Hulic Reit, Inc. (3295) AI Stock Analysis

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Hulic Reit, Inc.

(TSE/TYO:3295)

Select Model

Rating:58Neutral

Price Target:JPY 144,560.00▲(8.04% Upside)

Action:reiterated

Date:10/20/26

The overall score of 58 reflects a company with a stable financial foundation but significant near-term headwinds. The primary concern is the sharp deterioration in profit margins despite strong revenue growth, which questions earnings quality. This is compounded by a bearish technical trend, with the stock in a sustained downtrend across all major moving averages. Positively, the balance sheet remains conservatively managed with low leverage, and the valuation is compelling, highlighted by a high dividend yield of 5.79% that may provide downside support for income investors.

Positive Factors

Revenue GrowthThe sharp 2026 revenue acceleration indicates stronger top-line momentum after several years of slower growth. For an income-producing property vehicle, sustained growth can expand the rental-income base, support distributions, and improve operating scale if profitability remains resilient.

Negative Factors

Margin CompressionMaterial margin compression means the recent revenue acceleration is not translating fully into earnings quality. If the pressure persists, higher expenses or an unfavorable mix could constrain distributable income and reduce the benefit of future rental growth.

Hulic Reit, Inc. (3295) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 191.52B
Dividend Yield: 6.05%
Average Volume (3M): 3,406
Price to Earnings (P/E): 16.2
Beta (1Y): 0.08
Revenue Growth: 4.56%
EPS Growth: -1.09%
Country: Japan
Employees: ―
Sector: General
Sector Strength: 55
Industry: REIT - Office

Hulic Reit, Inc. Business Overview & Revenue Model

Company Description

Hulic Reit, Inc. (the Fund) commenced trading on the Tokyo Stock Exchange's real estate investment trust market on February 7, 2014, backed by strong support from its unitholders and other stakeholders. Since its inception, the Fund has consistently...

How the Company Makes Money

Hulic Reit, Inc. generates revenue primarily from rental-related income earned by leasing space in the properties it owns. Key revenue streams typically include (1) base rent paid by tenants under lease contracts and (2) ancillary property income suc...

Hulic Reit, Inc. Financial Statement Overview

Summary

Financial performance is mixed. Revenue surged 35.2%, but gross margin halved to 31.9% and net margin fell to 32.3%, indicating low-quality growth. The balance sheet is stable with low leverage (D/E 0.97x), though ROE is modest at 5-6%. Cash flow is volatile; FCF rebounded to positive ¥13.96B, but cash conversion weakened to 0.70x. Overall, stability is offset by deteriorating profitability and inconsistent cash generation.

Income Statement

62Positive

Balance Sheet

68Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Aug 2026	Aug 2025	Aug 2024	Aug 2023	Aug 2022
Income Statement
Total Revenue	36.62B	36.62B	25.24B	22.83B	21.90B	22.51B
Gross Profit	11.69B	11.69B	17.09B	14.79B	11.97B	15.26B
EBITDA	16.74B	16.74B	16.19B	14.40B	14.18B	15.05B
Net Income	11.81B	11.81B	11.94B	10.42B	9.95B	10.82B
Balance Sheet
Total Assets	418.52B	418.52B	423.65B	410.38B	401.94B	400.23B
Cash, Cash Equivalents and Short-Term Investments	16.84B	16.84B	8.98B	16.00B	7.59B	16.84B
Total Debt	195.10B	195.10B	198.72B	187.62B	180.12B	178.62B
Total Liabilities	216.83B	216.83B	222.19B	209.85B	201.65B	199.55B
Stockholders Equity	201.68B	201.68B	201.46B	200.54B	200.29B	200.68B
Cash Flow
Free Cash Flow	13.96B	13.96B	-6.01B	11.01B	-1.25B	-16.45B
Operating Cash Flow	24.08B	24.08B	24.81B	27.67B	27.23B	20.44B
Investing Cash Flow	-11.09B	-11.09B	-30.56B	-16.19B	-27.57B	-35.22B
Financing Cash Flow	-15.21B	-15.21B	78.84M	-2.69B	-8.84B	18.28B

Hulic Reit, Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price133800.00

Price Trends

50DMA142508.00Negative

100DMA147128.39Negative

200DMA153864.74Negative

Market Momentum

MACD-2323.62Positive

RSI30.57Neutral

STOCH6.74Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3295, the sentiment is Negative. The current price of 133800.00 is below the 20-day moving average (MA) of 137415.00, below the 50-day MA of 142508.00, and below the 200-day MA of 153864.74, indicating a bearish trend. The MACD of -2323.62 indicates Positive momentum. The RSI at 30.57 is Neutral, neither overbought nor oversold. The STOCH value of 6.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3295.

Hulic Reit, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:3295 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8975	79Outperform	JPY 130.93B	17.07	―	11.22%	-17.50%	-15.10%
JP:8954	68Neutral	JPY 479.69B	16.28	―	5.65%	35.42%	24.73%
JP:8951	65Neutral	JPY 1.05T	23.52	5.88%	4.19%	-21.35%	-7.99%
JP:8952	61Neutral	JPY 780.80B	20.89	6.70%	4.77%	-1.30%	-3.43%
JP:3295	58Neutral	JPY 192.24B	16.16	―	6.05%	4.56%	-1.09%
JP:8976	57Neutral	JPY 270.42B	17.42	―	5.46%	23.62%	10.38%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:3295 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3295	Hulic Reit, Inc.	133800.00	-32991.33	-19.78%
JP:8952	Japan Real Estate Investment Corp	107400.00	-16447.83	-13.28%
JP:8951	Nippon Building Fund	119000.00	-22197.31	-15.72%
JP:8954	ORIX JREIT Inc.	87400.00	-15233.23	-14.84%
JP:8975	Ichigo Office REIT Investment Corporation	86700.00	-123.15	-0.14%
JP:8976	Daiwa Office Investment Corporation	289200.00	-78531.50	-21.36%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 20, 2026

Hulic Reit, Inc. AI Stock Analysis