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Nippon Building
(8951)
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Rating:62Neutral
Price Target:
¥124,232
▼(-2.18% Downside)
Action:Reiterated
Date:08/06/26
The score is primarily supported by strong profitability but held back by volatile revenue and, most importantly, erratic/often negative free cash flow that reduces financial flexibility. Technicals are mixed with the stock below key moving averages (20DMA, 200DMA) despite a positive MACD and oversold Stoch signal. Valuation is balanced by a solid dividend yield but a relatively high P/E.
Positive Factors
Strong profitability
Sustained high net margins indicate that the office portfolio has historically converted rental and property income into earnings efficiently. Although margins softened in 2025, profitability remains substantial, supporting recurring distributions and providing a durable base for ongoing asset management.
Negative Factors
Revenue volatility
Uneven and declining revenue makes future earnings less predictable even though profitability remains strong. For an office-focused REIT, this volatility can weaken confidence in recurring property income and may constrain the trust’s ability to grow distributions or reinvest consistently over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability
Sustained high net margins indicate that the office portfolio has historically converted rental and property income into earnings efficiently. Although margins softened in 2025, profitability remains substantial, supporting recurring distributions and providing a durable base for ongoing asset management.
Read all positive factors
Nippon Building (8951) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.06T
Dividend Yield4.09%
Average Volume (3M)34.05K
Price to Earnings (P/E)23.9
Beta (1Y)0.11
Revenue Growth-21.35%
EPS Growth-7.99%
CountryJP
Employees3,356
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)4999.57
Shares Outstanding8,815,000
10 Day Avg. Volume34,760
30 Day Avg. Volume34,048
Financial Highlights & Ratios
PEG Ratio-3.77
Price to Book (P/B)1.68
Price to Sales (P/S)9.58
P/FCF Ratio-67.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥142,325.00Price Target Upside12.07% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)5,078.33
Revenue Forecast (FY)¥92.21B
Nippon Building Business Overview & Revenue Model
Company Description
Nippon Building Fund Inc., or NBF, operates as Japan's leading real estate investment trust (J-REIT). It strategically invests in office buildings, with a primary concentration in Tokyo, alongside a broader national presence. The company's main ob...
How the Company Makes Money
Nippon Building Fund makes money primarily from real estate leasing income generated by the properties it owns. The main revenue stream is rental revenue (base rent and, where applicable, variable components) paid by tenants under lease contracts;...
Nippon Building Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 107.21B | 127.88B | 101.96B | 97.46B | 94.12B | 101.08B |
| Gross Profit | 32.52B | 31.42B | 65.36B | 62.00B | 58.57B | 67.53B |
| EBITDA | 63.75B | 61.79B | 64.93B | 61.26B | 57.89B | 67.92B |
| Net Income | 43.65B | 42.85B | 46.21B | 42.86B | 39.62B | 47.17B |
Balance Sheet | ||||||
| Total Assets | 1.48T | 1.45T | 1.38T | 1.39T | 1.37T | 1.31T |
| Cash, Cash Equivalents and Short-Term Investments | 16.06B | 28.51B | 21.35B | 14.18B | 11.48B | 21.75B |
| Total Debt | 629.00B | 628.00B | 586.30B | 592.50B | 577.50B | 550.50B |
| Total Liabilities | 720.63B | 719.65B | 672.51B | 679.37B | 662.22B | 634.56B |
| Stockholders Equity | 755.10B | 729.18B | 710.44B | 706.25B | 706.52B | 672.29B |
Cash Flow | ||||||
| Free Cash Flow | -34.71B | -18.05B | 55.47B | 26.33B | -25.29B | -176.28B |
| Operating Cash Flow | 66.22B | 87.62B | 109.18B | 83.84B | 82.85B | 151.46B |
| Investing Cash Flow | -96.40B | -102.30B | -54.43B | -56.89B | -108.23B | -312.69B |
| Financing Cash Flow | 33.32B | 17.56B | -48.01B | -24.12B | 15.45B | 53.49B |
Nippon Building Technical Analysis
Neutral
127000.00
Price Trends
123194.00
Negative
124937.41
Negative
130546.07
Negative
Market Momentum
-694.07
Negative
50.17
Neutral
73.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8951, the sentiment is Neutral. The current price of 127000 is above the 20-day moving average (MA) of 118770.00, above the 50-day MA of 123194.00, and below the 200-day MA of 130546.07, indicating a neutral trend. The MACD of -694.07 indicates Negative momentum. The RSI at 50.17 is Neutral, neither overbought nor oversold. The STOCH value of 73.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8951.
Nippon Building Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥131.99B | 17.28 | ― | 10.94% | -17.50% | -15.10% | |
71 Outperform | ¥775.70B | 20.65 | 6.70% | 4.79% | -1.30% | -3.43% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | ¥489.62B | 18.10 | ― | 5.61% | 5.25% | 19.44% | |
62 Neutral | ¥1.06T | 23.92 | 5.88% | 4.05% | -21.35% | -7.99% | |
62 Neutral | ¥200.02B | 16.76 | ― | 5.77% | 4.56% | -1.09% | |
62 Neutral | ¥271.26B | 17.59 | ― | 5.03% | 23.62% | 10.38% |
* Real Estate Sector Average
JP:8951
Nippon Building
120,500.00
-15,974.67
-11.71%
JP:8952
Japan Real Estate Investment
105,800.00
-16,995.03
-13.84%
JP:3295
Hulic Reit, Inc.
137,700.00
-24,807.31
-15.27%
JP:8954
ORIX JREIT Inc.
88,600.00
-9,931.72
-10.08%
JP:8975
Ichigo Office REIT Investment Corporation
87,300.00
-5,065.77
-5.48%
JP:8976
Daiwa Office Investment Corporation
291,200.00
-67,445.80
-18.81%
Nippon Building Corporate Events
Nippon Building Fund Restructures Office Management Through Mitsui Fudosan Merger
Oct 5, 2026
Nippon Building Fund Inc. has announced that its subcontractor for office management services, NBF Office Management Co., Ltd., will be merged into Mitsui Fudosan Building Management Co., Ltd. through an absorption-type merger, effective January 1...
Nippon Building Fund boosts stake in Tokyo office asset Higashi Gotanda Square
Sep 30, 2026
Nippon Building Fund has agreed to acquire additional ownership interests in the Higashi Gotanda Square office property in Tokyo for ¥2.4 billion, funded with its own capital and settled in a lump-sum payment. The transaction raises NBF’...
Nippon Building Fund Refinances ¥5.4 Billion Loan With New MUFG Facility
Sep 24, 2026
Nippon Building Fund Inc. has arranged a new long-term unsecured, unguaranteed bank loan of ¥5.4 billion from MUFG Bank at a floating interest rate tied to three-month Japanese yen TIBOR. The borrowing, to be repaid in a lump sum in September...
Nippon Building Fund Executes ¥2.7 Billion Long-Term Refinancing with MUFG Bank
Sep 11, 2026
Nippon Building Fund Inc., a prominent Japanese real estate investment trust specializing in office and commercial properties, continues to employ a diversified debt structure comprising short-term and long-term bank borrowings alongside bonds. Ma...
Nippon Building Fund Secures ¥5 Billion Loan for Refinancing
Sep 10, 2026
Nippon Building Fund Inc. has arranged a ¥5 billion long-term, unsecured loan from Shinkin Central Bank at a floating interest rate tied to three-month Japanese yen TIBOR, with a final maturity in September 2036. The proceeds will be used to ...
Nippon Building Fund Refinances ¥3 Billion Debt With New Floating-Rate Loan
Sep 9, 2026
Nippon Building Fund Inc. has arranged a new long-term, unsecured and unguaranteed borrowing of ¥3 billion from Sumitomo Mitsui Trust Bank, carrying a floating interest rate based on three-month Japanese yen TIBOR plus 0.25%. The loan, to be ...
Nippon Building Fund Secures ¥6 Billion Short-Term Loan to Support 50th Period Distribution
Sep 7, 2026
Nippon Building Fund Inc. has arranged ¥6 billion in short-term borrowings from Sumitomo Mitsui Trust Bank and Resona Bank at an interest rate of 1.316%, to be drawn on September 9 and repaid in a lump sum on October 9, 2026. The proceeds wil...
Nippon Building Fund Highlights 1H 2026 Results and Portfolio Shift
Aug 17, 2026
Nippon Building Fund Inc. released its investor presentation for the first half of 2026, outlining financial highlights, investment results and outlook, growth prospects for earnings and distributions per unit, and sustainability initiatives. The ...
Nippon Building Fund Highlights 1H 2026 Results and Portfolio Metrics
Aug 17, 2026
Nippon Building Fund, Inc. reported its financial highlights and results for the first half of 2026, covering the 50th fiscal period, including key indicators such as total rentable area, leased area, and occupancy rate. The company noted that the...
Nippon Building Fund Delivers Strong First-Half 2026 Earnings and Higher Distributions
Aug 17, 2026
Nippon Building Fund reported strong results for the first half of 2026, with total operating revenues rising 10.9% year on year to ¥53.86 billion and operating income climbing 25.8% to ¥26.69 billion. Ordinary income and net income both...
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.