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Japan Hotel Reit Investment
(8985)
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Rating:68Neutral
Price Target:
¥87,636.00
▲(8.06% Upside)
Action:Reiterated
Date:08/04/26
The score is primarily supported by strong reported profitability and a high dividend yield, but it is held back by persistently negative free cash flow and increasing leverage. Technical signals are moderately constructive but not strong enough to materially lift the overall rating.
Positive Factors
Accelerating revenue growth
Re-acceleration of revenue in 2025 signals stronger underlying demand for the REIT’s hotel portfolio and improved occupancy/room-rate dynamics. Sustained top-line growth strengthens distributable income potential and supports medium-term stability of cash yields over coming quarters.
Negative Factors
Deeply negative free cash flow
Persistently large negative free cash flow erodes financial flexibility and forces reliance on external financing or asset transactions to fund distributions and capital needs. Over the medium term this raises refinancing and liquidity risk, especially if borrowing costs climb.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating revenue growth
Re-acceleration of revenue in 2025 signals stronger underlying demand for the REIT’s hotel portfolio and improved occupancy/room-rate dynamics. Sustained top-line growth strengthens distributable income potential and supports medium-term stability of cash yields over coming quarters.
Read all positive factors
Japan Hotel Reit Investment (8985) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥481.95B
Dividend Yield6.13%
Average Volume (3M)18.82K
Price to Earnings (P/E)15.9
Beta (1Y)0.43
Revenue Growth14.90%
EPS Growth5.75%
CountryJP
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)4924.60
Shares Outstanding5,942,715
10 Day Avg. Volume17,434
30 Day Avg. Volume18,819
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)1.42
Price to Sales (P/S)8.72
P/FCF Ratio-10.74
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 ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5,782.94
Revenue Forecast (FY)¥55.64B
Japan Hotel Reit Investment Business Overview & Revenue Model
Company Description
Japan Hotel REIT Investment Corporation (JHR) is a Japanese real estate investment trust that concentrates solely on hotel properties. Its fundamental approach to asset management is to ensure sustained growth and dependable income streams over th...
How the Company Makes Money
As a J-REIT, Japan Hotel REIT Investment Corporation primarily makes money by earning property-level income from its hotel real estate portfolio and distributing cash flow to unitholders after expenses. Its key earnings drivers typically include: ...
Japan Hotel Reit Investment Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
43
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 48.92B | 47.83B | 33.48B | 26.57B | 14.91B | 13.63B |
| Gross Profit | 23.84B | 24.47B | 21.24B | 15.40B | 6.12B | 4.80B |
| EBITDA | 38.68B | 38.22B | 26.63B | 15.01B | 9.14B | 7.82B |
| Net Income | 26.17B | 27.15B | 18.27B | 13.13B | 2.67B | 1.30B |
Balance Sheet | ||||||
| Total Assets | 688.77B | 576.68B | 498.93B | 429.96B | 396.80B | 394.32B |
| Cash, Cash Equivalents and Short-Term Investments | 26.50B | 41.98B | 22.93B | 17.69B | 29.52B | 22.84B |
| Total Debt | 334.30B | 269.38B | 205.23B | 175.23B | 164.23B | 164.75B |
| Total Liabilities | 346.52B | 283.57B | 215.53B | 184.98B | 173.23B | 172.78B |
| Stockholders Equity | 342.25B | 293.11B | 283.40B | 244.98B | 223.57B | 221.54B |
Cash Flow | ||||||
| Free Cash Flow | -104.07B | -38.82B | -42.43B | -20.79B | 1.46B | 8.19B |
| Operating Cash Flow | 32.97B | 33.75B | 22.76B | 17.78B | 5.33B | 11.68B |
| Investing Cash Flow | -137.38B | -71.87B | -64.74B | -38.55B | -3.64B | -4.70B |
| Financing Cash Flow | 100.45B | 44.07B | 49.49B | 19.77B | -2.17B | -5.54B |
Japan Hotel Reit Investment Technical Analysis
Positive
81100.00
Price Trends
80032.00
Positive
78664.00
Positive
80445.70
Positive
Market Momentum
392.17
Positive
59.07
Neutral
60.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8985, the sentiment is Positive. The current price of 81100 is below the 20-day moving average (MA) of 81290.00, above the 50-day MA of 80032.00, and above the 200-day MA of 80445.70, indicating a bullish trend. The MACD of 392.17 indicates Positive momentum. The RSI at 59.07 is Neutral, neither overbought nor oversold. The STOCH value of 60.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8985.
Japan Hotel Reit Investment Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥141.42B | 18.95 | ― | 4.18% | 44.46% | 34.92% | |
68 Neutral | ¥481.95B | 15.87 | 9.53% | 6.22% | 14.90% | 5.75% | |
67 Neutral | ¥79.52B | 5.85 | ― | ― | 70.29% | 345.92% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
56 Neutral | ¥36.91B | 13.60 | ― | 6.82% | -19.18% | -36.63% | |
53 Neutral | ¥306.36B | 25.12 | ― | 3.56% | 6.93% | 7.40% |
* Real Estate Sector Average
JP:8985
Japan Hotel Reit Investment
82,500.00
1,507.59
1.86%
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1,228.51
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-20,338.84
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Ichigo Hotel REIT Investment Corp.
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Nippon Hotel & Residential Investment Corporation
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JP:3479
TKP Corp
1,894.00
-141.00
-6.93%
Japan Hotel Reit Investment Corporate Events
Japan Hotel REIT Reports Minor Quake Damage, No Injuries at Kumamoto Hotel
Jul 29, 2026
Japan Hotel REIT Investment Corporation reported minor damage at its dormy inn Kumamoto property following the 2026 Kumamoto Earthquake, which registered a maximum seismic intensity of upper 7. The company confirmed that the damage is limited to c...
Japan Hotel REIT posts solid first-half growth despite June weather and China travel drag
Jul 24, 2026
Japan Hotel REIT Investment Corporation reported June 2026 operating metrics for 29 variable-rent hotels, showing room RevPAR up 1.7% year on year as typhoons in Okinawa and ongoing travel restrictions from China constrained growth. Despite these ...
Japan Hotel REIT Denies Talks to Acquire Grand Nikko Tokyo Daiba
Jul 23, 2026
Japan Hotel REIT Investment Corporation has addressed recent Bloomberg coverage suggesting it is in talks to acquire the Grand Nikko Tokyo Daiba hotel, clarifying that the report does not stem from any official disclosure by the company. The firm ...
Japan Hotel Reit Boosts Dividends on Strong Disposal Gains and Portfolio Upgrade
Jul 17, 2026
Japan Hotel Reit Investment is pursuing a strategy of portfolio enhancement by replacing older assets with newer hotel properties, seeking to maintain net operating income while positioning for upside from future rent growth. The REIT emphasizes c...
Japan Hotel REIT Lifts 2026 Earnings and Dividend Outlook on Asset Sale Gains
Jul 17, 2026
Japan Hotel REIT Investment Corporation has left its midterm 2026 operating forecast unchanged, but sharply raised its full-year outlook following a planned asset sale and acquisition. Operating revenue for the year to December 2026 is now project...
Japan Hotel REIT Rotates Portfolio With Okinawa Sale and Osaka Acquisition
Jul 17, 2026
Japan Hotel REIT Investment Corporation will sell The Beach Tower Okinawa, a resort hotel held since 2006, for JPY30.9 billion, booking a substantial gain versus its JPY6.3 billion book value and appraised value. The REIT plans to redeploy proceed...
Japan Hotel REIT Refinances ¥3.25bn Loan with Green Facility
Jun 22, 2026
Japan Hotel REIT Investment Corporation will refinance a ¥3.25 billion term loan maturing on June 30, 2026 with a new green loan, maintaining its overall level of interest-bearing debt while extending maturity to March 31, 2032. The unsecured...
Japan Hotel REIT Posts April RevPAR Gain Despite China Travel Headwinds
May 25, 2026
Japan Hotel REIT Investment Corporation reported that in April 2026, its 29 hotels with variable rent delivered a 4.1% year-on-year increase in RevPAR in the rooms segment, despite headwinds from continued travel restrictions on visitors from Chin...
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.