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8975

Ichigo Office REIT Investment TSE:8975 Stock Report

Last Price

JP¥85.60k

Market Cap

JP¥129.5b

7D

1.3%

1Y

-10.3%

Updated

16 Aug, 2022

Data

Company Financials
8975 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health2/6
Dividends4/6

8975 Stock Overview

Ichigo Office (8975) is a specialized office REIT that focuses on mid-size offices, an asset class that offers both return stability and upside potential.

Ichigo Office REIT Investment Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ichigo Office REIT Investment
Historical stock prices
Current Share PriceJP¥85,600.00
52 Week HighJP¥99,400.00
52 Week LowJP¥75,500.00
Beta0.62
1 Month Change3.13%
3 Month Change0.23%
1 Year Change-10.27%
3 Year Change-18.48%
5 Year Change14.90%
Change since IPO37.75%

Recent News & Updates

Shareholder Returns

8975JP REITsJP Market
7D1.3%0.6%2.3%
1Y-10.3%-4.9%2.5%

Return vs Industry: 8975 underperformed the JP REITs industry which returned -4.9% over the past year.

Return vs Market: 8975 underperformed the JP Market which returned 2.5% over the past year.

Price Volatility

Is 8975's price volatile compared to industry and market?
8975 volatility
8975 Average Weekly Movement2.1%
REITs Industry Average Movement2.4%
Market Average Movement3.8%
10% most volatile stocks in JP Market7.8%
10% least volatile stocks in JP Market2.0%

Stable Share Price: 8975 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 8975's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2005n/aYoshihiro Takatsukahttps://www.ichigo-office.co.jp

Ichigo Office (8975) is a specialized office REIT that focuses on mid-size offices, an asset class that offers both return stability and upside potential. Ichigo Office seeks to drive higher earnings and sustainable growth for its shareholders by increasing the value of its assets through a broad array of value-add activities, including tailored tenant services, structural building improvements, and targeted tenant leasing. Ichigo Office is managed by Ichigo Investment Advisors, the asset management subsidiary of Ichigo, a major Japanese real estate owner/operator.

Ichigo Office REIT Investment Fundamentals Summary

How do Ichigo Office REIT Investment's earnings and revenue compare to its market cap?
8975 fundamental statistics
Market CapJP¥129.54b
Earnings (TTM)JP¥7.38b
Revenue (TTM)JP¥17.35b

17.6x

P/E Ratio

7.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
8975 income statement (TTM)
RevenueJP¥17.35b
Cost of RevenueJP¥8.19b
Gross ProfitJP¥9.16b
Other ExpensesJP¥1.78b
EarningsJP¥7.38b

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.88k
Gross Margin52.82%
Net Profit Margin42.54%
Debt/Equity Ratio108.2%

How did 8975 perform over the long term?

See historical performance and comparison

Dividends

5.5%

Current Dividend Yield

62%

Payout Ratio

Does 8975 pay a reliable dividends?

See 8975 dividend history and benchmarks
When do you need to buy 8975 by to receive an upcoming dividend?
Ichigo Office REIT Investment dividend dates
Ex Dividend DateOct 28 2022
Dividend Pay DateJan 23 2023
Days until Ex dividend72 days
Days until Dividend pay date159 days

Does 8975 pay a reliable dividends?

See 8975 dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is 8975 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 8975?

Other financial metrics that can be useful for relative valuation.

8975 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/Revenue13.3x
Enterprise Value/EBITDA21.6x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 8975's PE Ratio compare to its peers?

8975 PE Ratio vs Peers
The above table shows the PE ratio for 8975 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.1x
8958 Global One Real Estate Investment
22.8xn/aJP¥105.0b
8987 Japan Excellent
21.7xn/aJP¥166.9b
3476 MIRAI
19.9xn/aJP¥89.1b
8961 MORI TRUST Sogo Reit
20xn/aJP¥190.6b
8975 Ichigo Office REIT Investment
17.6xn/aJP¥129.5b

Price-To-Earnings vs Peers: 8975 is good value based on its Price-To-Earnings Ratio (17.6x) compared to the peer average (21.1x).


Price to Earnings Ratio vs Industry

How does 8975's PE Ratio compare vs other companies in the JP REITs Industry?

Price-To-Earnings vs Industry: 8975 is good value based on its Price-To-Earnings Ratio (17.6x) compared to the JP REITs industry average (26.6x)


Price to Earnings Ratio vs Fair Ratio

What is 8975'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.

8975 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 8975's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 8975 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8975 (¥85600) is trading below our estimate of fair value (¥188927.04)

Significantly Below Fair Value: 8975 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: Target price is less than 20% higher than the current share price.


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Future Growth

How is Ichigo Office REIT Investment 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 Ichigo Office REIT Investment 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.


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  • Examine whether Ichigo Office REIT Investment 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 Ichigo Office REIT Investment 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


1.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8975 has high quality earnings.

Growing Profit Margin: 8975's current net profit margins (42.5%) are higher than last year (40.4%).


Past Earnings Growth Analysis

Earnings Trend: 8975's earnings have grown by 1.5% per year over the past 5 years.

Accelerating Growth: 8975's earnings growth over the past year (18.2%) exceeds its 5-year average (1.5% per year).

Earnings vs Industry: 8975 earnings growth over the past year (18.2%) exceeded the REITs industry 5.4%.


Return on Equity

High ROE: 8975's Return on Equity (7.2%) is considered low.


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Financial Health

How is Ichigo Office REIT Investment's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 8975's short term assets (¥25.0B) exceed its short term liabilities (¥22.8B).

Long Term Liabilities: 8975's short term assets (¥25.0B) do not cover its long term liabilities (¥102.4B).


Debt to Equity History and Analysis

Debt Level: 8975's net debt to equity ratio (98%) is considered high.

Reducing Debt: 8975's debt to equity ratio has increased from 94.6% to 108.2% over the past 5 years.

Debt Coverage: 8975's debt is not well covered by operating cash flow (9.5%).

Interest Coverage: 8975's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


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Dividend

What is Ichigo Office REIT Investment 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


5.47%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 16 2022Ex Dividend DateOct 28 2022Dividend Pay DateJan 23 202387 days from Ex DividendBuy in the next 72 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 8975's dividend (5.47%) is higher than the bottom 25% of dividend payers in the JP market (1.63%).

High Dividend: 8975's dividend (5.47%) is in the top 25% of dividend payers in the JP market (3.61%)


Stability and Growth of Payments

Stable Dividend: 8975's dividend payments have been volatile in the past 10 years.

Growing Dividend: 8975's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (62.3%), 8975's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (76.9%), 8975's dividend payments are covered by cash flows.


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Management

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

8.4yrs

Average board tenure


CEO

Yoshihiro Takatsuka (67 yo)

no data

Tenure

JP¥2,160,000

Compensation

Mr. Yoshihiro Takatsuka served as the President at Ichigo Office REIT Investment Corporation (formerly known as Ichigo Real Estate Investment Corporation). Mr. Takatsuka serves as Executive Director at Ich...


Board Members

Experienced Board: 8975's board of directors are considered experienced (8.4 years average 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ichigo Office REIT Investment Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Ichigo Office REIT Investment Corporation
  • Ticker: 8975
  • Exchange: TSE
  • Founded: 2005
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: JP¥129.544b
  • Shares outstanding: 1.51m
  • Website: https://www.ichigo-office.co.jp

Location

  • Ichigo Office REIT Investment Corporation
  • Imperial Hotel Tower
  • 1-1-1 Uchisaiwaicho
  • Tokyo
  • 100-0011
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 00:00
Earnings2022/04/30
Annual Earnings2022/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.