Daiwa House REIT Investment Corporation (8984) AI Stock Analysis

• Market Cap: ¥654.60B
• Dividend Yield: 4.29%
• Average Volume (3M): 8.34K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.22
• Revenue Growth: 27.21%
• EPS Growth: 39.13%
• Country: JP
• Employees: 33
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 3272.00
• Shares Outstanding: 4,590,478
• 10 Day Avg. Volume: 6,780
• 30 Day Avg. Volume: 8,342
• PEG Ratio: -3.17
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 8.83
• P/FCF Ratio: 68.58
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥134,505 ▼(-5.68% Downside)

Daiwa House REIT Investment Corporation demonstrates a strong financial performance with high profit margins and effective equity utilization. The technical analysis suggests a neutral to slightly bearish trend, while the valuation indicates a potentially overvalued stock with an attractive dividend yield. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust demand for the company's diversified real estate portfolio, supporting long-term financial stability.

Profit Margins

High profit margins reflect effective cost management, ensuring the company can maintain profitability even in challenging market conditions.

Balance Sheet Health

A strong equity ratio suggests financial resilience, providing the company with the flexibility to invest in growth opportunities or weather economic downturns.

Negative Factors

Free Cash Flow Concerns

Declining free cash flow growth may limit the company's ability to reinvest in its portfolio or reduce debt, potentially impacting long-term growth.

Operational Cost Pressure

A decrease in EBIT margin suggests rising operational costs, which could erode profitability if not managed effectively over time.

Leverage

Moderate leverage indicates reliance on debt, which could pose risks if interest rates rise or if the company faces cash flow challenges.

Daiwa House REIT Investment Corporation Business Overview & Revenue Model

Company Description

Effective September 1, 2016, Daiwa House Residential Investment Corporation merged with Daiwa House REIT Investment Corporation, which focuses on the two investment target assets of logistics properties and retail properties, and changed its name from Daiwa House Residential Investment Corporation to Daiwa House REIT Investment Corporation, marking a new start as a "diversified REIT.".

How the Company Makes Money

Daiwa House REIT Investment Corporation generates revenue primarily through the leasing of its diversified real estate portfolio, which includes residential, office, retail, and logistics properties. The company collects rental income from tenants occupying its properties, which is the main source of its earnings. Additionally, the REIT may engage in property sales to realize gains from appreciated real estate assets. The corporation benefits from its affiliation with the Daiwa House Group, leveraging its expertise and market presence to enhance property acquisition and management strategies. Moreover, the company may enter into strategic partnerships or joint ventures to expand its portfolio and optimize returns, further contributing to its revenue streams.

Daiwa House REIT Investment Corporation Financial Statement Overview

Summary

Daiwa House REIT Investment Corporation shows a strong financial foundation characterized by consistent revenue growth and high profit margins. The balance sheet reflects moderate leverage and effective equity utilization. Despite some fluctuations in free cash flow, the company maintains a steady cash position, indicating sound financial health suitable for long-term growth.

Income Statement

The company exhibits strong revenue growth over the years, with a notable increase of 4.80% from 2023 to 2024. Gross profit margin stands at 58.55%, and net profit margin is impressive at 33.01%, indicating effective cost management. However, EBIT margin has slightly decreased to 38.86% in 2024, which could suggest rising operational costs.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio of 0.83, suggesting moderate leverage. Return on Equity is strong at 40.12%, reflecting efficient use of equity capital. Equity ratio stands at 52.87%, indicating a healthy balance between assets and equity.

Cash Flow

Operating cash flow is robust, significantly covering net income with a ratio of 2.46. Free cash flow growth rate is concerning, declining from a previous high, but it remains positive, reflecting the company's ability to generate cash. Free cash flow to net income ratio is 0.39, showing potential for further investment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	61.90B	61.90B	59.06B	59.63B	57.67B	51.63B
Gross Profit	36.25B	36.25B	30.36B	35.02B	34.41B	30.62B
EBITDA	44.43B	42.60B	40.21B	39.98B	40.20B	36.08B
Net Income	23.22B	20.43B	22.35B	22.73B	22.72B	19.06B
Balance Sheet
Total Assets	952.38B	963.49B	958.75B	963.57B	900.31B	899.58B
Cash, Cash Equivalents and Short-Term Investments	48.28B	26.72B	54.88B	50.03B	47.32B	39.38B
Total Debt	411.55B	420.55B	407.55B	407.55B	378.56B	376.56B
Total Liabilities	446.20B	454.12B	440.57B	441.75B	410.84B	408.28B
Stockholders Equity	506.18B	509.37B	518.17B	521.82B	489.47B	491.30B
Cash Flow
Free Cash Flow	27.44B	7.97B	31.09B	-36.91B	30.70B	-46.15B
Operating Cash Flow	61.75B	50.21B	37.39B	41.61B	44.18B	36.73B
Investing Cash Flow	-34.34B	-41.99B	-6.40B	-76.99B	-13.43B	-80.95B
Financing Cash Flow	-30.64B	-16.33B	-26.14B	38.08B	-22.81B	36.33B

Daiwa House REIT Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 142600.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8984, the sentiment is Positive. The current price of 142600 is above the 20-day moving average (MA) of 137130.00, above the 50-day MA of 131880.00, and above the 200-day MA of 121841.86, indicating a bullish trend. The MACD of 2689.72 indicates Negative momentum. The RSI at 77.35 is Negative, neither overbought nor oversold. The STOCH value of 92.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8984.

Daiwa House REIT Investment Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8960	75 Outperform	$583.46B	23.58	6.80%	4.35%	52.74%	14.88%
8955	72 Outperform	¥421.93B	22.26	7.12%	3.71%	78.62%	28.76%
8972	70 Neutral	€703.68B	20.73	5.41%	4.55%	41.48%	-28.91%
3309	69 Neutral	$344.32B	15.94	7.47%	5.69%	18.76%	77.88%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8984	64 Neutral	¥654.60B	23.24	―	4.29%	27.21%	39.13%