Kenedix Office Investment Corporation (8972) AI Stock Analysis

• Market Cap: ¥720.41B
• Dividend Yield: 4.63%
• Average Volume (3M): 6.78K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.25
• Revenue Growth: 24.10%
• EPS Growth: -30.38%
• Country: JP
• Employees: 33
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 4202.00
• Shares Outstanding: 4,079,309
• 10 Day Avg. Volume: 5,490
• 30 Day Avg. Volume: 6,775
• PEG Ratio: 0.06
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 7.58
• P/FCF Ratio: -32.63
• 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: 70 Neutral
• Price Target: ¥198,428 ▲(12.55% Upside)

Kenedix Office Investment Corporation shows strong financial performance with robust profitability and revenue growth, although cash flow challenges need addressing. The technical indicators suggest a strong upward trend, but caution is advised due to overbought conditions. The valuation is fair, offering a balance of growth and income potential.

Positive Factors

Revenue Growth

The substantial revenue growth reflects strong market demand and effective portfolio management, enhancing long-term profitability and market position.

Profitability

Strong profitability margins indicate efficient operations and cost management, supporting sustainable earnings and shareholder value over time.

Balance Sheet Health

A balanced capital structure with moderate leverage enhances financial stability and flexibility, allowing for strategic investments and growth opportunities.

Negative Factors

Negative Free Cash Flow

Negative free cash flow poses risks to financial flexibility, potentially limiting the company's ability to fund operations and growth initiatives without external financing.

Cash Flow Challenges

The inability to convert net income into free cash flow may hinder reinvestment capabilities and impact long-term financial health.

Earnings Volatility

Declining EPS growth suggests potential volatility in earnings, which could affect investor confidence and the company's ability to maintain consistent dividend payouts.

Kenedix Office Investment Corporation Business Overview & Revenue Model

Company Description

KDX Realty Investment Corp. operates as a real estate investment trust company. The company primarily invests in the real estate, chiefly office buildings, housing and commercial buildings located in Tokyo and regional economic areas. Its property portfolio includes KDX Nihonbashi 313 Building, Higashi-Kayabacho Yuraku Building, Harajuku FF Building, Ark Mori Building, Ginza 4-chome Tower, Portas Center Building and others; and also the asset manager of the company is Kenedix Real Estate Fund Management Inc. The company was founded on May 6, 2005 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kenedix Office Investment Corporation generates revenue primarily through rental income derived from its office properties. The company leases these properties to various businesses, ensuring a consistent cash flow. Additional revenue streams may include property management fees, leasing commissions, and potential capital gains from the sale of properties within its portfolio. The company may also benefit from strategic partnerships with property management firms and financial institutions that enhance its operational capabilities and investment opportunities. Overall, Kenedix's revenue model is driven by its ability to maintain high occupancy rates, manage costs effectively, and optimize property performance.

Kenedix Office Investment Corporation Financial Statement Overview

Summary

Kenedix Office Investment Corporation demonstrates strong profitability and revenue growth, supported by a stable balance sheet with moderate leverage. However, the negative free cash flow and its growth rate pose potential risks to financial flexibility.

Income Statement

Kenedix Office Investment Corporation exhibits strong profitability with a high net profit margin of 63.28% and a robust EBIT margin of 68.91%. The revenue growth rate is impressive at 97.1%, indicating significant expansion. However, the gross profit margin of 60.64% suggests room for improvement in cost management.

Balance Sheet

The company's balance sheet shows a healthy debt-to-equity ratio of 0.86, indicating moderate leverage. The return on equity (ROE) is 7.77%, which is decent but could be improved. The equity ratio is stable, reflecting a balanced capital structure.

Cash Flow

The cash flow statement reveals challenges with a negative free cash flow growth rate of -72.91% and a free cash flow to net income ratio of -0.32. The operating cash flow to net income ratio of 0.69 indicates adequate cash generation from operations, but the negative free cash flow is a concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	78.06B	78.06B	33.95B	32.16B	31.33B	31.99B
Gross Profit	47.34B	47.34B	18.27B	17.14B	17.20B	17.89B
EBITDA	63.37B	63.66B	21.18B	19.70B	19.66B	20.14B
Net Income	49.24B	49.40B	13.78B	12.95B	12.93B	13.49B
Balance Sheet
Total Assets	1.25T	1.24T	475.37B	473.01B	456.33B	459.72B
Cash, Cash Equivalents and Short-Term Investments	61.86B	24.86B	28.94B	20.38B	19.27B	16.13B
Total Debt	557.93B	548.40B	214.95B	214.95B	198.75B	201.75B
Total Liabilities	606.12B	606.12B	243.84B	243.45B	225.78B	229.05B
Stockholders Equity	631.44B	635.86B	231.52B	229.56B	230.54B	230.67B
Cash Flow
Free Cash Flow	23.99B	-18.14B	20.04B	-1.16B	18.52B	-2.90B
Operating Cash Flow	73.11B	57.06B	21.88B	20.90B	20.88B	24.50B
Investing Cash Flow	-49.33B	-73.68B	-675.89M	-20.12B	-2.16B	-26.34B
Financing Cash Flow	-23.64B	-5.85B	-12.63B	1.19B	-16.20B	4.66B

Kenedix Office Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 176300.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8972, the sentiment is Positive. The current price of 176300 is above the 20-day moving average (MA) of 175390.00, above the 50-day MA of 172183.83, and above the 200-day MA of 156703.82, indicating a bullish trend. The MACD of 573.90 indicates Positive momentum. The RSI at 59.22 is Neutral, neither overbought nor oversold. The STOCH value of 90.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8972.

Kenedix Office Investment Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8960	75 Outperform	¥588.11B	22.80	6.80%	4.46%	52.74%	14.88%
8955	72 Outperform	¥428.59B	22.06	7.12%	3.78%	78.62%	28.76%
8972	70 Neutral	¥720.41B	21.13	5.51%	4.63%	24.10%	-30.38%
3309	69 Neutral	¥367.99B	18.92	6.92%	5.31%	-27.01%	18.03%
3249	68 Neutral	¥380.43B	21.01	7.56%	4.61%	-6.57%	2.83%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8984	64 Neutral	¥650.01B	23.08	―	4.32%	27.21%	39.13%

Kenedix Office Investment Corporation Corporate Events

KDX Realty Announces 2,700 Million Yen Green Loan Initiative

KDX Realty Investment Corporation has announced a debt financing initiative totaling 2,700 million yen, structured as green loans to support sustainable investments. This move aligns with their Sustainability Finance Framework, indicating a strategic focus on environmentally responsible growth, potentially enhancing their market position and appealing to eco-conscious stakeholders.

Kenedix Office Investment Corporation Undertakes 7.5 Billion Yen Debt Financing for Hotel Acquisition

Kenedix Office Investment Corporation announced a debt financing initiative totaling 7,500 million yen to fund the acquisition of Hotel JAL City Nagoya Nishiki. This move is expected to enhance the company’s asset portfolio and strengthen its market position by expanding its investment in hospitality properties, which could potentially increase returns for stakeholders.

Kenedix Office Investment Corporation Announces Strategic Property Transactions

Kenedix Office Investment Corporation, through its asset management company Kenedix Real Estate Fund Management, Inc., announced a strategic transaction involving the acquisition of a retail facility and a hotel, and the disposition of a retail facility. This move aims to enhance the quality of its portfolio by acquiring properties expected to generate stable demand and future revenue growth, while disposing of assets with declining profitability. This reshuffle is intended to stabilize cash flow, rejuvenate the retail facilities portfolio, and improve portfolio profitability, leading to steady dividend growth.

Kenedix Office Investment Corporation Announces New Debt Financing and Prepayment Initiative

Kenedix Office Investment Corporation announced a new debt financing initiative totaling 4,800 million yen, which includes green and social loans, and the prepayment of 2,300 million yen in borrowings. This strategic financial move is expected to enhance the company’s sustainability efforts and optimize its financial structure, potentially impacting its market positioning and providing benefits to stakeholders by aligning with environmental and social governance standards.