Daiwa Office Investment Corporation (JP:8976)
:8976
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Daiwa Office Investment Corporation
(8976)
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Rating:62Neutral
Price Target:
¥333,370
▼(-10.98% Downside)
Action:Reiterated
Date:01/24/26
The score is driven primarily by solid financial performance (strong profitability and a notable 2025 revenue rebound) tempered by leverage and inconsistent cash conversion. Technical indicators are subdued with the price below key short/intermediate moving averages and weak momentum readings. Valuation is mixed: a supportive ~4% yield is offset by a relatively high P/E.
Positive Factors
Stable rental-income business model
As a J-REIT focused on office properties, the company’s core revenue is recurring lease income. Long-term leases and pass-through operating charges produce predictable cash inflows, supporting distributable income and making the business model resilient to moderate cyclical swings in demand.
Negative Factors
Uneven cash conversion
Earnings are not consistently translating into operating cash, and a weak FCF-to-income ratio in 2024 highlights conversion risk. Persistent cash conversion volatility makes sustaining distributions and funding capex or debt service more sensitive to shortfalls in collections or unexpected costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable rental-income business model
As a J-REIT focused on office properties, the company’s core revenue is recurring lease income. Long-term leases and pass-through operating charges produce predictable cash inflows, supporting distributable income and making the business model resilient to moderate cyclical swings in demand.
Read all positive factors
Daiwa Office Investment Corporation (8976) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥293.98B
Dividend Yield3.94%
Average Volume (3M)1.33K
Price to Earnings (P/E)20.6
Beta (1Y)0.13
Revenue Growth30.30%
EPS Growth-25.37%
CountryJP
Employees124
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)15345.10
Shares Outstanding934,745
10 Day Avg. Volume992
30 Day Avg. Volume1,334
Financial Highlights & Ratios
PEG Ratio2.69
Price to Book (P/B)1.45
Price to Sales (P/S)9.40
P/FCF Ratio16.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)14,789
Revenue Forecast (FY)¥31.04B
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 makes money primarily by earning rental income from tenants occupying its owned office properties. Revenue is generated through lease contracts that typically include base rent and may include additional pass-th...
Daiwa Office Investment Corporation Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
66
Positive
| Breakdown | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 37.51B | 28.79B | 28.70B | 28.37B | 28.94B |
| Gross Profit | 14.19B | 15.31B | 17.15B | 17.77B | 18.34B |
| EBITDA | 20.25B | 18.25B | 17.71B | 18.56B | 19.12B |
| Net Income | 14.45B | 13.38B | 13.29B | 14.01B | 14.35B |
Balance Sheet | |||||
| Total Assets | 488.32B | 491.24B | 482.20B | 481.05B | 483.28B |
| Cash, Cash Equivalents and Short-Term Investments | 33.04B | 29.40B | 25.88B | 19.08B | 26.65B |
| Total Debt | 217.95B | 219.40B | 207.80B | 205.80B | 202.35B |
| Total Liabilities | 245.83B | 246.27B | 234.68B | 233.56B | 229.64B |
| Stockholders Equity | 242.49B | 244.97B | 247.52B | 247.49B | 253.64B |
Cash Flow | |||||
| Free Cash Flow | 21.97B | 7.67B | 18.53B | 10.09B | 17.08B |
| Operating Cash Flow | 24.32B | 19.05B | 22.57B | 24.56B | 20.90B |
| Investing Cash Flow | -6.06B | -10.91B | -4.57B | -14.90B | -3.95B |
| Financing Cash Flow | -18.52B | -4.53B | -11.10B | -17.14B | -18.51B |
Daiwa Office Investment Corporation Technical Analysis
Negative
374500.00
Price Trends
327790.25
Negative
344805.54
Negative
349801.69
Negative
Market Momentum
-4559.73
Positive
37.70
Neutral
-17.83
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8976, the sentiment is Negative. The current price of 374500 is above the 20-day moving average (MA) of 319935.93, above the 50-day MA of 327790.25, and above the 200-day MA of 349801.69, indicating a bearish trend. The MACD of -4559.73 indicates Positive momentum. The RSI at 37.70 is Neutral, neither overbought nor oversold. The STOCH value of -17.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8976.
Daiwa Office Investment Corporation Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥131.54B | 14.37 | ― | 6.26% | 55.69% | 24.75% | |
69 Neutral | ¥824.50B | 22.33 | 6.59% | 3.83% | -4.44% | -3.43% | |
66 Neutral | ¥1.09T | 25.72 | 5.94% | 3.40% | -14.70% | -7.58% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | ¥224.06B | 18.63 | ― | 4.63% | 19.76% | 7.95% | |
63 Neutral | ¥526.06B | 19.72 | ― | 4.10% | 5.25% | 19.44% | |
62 Neutral | ¥293.98B | 20.64 | ― | 3.94% | 30.30% | -25.37% |
* Real Estate Sector Average
JP:8976
Daiwa Office Investment Corporation
318,000.00
29,648.75
10.28%
JP:8952
Japan Real Estate Investment
114,300.00
1,961.71
1.75%
JP:8951
Nippon Building
127,400.00
430.70
0.34%
JP:3295
Hulic Reit, Inc.
156,200.00
11,789.02
8.16%
JP:8954
ORIX JREIT Inc.
96,100.00
10,550.99
12.33%
JP:8975
Ichigo Office REIT Investment Corporation
86,900.00
5,250.18
6.43%
Daiwa Office Investment Corporation Corporate Events
Daiwa Office REIT Completes Second Phase of Daiwa Sarugakucho Divestment
May 29, 2026
Daiwa Office Investment Corporation has completed the second phase of its planned divestment of a quasi co-ownership interest in the trust beneficial interest of the Daiwa Sarugakucho property. The transaction involved the sale of a 50% quasi co-o...
Daiwa Office Investment Locks In Rates on ¥14 Billion of Floating-Rate Debt
May 27, 2026
Daiwa Office Investment Corporation has entered into new interest-rate swap agreements covering ¥14 billion of existing floating-rate loans, converting them into fixed-rate obligations. The swaps, contracted with several major Japanese banks,...
Daiwa Office Investment Secures ¥5.5 Billion in New and Green Loans for Refinancing
May 22, 2026
Daiwa Office Investment Corporation has arranged new bank borrowings totaling ¥5.5 billion, including a ¥2 billion green loan from The Norinchukin Bank under its certified Green Finance Framework. The loans, all unsecured and mostly long...
Daiwa Office Investment Locks in Fixed Rate on ¥2 Billion Long-Term Loan
Mar 27, 2026
Daiwa Office Investment Corporation, a Japan-listed office-focused REIT managed by Daiwa Real Estate Asset Management, continues to use bank financing as a core tool to support its real estate investment and portfolio strategy. The vehicle operate...
Daiwa Office REIT Raises ¥24.5 Billion, Including Green Loans, for Refinancing and Asset Acquisitions
Mar 24, 2026
Daiwa Office Investment Corporation has arranged new borrowings totaling ¥24.5 billion from a syndicate of major Japanese banks, combining floating-rate and fixed-rate loans with maturities extending to 2034. Part of this financing will be ra...
Daiwa Office Investment Boosts Earnings Outlook With Tokyo Office Portfolio Shift
Mar 24, 2026
Daiwa Office Investment Corporation has announced the acquisition of two Tokyo office properties, Hamamatsucho PREX in Minato Ward and Prime Sendagaya Building in Shibuya Ward, for a combined 26.55 billion yen, while divesting two older assets, Da...
Daiwa Office REIT Lifts May 2026 Earnings and Distribution Forecasts
Mar 24, 2026
Daiwa Office Investment Corporation has raised its forecasts for operating revenue, profit and distributions for the fiscal period ending May 2026, reflecting stronger-than-expected performance. The REIT now projects operating revenue of ¥16....
Daiwa Office REIT Rotates Tokyo Portfolio With Strategic Acquisitions and Sale
Mar 24, 2026
Daiwa Office Investment Corporation is reinforcing its Tokyo-focused office REIT portfolio by targeting competitive, modern assets in well-connected business and trend-sensitive districts. The strategy emphasizes internal growth, selective propert...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.