Fukuoka Reit Corporation (8968) AI Stock Analysis

• Market Cap: ¥163.41B
• Dividend Yield: 4.47%
• Average Volume (3M): 1.91K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.31
• Revenue Growth: 17.32%
• EPS Growth: 17.54%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 4661.00
• Shares Outstanding: 872,000
• 10 Day Avg. Volume: 1,592
• 30 Day Avg. Volume: 1,905
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥197,201 ▲(5.23% Upside)

Fukuoka Reit Corporation's overall stock score is primarily influenced by its strong financial performance and fair valuation. However, the bearish technical indicators suggest caution in the short term. The lack of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates effective property management and market demand, supporting long-term financial stability and expansion.

Profitability

High profit margins reflect efficient operations and strong market positioning, ensuring sustained earnings and competitive advantage.

Balance Sheet Health

A balanced capital structure with moderate leverage supports financial stability and provides flexibility for future investments.

Negative Factors

Free Cash Flow Challenges

Negative free cash flow growth highlights potential liquidity issues, which could limit the company's ability to invest and expand.

Cash Flow Management

Inefficient cash flow management could impact liquidity and financial flexibility, necessitating improvements to sustain operations.

Leverage Monitoring

Monitoring leverage is crucial to prevent over-leverage risks, which could affect the company's ability to manage debt and finance growth.

Fukuoka Reit Corporation Business Overview & Revenue Model

Company Description

Fukuoka REIT Corporation (securities code: 8968) is the first region-specific REIT in Japan. With our strength in knowing the local characteristics of real estate, which is a very regional-specific business, Fukuoka REIT manages a portfolio centering on superior design entertainment retail facilities and Class A office buildings in the entire Kyushu region centering on Fukuoka, Yamaguchi and Okinawa prefectures. Fukuoka REIT was registered in August 2004 and listed on the Tokyo Stock Exchange and Fukuoka Stock Exchange on June 21, 2005. Real estate management, acquisition arrangements of new properties, fund raising and other operations are contracted to its asset manager, Fukuoka Realty Co., Ltd.

How the Company Makes Money

Fukuoka Reit Corporation generates revenue primarily through rental income from its diversified portfolio of real estate assets. The company earns money by leasing its properties to tenants, which provides a steady cash flow. Additionally, Fukuoka Reit benefits from potential capital appreciation of its properties over time. The company may also engage in strategic partnerships with property developers and other real estate firms to enhance its portfolio and gain access to new investment opportunities. Other factors contributing to its earnings include effective property management practices that maximize occupancy rates and rental yields, as well as favorable market conditions in the real estate sector.

Fukuoka Reit Corporation Financial Statement Overview

Summary

Fukuoka Reit Corporation shows strong revenue growth and profitability with efficient operations and a stable balance sheet. However, challenges in free cash flow generation could impact liquidity, necessitating improvements in cash flow management.

Income Statement

Fukuoka Reit Corporation has demonstrated strong revenue growth with an 11.67% increase in the latest year, indicating a positive trajectory. The company maintains healthy profitability with a gross profit margin of approximately 49.5% and a net profit margin of 37.9%. EBIT and EBITDA margins are robust at 42.2% and 56.8%, respectively, reflecting efficient operations. Overall, the income statement shows a solid financial performance with consistent growth and profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.85, indicating moderate leverage. The return on equity stands at 7.1%, showcasing effective utilization of equity to generate profits. The equity ratio is 50%, suggesting a balanced capital structure. While the company maintains a healthy equity base, the leverage level should be monitored to ensure long-term financial stability.

Cash Flow

The cash flow statement reveals challenges in free cash flow generation, with a negative free cash flow growth rate of -203.1%. However, the operating cash flow to net income ratio is strong at 1.11, indicating good cash generation from operations. The negative free cash flow to net income ratio highlights potential cash flow management issues that need addressing to improve liquidity and financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.19B	21.19B	18.98B	17.77B	17.49B	17.77B
Gross Profit	10.50B	10.50B	8.54B	6.30B	7.70B	7.61B
EBITDA	12.22B	12.03B	10.11B	9.43B	9.37B	9.34B
Net Income	8.02B	8.02B	6.25B	5.84B	5.62B	5.49B
Balance Sheet
Total Assets	226.81B	226.81B	215.08B	203.87B	201.22B	199.80B
Cash, Cash Equivalents and Short-Term Investments	3.11B	3.11B	3.88B	6.27B	4.20B	6.95B
Total Debt	96.35B	96.35B	96.35B	86.45B	83.90B	82.40B
Total Liabilities	113.44B	113.44B	112.92B	101.94B	99.48B	98.05B
Stockholders Equity	113.37B	113.37B	102.16B	101.93B	101.74B	101.76B
Cash Flow
Free Cash Flow	-7.59B	-7.59B	-7.57B	3.47B	1.42B	492.28M
Operating Cash Flow	8.89B	8.89B	8.68B	8.63B	7.86B	10.10B
Investing Cash Flow	-12.72B	-12.72B	-14.52B	-3.55B	-6.16B	-2.27B
Financing Cash Flow	3.18B	3.18B	3.88B	-3.10B	-4.13B	-5.26B

Fukuoka Reit Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 187400.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8968, the sentiment is Positive. The current price of 187400 is above the 20-day moving average (MA) of 186850.00, below the 50-day MA of 189480.00, and above the 200-day MA of 171731.63, indicating a neutral trend. The MACD of -954.17 indicates Negative momentum. The RSI at 50.06 is Neutral, neither overbought nor oversold. The STOCH value of 73.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8968.

Fukuoka Reit Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3296	79 Outperform	¥179.49B	16.50	―	4.70%	50.47%	26.45%
8966	75 Outperform	¥196.24B	20.86	―	4.96%	13.33%	8.96%
8957	69 Neutral	¥198.62B	20.72	7.82%	3.87%	21.72%	5.02%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8956	65 Neutral	¥205.71B	24.20	―	4.51%	65.46%	-0.92%
8968	64 Neutral	¥163.41B	20.30	―	4.47%	17.32%	17.54%