Daiwa Office Investment Corporation (8976) AI Stock Analysis

• Market Cap: ¥345.92B
• Dividend Yield: 3.77%
• Average Volume (3M): 1.75K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.14
• Revenue Growth: 19.18%
• EPS Growth: -23.37%
• Country: JP
• Employees: 124
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Office
• EPS (TTM): 7348.00
• Shares Outstanding: 946,439
• 10 Day Avg. Volume: 1,883
• 30 Day Avg. Volume: 1,747
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥369,687.50
• Price Target Upside: 1.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: ¥354,375 ▼(-3.04% Downside)

The stock shows strong technical momentum, which is the most significant factor driving the score. Financial performance is solid, but valuation concerns due to a high P/E ratio slightly dampen the overall attractiveness. The absence of earnings call insights and corporate events did not impact the score.

Daiwa Office Investment Corporation Business Overview & Revenue Model

Company Description

Daiwa Office Investment Corporation (8976) is a prominent real estate investment trust (REIT) in Japan, focusing primarily on office properties. The company invests in, owns, and manages a diversified portfolio of office buildings located in prime business districts across Japan. Its core mission is to maximize investor returns through strategic property acquisitions, effective asset management, and sustainable growth in property value and income.

How the Company Makes Money

Daiwa Office Investment Corporation generates revenue primarily through rental income from its portfolio of office properties. The company leases office spaces to a diverse range of tenants, including corporations and other entities, ensuring a steady stream of rental income. Additionally, the company may earn income from property management services and strategically divests properties to realize capital gains. Key factors contributing to its earnings include the strategic location of its properties, maintaining high occupancy rates, and executing value-add initiatives to enhance property value and rental income. Partnerships with leading property management firms and real estate brokers also play a significant role in optimizing the portfolio's performance and revenue generation.

Daiwa Office Investment Corporation Financial Statement Overview

Summary

Daiwa Office Investment Corporation shows strong financial health with solid profitability and cash flow generation. Challenges include sustaining revenue growth and managing capital expenditures to maintain free cash flow, despite a robust balance sheet.

Income Statement

The company exhibits strong profitability with a consistent gross profit margin and net profit margin. While revenue growth has been modest, margins such as EBIT and EBITDA remain robust, indicating efficient cost management. However, slight declines in gross profit suggest potential challenges in maintaining revenue growth.

Balance Sheet

The balance sheet indicates a stable financial position with a moderate debt-to-equity ratio. The equity ratio suggests a balanced capital structure, though there is room for improvement. Return on equity remains strong, reflecting effective utilization of shareholders' funds.

Cash Flow

The cash flow statement shows healthy operating cash flows and positive free cash flow, although there was a notable decrease in free cash flow growth due to increased capital expenditures. The ratios of operating and free cash flow to net income are favorable, suggesting good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.44B	28.79B	28.70B	28.37B	28.94B	29.12B
Gross Profit	8.19B	15.31B	17.15B	17.77B	18.34B	17.89B
EBITDA	19.71B	18.25B	17.71B	18.56B	19.12B	18.70B
Net Income	14.11B	13.38B	13.29B	14.01B	14.35B	13.81B
Balance Sheet
Total Assets	491.80B	491.24B	482.20B	481.05B	483.28B	488.57B
Cash, Cash Equivalents and Short-Term Investments	36.64B	29.40B	25.88B	19.08B	26.65B	28.14B
Total Debt	217.95B	219.40B	207.80B	205.80B	202.35B	204.45B
Total Liabilities	247.39B	246.27B	234.68B	233.56B	229.64B	233.06B
Stockholders Equity	244.42B	244.97B	247.52B	247.49B	253.64B	255.51B
Cash Flow
Free Cash Flow	19.16B	7.66B	18.52B	10.07B	17.08B	13.06B
Operating Cash Flow	22.84B	19.05B	22.57B	24.56B	20.90B	24.32B
Investing Cash Flow	-2.95B	-10.91B	-4.57B	-14.90B	-3.95B	-10.67B
Financing Cash Flow	-12.08B	-4.53B	-11.10B	-17.14B	-18.51B	-13.18B

Daiwa Office Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 365500.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8976, the sentiment is Positive. The current price of 365500 is above the 20-day moving average (MA) of 358600.00, above the 50-day MA of 341090.00, and above the 200-day MA of 302529.81, indicating a bullish trend. The MACD of 6914.21 indicates Positive momentum. The RSI at 74.26 is Negative, neither overbought nor oversold. The STOCH value of 83.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8976.

Daiwa Office Investment Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8958	76 Outperform	¥148.16B	22.46		4.22%	67.12%	0.19%
8976	75 Outperform	¥345.92B	24.50		3.77%	19.18%	-23.37%
3295	74 Outperform	¥238.90B	21.36		4.82%	-29.52%	9.41%
8954	72 Outperform	¥540.96B	24.02		4.35%	-17.31%	15.83%
8987	71 Outperform	¥193.35B	23.46		3.94%	64.38%	0.79%
8975	70 Outperform	¥149.74B	16.15		6.23%	44.45%	40.59%
Sector *	63 Neutral	$7.06B	13.54	-0.50%	6.96%	4.08%	-25.24%

Daiwa Office Investment Corporation Corporate Events

Daiwa Office Investment Completes Second Phase of Real Estate Divestment

Daiwa Office Investment Corporation has completed the second transfer of its co-ownership interest in the trust beneficial interest of domestic real estate, specifically the Daiwa Tsukishima property, for 2,940 million yen. This transaction is part of a three-part divestment process, with the final transfer scheduled for November 2025, indicating a strategic move to optimize its real estate portfolio.

The most recent analyst rating on (JP:8976) stock is a Sell with a Yen272000.00 price target. To see the full list of analyst forecasts on Daiwa Office Investment Corporation stock, see the JP:8976 Stock Forecast page.

Daiwa Office Investment Corporation Secures 12,050 Million Yen Loan for Debt Refinancing

Daiwa Office Investment Corporation announced a borrowing of 12,050 million yen, including a green loan, to refinance existing debt due on May 30, 2025. This move is part of their financial strategy to manage liabilities effectively, maintaining a balanced ratio of floating and fixed-rate interest-bearing liabilities, which is crucial for their financial stability and operational efficiency.

The most recent analyst rating on (JP:8976) stock is a Sell with a Yen272000.00 price target. To see the full list of analyst forecasts on Daiwa Office Investment Corporation stock, see the JP:8976 Stock Forecast page.

Daiwa Office Investment Corporation to Cancel 3,284 Investment Units

Daiwa Office Investment Corporation announced the cancellation of 3,284 of its own investment units, representing 0.3% of its total issued units, effective May 30, 2025. This decision, made by the Board of Directors, will not affect the company’s financial forecasts for the fiscal periods ending in May and November 2025.

The most recent analyst rating on (JP:8976) stock is a Sell with a Yen272000.00 price target. To see the full list of analyst forecasts on Daiwa Office Investment Corporation stock, see the JP:8976 Stock Forecast page.

Daiwa Office Investment Completes Strategic Acquisition of Own Units

Daiwa Office Investment Corporation has completed the acquisition of its own investment units, totaling 3,284 units at a price of 999,999,500 yen. This move, approved by the board of directors, is part of a strategic plan to manage the company’s capital structure and enhance shareholder value. The acquired units will be canceled, reducing the total number of outstanding investment units to 943,155, which could potentially impact the market perception and valuation of the corporation.

The most recent analyst rating on (JP:8976) stock is a Sell with a Yen272000.00 price target. To see the full list of analyst forecasts on Daiwa Office Investment Corporation stock, see the JP:8976 Stock Forecast page.

Daiwa Office Investment Corporation Acquires Own Investment Units

Daiwa Office Investment Corporation announced the acquisition of 930 of its own investment units, amounting to 281,851,500 yen, through market purchases at the Tokyo Stock Exchange in April 2025. This move is part of a broader strategy approved by the board to acquire up to 5,000 units, potentially impacting the company’s market positioning and investor relations.

Daiwa Office Investment Corporation Announces Strategic Acquisition of Own Investment Units

Daiwa Office Investment Corporation has announced its decision to acquire its own investment units, with plans to cancel them during the fiscal period ending May 2025. This move is aimed at enhancing capital efficiency and returning profits to unitholders, reflecting a strategic effort to boost unitholder value over the medium to long term.

Daiwa Office Investment Corporation Secures Stability with Interest-Rate Swap Agreements

Daiwa Office Investment Corporation has entered into interest-rate swap agreements to convert portions of its floating-rate debt into fixed-rate obligations, totaling JPY 15,500 million. This strategic move aims to mitigate the risks associated with potential future interest rate increases, thereby stabilizing the company’s financial outlook and offering reassurance to investors regarding the management of interest rate exposure.