Japan Hotel Reit Investment (8985) AI Stock Analysis

• Market Cap: ¥465.91B
• Dividend Yield: 4.54%
• Average Volume (3M): 18.82K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.48
• 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): 2821.00
• Shares Outstanding: 5,942,715
• 10 Day Avg. Volume: 17,434
• 30 Day Avg. Volume: 18,819
• PEG Ratio: 0.37
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 8.72
• P/FCF Ratio: -10.74
• 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: ¥98,000.00
• Price Target Upside: 23.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 4,840.34
• Revenue Forecast (FY): ¥45.30B

• Rating: 63 Neutral
• Price Target: ¥85,946.00 ▲(8.11% Upside)
• Action: Downgraded Date: 03/04/26
• Date: Action: Downgraded 03/04/26

The score is driven primarily by strong profitability and improved operating cash flow, but it is meaningfully constrained by persistently negative free cash flow and higher leverage. Technicals are weak with the price below key moving averages, while valuation is supported by a high dividend yield and a moderate P/E.

Positive Factors

Revenue Growth & Profitability

Accelerating revenue growth in 2025 (+11.6%) combined with very high gross and net margins indicates durable demand recovery and operational leverage across the hotel portfolio. Sustained improvements in occupancy and rates support recurring lease and performance-linked income and underpin medium-term distribution capacity.

Negative Factors

Negative Free Cash Flow

Deeply negative free cash flow over 2023–2025 (2025 ~-38.8B) indicates significant outflows from capex, acquisitions, or financing that offset operating cash gains. Persistent negative FCF weakens financial flexibility, limits internal funding for growth or distributions, and raises reliance on external capital in adverse conditions.

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 i...

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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 i...

Japan Hotel Reit Investment Financial Statement Overview

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	47.83B	33.48B	26.57B	14.91B	13.63B
Gross Profit	24.47B	21.24B	15.40B	6.12B	4.80B
EBITDA	38.22B	26.63B	15.01B	9.14B	7.82B
Net Income	27.15B	18.27B	13.13B	2.67B	1.30B
Balance Sheet
Total Assets	576.68B	498.93B	429.96B	396.80B	394.32B
Cash, Cash Equivalents and Short-Term Investments	41.98B	22.93B	17.69B	29.52B	22.84B
Total Debt	269.38B	205.23B	175.23B	164.23B	164.75B
Total Liabilities	283.57B	215.53B	184.98B	173.23B	172.78B
Stockholders Equity	293.11B	283.40B	244.98B	223.57B	221.54B
Cash Flow
Free Cash Flow	-38.82B	-42.43B	-20.79B	1.46B	8.19B
Operating Cash Flow	33.75B	22.76B	17.78B	5.33B	11.68B
Investing Cash Flow	-71.87B	-64.74B	-38.55B	-3.64B	-4.70B
Financing Cash Flow	44.07B	49.49B	19.77B	-2.17B	-5.54B

Japan Hotel Reit Investment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 79500.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 79500 is above the 20-day moving average (MA) of 77240.00, below the 50-day MA of 81222.00, and below the 200-day MA of 80649.80, indicating a neutral trend. The MACD of -1055.72 indicates Negative momentum. The RSI at 49.92 is Neutral, neither overbought nor oversold. The STOCH value of 79.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
3479	67 Neutral	¥79.94B	11.54	―	―	127.32%	-22.79%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8985	63 Neutral	¥465.91B	15.36	9.29%	4.54%	36.94%	37.79%
3287	61 Neutral	¥150.97B	23.75	―	4.18%	42.32%	15.73%
3226	58 Neutral	¥339.84B	13.28	―	3.56%	2.91%	2.68%
3463	54 Neutral	¥37.99B	7.42	―	11.36%	75.37%	134.79%

Japan Hotel Reit Investment Corporate Events