NTT UD REIT Investment Corporation (8956) AI Stock Analysis

• Market Cap: ¥195.63B
• Dividend Yield: 4.38%
• Average Volume (3M): 3.92K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.24
• Revenue Growth: -25.89%
• EPS Growth: -19.24%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 70
• Industry: REIT - Diversified
• EPS (TTM): 2939.00
• Shares Outstanding: 1,482,035
• 10 Day Avg. Volume: 3,182
• 30 Day Avg. Volume: 3,918
• PEG Ratio: -2.26
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.03
• 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

NTT UD REIT Investment Corporation shows a stable financial foundation with strong technical indicators. However, declining revenue, increased leverage, and negative free cash flow are significant concerns. The stock's high P/E ratio suggests potential overvaluation, although the dividend yield provides a cushion. The overall score reflects a cautious optimism, balancing the company's strengths with its underlying risks.

NTT UD REIT Investment Corporation Business Overview & Revenue Model

Company Description

NTT UD REIT Investment Corporation (8956) is a Japanese real estate investment trust (REIT) focused on generating stable income through investments in a diversified portfolio of real estate assets. The company's investment strategy primarily targets office buildings, commercial facilities, and other types of properties primarily located in urban areas of Japan. By leveraging the expertise of its sponsors, including Nippon Telegraph and Telephone Corporation (NTT) and Urban Development Corporation, the REIT aims to deliver sustainable growth and returns to its investors.

How the Company Makes Money

NTT UD REIT Investment Corporation generates revenue primarily through rental income from its portfolio of real estate properties. The REIT invests in a variety of property types, including office spaces, retail facilities, and urban development projects, to ensure a diversified and resilient income stream. Rental agreements with tenants provide predictable cash flows, which are then distributed to unit holders in the form of dividends. Additionally, the REIT may engage in strategic acquisitions and property sales to enhance its portfolio value and capitalize on market opportunities. The backing of strong sponsors such as NTT provides access to high-quality assets and operational support, contributing to the company's earning potential.

NTT UD REIT Investment Corporation Financial Statement Overview

Summary

NTT UD REIT Investment Corporation presents a mixed financial picture. While the company maintains a stable gross profit margin and strong operating cash flow, declining revenue and profitability, along with increased leverage, present risks. The negative free cash flow suggests potential liquidity issues that need addressing. Overall, the company needs to focus on revenue growth and managing leverage to improve its financial health.

Income Statement

The company shows a stable gross profit margin of around 47% in the latest year, indicating efficient cost management. However, the net profit margin has decreased from 41% in the previous year to 36% in the current year, suggesting a decline in profitability. Revenue has shrunk by 3% from the previous year, which is concerning in terms of growth trajectory.

Balance Sheet

The debt-to-equity ratio has increased to 0.95, reflecting a higher leverage level, which may pose a risk if not managed well. However, the equity ratio stands at a solid 48%, indicating a balanced capital structure. ROE has slightly decreased to 5.77%, showing a mild decline in shareholder returns.

Cash Flow

The free cash flow has turned negative, signifying potential challenges in sustaining operations without external financing. The operating cash flow to net income ratio is healthy at 1.43, indicating strong cash generation relative to accounting profits. There is a significant drop in free cash flow compared to the previous year, highlighting potential liquidity concerns.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
23.78B	24.53B	23.21B	22.21B	18.72B
	Gross Profit
11.21B	12.45B	11.94B	12.04B	9.64B
	EBIT
9.76B	10.93B	10.47B	10.62B	8.42B
	EBITDA
13.14B	14.08B	13.69B	13.69B	11.34B
	Net Income Common Stockholders
8.58B	10.05B	9.59B	9.77B	7.63B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.96B	6.61B	6.76B	7.06B	3.78B
	Total Assets
311.66B	274.96B	277.45B	266.71B	249.24B
	Total Debt
141.14B	122.15B	103.92B	126.50B	112.80B
	Net Debt
135.17B	107.59B	97.16B	119.44B	109.02B
	Total Liabilities
163.03B	135.67B	139.79B	141.12B	124.27B
	Stockholders Equity
148.62B	139.29B	137.66B	125.58B	124.96B
Cash Flow		Free Cash Flow
-27.19B	12.22B	-4.20B	-1.06B	5.29B
	Operating Cash Flow
12.23B	20.78B	26.07B	19.86B	12.27B
	Investing Cash Flow
-39.23B	-9.15B	-28.99B	-20.48B	-6.63B
	Financing Cash Flow
27.54B	-12.21B	1.91B	4.52B	-4.90B

NTT UD REIT Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 131500.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8956, the sentiment is Positive. The current price of 131500 is below the 20-day moving average (MA) of 132167.11, above the 50-day MA of 130610.78, and above the 200-day MA of 117608.36, indicating a bullish trend. The MACD of 738.51 indicates Positive momentum. The RSI at 51.69 is Neutral, neither overbought nor oversold. The STOCH value of 21.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8956.

NTT UD REIT Investment Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8951	76 Outperform	¥1.13T	24.47	6.37%	3.71%	21.60%	18.44%
8960	75 Outperform	¥473.77B	19.79	6.54%	4.95%	51.12%	17.94%
8956	70 Outperform	¥195.63B	22.81		4.38%	-25.89%	-19.24%
8952	70 Outperform	$810.32B	21.49	6.87%	4.21%	6.93%	5.52%
8953	70 Neutral	¥701.30B	19.44	5.50%	5.05%	-8.21%	9.33%
8963	64 Neutral	¥467.96B	15.71	8.51%	6.46%	29.48%	25.62%
Sector *	60 Neutral	$2.77B	10.47	0.42%	8531.49%	6.23%	-16.09%

NTT UD REIT Investment Corporation Corporate Events

NTT UD REIT Enhances Sponsor Commitment with Additional Unit Acquisition

NTT UD REIT Investment Corporation announced the completion of an additional acquisition of 34,000 investment units by its sponsor, NTT Urban Development Corporation. This acquisition aims to enhance the sponsor’s commitment and support for NUD, potentially leading to sustainable growth and improved unitholder value.

NTT UD REIT Secures Debt Finance for Loan Repayment

NTT UD REIT Investment Corporation has announced its decision to secure a debt finance arrangement to repay a maturing loan of 2,000 million yen. This financial move involves borrowing a short-term loan from Sumitomo Mitsui Trust Bank and Mizuho Bank, ensuring stability in its financial operations without altering its overall interest-bearing liabilities.

NTT UD REIT Completes Acquisition and Cancellation of Investment Units

NTT UD REIT Investment Corporation has completed the acquisition and subsequent cancellation of its own investment units, as resolved in a Board of Directors meeting. The acquisition involved purchasing 13,800 units at a total price of 1,656,228,500 yen, with the cancellation scheduled for April 30, 2025. This move is expected to have minimal impact on the company’s performance forecasts for the fiscal periods ending in April and October 2025.

NTT UD REIT Reports on Investment Unit Acquisition Status

NTT UD REIT Investment Corporation announced that no investment units were acquired in March 2025, although a total of 12,756 units were acquired from December 2024 to March 2025 for approximately 1.52 billion yen. The acquisition was conducted through market purchases on the Tokyo Stock Exchange, following a resolution to potentially acquire up to 43,000 units by April 2025. This acquisition strategy reflects the company’s efforts to manage its investment portfolio actively and could impact its market positioning and stakeholder interests.

NTT UD REIT Announces Interest Rates for New Term Loan

NTT UD REIT Investment Corporation has announced the interest rates for a term loan totaling 1,500 million yen, set to commence on March 31, 2025. The loans, provided by Sumitomo Mitsui Trust Bank, Limited, have fixed interest rates of 1.44313% and 1.47875% for terms of 3.5 and 4 years, respectively, potentially impacting the company’s financial strategy and stakeholder interests.

Leadership Change Announced at NTT Urban Development Asset Management

NTT Urban Development Asset Management Corporation has announced a leadership change with Yasutake Horinouchi set to become the new President & CEO on April 1, 2025, succeeding Yutaka Torigoe. This change is expected to bring new strategic directions to the company, potentially impacting its operations and market positioning within the real estate investment sector.

NTT UD REIT Announces New Loan Interest Rate

NTT UD REIT Investment Corporation has announced the interest rate for a term loan of 1,500 million yen, set at a fixed rate of 1.82125%. This financial move, involving Sumitomo Mitsui Banking Corporation as the lender, is scheduled for March 27, 2025, with a maturity date of March 31, 2033, and is likely to impact the company’s financial strategy and stakeholder interests.

NTT UD REIT Secures New Debt Finance for Loan Repayment

NTT UD REIT Investment Corporation announced a new debt finance plan to borrow 6,700 million yen through six term loans to repay existing loans maturing in March 2025. This strategic financial move is aimed at maintaining the company’s financial stability and ensuring the continuity of its operations without altering its total interest-bearing liabilities, which remain unchanged at 148,950 million yen.

NTT UD REIT’s Tender Offer Falls Short, Company Focuses on Growth

NTT UD REIT Investment Corporation announced the unsuccessful completion of a tender offer initiated by CITCO TRUSTEES (UT) LIMITED for its investment units, as the number of units tendered did not meet the minimum requirement. Despite this setback, the company remains committed to pursuing growth and enhancing unitholder value by strengthening its relationship with its sponsor, NTT Urban Development Corporation.

NTT UD REIT Updates on Investment Unit Acquisitions

NTT UD REIT Investment Corporation announced the status of its acquisition of own investment units, revealing that no units were acquired in February 2025, while a total of 12,756 units were acquired from December 2024 to February 2025. The acquisitions were conducted through market purchases on the Tokyo Stock Exchange, with a total acquisition price of approximately 1.52 billion yen. This move is part of a broader strategy approved by the Board of Directors to acquire up to 43,000 units with a budget of 3.5 billion yen by April 2025, potentially impacting the company’s market positioning and shareholder value.

NTT UD REIT Secures Green Loan for Sustainable Finance

NTT UD REIT Investment Corporation announced a decision to secure a 2,000 million yen green loan from Mizuho Bank to refinance an existing loan maturing soon. This move aligns with their commitment to sustainable finance, as evidenced by their high Green 1(F) rating from the Japan Credit Rating Agency for their Green Finance Framework. The loan will be used to repay borrowings for acquiring eligible green assets, reflecting the company’s strategic focus on sustainability without altering its overall debt profile.

NTT UD REIT Takes Neutral Stance on Tender Offer

NTT UD REIT Investment Corporation has announced a neutral stance on the tender offer made by CITCO TRUSTEES (UT) LIMITED as trustee of 3D Endeavor Master Fund II for a significant portion of its investment units. The board has decided to leave the decision to individual unitholders, citing limited information available about the tender offeror’s future intentions and the perceived lack of added value for unitholders. This announcement highlights potential implications for stakeholders, as NTT UD REIT continues to evaluate the appropriateness of the tender offer while ensuring the intrinsic value of its assets is maintained.