash, Cash Equivalents and Short-Term Investments | 18.25B | 14.20B | 11.78B | 12.87B | 12.50B | 11.22B |
| Total Debt | 128.37B | 128.37B | 114.04B | 112.54B | 99.56B | 90.86B |
| Total Liabilities | 139.78B | 139.78B | 124.30B | 122.34B | 108.52B | 99.01B |
| Stockholders Equity | 133.16B | 133.16B | 124.89B | 118.53B | 113.01B | 104.19B |
Cash Flow | ||||||
| Free Cash Flow | -8.63B | -9.55B | 457.78M | -5.90B | -9.65B | -8.03B |
| Operating Cash Flow | 17.20B | 17.20B | 12.95B | 11.30B | 13.29B | 8.80B |
| Investing Cash Flow | -26.43B | -26.43B | -13.50B | -19.19B | -23.50B | -17.09B |
| Financing Cash Flow | 12.06B | 12.06B | -632.70M | 11.11B | 10.12B | 7.86B |
Heiwa Real Estate REIT, Inc. Technical Analysis
Negative
157200.00
Price Trends
139048.62
Negative
143728.63
Negative
145544.10
Negative
Market Momentum
-1384.93
Negative
44.96
Neutral
80.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8966, the sentiment is Negative. The current price of 157200 is above the 20-day moving average (MA) of 134245.00, above the 50-day MA of 139048.62, and above the 200-day MA of 145544.10, indicating a neutral trend. The MACD of -1384.93 indicates Negative momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 80.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8966.
Heiwa Real Estate REIT, Inc. Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ¥195.48B | 22.65 | ― | 4.51% | 65.46% | -0.92% | |
69 Neutral | ¥175.83B | 17.23 | 7.82% | 3.87% | 6.01% | 7.66% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | ¥182.27B | 16.63 | ― | 4.96% | 25.21% | 20.27% | |
63 Neutral | ¥156.68B | 11.74 | ― | 4.70% | 73.49% | 34.06% | |
63 Neutral | ¥222.08B | 18.49 | ― | 4.67% | -14.95% | -8.84% | |
57 Neutral | ¥151.55B | 18.33 | ― | 4.47% | 4.45% | 7.55% |
* Real Estate Sector Average
JP:8966
Heiwa Real Estate REIT, Inc.
134,400.00
7,592.67
5.99%
JP:8957
TOKYU REIT
179,300.00
-7,735.90
-4.14%
JP:3296
NIPPON REIT Investment Corp
84,500.00
-430.66
-0.51%
JP:8956
NTT UD REIT Investment Corporation
130,100.00
5,203.36
4.17%
JP:8964
Frontier Real Estate Investment Corporation
80,800.00
1,370.51
1.73%
JP:8968
Fukuoka Reit Corporation
170,100.00
5,182.55
3.14%
Heiwa Real Estate REIT, Inc. Corporate Events
Heiwa Real Estate REIT Locks In 3.3% Fixed Rate on ¥600 Million MUFG Loan
May 27, 2026
Heiwa Real Estate REIT, Inc. has fixed the interest rate on a previously announced borrowing, confirming that a 600 million yen Term Loan 87 Tranche E from MUFG Bank, Ltd. will carry a 3.3% fixed rate. The loan will be drawn down on May 29, 2026 a...
Heiwa Real Estate REIT Locks In Loan Costs With New Interest Rate Swaps
May 26, 2026
Heiwa Real Estate REIT, Inc. has entered into new interest rate swap agreements to convert floating-rate borrowings on three existing term loans into effectively fixed-rate debt. The swaps, all executed with Sumitomo Mitsui Trust Bank, Limited, co...
Heiwa Real Estate REIT Files ¥100 Billion Bond Shelf and Approves New Debt Issuance Framework
May 21, 2026
Heiwa Real Estate REIT, Inc. has filed a shelf registration statement with Japan’s Kanto Local Finance Bureau to issue up to 100 billion yen in investment corporation bonds over a two-year period starting May 29, 2026. The funds raised will ...
Heiwa Real Estate REIT Renews ¥8 Billion Commitment Line with Bank Syndicate
May 21, 2026
Heiwa Real Estate REIT, Inc. has renewed its commitment line arrangements with a syndicate of major Japanese banks, maintaining an uncollateralized and unguaranteed credit facility of 8.0 billion yen. The new agreement, labeled CL13 and effective ...
Heiwa Real Estate REIT Secures New Long-Term Loans, Including Green Financing
May 21, 2026
Heiwa Real Estate REIT, Inc. has arranged a new series of unsecured term loans totaling several billion yen from a syndicate of major Japanese banks, including a green loan tranche from The Norinchukin Bank, with maturities ranging from 2028 to 20...
Heiwa Real Estate REIT Prices New Investment Units to Fund Property Buys and Debt Repayment
May 21, 2026
Heiwa Real Estate REIT, Inc. has set the pricing for a new issuance of 87,700 investment units via a public offering, with part of the allotment targeted at overseas investors in Europe and Asia. The REIT also approved a secondary offering of 4,30...
Heiwa Real Estate REIT to Cut Debt with Early Repayment of Term Loan 86
May 18, 2026
Heiwa Real Estate REIT, Inc. plans to make an early repayment of up to 5.14 billion yen on Term Loan 86 from Sumitomo Mitsui Banking Corporation, which was originally used to help finance the acquisition of a majority interest in the Nagoya Heiwa ...
Heiwa Real Estate REIT to Acquire Three Office Buildings for ¥13.4 Billion
May 18, 2026
Heiwa Real Estate REIT will acquire three office assets in Japan—HF UENO INARICHO BUILDING in Tokyo, HF KITA JUJO BUILDING in Sapporo and HF CHIBA FUJIMI BUILDING in Chiba—for a combined expected price of ¥13.4 billion, below thei...
Heiwa Real Estate REIT Lifts Profit Outlook and Unveils 2027 Forecast on New Asset Acquisitions
May 18, 2026
Heiwa Real Estate REIT revised its management forecast for the fiscal period ending November 2026, projecting higher operating revenue and profit while keeping its distribution per unit unchanged at 4,010 yen. The update reflects the planned issua...
Heiwa Real Estate REIT Plans New Unit Issuance and Secondary Offering
May 18, 2026
Heiwa Real Estate REIT’s board has approved the issuance of 87,700 new investment units via a primary public offering, with pricing to be set between May 21 and May 26 in line with Japan Securities Dealers Association rules. The offer price ...
Heiwa Real Estate REIT Lifts May 2026 Profit Outlook on Asset Disposals
Apr 27, 2026
Heiwa Real Estate REIT has sharply revised upward its management forecast for the fiscal period ending May 2026, driven by gains linked to planned asset disposals. The REIT now projects operating revenue of ¥11.53 billion and ordinary profit ...
Heiwa Real Estate REIT to Realize ¥2.49 Billion Gain From Shinjuku Property Disposals
Apr 27, 2026
Heiwa Real Estate REIT plans to dispose of two residential properties, HF Nishi-Shinjuku Residence West and East, at 116% of appraisal value and 187% of book value, generating an expected aggregate gain on sale of about 2.49 billion yen. The proce...
Heiwa Real Estate REIT to Sell Two Nishi-Shinjuku Residential Assets, Realize Gains and Recycle Capital
Apr 27, 2026
Heiwa Real Estate REIT, Inc. will dispose of two residential assets, HF Nishi-Shinjuku Residence West and HF Nishi-Shinjuku Residence East, in Tokyo for an expected total of 5.55 billion yen, with closing set for May 29, 2026 and payment in a lump...
Heiwa Real Estate REIT Locks In Rate on ¥1.09 Billion Loan via Swap
Apr 23, 2026
Heiwa Real Estate REIT, Inc. has entered into interest rate swap agreements to hedge the interest rate exposure on Term Loan 67, a 1.09 billion yen borrowing. The move reflects the REIT’s continued use of derivatives to manage financing risk...
Heiwa Real Estate REIT Revamps Board at Asset Management Unit
Mar 26, 2026
Heiwa Real Estate REIT announced that its asset management company, Heiwa Real Estate Asset Management, will change its board structure, with part-time directors Yuji Tomiyasu and Akika Honpo to be newly appointed on April 1, 2026, replacing outgo...
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.