Ichigo Office REIT Investment Corporation (8975) AI Stock Analysis

• Market Cap: ¥145.95B
• Dividend Yield: 6.29%
• Average Volume (3M): 3.29K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.21
• Revenue Growth: 44.45%
• EPS Growth: 40.59%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 3327.00
• Shares Outstanding: 1,537,965
• 10 Day Avg. Volume: 4,562
• 30 Day Avg. Volume: 3,285
• PEG Ratio: -0.71
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 6.92
• P/FCF Ratio: -22.69
• 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

• Rating: 65 Neutral
• Price Target: ¥101,097 ▲(6.76% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenues and increased debt levels. Technical analysis indicates a bearish trend, while valuation metrics suggest the stock may be undervalued with a strong dividend yield. The lack of earnings call data and corporate events means these factors did not influence the score.

Ichigo Office REIT Investment Corporation Business Overview & Revenue Model

Company Description

Ichigo Office REIT Investment Corporation (8975) is a real estate investment trust (REIT) based in Japan, primarily focused on investing in office properties. The company aims to generate stable rental income and long-term capital appreciation through a diversified portfolio of strategically located office buildings across major urban areas in Japan. Ichigo Office REIT emphasizes sustainability and operational efficiency in managing its properties, catering to the needs of modern businesses while adhering to environmental standards.

How the Company Makes Money

Ichigo Office REIT generates revenue primarily through rental income from its portfolio of office properties. The company leases space to various tenants, including corporations and service providers, which contributes to its steady cash flow. The rental agreements typically include fixed rental rates and may also involve variable components linked to property performance. Additionally, Ichigo Office REIT may benefit from property appreciation over time, enhancing its overall asset value. The REIT structure allows it to distribute a significant portion of its income to shareholders in the form of dividends, which is a key attraction for investors. The company's focus on high-quality properties in prime locations, along with its commitment to sustainability, positions it favorably in the competitive real estate market, contributing to its earnings stability.

Ichigo Office REIT Investment Corporation Financial Statement Overview

Summary

Ichigo Office REIT's financials indicate challenges in revenue generation with a 14.8% decline in revenue from 2023 to 2024. While operational efficiency is robust with high EBIT and EBITDA margins, the company faces increased debt levels and negative free cash flow, which are cautionary signals. The balance sheet remains stable, but profitability metrics have weakened.

Income Statement

The income statement reveals a mixed performance. Gross profit margin remains healthy at 62.2% for 2024, but the net profit margin has declined to 42.8% from 46.7% the previous year. Revenue decreased by 14.8% from 2023 to 2024, indicating potential challenges in revenue generation. Despite this, the EBIT and EBITDA margins are robust at 52.6% and 60.6%, respectively, showing efficient operational management.

Balance Sheet

The balance sheet reflects a stable financial position with an equity ratio of 43.4% in 2024, suggesting moderate leverage. The debt-to-equity ratio has increased slightly to 1.16 from 1.13, indicating increased reliance on debt financing. Return on equity has decreased to 7.0% from 9.3%, reflecting a decrease in profitability relative to equity.

Cash Flow

The cash flow statement shows a decline in free cash flow from 5.58 billion to -5.28 billion, a concerning trend. The operating cash flow to net income ratio remains strong at 1.65, indicating good cash generation relative to net earnings. However, the free cash flow to net income ratio is negative, reflecting substantial capital expenditures impacting free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.46B	17.29B	20.29B	16.48B	15.57B	16.12B
Gross Profit	11.43B	10.76B	13.94B	10.36B	9.84B	10.32B
EBITDA	12.07B	10.48B	13.03B	10.02B	9.64B	10.15B
Net Income	9.25B	7.40B	9.49B	6.69B	6.32B	6.89B
Balance Sheet
Total Assets	246.08B	244.76B	231.00B	229.97B	227.65B	226.98B
Cash, Cash Equivalents and Short-Term Investments	13.07B	6.86B	6.49B	8.70B	9.42B	12.26B
Total Debt	123.76B	123.76B	114.91B	113.11B	111.25B	109.35B
Total Liabilities	138.71B	138.38B	129.00B	127.96B	125.23B	122.74B
Stockholders Equity	107.36B	106.38B	102.00B	102.01B	102.42B	104.24B
Cash Flow
Free Cash Flow	1.40B	-5.28B	5.58B	4.55B	3.34B	8.03B
Operating Cash Flow	17.82B	12.23B	17.06B	9.80B	8.52B	10.74B
Investing Cash Flow	-17.41B	-17.19B	-11.54B	-5.19B	-5.07B	-2.72B
Financing Cash Flow	4.49B	5.81B	-7.70B	-5.24B	-6.25B	-5.73B

Ichigo Office REIT Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 94700.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8975, the sentiment is Positive. The current price of 94700 is above the 20-day moving average (MA) of 92829.69, above the 50-day MA of 93469.40, and above the 200-day MA of 85662.79, indicating a bullish trend. The MACD of 570.04 indicates Negative momentum. The RSI at 59.88 is Neutral, neither overbought nor oversold. The STOCH value of 18.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8975.

Ichigo Office REIT Investment Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3295	―	¥246.96B	20.68	―	4.66%	-5.47%	14.66%
8987	―	¥194.41B	23.59	―	3.92%	64.38%	0.79%
8958	―	¥141.21B	21.55	―	5.66%	67.12%	0.19%
8975	―	¥145.95B	15.91	―	6.29%	44.45%	40.59%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8976	―	¥345.45B	24.47	―	3.65%	19.18%	-23.37%

Ichigo Office REIT Investment Corporation Corporate Events

Ichigo Office REIT Boosts October 2025 Earnings Forecast After Strategic Asset Sale

Ichigo Office REIT Investment Corporation has revised its earnings forecast for the October 2025 fiscal period upwards, following the planned sale of the Ichigo Toyamaeki Nishi Building. This sale is expected to generate a significant gain, positively impacting the company’s financial performance and increasing dividends per share, reflecting a strong strategic move in its portfolio management.

The most recent analyst rating on (JP:8975) stock is a Hold with a Yen101097.00 price target. To see the full list of analyst forecasts on Ichigo Office REIT Investment Corporation stock, see the JP:8975 Stock Forecast page.

Ichigo Office REIT Sells Toyamaeki Nishi Building to Enhance Portfolio

Ichigo Office REIT Investment Corporation has announced the sale of the Ichigo Toyamaeki Nishi Building to Toa Bussan Corporation for JPY 2,720 million, significantly above its book and appraisal values. This strategic decision is aimed at improving portfolio quality and generating long-term shareholder value, with proceeds earmarked for future strategic investments and value-add capital expenditures.

The most recent analyst rating on (JP:8975) stock is a Hold with a Yen101097.00 price target. To see the full list of analyst forecasts on Ichigo Office REIT Investment Corporation stock, see the JP:8975 Stock Forecast page.

Ichigo Office REIT Expands Portfolio with Strategic Tokyo Acquisition

Ichigo Office REIT Investment Corporation announced the acquisition of the Ichigo Tachikawa Koen Dori Building, a mid-size office asset in Tokyo, for JPY 1,950 million. This acquisition aligns with the company’s strategy to enhance shareholder returns by leveraging value-add capital expenditures and capitalizing on the building’s rent gap. The acquisition is expected to increase the company’s portfolio to 86 office assets, and Ichigo Office plans to enhance tenant satisfaction and earnings growth through operational improvements.

The most recent analyst rating on (JP:8975) stock is a Hold with a Yen101097.00 price target. To see the full list of analyst forecasts on Ichigo Office REIT Investment Corporation stock, see the JP:8975 Stock Forecast page.

Ichigo Office REIT Secures JPY 881 Million Loan for Asset Enhancement

Ichigo Office REIT Investment Corporation has announced the execution of a JPY 881 million loan to fund value-add capital expenditures, which is part of a previously announced JPY 1,000 million commitment term loan. This move is intended to drive asset value and net asset value per share. The loan, with a 7-year term and an interest rate of 3M JPY TIBOR +0.62% per annum, is expected to have minimal impact on the company’s earnings for the October 2025 and April 2026 fiscal periods, and does not alter the company’s financial forecasts or investment risk profile.

The most recent analyst rating on (JP:8975) stock is a Hold with a Yen101097.00 price target. To see the full list of analyst forecasts on Ichigo Office REIT Investment Corporation stock, see the JP:8975 Stock Forecast page.

Ichigo Office REIT Cancels Treasury Shares, Maintains Earnings Forecast

Ichigo Office REIT Investment Corporation announced the cancellation of 16,969 shares acquired in a recent buyback, representing 1.1% of total shares outstanding. This move will not affect the company’s earnings forecasts for the fiscal periods ending in October 2025 and April 2026, indicating a stable financial outlook.

The most recent analyst rating on (JP:8975) stock is a Hold with a Yen101097.00 price target. To see the full list of analyst forecasts on Ichigo Office REIT Investment Corporation stock, see the JP:8975 Stock Forecast page.

Ichigo Office REIT Secures New Loans for Debt Refinancing

Ichigo Office REIT Investment Corporation has announced the acquisition of new loans totaling JPY 2,380 million to refinance an existing loan of the same amount. This strategic financial move is expected to have no material impact on the company’s earnings forecasts for the fiscal periods ending in October 2025 and April 2026, as these have already been accounted for in previous financial disclosures.

The most recent analyst rating on (JP:8975) stock is a Hold with a Yen101097.00 price target. To see the full list of analyst forecasts on Ichigo Office REIT Investment Corporation stock, see the JP:8975 Stock Forecast page.

Ichigo Office REIT Sees Occupancy Rise Amid Strategic Renovations

Ichigo Office REIT Investment Corporation reported a slight increase in overall portfolio occupancy for September 2025, driven by new tenants in Central Tokyo and the Tokyo Metropolitan Area. The company is actively working to fill vacant spaces and enhance tenant satisfaction through renovations, such as those at the Ichigo Hakataeki Higashi 3 Chome Building, which included environmentally conscious upgrades using locally-sourced materials.

The most recent analyst rating on (JP:8975) stock is a Buy with a Yen96778.00 price target. To see the full list of analyst forecasts on Ichigo Office REIT Investment Corporation stock, see the JP:8975 Stock Forecast page.

Ichigo Office REIT Completes Share Buyback to Enhance Shareholder Value

Ichigo Office REIT Investment Corporation has completed a share buyback program, purchasing 16,969 shares for JPY 1,580,083,100 between June and September 2025. The company plans to cancel these shares, reducing the total number of shares outstanding, which is expected to positively impact shareholder value.

The most recent analyst rating on (JP:8975) stock is a Buy with a Yen96778.00 price target. To see the full list of analyst forecasts on Ichigo Office REIT Investment Corporation stock, see the JP:8975 Stock Forecast page.

Ichigo Office REIT Fixes Interest Rate for New Loan

Ichigo Office REIT Investment Corporation has announced a fixed interest rate of 2.01036% for a portion of its new loan, amounting to JPY 1,235 million out of a total JPY 3,114 million. This financial decision is not expected to impact the company’s earnings forecast for the October 2025 fiscal period, as it has already been accounted for in previous financial projections. Additionally, the company states that the risks associated with this loan do not materially affect its investment risk profile.

The most recent analyst rating on (JP:8975) stock is a Buy with a Yen96778.00 price target. To see the full list of analyst forecasts on Ichigo Office REIT Investment Corporation stock, see the JP:8975 Stock Forecast page.

Ichigo Office Secures New Loans to Refinance Existing Debt

Ichigo Office REIT Investment Corporation has announced the decision to secure new loans to repay existing ones amounting to JPY 3,114 million. This financial maneuver is expected to have no material impact on the company’s earnings forecasts or investment risks, maintaining stability in its financial operations.

The most recent analyst rating on (JP:8975) stock is a Buy with a Yen96778.00 price target. To see the full list of analyst forecasts on Ichigo Office REIT Investment Corporation stock, see the JP:8975 Stock Forecast page.

Ichigo Office REIT Boosts Occupancy and Enhances Property Appeal

Ichigo Office REIT Investment Corporation reported an increase in its portfolio occupancy rate from 96.4% in July 2025 to 97.1% in August 2025, driven by new tenants in various regions, including Central Tokyo and major regional cities. The company is actively working on rapid lease-ups of vacant spaces and enhancing tenant satisfaction through value-add construction projects, such as the sustainable design initiative at the Ichigo Hijirizaka Building, which aims to increase the building’s appeal and asset value.

The most recent analyst rating on (JP:8975) stock is a Buy with a Yen96778.00 price target. To see the full list of analyst forecasts on Ichigo Office REIT Investment Corporation stock, see the JP:8975 Stock Forecast page.

Ichigo Office REIT Updates on Share Buyback Progress

Ichigo Office REIT Investment Corporation has provided an update on its share buyback program, which was initially announced in June 2025. As of August 2025, the company has repurchased 15,133 shares for a total of JPY 1.405 billion, with the buyback being conducted through in-market purchases via a securities firm. This strategic move is part of a broader plan to buy back up to 50,000 shares, with a maximum budget of JPY 2.5 billion, by the end of September 2025. The buyback is expected to enhance shareholder value and potentially improve the company’s stock performance.

The most recent analyst rating on (JP:8975) stock is a Buy with a Yen96778.00 price target. To see the full list of analyst forecasts on Ichigo Office REIT Investment Corporation stock, see the JP:8975 Stock Forecast page.

Ichigo Office REIT Sees Occupancy Rise and Boosts Tenant Satisfaction

Ichigo Office REIT Investment Corporation reported a slight increase in occupancy rates for July 2025, driven by new tenants at certain buildings despite some departures. The company is actively working to enhance tenant satisfaction and increase earnings by refurbishing office spaces, which has resulted in significant rent increases and successful leasing activities. These efforts aim to boost the competitiveness of its assets and deliver higher value to shareholders.

Ichigo Office REIT Updates Share Buyback Progress

Ichigo Office REIT Investment Corporation announced an update on its share buyback program, having purchased 9,746 shares in July 2025, amounting to JPY 907,917,300. This is part of a larger buyback plan approved in June 2025, with a maximum of 50,000 shares and JPY 2.5 billion allocated for the buyback, which is set to continue until September 2025. The buyback strategy is expected to enhance shareholder value and reflects the company’s confidence in its financial health.