Kenedix Office Investment Corporation (8972) AI Stock Analysis

• Market Cap: ¥723.67B
• Dividend Yield: 4.64%
• Average Volume (3M): 6.78K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.24
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: ¥198,428 ▲(13.06% 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. Overall, the company is performing well but should address cash flow challenges to sustain long-term growth.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	78.06B	33.95B	32.16B	31.33B	31.99B
Gross Profit	47.34B	18.27B	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: 175500.00
• 50DMA: Positive
• 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:8972, the sentiment is Positive. The current price of 175500 is below the 20-day moving average (MA) of 176135.00, above the 50-day MA of 174985.90, and above the 200-day MA of 159563.87, indicating a bullish trend. The MACD of 695.96 indicates Negative momentum. The RSI at 58.99 is Neutral, neither overbought nor oversold. The STOCH value of 79.32 is Neutral, 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	¥592.32B	23.49	6.80%	4.46%	52.74%	14.88%
8984	75 Outperform	¥660.57B	23.44	―	4.28%	27.21%	39.13%
3309	73 Outperform	¥387.79B	20.05	6.92%	5.16%	-27.01%	18.03%
8955	72 Outperform	¥426.28B	21.74	7.12%	3.74%	78.62%	28.76%
8972	70 Neutral	¥723.67B	21.22	5.51%	4.64%	24.10%	-30.38%
3249	68 Neutral	¥396.92B	21.90	7.56%	4.52%	-6.57%	2.83%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Kenedix Office Investment Corporation Corporate Events

KDX Realty Raises ¥500 Million via Green Loan Without Increasing Debt Load

KDX Realty Investment Corporation has arranged a new ¥500 million long-term green loan from The Bank of Fukuoka, with a drawdown on December 29, 2025 and maturity on October 31, 2030, at a floating rate based on one‑month JPY TIBOR plus 0.14183%. The proceeds will be used to refinance an existing borrowing, leaving the REIT’s total interest‑bearing debt and bond balance unchanged at ¥565.43 billion, and the financing is aligned with KDXR’s Sustainability Finance Framework, which has received a top-tier evaluation from Japan Credit Rating Agency, underscoring the issuer’s continued shift toward sustainable funding without increasing leverage.

The most recent analyst rating on (JP:8972) stock is a Hold with a Yen198428.00 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 Financial Performance Amid Cautious Outlook

KDX Realty Investment Corporation reported a slight increase in operating revenues and net income for the fiscal period ending October 31, 2025, compared to the previous period. The company anticipates a decrease in operating revenues and net income for the fiscal period ending April 30, 2026, followed by a recovery in the subsequent period ending October 31, 2026. This financial performance suggests a stable yet cautious outlook for stakeholders, with a focus on maintaining distribution payouts.

The most recent analyst rating on (JP:8972) stock is a Hold with a Yen198428.00 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 Expands Portfolio with Strategic Acquisitions

Kenedix Office Investment Corporation announced the acquisition of a retail facility and a logistics facility in Tokyo, aiming to improve portfolio profitability and ensure steady dividend growth. The retail facility, iias Takao, is a large shopping center with strong sales growth potential, while the logistics facility, KDX Logistics Akishima I, is strategically located in a prominent logistics hub, offering efficient operational capabilities.

The most recent analyst rating on (JP:8972) stock is a Hold with a Yen198428.00 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 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.

The most recent analyst rating on (JP:8972) stock is a Buy with a Yen185441.00 price target. To see the full list of analyst forecasts on Kenedix Office Investment Corporation stock, see the JP:8972 Stock Forecast page.