Japan Hotel Reit Investment (8985) AI Stock Analysis

• Market Cap: $391.96B
• Dividend Yield: 5.12%
• Average Volume (3M): 13.36K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 0.43
• Revenue Growth: 25.99%
• EPS Growth: 30.74%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Hotel & Motel
• EPS (TTM): 3755.72
• Shares Outstanding: 5,097,006
• 10 Day Avg. Volume: 15,274
• 30 Day Avg. Volume: 13,358
• PEG Ratio: -12.78
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.42
• 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: $92,933.91
• Price Target Upside: 20.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥87,461.00 ▲(13.73%Upside)

Japan Hotel Reit Investment scores well due to its strong financial performance and attractive valuation, marked by significant revenue growth and a solid dividend yield. However, technical indicators suggest caution due to overbought signals, which may lead to short-term volatility.

Japan Hotel Reit Investment Business Overview & Revenue Model

Company Description

Japan Hotel REIT Investment Corporation(JHR) is the J-REIT that specifies in the hotels. JHR has the basic principle of ensuring the steady growth and stable revenue in mid to long term view to operate asset.

How the Company Makes Money

Japan Hotel Reit Investment Corporation generates revenue primarily through leasing hotel properties to hotel operators. These operators manage the day-to-day operations of the hotels, and JHR earns income in the form of rental payments. The rental agreements are typically structured as fixed leases or variable leases, where JHR receives a percentage of the hotel's revenue. Additionally, the company may benefit from capital appreciation of its properties over time. Strategic partnerships with established hotel brands and operators are significant contributors to JHR's earnings, ensuring effective management and competitive positioning in the hospitality market.

Japan Hotel Reit Investment Financial Statement Overview

Summary

Japan Hotel Reit Investment shows strong financial health with impressive revenue and profit growth, efficient cost management, and robust cash flow generation. While leverage is moderate, it remains manageable. Overall, the financial performance is solid, with notable strengths in profitability and cash conversion.

Income Statement

The company demonstrated strong revenue growth with a significant increase in total revenue from 26.57 billion JPY in 2023 to 33.48 billion JPY in 2024, marking a growth rate of 26%. The gross profit margin improved to 63.5% in 2024, indicating efficient cost management. The net profit margin also increased to 54.6%, reflecting high profitability. Additionally, the EBIT and EBITDA margins are robust at 62% and 79.5%, respectively, showcasing strong operational efficiency.

Balance Sheet

The balance sheet indicates a strong equity position with a debt-to-equity ratio of 0.72, suggesting moderate leverage. The return on equity is impressive at 6.4%, highlighting effective utilization of shareholder funds. The equity ratio stands at 56.8%, reflecting a solid equity base and financial stability. However, the company's total debt has increased, which could pose a potential risk if not managed properly.

Cash Flow

The free cash flow growth rate was robust, turning positive in 2024 with 22.76 billion JPY from negative figures in the previous year, indicating improved cash generation. The operating cash flow to net income ratio is 1.25, illustrating strong cash flow generation relative to net income. Additionally, the free cash flow to net income ratio is 1.25, underscoring effective cash conversion. However, the high capital expenditures in previous years highlight a potential risk if the investment returns do not materialize.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.52B	33.48B	26.57B	14.91B	13.63B	13.84B
Gross Profit	16.53B	21.24B	15.40B	6.12B	4.80B	5.12B
EBITDA	20.34B	26.63B	15.01B	9.14B	7.82B	7.94B
Net Income	14.44B	18.27B	13.13B	2.67B	1.30B	1.53B
Balance Sheet
Total Assets	400.30B	498.93B	429.96B	396.80B	394.32B	400.30B
Cash, Cash Equivalents and Short-Term Investments	19.38B	22.93B	17.69B	21.14B	22.84B	19.38B
Total Debt	168.75B	205.23B	175.23B	164.23B	164.75B	168.75B
Total Liabilities	179.10B	215.53B	184.98B	173.23B	172.78B	179.10B
Stockholders Equity	221.20B	283.40B	244.98B	223.57B	221.54B	221.20B
Cash Flow
Free Cash Flow	18.75B	-42.50B	-20.85B	1.41B	7.99B	10.81B
Operating Cash Flow	18.75B	22.76B	17.78B	5.33B	11.68B	13.75B
Investing Cash Flow	-36.64B	-64.74B	-38.55B	-3.64B	-4.70B	-3.08B
Financing Cash Flow	19.12B	49.49B	19.77B	-2.17B	-5.54B	-16.46B

Japan Hotel Reit Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 76900.00
• 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:8985, the sentiment is Positive. The current price of 76900 is above the 20-day moving average (MA) of 76115.00, above the 50-day MA of 73620.00, and above the 200-day MA of 69625.42, indicating a bullish trend. The MACD of 1028.19 indicates Positive momentum. The RSI at 61.86 is Neutral, neither overbought nor oversold. The STOCH value of 32.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8985.

Japan Hotel Reit Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8985	73 Outperform	$391.96B	20.48	6.82%	5.12%	25.99%	30.74%
Sector *	63 Neutral	$6.87B	19.10	-1.13%	7.17%	4.77%	-25.03%
8JF		€2.84B	15.48	8.51%	6.04%	―	―
JPRRF		$2.59B	21.48	5.84%	16.81%	―	―
3463	78 Outperform	¥42.74B	9.91		15.52%	88.08%	123.31%
3287	76 Outperform	¥142.01B	25.36		552.82%	23.82%	7.98%
3472		¥21.80B	20.70		5.51%	―	―

Japan Hotel Reit Investment Corporate Events

Japan Hotel REIT Reports Strong May 2025 Performance

Japan Hotel REIT Investment Corporation reported significant growth in its hotel operations for May 2025. The company’s 28 hotels with variable rent experienced a 20% year-on-year increase in RevPAR, driven by strong domestic and international leisure demand. Additionally, the food and beverage department saw a 14.7% rise in revenues, highlighting robust performance in banquets and restaurants. These results indicate a positive impact on JHR’s financial performance and suggest a strong market positioning in the hospitality sector.

The most recent analyst rating on (JP:8985) stock is a Buy with a Yen93000.00 price target. To see the full list of analyst forecasts on Japan Hotel Reit Investment stock, see the JP:8985 Stock Forecast page.

Japan Hotel REIT Reports Strong April Performance

Japan Hotel REIT Investment Corporation reported strong performance for April 2025, with a significant increase in revenue and occupancy rates across its portfolio of 28 hotels. The company’s RevPAR grew by 21.8% year-on-year, driven by high unit prices and increased demand, while the food and beverage department saw a 15.8% rise in revenues, indicating robust growth and a positive outlook for stakeholders.

The most recent analyst rating on (JP:8985) stock is a Buy with a Yen93000.00 price target. To see the full list of analyst forecasts on Japan Hotel Reit Investment stock, see the JP:8985 Stock Forecast page.

Japan Hotel REIT Reports Strong March 2025 Performance

Japan Hotel REIT Investment Corporation reported strong business performance for March 2025, with a 9.4% year-on-year increase in RevPAR for its 28 hotels with variable rent. The company also saw a 9.5% rise in food and beverage revenues, indicating robust demand in both domestic and international markets, enhancing its market position.

SC Capital Partners to Boost Stake in Japan Hotel REIT

Japan Hotel REIT Investment Corporation announced that its main sponsor, SC Capital Partners Group, through Rise Synergy Investments Limited, plans to acquire additional investment units of JHR. This acquisition, valued at a maximum of JPY3.0 billion, is intended to strengthen the alignment of interests between JHR and its sponsor, addressing the challenge of the investment unit price consistently remaining below NAV per unit. The acquisition is expected to enhance stakeholder confidence and demonstrate the sponsor’s commitment to JHR’s growth.