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Fukuoka Reit Corporation (JP:8968)
:8968
Japanese Market
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Fukuoka Reit Corporation (8968) AI Stock Analysis

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JP:8968

Fukuoka Reit Corporation

(8968)

Rating:69Neutral
Price Target:
¥181,524
▲(1.18% Upside)
The stock's overall score reflects strong financial performance and technical indicators. The valuation is attractive due to a reasonable P/E ratio and high dividend yield. However, negative Free Cash Flow poses a potential risk.

Fukuoka Reit Corporation (8968) vs. iShares MSCI Japan ETF (EWJ)

Fukuoka Reit Corporation Business Overview & Revenue Model

Company DescriptionFukuoka Reit Corporation (8968) is a real estate investment trust (REIT) based in Fukuoka, Japan. The company primarily invests in and manages a diversified portfolio of real estate properties, focusing on commercial facilities, office buildings, residential properties, and hotels. Its core services include the acquisition, management, and leasing of real estate assets, with a strategic emphasis on properties located in the Kyushu region and other major urban areas in Japan.
How the Company Makes MoneyFukuoka Reit Corporation generates revenue primarily through rental income derived from its portfolio of real estate properties. The company leases its commercial, office, residential, and hotel properties to tenants and collects rent, which serves as its main revenue stream. Additionally, the REIT may engage in property sales to realize capital gains, although this is not its primary source of income. Significant partnerships with property management firms and real estate developers contribute to the enhancement of property value and occupancy rates, further supporting revenue growth. By focusing on strategic locations and maintaining a diversified property portfolio, the company aims to maximize returns for its investors.

Fukuoka Reit Corporation Financial Statement Overview

Summary
Fukuoka Reit Corporation shows strong revenue growth and profitability, with a solid balance sheet. However, negative Free Cash Flow indicates potential cash management challenges.
Income Statement
70
Positive
The company has shown consistent revenue growth with a positive trend in gross and net profit margins. Gross Profit Margin improved from 35.45% to 45.03% in the latest annual report, and Net Profit Margin has also increased from 32.84% to 32.94%. The Revenue Growth Rate over the last year was 6.77%, indicating healthy growth. EBIT and EBITDA margins are strong, reflecting efficient operations.
Balance Sheet
65
Positive
The Debt-to-Equity Ratio stands at 0.94, indicating a balanced leverage position typical for a REIT. The Return on Equity (ROE) is stable at approximately 6.12%, showing consistent returns to shareholders. The Equity Ratio is 47.52%, pointing to a solid capital structure with a healthy equity position.
Cash Flow
55
Neutral
The Free Cash Flow has turned negative, showing a decline, which is a concern for liquidity and future investments. The Operating Cash Flow to Net Income Ratio is 1.39, suggesting strong cash generation relative to reported earnings. However, the Free Cash Flow to Net Income Ratio is negative, highlighting potential cash management issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue18.98B18.98B17.77B17.49B17.77B17.68B
Gross Profit8.54B8.54B6.30B7.70B7.61B7.56B
EBITDA11.28B10.11B9.43B9.37B9.34B9.59B
Net Income7.19B6.25B5.84B5.62B5.49B5.49B
Balance Sheet
Total Assets226.97B215.08B203.87B201.22B199.80B199.00B
Cash, Cash Equivalents and Short-Term Investments21.73B3.88B6.27B4.20B6.95B3.73B
Total Debt96.35B96.35B86.45B83.90B82.40B82.40B
Total Liabilities113.58B112.92B101.94B99.48B98.05B97.48B
Stockholders Equity113.39B102.16B101.93B101.74B101.76B101.53B
Cash Flow
Free Cash Flow7.36B-7.57B3.47B1.42B492.28M-33.49M
Operating Cash Flow9.21B8.68B8.63B7.86B10.10B7.44B
Investing Cash Flow795.37M-14.52B-3.55B-6.16B-2.27B-7.36B
Financing Cash Flow4.22B3.88B-3.10B-4.13B-5.26B-937.47M

Fukuoka Reit Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price179400.00
Price Trends
50DMA
176189.39
Positive
100DMA
167062.85
Positive
200DMA
152706.20
Positive
Market Momentum
MACD
2217.60
Positive
RSI
55.20
Neutral
STOCH
16.30
Positive
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 179400 is below the 20-day moving average (MA) of 182227.28, above the 50-day MA of 176189.39, and above the 200-day MA of 152706.20, indicating a neutral trend. The MACD of 2217.60 indicates Positive momentum. The RSI at 55.20 is Neutral, neither overbought nor oversold. The STOCH value of 16.30 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥185.48B19.71
4.93%13.33%8.96%
69
Neutral
¥156.96B20.88
4.54%6.34%14.04%
63
Neutral
$7.02B13.41-0.50%6.86%4.08%-25.24%
$1.27B20.967.49%4.70%
74
Outperform
¥171.89B15.89
4.92%50.47%26.45%
¥160.68B18.44
5.83%
64
Neutral
¥199.48B22.40
4.41%13.38%-6.44%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8968
Fukuoka Reit Corporation
179,400.00
44,568.97
33.06%
TKURF
TOKYU REIT
1,326.82
334.58
33.72%
JP:3296
NIPPON REIT Investment Corp
97,100.00
23,023.29
31.08%
JP:3468
Star Asia Investment Corp.
59,900.00
9,859.52
19.70%
JP:8956
NTT UD REIT Investment Corporation
134,000.00
24,733.63
22.64%
JP:8966
Heiwa Real Estate REIT, Inc.
148,000.00
27,711.45
23.04%
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.Date of analysis: Jun 05, 2025