Kenedix Office Investment Corporation (8972) AI Stock Analysis

• Market Cap: ¥646.98B
• Dividend Yield: 5.02%
• Average Volume (3M): 9.16K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.27
• Revenue Growth: 78.59%
• EPS Growth: -28.91%
• Country: JP
• Employees: 33
• Sector: Real Estate
• Sector Strength: 61
• Industry: REIT - Diversified
• EPS (TTM): 4153.00
• Shares Outstanding: 4,079,309
• 10 Day Avg. Volume: 6,825
• 30 Day Avg. Volume: 9,156
• PEG Ratio: 0.34
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.64
• 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: ¥182,000.69
• Price Target Upside: 14.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ―

Kenedix Office Investment Corporation is in a strong financial position, highlighted by robust revenue growth and profitability metrics. The stock shows a positive technical trend and is fairly valued with an attractive dividend yield. The primary caution is the negative free cash flow due to high capital expenditures, suggesting aggressive reinvestment. Overall, the company presents a solid investment opportunity, though investors should monitor cash flow management.

Kenedix Office Investment Corporation Business Overview & Revenue Model

Company Description

Kenedix Office Investment Corporation (8972) is a prominent real estate investment trust (REIT) in Japan, primarily focused on investing in and managing office properties. The company specializes in acquiring, owning, and leasing office buildings primarily located in urban centers across Japan. As a REIT, Kenedix Office Investment Corporation provides investors with the opportunity to invest in real estate assets and benefit from income generated through its property portfolio.

How the Company Makes Money

Kenedix Office Investment Corporation makes money through the acquisition, ownership, and leasing of office properties. The company generates revenue primarily from rental income derived from leasing office spaces to a diverse range of tenants. Additionally, the company aims to enhance its income by actively managing its property portfolio to increase occupancy rates and optimize rent levels. The corporation may also engage in property sales when such transactions align with its investment strategies, potentially yielding capital gains. Furthermore, Kenedix Office Investment Corporation collaborates with its sponsor, Kenedix, Inc., leveraging the sponsor's expertise and networks to secure strategic investment opportunities and enhance portfolio value.

Kenedix Office Investment Corporation Financial Statement Overview

Summary

Kenedix Office Investment Corporation shows strong revenue growth and profitability metrics, with high operational efficiency and effective leverage management. The balance sheet reflects a stable financial position with a prudent equity ratio. Although operating cash flows are robust, negative free cash flow suggests aggressive reinvestment strategies, warranting cautious optimism.

Income Statement

The company has shown significant revenue growth with a 109% increase over the previous year. The gross profit margin stands at 60.6%, and the net profit margin is an impressive 63.3%. The EBIT margin is at 47.2%, and EBITDA margin is at 81.6%, indicating strong operational efficiency. These metrics reflect robust profitability and operational health, although the high net profit margin suggests potential non-operational income impact.

Balance Sheet

The debt-to-equity ratio is approximately 0.86, indicating a balanced approach to leveraging. The equity ratio is 51.2%, reflecting a solid equity base relative to total assets. Return on equity is notably high at 77.7%, driven by strong net income. While the balance sheet shows strength, the high ROE may include non-operational factors, suggesting cautious optimism.

Cash Flow

Operating cash flow to net income ratio is 1.16, indicating healthy cash generation relative to income. However, free cash flow is negative, resulting from substantial capital expenditures, reflecting potential reinvestment for growth. The free cash flow to net income ratio is negative, suggesting caution in cash flow management despite strong operational cash flows.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	78.06B	37.29B	32.16B	31.33B	31.99B
Gross Profit	47.34B	16.02B	17.14B	17.20B	17.89B
EBITDA	63.66B	21.18B	19.70B	19.66B	20.14B
Net Income	49.40B	13.78B	12.95B	12.93B	13.49B
Balance Sheet
Total Assets	1.24T	475.37B	473.01B	456.33B	459.72B
Cash, Cash Equivalents and Short-Term Investments	24.86B	28.94B	20.38B	19.27B	16.13B
Total Debt	548.40B	214.95B	214.95B	198.75B	201.75B
Total Liabilities	606.12B	243.84B	243.45B	225.78B	229.05B
Stockholders Equity	635.86B	231.52B	229.56B	230.54B	230.67B
Cash Flow
Free Cash Flow	-18.14B	20.04B	-1.16B	18.52B	-2.90B
Operating Cash Flow	57.06B	21.88B	20.90B	20.88B	24.50B
Investing Cash Flow	-73.68B	-675.89M	-20.12B	-2.16B	-26.34B
Financing Cash Flow	-5.85B	-12.63B	1.19B	-16.20B	4.66B

Kenedix Office Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 158800.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 158800 is above the 20-day moving average (MA) of 156190.00, above the 50-day MA of 153816.00, and above the 200-day MA of 146627.86, indicating a bullish trend. The MACD of 1117.39 indicates Negative momentum. The RSI at 67.03 is Neutral, neither overbought nor oversold. The STOCH value of 84.39 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
3309	76 Outperform	¥335.18B	15.22	7.47%	4.91%	18.76%	77.88%
8972	73 Outperform	¥646.98B	19.08	5.41%	5.02%	78.59%	-28.91%
8960	72 Outperform	¥504.14B	20.37	6.80%	4.88%	52.74%	14.88%
8955	72 Outperform	¥379.34B	23.51	5.84%	16.51%	44.54%	5.60%
3249	71 Outperform	¥310.43B	17.53	7.72%	5.58%	30.28%	0.44%
Sector *	70 Outperform	¥236.19B	14.54	10.69%	3.77%	18.33%	21.20%
8984	66 Neutral	¥555.13B	23.88		5.33%	22.58%	8.16%

Kenedix Office Investment Corporation Corporate Events

Kenedix Office Investment Corporation Secures Green Loan for Sustainable Growth

Kenedix Office Investment Corporation announced a debt financing initiative totaling 6,500 million yen, structured as a green loan. This move aligns with their Sustainability Finance Framework, which has been highly rated for its environmental standards. The funds will be used for repayment purposes, and the initiative reflects KDXR’s commitment to sustainable finance, potentially strengthening its market position and appealing to environmentally-conscious investors.

The most recent analyst rating on (JP:8972) stock is a Hold with a Yen155000.00 price target. To see the full list of analyst forecasts on Kenedix Office Investment Corporation stock, see the JP:8972 Stock Forecast page.

Kenedix Office Investment Proposes Amendments and Director Reappointments

Kenedix Office Investment Corporation has announced proposed amendments to its Articles of Incorporation and the reappointment of directors, which will be voted on at the upcoming General Meeting of Unitholders. The amendments aim to clarify tax exemption statuses, update provisions following a merger, and address asset acquisition and disposition procedures, potentially impacting the company’s operational clarity and financial management. The reappointment of directors is intended to align their terms of office, ensuring continuity in leadership.

The most recent analyst rating on (JP:8972) stock is a Hold with a Yen155000.00 price target. To see the full list of analyst forecasts on Kenedix Office Investment Corporation stock, see the JP:8972 Stock Forecast page.

Kenedix Office Investment Corporation Announces Property Disposition for Portfolio Optimization

Kenedix Office Investment Corporation has announced the disposition of the COMBOX Komyoike property, a retail facility in the Senboku New Town Komyoike Area. The decision to sell is part of a strategy to enhance portfolio quality by reshuffling assets, considering market trends and property characteristics. The anticipated sale price exceeds the property’s book value and appraisal value, promising a gain on the sale, which reflects positively on the company’s financial strategy and market positioning.

The most recent analyst rating on (JP:8972) stock is a Hold with a Yen155000.00 price target. To see the full list of analyst forecasts on Kenedix Office Investment Corporation stock, see the JP:8972 Stock Forecast page.

KDX Realty Investment Corporation Reports Stable Distributions Amid Revenue Decline

KDX Realty Investment Corporation reported its financial results for the fiscal period ending April 30, 2025, showing a slight decrease in operating revenues and net income compared to the previous period. Despite the decline, the company maintained a stable distribution per unit and a strong financial position, with total assets slightly increasing. The forecast for the upcoming fiscal periods indicates a further decline in operating revenues and net income, reflecting potential challenges in the market environment.

The most recent analyst rating on (JP:8972) stock is a Hold with a Yen155000.00 price target. To see the full list of analyst forecasts on Kenedix Office Investment Corporation stock, see the JP:8972 Stock Forecast page.

Kenedix Office Investment Corporation Announces Key Management Change

Kenedix Office Investment Corporation announced a significant change in its asset management team, appointing Shin Yamamoto as the new Head of Strategic Planning for the Listed REIT Department, effective July 1, 2025. This change is expected to influence the company’s strategic direction and operations, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (JP:8972) stock is a Hold with a Yen155000.00 price target. To see the full list of analyst forecasts on Kenedix Office Investment Corporation stock, see the JP:8972 Stock Forecast page.

KDX Realty Finalizes Interest Rate for Debt Financing Series 0032

KDX Realty Investment Corporation has finalized the interest rate for its debt financing series 0032, securing a fixed rate of 1.07712% for a loan amount of 2 billion yen from SBI Shinsei Bank. This financial move, set to mature in April 2029, is part of KDXR’s ongoing strategy to manage its debt portfolio effectively, maintaining its position in the real estate investment market without altering the existing risk profile.

The most recent analyst rating on (JP:8972) stock is a Hold with a Yen155000.00 price target. To see the full list of analyst forecasts on Kenedix Office Investment Corporation stock, see the JP:8972 Stock Forecast page.

KDX Realty Secures 2 Billion Yen Social Loan for Sustainable Investments

KDX Realty Investment Corporation has announced a debt financing initiative, securing 2,000 million yen through a social loan from SBI Shinsei Bank. This financing will support the repayment of borrowings related to environmentally certified property acquisitions, aligning with KDXR’s Sustainability Finance Framework, which has received a high sustainability rating from the Japan Credit Rating Agency.

The most recent analyst rating on (JP:8972) stock is a Hold with a Yen155000.00 price target. To see the full list of analyst forecasts on Kenedix Office Investment Corporation stock, see the JP:8972 Stock Forecast page.

KDX Realty Secures Interest Rates for Debt Financing

KDX Realty Investment Corporation announced the determination of interest rates for its recent debt financing and the execution of interest rate swap agreements. This move is part of their strategic financial management, aiming to stabilize interest payments and manage financial risks effectively, which could impact their financial stability and investor confidence.

Kenedix Announces Change in Buyer for Residential Properties

Kenedix Real Estate Fund Management announced a change in the buyer for 10 residential properties initially disclosed in a previous press release. The new buyer, GK KRF112, is a related party under the Investment Trust Act, and the change does not affect the disposition price or conditions. This transaction reflects Kenedix’s strategic asset management approach, ensuring compliance with related-party transaction rules and maintaining operational consistency.