Japan Hotel Reit Investment (8985) AI Stock Analysis

• Market Cap: ¥457.71B
• Dividend Yield: 4.38%
• Average Volume (3M): 14.22K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.40
• Revenue Growth: 36.94%
• EPS Growth: 37.79%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): 2504.00
• Shares Outstanding: 5,097,006
• 10 Day Avg. Volume: 11,923
• 30 Day Avg. Volume: 14,224
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥94,675.10
• Price Target Upside: 6.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥100,909 ▲(13.51% Upside)

The overall stock score of 76 reflects strong financial performance and positive technical indicators. The company's solid profitability and cash flow generation are key strengths, while the fair valuation provides a balanced investment opportunity. The absence of earnings call data and corporate events does not detract from the overall positive outlook.

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 generates revenue primarily through rental income from its hotel properties. The company leases its hotels to experienced hotel operators who manage the day-to-day operations, allowing Japan Hotel REIT to earn a steady stream of income without being directly involved in hotel management. Additionally, the REIT can benefit from long-term leases, which provide predictable cash flows. The company may also realize capital appreciation from property value increases over time. Key revenue streams include fixed rent payments and variable rent, which may be tied to the hotel operators' performance. Partnerships with leading hotel brands and operators enhance operational efficiency and attract a wider customer base, contributing to increased occupancy rates and revenue generation.

Japan Hotel Reit Investment Financial Statement Overview

Summary

Japan Hotel Reit Investment exhibits strong financial health with impressive revenue and profit growth, efficient cost management, and strong cash flow generation. The moderate leverage is manageable. Overall, the company is well-positioned in its industry.

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	42.86B	33.48B	26.57B	14.91B	13.63B	13.84B
Gross Profit	12.59B	21.24B	15.40B	6.12B	4.80B	5.12B
EBITDA	33.19B	26.63B	15.01B	9.14B	7.82B	7.94B
Net Income	23.60B	18.27B	13.13B	2.67B	1.30B	1.53B
Balance Sheet
Total Assets	555.76B	498.93B	429.96B	396.80B	394.32B	400.30B
Cash, Cash Equivalents and Short-Term Investments	30.46B	22.93B	17.69B	29.52B	22.84B	19.38B
Total Debt	269.58B	205.23B	175.23B	164.23B	164.75B	168.75B
Total Liabilities	279.18B	215.53B	184.98B	173.23B	172.78B	179.10B
Stockholders Equity	276.58B	283.40B	244.98B	223.57B	221.54B	221.20B
Cash Flow
Free Cash Flow	-99.91B	-42.50B	-20.85B	1.41B	7.99B	10.81B
Operating Cash Flow	30.49B	22.76B	17.78B	5.33B	11.68B	13.75B
Investing Cash Flow	-129.37B	-64.74B	-38.55B	-3.64B	-4.70B	-3.08B
Financing Cash Flow	107.75B	49.49B	19.77B	-2.17B	-5.54B	-16.46B

Japan Hotel Reit Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 88900.00
• 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 88900 is below the 20-day moving average (MA) of 89585.00, above the 50-day MA of 87796.00, and above the 200-day MA of 77342.50, indicating a bullish trend. The MACD of 803.21 indicates Positive momentum. The RSI at 53.63 is Neutral, neither overbought nor oversold. The STOCH value of 55.23 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
3463	78 Outperform	¥42.97B	9.15	―	10.88%	75.37%	134.79%
8985	76 Outperform	¥457.71B	19.28	9.29%	4.38%	36.94%	37.79%
8955	72 Outperform	¥413.25B	21.81	7.12%	3.81%	78.62%	28.76%
8963	71 Outperform	€521.49B	17.62	9.62%	5.63%	19.85%	8.60%
3287	66 Neutral	¥153.49B	27.42	―	4.12%	23.80%	7.98%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Japan Hotel Reit Investment Corporate Events

Japan Hotel REIT Reports Strong September Performance

Japan Hotel REIT Investment Corporation reported strong performance for September 2025, with a notable 19.9% year-on-year increase in RevPAR, driven by high demand and pricing in the rooms department. Despite a decline in wedding revenue, the food and beverage department maintained stable revenue levels, indicating a robust operational performance across its 28 hotels.

The most recent analyst rating on (JP:8985) stock is a Buy with a Yen100909.00 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 Proposes Amendments and Director Elections

Japan Hotel REIT Investment Corporation announced proposed amendments to its Articles of Incorporation and the election of directors at its upcoming General Meeting of Unitholders. The amendments aim to optimize the number of directors, adjust auditor remuneration, diversify borrowing sources, and align with regulatory changes. The election involves reappointing current directors and introducing new candidates to ensure continuity and compliance with legal requirements.

The most recent analyst rating on (JP:8985) stock is a Buy with a Yen100000.00 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 Secures Interest Rate Stability with New Swap Contracts

Japan Hotel REIT Investment Corporation has announced the conclusion of interest rate swap contracts for its new loans, including refinancing with a green loan. These swaps, with Daiwa Securities Co. Ltd. as the counterparty, effectively fix the interest rates for various term loans, thereby stabilizing the company’s debt servicing costs. The fixed interest rate ratio is expected to reach around 80% of total interest-bearing debts, which could enhance financial predictability and reduce interest rate risk exposure.

The most recent analyst rating on (JP:8985) stock is a Buy with a Yen90000.00 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 August Performance

Japan Hotel REIT Investment Corporation reported a significant increase in its hotel performance metrics for August 2025, despite earlier concerns about an earthquake. The company achieved a 13.4% year-on-year increase in RevPAR due to strong domestic and international leisure demand, and its food and beverage department saw a 14.0% revenue increase, driven by large-scale banquet demand.

The most recent analyst rating on (JP:8985) stock is a Buy with a Yen90000.00 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 Announces Green Loan Refinancing Strategy

Japan Hotel REIT Investment Corporation announced plans to refinance existing loans with new loans, including green loans, totaling JPY 22,000 million. This refinancing effort is part of JHR’s strategy to manage its debt efficiently and support the acquisition of environmentally sustainable hotel properties, aligning with its Green Finance Framework.

The most recent analyst rating on (JP:8985) stock is a Buy with a Yen90000.00 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 Issues New Investment Bonds to Boost Sustainability

Japan Hotel REIT Investment Corporation has announced the issuance of its fourteenth and fifteenth unsecured investment corporation bonds, including green bonds, totaling JPY2.6 billion. These bonds, rated A+ by Japan Credit Rating Agency, are aimed at enhancing the company’s financial flexibility and supporting sustainable investment initiatives, reflecting its commitment to environmental responsibility.

The most recent analyst rating on (JP:8985) stock is a Buy with a Yen87461.00 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 Midterm Growth

Japan Hotel REIT Investment Corporation is a real estate investment trust listed on the Tokyo Stock Exchange, focusing on investing in hotel properties across Japan. The company manages a diverse portfolio of hotels, leveraging its strategic location and operational expertise to maximize returns.

Japan Hotel REIT Shifts Disclosure Policy Amidst Performance Fluctuations

Japan Hotel REIT Investment Corporation announced a change in its disclosure policy for hotel performance data, ceasing individual hotel performance reports to avoid competitiveness issues following a warning from the Japan Fair Trade Commission. Despite a temporary decline in inbound travel due to earthquake concerns, the company reported a 6.2% increase in RevPAR for July 2025, attributed to effective revenue management, while food and beverage revenue saw a decline due to construction work but is expected to recover in the coming months.

The most recent analyst rating on (JP:8985) stock is a Buy with a Yen87461.00 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 Midterm Financial Growth

Japan Hotel REIT Investment Corporation reported a significant increase in its midterm financial results for the fiscal year ending December 31, 2025, with operating revenue and net income showing substantial growth compared to the previous year. The company’s strong performance highlights its robust market positioning in the hotel industry, with implications for continued investor confidence and potential future growth.

The most recent analyst rating on (JP:8985) stock is a Buy with a Yen87461.00 price target. To see the full list of analyst forecasts on Japan Hotel Reit Investment stock, see the JP:8985 Stock Forecast page.