Daiwa Office Investment Corporation (8976) AI Stock Analysis

• Market Cap: ¥345.45B
• Dividend Yield: 3.63%
• Average Volume (3M): 1.33K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.15
• Revenue Growth: 19.18%
• EPS Growth: -23.37%
• Country: JP
• Employees: 124
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 7348.00
• Shares Outstanding: 946,439
• 10 Day Avg. Volume: 992
• 30 Day Avg. Volume: 1,334
• PEG Ratio: 19.53
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 9.19
• P/FCF Ratio: 34.53
• 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: ¥334,000.00
• Price Target Upside: -11.41% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥388,945 ▲(3.17% Upside)

Daiwa Office Investment Corporation's stock score is primarily driven by its solid financial performance, characterized by strong profitability and effective leverage management. However, technical indicators suggest a neutral trend, and valuation metrics indicate a moderate valuation. The absence of earnings call and corporate events data limits additional insights.

Daiwa Office Investment Corporation Business Overview & Revenue Model

Company Description

Daiwa Office Investment Corporation is a REIT focused on investment and management of office buildings in the Central 5wards of Tokyo.

How the Company Makes Money

Daiwa Office Investment Corporation generates revenue primarily through leasing office space to tenants, thereby collecting rental income. The company's revenue model is largely dependent on the occupancy rates of its properties, the rental agreements in place, and the overall demand for office space in the Japanese market. Key revenue streams include long-term leases with corporate tenants and short-term leases that allow for flexibility in rental agreements. Additionally, the company may earn income from property sales or through capital appreciation of its portfolio. The corporation's financial performance is supported by partnerships with real estate management firms and strategic investors, which enhance its ability to acquire and manage high-value properties effectively.

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: 377000.00
• 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:8976, the sentiment is Positive. The current price of 377000 is above the 20-day moving average (MA) of 368575.00, above the 50-day MA of 367510.00, and above the 200-day MA of 319662.31, indicating a bullish trend. The MACD of 3549.14 indicates Negative momentum. The RSI at 62.79 is Neutral, neither overbought nor oversold. The STOCH value of 88.75 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
3295	―	¥246.96B	20.68	―	4.66%	-5.47%	14.66%
8954	―	¥561.94B	24.95	―	4.09%	-35.39%	2.02%
8987	―	¥194.41B	23.59	―	3.92%	64.38%	0.79%
8958	―	¥141.21B	21.55	―	5.66%	67.12%	0.19%
8975	―	¥145.95B	15.91	―	6.29%	44.45%	40.59%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8976	―	¥345.45B	24.47	―	3.63%	19.18%	-23.37%

Daiwa Office Investment Corporation Corporate Events

Daiwa Office Investment Corporation Updates Related Party Status

Daiwa Office Investment Corporation announced a change in its specified related parties, with Daiwa Securities Realty Co., Ltd. now classified as such due to significant transactions involving real estate and trust beneficiary rights. This change, effective from June 1, 2025, does not impact the company’s investment status or distribution forecasts, indicating stability in its operations despite the reclassification.

The most recent analyst rating on (JP:8976) stock is a Hold with a Yen388945.00 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 Revises Financial Forecasts Upward for November 2025

Daiwa Office Investment Corporation has announced an upward revision in its financial forecasts for the fiscal period ending November 2025, citing a significant increase in expected operating revenue, income, and distribution per unit. This revision is attributed to asset divestment and reflects a positive adjustment in the company’s financial outlook, potentially impacting its stakeholders and market positioning.

The most recent analyst rating on (JP:8976) stock is a Hold with a Yen388945.00 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 Divests Daiwa Sarugakucho Property to Enhance Portfolio

Daiwa Office Investment Corporation announced the divestment of its trust beneficial interest in the Daiwa Sarugakucho property for 5,100 million yen. This decision aligns with the company’s strategy to improve unitholder value by realizing unrealized gains and optimizing its portfolio. The property, which has been a stable income source due to high occupancy rates, requires significant capital expenditures due to its age. The divestment will be executed in two phases to stabilize returns to unitholders, and the proceeds will be reinvested in new properties or used for other strategic financial maneuvers.

The most recent analyst rating on (JP:8976) stock is a Hold with a Yen388945.00 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 8,410 of its own investment units, totaling approximately 2.99 billion yen, through market purchases on the Tokyo Stock Exchange. This strategic move, approved by the board, aims to optimize the company’s capital structure by canceling these units, which will reduce the total number of outstanding investment units to 934,745, potentially increasing the value for existing stakeholders.

The most recent analyst rating on (JP:8976) stock is a Hold with a Yen385000.00 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 Updates on Investment Unit Acquisition

Daiwa Office Investment Corporation announced the acquisition of 6,730 of its own investment units from July 22 to August 29, 2025, at a total cost of 2,385,678,500 yen. This move, conducted through market purchases at the Tokyo Stock Exchange, is part of a broader strategy to acquire up to 13,000 units by November 13, 2025, potentially impacting the company’s market positioning and investor confidence.

The most recent analyst rating on (JP:8976) stock is a Hold with a Yen385000.00 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 2,143 of its own investment units in July 2025, with a total acquisition price of 738,857,000 yen. This move is part of a broader strategy approved by the board to acquire up to 13,000 units by November 2025, indicating a strategic focus on optimizing its capital structure and potentially enhancing shareholder value.

The most recent analyst rating on (JP:8976) stock is a Hold with a Yen385000.00 price target. To see the full list of analyst forecasts on Daiwa Office Investment Corporation stock, see the JP:8976 Stock Forecast page.