One REIT (TSE:3290) - Share price, News & Analysis

Q: What is the Fair Price of 3290 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

3290 (¥275300) is trading below our estimate of [[fair value]] (¥1147775.36)

3290 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	5/6
Financial Health	4/6
Dividends	4/6

3290 Stock Overview

One REIT, Inc. operates as a real estate investment trust.

Rewards

Trading at 76% below our estimate of its fair value

Earnings grew by 55.8% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Shareholders have been diluted in the past year

One REIT Competitors

MIRAI

TSE:3476

JP¥89.1b

Global One Real Estate Investment

TSE:8958

JP¥105.0b

SANKEI REAL ESTATE

TSE:2972

JP¥46.4b

Ichigo Office REIT Investment

TSE:8975

JP¥129.5b

Price History & Performance

Summary of all time highs, changes and price drops for One REIT
Historical stock prices
Current Share Price	JP¥275,300.00
52 Week High	JP¥343,000.00
52 Week Low	JP¥257,600.00
Beta	0.69
1 Month Change	2.65%
3 Month Change	-1.15%
1 Year Change	-18.43%
3 Year Change	-11.19%
5 Year Change	27.93%
Change since IPO	26.58%

Shareholder Returns

	3290	JP REITs	JP Market
7D	0.3%	-0.5%	1.2%
1Y	-18.4%	-6.0%	-0.2%

Return vs Industry: 3290 underperformed the JP REITs industry which returned -6% over the past year.

Return vs Market: 3290 underperformed the JP Market which returned -0.2% over the past year.

Price Volatility

Is 3290's price volatile compared to industry and market?
3290 volatility
3290 Average Weekly Movement	2.1%
REITs Industry Average Movement	2.4%
Market Average Movement	3.8%
10% most volatile stocks in JP Market	7.8%
10% least volatile stocks in JP Market	2.0%

Stable Share Price: 3290 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 3290's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2005	n/a	Hirofumi Nabeyama	https://www.one-reit.com

One REIT, Inc. operates as a real estate investment trust. It aims to achieve stable earnings and sustainable growth of its investment assets to maximize investment value from mid- to long-term perspectives, by investing in specific assets, including office buildings and commercial facilities in Tokyo metropolitan area, government-decreed cities and other major cities. The company was founded on June 25, 2013 and is headquartered in Tokyo, Japan.

One REIT Fundamentals Summary

How do One REIT's earnings and revenue compare to its market cap?
3290 fundamental statistics
Market Cap	JP¥73.91b
Earnings (TTM)	JP¥4.58b
Revenue (TTM)	JP¥9.27b

16.1x

P/E Ratio

8.0x

P/S Ratio

Is 3290 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
3290 income statement (TTM)
Revenue	JP¥9.27b
Cost of Revenue	JP¥3.95b
Gross Profit	JP¥5.33b
Other Expenses	JP¥748.36m
Earnings	JP¥4.58b

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	17.06k
Gross Margin	57.45%
Net Profit Margin	49.38%
Debt/Equity Ratio	100.4%

How did 3290 perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

27%

Payout Ratio

Does 3290 pay a reliable dividends?

See 3290 dividend history and benchmarks

When do you need to buy 3290 by to receive an upcoming dividend?
One REIT dividend dates
Ex Dividend Date	Aug 30 2022
Dividend Pay Date	Nov 21 2022
Days until Ex dividend	14 days
Days until Dividend pay date	97 days

Does 3290 pay a reliable dividends?

See 3290 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 3290 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3290?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 3290. This is calculated by dividing 3290's market cap by their current preferred multiple.
What is 3290's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JP¥73.91b

3290 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	14.3x
Enterprise Value/EBITDA	21.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 3290's PE Ratio compare to its peers?

3290 PE Ratio vs Peers

The above table shows the PE ratio for 3290 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	19.2x
3476 MIRAI	19.9x	n/a	JP¥89.1b
8958 Global One Real Estate Investment	22.8x	n/a	JP¥105.0b
2972 SANKEI REAL ESTATE	16.7x	n/a	JP¥46.4b
8975 Ichigo Office REIT Investment	17.6x	n/a	JP¥129.5b
3290 One REIT	16.1x	n/a	JP¥73.9b

Price-To-Earnings vs Peers: 3290 is good value based on its Price-To-Earnings Ratio (16.1x) compared to the peer average (19.2x).

Price to Earnings Ratio vs Industry

How does 3290's PE Ratio compare vs other companies in the JP REITs Industry?

Price-To-Earnings vs Industry: 3290 is good value based on its Price-To-Earnings Ratio (16.1x) compared to the JP REITs industry average (26.5x)

Price to Earnings Ratio vs Fair Ratio

What is 3290's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3290 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 3290's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 3290 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3290 (¥275300) is trading below our estimate of fair value (¥1147775.36)

Significantly Below Fair Value: 3290 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is One REIT forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

6.4%

Forecasted Real Estate industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as One REIT has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Examine whether One REIT is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has One REIT performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

11.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3290 has high quality earnings.

Growing Profit Margin: 3290's current net profit margins (49.4%) are higher than last year (35.7%).

Past Earnings Growth Analysis

Earnings Trend: 3290's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: 3290's earnings growth over the past year (55.8%) exceeds its 5-year average (11.7% per year).

Earnings vs Industry: 3290 earnings growth over the past year (55.8%) exceeded the REITs industry 5.4%.

Return on Equity

High ROE: 3290's Return on Equity (7.5%) is considered low.

Discover strong past performing companies

Financial Health

How is One REIT's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 3290's short term assets (¥10.8B) exceed its short term liabilities (¥10.6B).

Long Term Liabilities: 3290's short term assets (¥10.8B) do not cover its long term liabilities (¥58.7B).

Debt to Equity History and Analysis

Debt Level: 3290's net debt to equity ratio (95.1%) is considered high.

Reducing Debt: 3290's debt to equity ratio has reduced from 120.1% to 100.4% over the past 5 years.

Debt Coverage: 3290's debt is well covered by operating cash flow (22%).

Interest Coverage: 3290's interest payments on its debt are well covered by EBIT (14.3x coverage).

Balance Sheet

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Dividend

What is One REIT current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

4.98%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 3290's dividend (4.98%) is higher than the bottom 25% of dividend payers in the JP market (1.63%).

High Dividend: 3290's dividend (4.98%) is in the top 25% of dividend payers in the JP market (3.59%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 3290 has been paying a dividend for less than 10 years.

Growing Dividend: 3290's dividend payments have increased, but the company has only paid a dividend for 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (26.8%), 3290's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (27.2%), 3290's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

CEO

Hirofumi Nabeyama

1.58yrs

Tenure

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.9%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/15 00:00
End of Day Share Price	2022/08/15 00:00
Earnings	2022/02/28
Annual Earnings	2022/02/28