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NIPPON REIT Investment Corp
(3296)
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Rating:61Neutral
Price Target:
¥78,598.00
▼(-20.45% Downside)
Action:Reiterated
Date:10/23/26
The score is driven primarily by solid financial performance (strong margins and improved operating cash flow), supported by attractive valuation (low P/E and high dividend yield). These positives are tempered by weak technicals (price below key moving averages, negative MACD) and a key fundamental risk: the sharp latest-year revenue contraction alongside meaningful leverage.
Positive Factors
Strong profitability
Consistently high margins indicate that the REIT retains a substantial share of property income after operating costs. This profitability provides resilience when rental conditions fluctuate, supports recurring distributions, and gives management more capacity to absorb expenses while maintaining the portfolio.
Negative Factors
Sharp revenue contraction
A revenue contraction of this magnitude creates a material durability concern even though margins and net income held up comparatively well. Lower top-line income can reduce distribution flexibility and makes future performance more dependent on maintaining unusually strong profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability
Consistently high margins indicate that the REIT retains a substantial share of property income after operating costs. This profitability provides resilience when rental conditions fluctuate, supports recurring distributions, and gives management more capacity to absorb expenses while maintaining the portfolio.
Read all positive factors
NIPPON REIT Investment Corp (3296) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥137.27B
Dividend Yield6.6%
Average Volume (3M)4.29K
Price to Earnings (P/E)10.4
Beta (1Y)0.15
Revenue Growth41.54%
EPS Growth6.84%
CountryJP
Employees2,628
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)7197.39
Shares Outstanding1,830,330
10 Day Avg. Volume3,596
30 Day Avg. Volume4,292
Financial Highlights & Ratios
PEG Ratio0.68
Price to Book (P/B)1.06
Price to Sales (P/S)6.53
P/FCF Ratio19.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5,076.9
Revenue Forecast (FY)¥19.82B
NIPPON REIT Investment Corp Business Overview & Revenue Model
Company Description
Nippon REIT Investment Corporation aims to deliver consistent income growth and stability by leveraging its broad real estate holdings as a diversified investment trust. The company is dedicated to enhancing unitholder value through strategic and ...
How the Company Makes Money
NIPPON REIT Investment Corp makes money primarily by earning rental-related income from the real estate properties it owns. Key revenue and earnings drivers generally include: (1) Property leasing income: The core cash inflow is rent paid by tenan...
NIPPON REIT Investment Corp Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
58
Neutral
Cash Flow
67
Positive
| Breakdown | Dec 2026 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.67B | 19.83B | 17.69B | 20.28B | 19.45B |
| Gross Profit | 16.23B | 12.98B | 10.87B | 9.43B | 13.31B |
| EBITDA | 15.91B | 12.61B | 10.63B | 10.90B | 13.00B |
| Net Income | 12.73B | 9.66B | 7.75B | 7.74B | 10.19B |
Balance Sheet | |||||
| Total Assets | 293.77B | 274.66B | 275.46B | 275.41B | 276.58B |
| Cash, Cash Equivalents and Short-Term Investments | 10.88B | 15.29B | 10.25B | 20.15B | 9.80B |
| Total Debt | 141.25B | 132.62B | 132.62B | 132.62B | 132.62B |
| Total Liabilities | 153.80B | 145.18B | 144.86B | 145.02B | 144.71B |
| Stockholders Equity | 139.97B | 129.48B | 130.61B | 130.39B | 131.87B |
Cash Flow | |||||
| Free Cash Flow | 7.65B | 9.76B | 3.80B | 11.99B | 10.52B |
| Operating Cash Flow | 48.54B | 29.91B | 18.10B | 12.96B | 19.28B |
| Investing Cash Flow | -41.02B | -20.59B | -14.13B | -1.62B | -8.88B |
| Financing Cash Flow | -5.74B | -11.10B | -6.24B | -7.73B | -10.11B |
NIPPON REIT Investment Corp Technical Analysis
Negative
98800.00
Price Trends
79586.00
Negative
81264.68
Negative
85852.22
Negative
Market Momentum
-1523.98
Negative
31.34
Neutral
25.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3296, the sentiment is Negative. The current price of 98800 is above the 20-day moving average (MA) of 76420.00, above the 50-day MA of 79586.00, and above the 200-day MA of 85852.22, indicating a bearish trend. The MACD of -1523.98 indicates Negative momentum. The RSI at 31.34 is Neutral, neither overbought nor oversold. The STOCH value of 25.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3296.
NIPPON REIT Investment Corp Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥369.61B | 19.18 | 6.67% | 4.66% | -13.45% | -0.93% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | ¥565.89B | 16.64 | 5.37% | 5.90% | 3.41% | 1.19% | |
61 Neutral | ¥137.27B | 10.42 | ― | 6.60% | 41.54% | 6.84% | |
61 Neutral | ¥221.40B | 18.61 | ― | 5.26% | -0.97% | -1.38% | |
61 Neutral | ¥496.21B | 20.43 | ― | 5.84% | -8.82% | -12.80% | |
60 Neutral | ¥487.04B | 17.74 | 7.25% | 5.74% | -1.59% | 7.45% |
* Real Estate Sector Average
JP:3296
NIPPON REIT Investment Corp
75,000.00
-19,298.87
-20.47%
JP:8955
Japan Prime Realty Investment
91,300.00
-9,717.94
-9.62%
JP:8960
United Urban Investment
152,200.00
-26,955.72
-15.05%
JP:8972
Kenedix Office Investment Corporation
140,100.00
-26,374.78
-15.84%
JP:3234
Mori Hills Reit Investment Corporation
117,800.00
-23,784.80
-16.80%
JP:8984
Daiwa House REIT Investment Corporation
109,300.00
-16,869.75
-13.37%
NIPPON REIT Investment Corp Corporate Events
NIPPON REIT Corrects Portfolio Area Data in June 2026 Results
Sep 29, 2026
NIPPON REIT Investment Corporation has issued a correction to its previously announced summary of financial results for the fiscal period ended June 30, 2026. The revisions relate to minor numerical adjustments in the reported total leased area of...
NIPPON REIT Posts Lower Earnings but Lifts Distribution, Signals Softer Outlook
Aug 20, 2026
NIPPON REIT Investment Corporation reported a decline in operating revenues and profit for the fiscal period ended June 30, 2026, with operating revenues down 12.6% and net income falling 23.5% from the previous period, while net income per unit d...
NIPPON REIT Secures New ¥3 Billion Commitment Line to Bolster Funding Flexibility
Aug 20, 2026
NIPPON REIT Investment Corporation has entered into a new commitment line agreement with SBI Shinsei Bank, securing up to ¥3 billion in unsecured, unguaranteed borrowing capacity from August 31, 2026, to August 31, 2027. The facility is inten...
NIPPON REIT Secures ¥2.55 Billion in New Loans to Fund Office Asset Acquisition
Aug 20, 2026
NIPPON REIT Investment Corporation has arranged new long-term borrowings totaling 2.55 billion yen from several Japanese banks, including Mizuho Bank, SBI Shinsei Bank, Resona Bank and Aozora Bank, on unsecured, floating-rate terms. The transactio...
NIPPON REIT Acquires Tokyo Office Trust Interests to Bolster Portfolio Growth
Aug 20, 2026
NIPPON REIT Investment Corporation has agreed to acquire trust beneficiary interests in the WORK VILLA MYJ kanda office property in Chiyoda-ku, Tokyo, from Sumitomo Corporation and another domestic company for ¥8.4 billion, with closing sched...
NIPPON REIT Moves to Fix Borrowing Costs With Interest Rate Swaps
Aug 18, 2026
NIPPON REIT Investment Corporation has entered into interest rate swap agreements tied to recently arranged borrowings in order to fix the cost of a portion of its debt. By swapping floating JBA 1-month Japanese yen TIBOR rates for fixed rates wit...
NIPPON REIT Fixes Interest Rate on ¥1 Billion Loan to 2030
Aug 18, 2026
NIPPON REIT Investment Corporation has set the interest rate on a previously announced borrowing of ¥1 billion from Sumitomo Mitsui Trust Bank, at a fixed rate of 2.9364% from August 20, 2026. The loan is unsecured and unguaranteed, with lump...
NIPPON REIT Acquires Hakata Property to Strengthen Inflation-Resilient Portfolio
Jul 28, 2026
NIPPON REIT Investment Corporation has agreed to acquire trust beneficiary interests in the 9h nine hours Hakata station property in Fukuoka for ¥2.06 billion, with closing scheduled for July 31, 2026. The seller is an affiliated party, and t...
NIPPON REIT Secures New Loans and Refinances ¥10.8 Billion Debt to Fund Property Acquisition
Jul 28, 2026
NIPPON REIT Investment Corporation has arranged new borrowings totaling 1,335 million yen from Mizuho Bank and Sumitomo Mitsui Banking Corporation to help finance the 2,060 million yen acquisition of trust beneficiary interests in the nine hours H...
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.