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Daiwa Office Investment Corporation
(8976)
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Rating:62Neutral
Price Target:
¥345,560
▼(-7.73% 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
Revenue Growth Momentum
A 15.6% revenue rebound in 2025 signals recovering demand and improving leasing outcomes. Sustained top-line growth boosts distributable rental income, strengthens coverage for interest and dividends, and provides a multi-month tailwind to cash flow stability and portfolio re-leasing economics.
Negative Factors
Rising Leverage Trend
The gradual rise in leverage since 2021–2023 narrows cushion against higher borrowing costs or weak rental markets. Increasing indebtedness elevates refinancing and interest-rate risk, which can strain distributable cash and limit strategic flexibility if market or funding conditions deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Momentum
A 15.6% revenue rebound in 2025 signals recovering demand and improving leasing outcomes. Sustained top-line growth boosts distributable rental income, strengthens coverage for interest and dividends, and provides a multi-month tailwind to cash flow stability and portfolio re-leasing economics.
Read all positive factors
Daiwa Office Investment Corporation (8976) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥318.75B
Dividend Yield4.59%
Average Volume (3M)1.33K
Price to Earnings (P/E)20.7
Beta (1Y)0.10
Revenue Growth23.62%
EPS Growth10.38%
CountryJP
Employees124
SectorGeneral
Sector StrengthN/A
IndustryREIT - Office
Share Statistics
EPS (TTM)16465.64
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 Target
¥335,000.00Price Target Upside-10.55% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)15,568.27
Revenue Forecast (FY)¥29.14B
Daiwa Office Investment Corporation Business Overview & Revenue Model
Company Description
Daiwa Office Investment Corporation (8976) is a Japanese real estate investment trust (J-REIT) that invests primarily in income-producing office properties in Japan. The REIT’s business is to acquire, own, and manage a portfolio of real estate ass...
How the Company Makes Money
Daiwa Office Investment Corporation generates income mainly from leasing real estate. Its primary revenue stream is rental income paid by tenants under office lease agreements across its property portfolio. This rental income is influenced by fact...
Daiwa Office Investment Corporation Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 40.10B | 37.51B | 28.79B | 28.70B | 28.37B | 28.94B |
| Gross Profit | 15.63B | 14.19B | 15.31B | 17.15B | 17.77B | 18.34B |
| EBITDA | 21.59B | 20.25B | 18.25B | 17.71B | 18.41B | 19.12B |
| Net Income | 15.41B | 14.45B | 13.38B | 13.29B | 14.01B | 14.35B |
Balance Sheet | ||||||
| Total Assets | 510.88B | 488.32B | 491.37B | 482.20B | 481.05B | 483.28B |
| Cash, Cash Equivalents and Short-Term Investments | 30.74B | 33.04B | 29.40B | 25.88B | 19.08B | 26.65B |
| Total Debt | 239.25B | 217.95B | 219.40B | 207.80B | 205.80B | 202.35B |
| Total Liabilities | 267.71B | 245.83B | 246.27B | 234.68B | 233.56B | 229.64B |
| Stockholders Equity | 243.17B | 242.49B | 244.97B | 247.52B | 247.49B | 253.64B |
Cash Flow | ||||||
| Free Cash Flow | -5.91B | 21.97B | 7.67B | 18.53B | 10.09B | 17.08B |
| Operating Cash Flow | 24.48B | 24.32B | 19.05B | 22.57B | 24.56B | 20.90B |
| Investing Cash Flow | -33.17B | -6.06B | -10.91B | -4.57B | -14.90B | -3.95B |
| Financing Cash Flow | 2.78B | -18.52B | -4.53B | -11.10B | -17.14B | -18.51B |
Daiwa Office Investment Corporation Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥147.12B | 19.02 | ― | 6.26% | -17.50% | -15.10% | |
71 Outperform | ¥569.11B | 21.16 | ― | 4.10% | 5.25% | 19.44% | |
66 Neutral | ¥889.33B | 23.86 | 6.70% | 4.05% | -1.30% | -3.43% | |
66 Neutral | ¥1.19T | 26.94 | 5.94% | 3.65% | -14.70% | -7.58% | |
64 Neutral | ¥226.80B | 18.78 | ― | 4.63% | 19.76% | 7.95% | |
62 Neutral | ¥318.75B | 20.71 | ― | 3.94% | 23.62% | 10.38% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:8976
Daiwa Office Investment Corporation
330,000.00
-10,952.63
-3.21%
JP:8952
Japan Real Estate Investment
118,900.00
-1,503.61
-1.25%
JP:8951
Nippon Building
129,100.00
-5,767.48
-4.28%
JP:3295
Hulic Reit, Inc.
153,800.00
-5,882.47
-3.68%
JP:8954
ORIX JREIT Inc.
99,800.00
3,481.09
3.61%
JP:8975
Ichigo Office REIT Investment Corporation
93,600.00
1,992.89
2.18%
Daiwa Office Investment Corporation Corporate Events
Daiwa Office Investment Withdraws One Credit Rating While Keeping AA Grade
Jul 24, 2026
Daiwa Office Investment Corporation has requested the withdrawal of its AA- issuer rating, with a stable outlook, from Rating and Investment Information, Inc., citing a comprehensive review of the costs and benefits of maintaining multiple credit ...
Daiwa Office Investment Renews ¥3 Billion Commitment Line with Daiwa Next Bank
Jul 17, 2026
Daiwa Office Investment Corporation has entered into a new commitment line agreement totaling 3,000 million yen with Daiwa Next Bank, Ltd., coinciding with the upcoming expiry of an existing facility of the same size. The unsecured, unguaranteed l...
Daiwa Office REIT Moves to Update Governance and Environmental Provisions Ahead of Unitholders Meeting
Jul 17, 2026
Daiwa Office Investment Corporation has proposed amendments to its Articles of Incorporation and key board appointments ahead of its 14th General Meeting of Unitholders on August 25, 2026. The changes are designed to align the REIT with recent ind...
Daiwa Office REIT to Quadruple Units in Liquidity-Driven Split
Jul 17, 2026
Daiwa Office Investment Corporation will implement a four-for-one split of its investment units, with a record date of November 30, 2026 and an effective date of December 1, 2026. The move is designed to lower the investment threshold for individu...
Daiwa Office Investment Launches Unit Buyback and Cancellation Program
Jul 17, 2026
Daiwa Office Investment Corporation has approved a buyback of up to 7,000 of its own investment units, representing about 0.75% of units outstanding, with a maximum acquisition cost of ¥1.5 billion between July 21 and November 12, 2026. The b...
Daiwa Office REIT Removes Daiwa Securities Realty From Specified Related Parties List
Jun 1, 2026
Daiwa Office Investment Corporation announced that Daiwa Securities Realty Co. Ltd. has ceased to be classified as a specified related party of its asset manager after transaction volumes over the three years to May 2026 fell below the regulatory ...
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...
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.