Heiwa Real Estate REIT, Inc. (8966) AI Stock Analysis

• Market Cap: ¥194.86B
• Dividend Yield: 5.08%
• Average Volume (3M): 2.34K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.28
• Revenue Growth: 13.33%
• EPS Growth: 8.96%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 4085.00
• Shares Outstanding: 1,251,533
• 10 Day Avg. Volume: 1,834
• 30 Day Avg. Volume: 2,341
• PEG Ratio: 6.43
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 7.88
• P/FCF Ratio: -112.88
• 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: 75 Outperform
• Price Target: ¥173,363 ▲(12.94% Upside)

Heiwa Real Estate REIT, Inc. demonstrates strong financial performance with robust profitability and growth. Technical indicators show bullish momentum, and the stock offers a fair valuation with a solid dividend yield. However, high debt levels and negative free cash flow require attention to ensure sustainable growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates effective management and strong demand for Heiwa REIT's properties, supporting long-term stability.

Profitability

High profitability margins suggest efficient operations and pricing power, enhancing the company's ability to generate sustainable earnings.

Operational Cash Generation

Strong operational cash generation reflects the company's ability to convert income into cash, supporting reinvestment and financial flexibility.

Negative Factors

High Debt Levels

While leverage is manageable, high debt levels can pose risks if market conditions deteriorate, potentially impacting financial stability.

Negative Free Cash Flow

Negative free cash flow suggests potential issues with capital expenditure management, which could limit growth and investment capacity.

Cash Flow Management

Challenges in cash flow management may hinder the company's ability to fund operations and growth initiatives, impacting long-term prospects.

Heiwa Real Estate REIT, Inc. Business Overview & Revenue Model

Company Description

Heiwa Real Estate REIT, Inc. (8966) is a Japanese real estate investment trust focused on acquiring, managing, and operating a diversified portfolio of income-generating real estate assets. The company primarily invests in commercial properties, including office buildings, retail spaces, and residential complexes, throughout Japan. Heiwa REIT is committed to enhancing the value of its assets through proactive management strategies and sustainable practices, aiming to provide stable returns to its investors.

How the Company Makes Money

Heiwa Real Estate REIT generates revenue primarily through rental income from its properties. The company leases space to various tenants, which provides a steady cash flow. Additionally, Heiwa REIT may benefit from property appreciation over time, leading to potential capital gains when properties are sold or refinanced. The REIT also engages in value-added property management practices, which can enhance occupancy rates and rental yields. Partnerships with property management firms and real estate developers may further contribute to its earnings by optimizing property performance and facilitating acquisitions. Furthermore, Heiwa REIT's revenue is influenced by market conditions, such as demand for commercial real estate and prevailing rental rates in Japan.

Heiwa Real Estate REIT, Inc. Financial Statement Overview

Summary

Heiwa Real Estate REIT, Inc. shows strong profitability with robust margins and revenue growth. However, high debt levels and negative free cash flow pose risks, requiring improved cash flow management.

Income Statement

The company demonstrates strong revenue growth, with a 6.4% increase in the latest year. Gross and net profit margins are robust at 62.7% and 45.2%, respectively, indicating high profitability. EBIT and EBITDA margins also reflect efficient operations. These metrics suggest a strong trajectory in profitability and growth, making the income statement a highlight of financial performance.

Balance Sheet

The balance sheet shows a stable financial structure with a debt-to-equity ratio of 0.91, indicating manageable leverage. The equity ratio stands at 50.1%, suggesting a balanced capital structure. However, the high total debt level could pose risks if market conditions change. Overall, the company maintains a solid financial position, but caution is warranted due to leverage.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow growth and a negative free cash flow. However, the operating cash flow to net income ratio of 1.61 shows strong operational cash generation. While the company effectively converts income into cash, the negative free cash flow suggests potential issues with capital expenditure management or investment timing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.78B	17.78B	16.71B	15.16B	13.61B	13.66B
Gross Profit	11.15B	11.15B	10.40B	9.39B	8.29B	8.49B
EBITDA	12.39B	11.09B	10.54B	9.42B	8.49B	8.80B
Net Income	8.98B	8.04B	7.55B	6.76B	5.89B	6.06B
Balance Sheet
Total Assets	249.19B	249.19B	240.87B	221.53B	203.21B	188.92B
Cash, Cash Equivalents and Short-Term Investments	17.45B	11.78B	12.87B	12.50B	11.22B	13.63B
Total Debt	125.89B	114.04B	112.54B	99.56B	90.86B	86.17B
Total Liabilities	124.30B	124.30B	122.34B	108.52B	99.01B	94.01B
Stockholders Equity	125.61B	124.89B	118.53B	113.01B	104.19B	94.91B
Cash Flow
Free Cash Flow	-7.68B	-1.24B	-7.98B	-12.11B	-10.44B	2.84B
Operating Cash Flow	14.56B	12.95B	11.30B	13.29B	8.80B	11.00B
Investing Cash Flow	-21.57B	-13.50B	-19.19B	-23.50B	-17.09B	-8.14B
Financing Cash Flow	9.16B	-632.70M	11.11B	10.12B	7.86B	-3.14B

Heiwa Real Estate REIT, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 153500.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8966, the sentiment is Neutral. The current price of 153500 is below the 20-day moving average (MA) of 154887.82, above the 50-day MA of 151599.31, and above the 200-day MA of 135550.63, indicating a neutral trend. The MACD of 942.82 indicates Positive momentum. The RSI at 44.77 is Neutral, neither overbought nor oversold. The STOCH value of 11.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8966.

Heiwa Real Estate REIT, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3296	79 Outperform	¥182.32B	16.76	―	4.73%	50.47%	26.45%
8966	75 Outperform	¥194.86B	20.71	―	5.08%	13.33%	8.96%
8957	74 Outperform	$197.56B	20.61	7.82%	3.97%	21.72%	5.02%
8956	70 Outperform	¥204.52B	22.88	―	4.51%	13.38%	-6.44%
8968	69 Neutral	¥166.12B	20.62	―	4.42%	17.32%	17.54%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Heiwa Real Estate REIT, Inc. Corporate Events

Heiwa Real Estate REIT Announces Partial Early Loan Repayment

Heiwa Real Estate REIT, Inc. announced a partial early repayment of a loan amounting to 300 million yen, reducing its total interest-bearing debt from 128,370 million yen to 128,070 million yen. This strategic financial move is intended to manage the company’s debt profile effectively, although it does not alter the risk factors previously outlined in their fiscal report.

The most recent analyst rating on (JP:8966) stock is a Buy with a Yen173363.00 price target. To see the full list of analyst forecasts on Heiwa Real Estate REIT, Inc. stock, see the JP:8966 Stock Forecast page.

Heiwa Real Estate REIT Secures Financial Stability with Interest Rate Swaps

Heiwa Real Estate REIT, Inc. announced the conclusion of interest rate swap agreements to hedge against interest rate fluctuations for several term loans. This strategic move aims to stabilize the company’s financial expenses by fixing the interest rates on these loans, potentially enhancing financial predictability and reducing risk exposure for stakeholders.

The most recent analyst rating on (JP:8966) stock is a Buy with a Yen155492.00 price target. To see the full list of analyst forecasts on Heiwa Real Estate REIT, Inc. stock, see the JP:8966 Stock Forecast page.