Starts Proceed Investment Corporation (8979) AI Stock Analysis

• Market Cap: ¥47.07B
• Dividend Yield: 6.41%
• Average Volume (3M): 638.00
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.21
• Revenue Growth: -8.38%
• EPS Growth: 5.85%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 63
• Industry: REIT - Residential
• EPS (TTM): 4878.00
• Shares Outstanding: 272,415
• 10 Day Avg. Volume: 699
• 30 Day Avg. Volume: 638
• PEG Ratio: 3.59
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.07
• 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

• Rating: 78 Outperform
• Price Target: ―

The stock of Starts Proceed Investment Corporation is well-regarded due to its strong financial performance, including robust revenue growth and solid cash generation. While technical analysis indicates a stable upward trend, attention is needed as the stock approaches overbought levels. Its valuation is reasonable, supported by a high dividend yield, making it attractive for income-focused investors.

Starts Proceed Investment Corporation Business Overview & Revenue Model

Company Description

Starts Proceed Investment Corporation (8979) is a Japan-based real estate investment trust (REIT) that primarily invests in residential properties. The company focuses on acquiring, managing, and leasing residential real estate assets, including apartment buildings, condominiums, and other housing facilities, to generate stable rental income. Its portfolio is strategically diversified across various urban areas in Japan, aiming to deliver steady returns to its investors.

How the Company Makes Money

Starts Proceed Investment Corporation generates revenue primarily through rental income derived from its portfolio of residential properties. By strategically selecting and managing high-demand residential assets, the company seeks to maintain high occupancy rates and optimize rental yields. Additionally, the REIT may engage in property sales and acquisitions to enhance portfolio value and capital gains. Key partnerships with property management firms and real estate developers help ensure efficient operations and sustainable growth. The company's earnings are influenced by factors such as property market conditions, occupancy rates, and rental price trends.

Starts Proceed Investment Corporation Financial Statement Overview

Summary

Starts Proceed Investment Corporation displays strong financial health across all statements. The income statement highlights solid revenue growth and profitability. The balance sheet is stable with a healthy equity base, though debt levels should be watched. Cash flow analysis reveals positive trends and strong cash generation. Overall, the company is well-positioned in the residential REIT sector.

Income Statement

The company demonstrates a strong income statement with consistent revenue growth, evidenced by a 4.38% increase in total revenue from 2023 to 2024. Gross profit margin is solid at 58.6%, and net profit margin is robust at 37%. These healthy margins indicate efficient cost management and strong profitability. Both EBIT and EBITDA margins are also strong, suggesting solid operational performance.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.09, indicating a balanced approach to leveraging. The equity ratio stands at 47.0%, showcasing a strong equity base relative to total assets. ROE is impressive at 57.1%, signaling effective use of equity to generate profits. However, the high level of total debt warrants monitoring.

Cash Flow

Cash flow performance is strong with significant improvement in free cash flow, turning from negative in 2023 to positive in 2024. The free cash flow to net income ratio is 0.88, indicating a solid conversion of net income into free cash flow. Operating cash flow is robust compared to net income, highlighting efficient cash generation from operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.53B	7.21B	6.57B	6.34B	7.02B
	Gross Profit
4.41B	3.43B	3.77B	3.58B	4.30B
	EBIT
3.41B	3.19B	2.93B	2.73B	3.46B
	EBITDA
4.71B	4.54B	4.23B	4.03B	4.69B
	Net Income Common Stockholders
2.79B	2.63B	2.50B	2.34B	3.08B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.26B	1.19B	1.43B	1.56B	1.41B
	Total Assets
103.83B	103.44B	90.63B	90.26B	90.41B
	Total Debt
53.26B	52.85B	45.65B	45.65B	45.65B
	Net Debt
52.00B	51.54B	44.21B	44.09B	44.24B
	Total Liabilities
55.01B	54.59B	47.14B	46.92B	46.84B
	Stockholders Equity
48.82B	48.85B	43.48B	43.34B	43.58B
Cash Flow		Free Cash Flow
2.45B	-9.74B	2.31B	2.71B	2.52B
	Operating Cash Flow
7.29B	5.02B	7.25B	4.68B	9.39B
	Investing Cash Flow
-4.88B	-14.68B	-5.00B	-1.99B	-6.88B
	Financing Cash Flow
-2.41B	9.92B	-2.37B	-2.58B	-2.45B

Starts Proceed Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 172800.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8979, the sentiment is Positive. The current price of 172800 is below the 20-day moving average (MA) of 173545.00, above the 50-day MA of 171450.76, and above the 200-day MA of 171481.84, indicating a bullish trend. The MACD of 492.96 indicates Positive momentum. The RSI at 54.86 is Neutral, neither overbought nor oversold. The STOCH value of 38.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8979.

Starts Proceed Investment Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8979	78 Outperform	¥47.07B	17.51		6.41%	-8.38%	5.85%
3451	75 Outperform	¥48.86B	17.30		5.72%	3.37%	1.38%
3481	70 Outperform	¥175.36B	18.21		1.79%	19.79%	33.25%
3287	68 Neutral	¥141.07B	17.27		3.83%	20.18%	5.83%
3282	66 Neutral	¥222.40B	24.15		4.12%	14.22%	5.98%
Sector *	61 Neutral	$2.86B	10.96	0.41%	6.08%	5.73%	-21.25%

Starts Proceed Investment Corporation Corporate Events

Starts Proceed Finalizes Interest Rate Swap Agreement

Starts Proceed Investment Corporation has finalized the fixed interest rate for its interest rate swap agreement related to Term Loan 3F, setting it at 2.124%. This decision is part of their financial strategy to manage borrowing costs effectively, with no significant changes in investment risks as previously reported.

Starts Proceed Investment Corporation Announces New Borrowing and Interest Rate Swap Agreement

Starts Proceed Investment Corporation has announced a decision to borrow funds amounting to 3,049 million yen to repay existing borrowings maturing soon. Additionally, the company has entered into an interest rate swap agreement to mitigate the risk of interest rate fluctuations on the new loan. This strategic financial move aims to stabilize the company’s financial obligations and manage interest rate risks effectively, ensuring continued operational stability and potentially enhancing stakeholder confidence.

Starts Proceed Investment Completes Key Real Estate Acquisition

Starts Proceed Investment Corporation has completed the acquisition of a property named Proceed Sakurazaka in Ota-ku, Tokyo, from Starts Development Corporation for 850 million yen. This acquisition is part of the company’s strategy to strengthen its real estate portfolio, potentially enhancing its market position and offering better returns to its investors.

Starts Proceed Investment Corporation Updates Fiscal Forecasts for 2025

Starts Proceed Investment Corporation has revised its management status and distribution forecasts for the fiscal periods ending April 2025 and October 2025. The revisions reflect expected changes due to increased revenue from asset acquisitions and a decrease in issued investment units. These adjustments indicate a positive outlook for the company’s financial performance, potentially benefiting stakeholders through increased distributions per unit.

Starts Proceed Investment Corporation Acquires Trust Beneficiary Interest in Tokyo Real Estate

Starts Proceed Investment Corporation has announced the acquisition of a trust beneficiary interest in a domestic real estate property named Proceed Sakurazaka, located in a quiet residential area in Ota Ward, Tokyo. This acquisition is part of SPI’s asset replacement strategy to enhance portfolio competitiveness, with the property offering a combination of profitability, growth potential, and stability. The acquisition is expected to strengthen SPI’s market position and provide attractive returns to stakeholders.

Starts Proceed Investment Corporation to Cancel 10,062 Investment Units

Starts Proceed Investment Corporation announced the cancellation of 10,062 of its own investment units, representing 3.56% of the total issued units, effective April 30, 2025. This move is part of the company’s strategic management of its investment portfolio, potentially impacting its market position and stakeholders by adjusting the number of outstanding investment units.

Starts Proceed Investment Corporation Completes Strategic Unit Repurchase

Starts Proceed Investment Corporation has completed the repurchase of its own investment units, as approved by its Board of Directors. This strategic move, involving the repurchase of 10,062 units for approximately 1.74 billion yen, is aimed at enhancing shareholder value and optimizing the company’s capital structure. The repurchased units are set to be canceled, reducing the total number of issued investment units to 272,415, which may positively impact the company’s market positioning and investor confidence.