Daiwa Securities Living Investment (8986) AI Stock Analysis

• Market Cap: ¥271.29B
• Dividend Yield: 4.62%
• Average Volume (3M): 4.58K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.19
• Revenue Growth: -5.13%
• EPS Growth: 14.49%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): N/A
• Shares Outstanding: 2,386,042
• 10 Day Avg. Volume: 3,741
• 30 Day Avg. Volume: 4,579
• PEG Ratio: 2.10
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 8.50
• P/FCF Ratio: -7.65
• 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
• EPS Forecast (FY): 5,232.74
• Revenue Forecast (FY): ¥28.39B

• Rating: 72 Outperform
• Price Target: ¥123,765 ▲(11.00% Upside)

Daiwa Securities Living Investment's strong financial performance and reasonable valuation are key strengths. However, technical indicators suggest caution due to overbought conditions. High leverage and negative free cash flow are risks that need to be managed carefully.

Daiwa Securities Living Investment Business Overview & Revenue Model

Company Description

Daiwa Securities Living Investment (8986) is a leading real estate investment trust (REIT) in Japan, primarily focused on investing in residential properties. The company operates within the broader financial services sector, leveraging its expertise in real estate management to generate stable income through rental properties. Its core offerings include residential leasing, property management, and asset management services, catering to a diverse range of tenants and investors.

How the Company Makes Money

Daiwa Securities Living Investment generates revenue primarily through rental income from its portfolio of residential properties. The company earns consistent cash flow by leasing out these properties to tenants, which allows for predictable revenue streams. Additionally, it may receive income from property management services, where it manages residential units on behalf of other property owners. Key revenue streams include rental payments, management fees, and potential capital gains from property appreciation. The company may also benefit from strategic partnerships with other real estate firms or financial institutions, enhancing its investment capabilities and market reach.

Daiwa Securities Living Investment Financial Statement Overview

Summary

Daiwa Securities Living Investment shows strong revenue and profit growth with efficient operations. However, high leverage and negative free cash flow due to substantial capital expenditures present potential risks.

Income Statement

Daiwa Securities Living Investment has shown consistent revenue growth over the years, with a revenue growth rate of 11.24% between 2023 and 2024. The company maintains a solid gross profit margin of 61.03% and a strong net profit margin of 43.80%, indicating efficient cost management. The EBIT margin is impressive at 49.91%, and the EBITDA margin stands at 68.08%, highlighting robust operational efficiency. These metrics reflect a strong and profitable income statement with positive growth trends.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio of 1.09, indicating significant leverage, which poses a potential risk. However, the return on equity is strong at 6.40%, showcasing effective utilization of equity. The equity ratio is 46.95%, suggesting a balanced capital structure. While the leverage is notably high, the company manages to maintain a stable equity base, reflecting financial stability with some emphasis on debt financing.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow, with a negative free cash flow of -30.47 billion JPY in 2024, down from 1.32 billion JPY in 2023, indicating aggressive capital expenditures. The operating cash flow to net income ratio is healthy at 2.21, suggesting strong cash generation relative to net income. However, the free cash flow to net income ratio is negative, highlighting cash flow challenges primarily due to high capital expenditures and investment activities.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	27.44B	27.44B	24.67B	22.70B	21.30B	32.10B
Gross Profit	16.74B	16.74B	14.54B	13.20B	12.55B	9.77B
EBITDA	21.03B	18.68B	17.14B	15.67B	14.66B	13.37B
Net Income	13.41B	12.02B	10.35B	9.27B	8.89B	9.39B
Balance Sheet
Total Assets	401.99B	400.09B	367.53B	353.68B	336.30B	310.21B
Cash, Cash Equivalents and Short-Term Investments	14.78B	8.17B	18.70B	14.77B	12.08B	14.92B
Total Debt	204.74B	204.74B	188.14B	181.69B	172.69B	152.69B
Total Liabilities	212.64B	212.26B	195.54B	188.46B	179.01B	159.09B
Stockholders Equity	189.34B	187.82B	172.00B	165.22B	157.30B	151.12B
Cash Flow
Free Cash Flow	13.79B	-30.47B	1.32B	-3.85B	-15.88B	-46.90B
Operating Cash Flow	28.23B	26.53B	24.57B	14.40B	13.12B	25.43B
Investing Cash Flow	-14.46B	-56.87B	-23.32B	-18.09B	-28.68B	-70.78B
Financing Cash Flow	-11.31B	20.34B	2.84B	7.60B	17.19B	46.63B

Daiwa Securities Living Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 111500.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8986, the sentiment is Positive. The current price of 111500 is below the 20-day moving average (MA) of 111590.00, above the 50-day MA of 108685.08, and above the 200-day MA of 95536.23, indicating a bullish trend. The MACD of 1304.29 indicates Negative momentum. The RSI at 65.86 is Neutral, neither overbought nor oversold. The STOCH value of 83.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8986.

Daiwa Securities Living Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8979	76 Outperform	¥55.38B	20.80	―	4.83%	4.22%	5.08%
3282	75 Outperform	¥254.78B	27.24	―	3.51%	13.25%	3.76%
3295	74 Outperform	¥250.13B	20.94	―	4.61%	-5.47%	14.66%
8986	72 Outperform	¥271.29B	20.40	7.03%	4.62%	-5.13%	14.49%
3269	68 Neutral	¥484.07B	29.37	6.81%	3.64%	5.25%	3.35%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Daiwa Securities Living Investment Corporate Events

Daiwa Securities Living Investment Acquires SEASON FLATS KAMATA WEST

Daiwa Securities Living Investment Corporation has announced the acquisition of SEASON FLATS KAMATA WEST, a residential property in Ota, Tokyo, for 1,000,000 JPY thousand. This acquisition aligns with the company’s strategy to diversify its portfolio and enhance revenue stability, meeting tenant selection criteria for steady growth.

The most recent analyst rating on (JP:8986) stock is a Buy with a Yen123765.00 price target. To see the full list of analyst forecasts on Daiwa Securities Living Investment stock, see the JP:8986 Stock Forecast page.

Daiwa Securities Living Investment Announces Cancellation of Investment Units

Daiwa Securities Living Investment Corporation announced the cancellation of 20,848 of its own investment units, representing 0.87% of its total issued units, effective September 30, 2025. This move is not expected to impact the company’s management forecasts for the fiscal periods ending in September 2025 and March 2026.

The most recent analyst rating on (JP:8986) stock is a Buy with a Yen111612.00 price target. To see the full list of analyst forecasts on Daiwa Securities Living Investment stock, see the JP:8986 Stock Forecast page.

Daiwa Securities Living Investment Corporation Announces Debt Refinancing Plan

Daiwa Securities Living Investment Corporation announced a refinancing plan for its existing borrowings totaling 2,450 million yen, which are due for repayment on September 30, 2025. This strategic move aims to maintain financial stability and optimize the company’s debt structure, ensuring continued operational efficiency and potentially enhancing its market position.

The most recent analyst rating on (JP:8986) stock is a Buy with a Yen111612.00 price target. To see the full list of analyst forecasts on Daiwa Securities Living Investment stock, see the JP:8986 Stock Forecast page.

Daiwa Securities Living Investment Announces Strategic Property Disposition

Daiwa Securities Living Investment Corporation has announced the disposition of a property named Stellato City Sakurayama in Nagoya, Aichi. The sale, scheduled for October 23, 2025, is part of the company’s strategy to enhance investor value by capitalizing on favorable market conditions, as the sale price exceeds both the book and appraisal values. This move is expected to align with the corporation’s goals of asset growth and stable earnings, although the impact on future financial forecasts is still under review.

The most recent analyst rating on (JP:8986) stock is a Buy with a Yen111612.00 price target. To see the full list of analyst forecasts on Daiwa Securities Living Investment stock, see the JP:8986 Stock Forecast page.

Daiwa Securities Announces Strategic Property Disposition

Daiwa Securities Living Investment Corporation has announced the disposition of its property, Forest Hill SendaiAoba, scheduled for December 19, 2025. This decision aligns with the company’s strategy to boost investor value by selling the property at a price exceeding its book and appraisal values, reflecting a positive outlook for stakeholders.

Daiwa Securities Completes Strategic Acquisition of Investment Units

Daiwa Securities Living Investment Corporation announced the completion of its acquisition of own investment units, totaling 20,848 units at a price of approximately 1.999 billion yen. This strategic move, executed through market purchases on the Tokyo Stock Exchange, is aimed at optimizing the company’s capital structure by canceling the acquired units, thereby reducing the total number of outstanding units to 2,386,042. This action reflects the company’s ongoing efforts to enhance shareholder value and strengthen its market position.