New Risk • Apr 28
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 16% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (16% increase in shares outstanding). Reported Earnings • Feb 26
Full year 2025 earnings released: EPS: JP¥5,326 (vs JP¥3,756 in FY 2024) Full year 2025 results: EPS: JP¥5,326 (up from JP¥3,756 in FY 2024). Revenue: JP¥45.6b (up 36% from FY 2024). Net income: JP¥27.1b (up 49% from FY 2024). Profit margin: 60% (up from 55% in FY 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 1.9% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Hotel and Resort REITs industry in Asia. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥4,830 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 19 March 2026. Trailing yield: 5.2%. Within top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (5.5%). Buy Or Sell Opportunity • Dec 16
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.4% to JP¥85,500. The fair value is estimated to be JP¥107,420, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 35% over the last 3 years. Earnings per share has grown by 58%. For the next 3 years, revenue is forecast to grow by 4.0% per annum. Earnings are also forecast to grow by 3.0% per annum over the same time period. Announcement • Dec 03
Japan Hotel REIT Investment Corporation to Report Fiscal Year 2025 Results on Feb 25, 2026 Japan Hotel REIT Investment Corporation announced that they will report fiscal year 2025 results on Feb 25, 2026 Buy Or Sell Opportunity • Nov 18
Now 22% undervalued The stock has been flat over the last 90 days, currently trading at JP¥84,600. The fair value is estimated to be JP¥109,121, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 35% over the last 3 years. Earnings per share has grown by 58%. For the next 3 years, revenue is forecast to grow by 4.0% per annum. Earnings are also forecast to grow by 3.0% per annum over the same time period. Announcement • Oct 16
Japan Hotel REIT Investment Corporation Announces Board Changes Japan Hotel REIT Investment Corporation announced the term of office of the Executive Director Kaname Masuda, and Supervisory Directors, Tetsuya Mishiku, Mayumi Umezawa and Akiko Tomiyama will terminate at the closing of this General Meeting of Unitholders. Therefore, JHR proposes to elect one Executive Director and three Supervisory Directors. Declared Dividend • Oct 09
Dividend of JP¥4,830 announced Shareholders will receive a dividend of JP¥4,830. Ex-date: 29th December 2025 Payment date: 19th March 2026 Dividend yield will be 5.5%, which is higher than the industry average of 4.1%. Announcement • Oct 08
Japan Hotel REIT Investment Corporation announces Annual dividend, payable on March 19, 2026 Japan Hotel REIT Investment Corporation announced Annual dividend of JPY 4830.0000 per share payable on March 19, 2026, ex-date on December 29, 2025 and record date on December 31, 2025. Reported Earnings • Aug 26
First half 2025 earnings released: EPS: JP¥2,504 (vs JP¥1,603 in 1H 2024) First half 2025 results: EPS: JP¥2,504 (up from JP¥1,603 in 1H 2024). Revenue: JP¥21.5b (up 50% from 1H 2024). Net income: JP¥12.8b (up 72% from 1H 2024). Profit margin: 59% (up from 52% in 1H 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Hotel and Resort REITs industry in Asia. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 23
Full year 2024 earnings released: EPS: JP¥3,756 (vs JP¥2,909 in FY 2023) Full year 2024 results: EPS: JP¥3,756 (up from JP¥2,909 in FY 2023). Revenue: JP¥33.5b (up 26% from FY 2023). Net income: JP¥18.3b (up 39% from FY 2023). Profit margin: 55% (up from 49% in FY 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Hotel and Resort REITs industry in Asia. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Mar 25
Japan Hotel REIT Investment Corporation to Report First Half, 2025 Results on Aug 25, 2025 Japan Hotel REIT Investment Corporation announced that they will report first half, 2025 results on Aug 25, 2025 Reported Earnings • Feb 26
Full year 2024 earnings released: EPS: JP¥3,756 (vs JP¥2,909 in FY 2023) Full year 2024 results: EPS: JP¥3,756 (up from JP¥2,909 in FY 2023). Revenue: JP¥33.5b (up 26% from FY 2023). Net income: JP¥18.3b (up 39% from FY 2023). Profit margin: 55% (up from 49% in FY 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the Hotel and Resort REITs industry in Asia. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥3,815 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 19 March 2025. Trailing yield: 5.3%. Within top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (5.4%). Announcement • Nov 20
Japan Hotel REIT Investment Corporation Announces Resignation of Hisashi Furukawa as Substitute Executive Director, Effective December 18, 2024 Japan Hotel REIT Investment Corporation announced that it has received and accepted the resignation of Hisashi Furukawa as substitute executive director, effective December 18, 2024. Declared Dividend • Oct 11
Dividend of JP¥3,815 announced Shareholders will receive a dividend of JP¥3,815. Ex-date: 27th December 2024 Payment date: 19th March 2025 Dividend yield will be 5.4%, which is higher than the industry average of 4.1%. Reported Earnings • Aug 24
First half 2024 earnings released: EPS: JP¥1,603 (vs JP¥1,096 in 1H 2023) First half 2024 results: EPS: JP¥1,603 (up from JP¥1,096 in 1H 2023). Revenue: JP¥14.4b (up 27% from 1H 2023). Net income: JP¥7.43b (up 52% from 1H 2023). Profit margin: 52% (up from 43% in 1H 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.6% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the Hotel and Resort REITs industry in Asia. Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Aug 16
Japan Hotel REIT Investment Corporation to Report First Half, 2024 Results on Aug 22, 2024 Japan Hotel REIT Investment Corporation announced that they will report first half, 2024 results on Aug 22, 2024 Reported Earnings • Apr 26
Full year 2023 earnings released: EPS: JP¥2,909 (vs JP¥598 in FY 2022) Full year 2023 results: EPS: JP¥2,909 (up from JP¥598 in FY 2022). Revenue: JP¥26.6b (up 78% from FY 2022). Net income: JP¥13.1b (up 392% from FY 2022). Profit margin: 49% (up from 18% in FY 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Hotel and Resort REITs industry in Asia. Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 24
Full year 2023 earnings released: EPS: JP¥2,909 (vs JP¥598 in FY 2022) Full year 2023 results: EPS: JP¥2,909 (up from JP¥598 in FY 2022). Revenue: JP¥26.6b (up 78% from FY 2022). Net income: JP¥13.1b (up 392% from FY 2022). Profit margin: 49% (up from 18% in FY 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 9.1% growth forecast for the Hotel and Resort REITs industry in Asia. Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥2,652 per share at 3.9% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 21 March 2024. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (5.6%). Announcement • Nov 08
Japan Hotel REIT Investment Corporation (TSE:8985) signed a purchase and sale agreement to acquire Hotel JAL City Kannai Yokohama for ¥4 billion. Japan Hotel REIT Investment Corporation (TSE:8985) signed a purchase and sale agreement to acquire Hotel JAL City Kannai Yokohama for ¥4 billion on November 7, 2023. The deal is expected to be completed on December 22, 2023. Buying Opportunity • Oct 23
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 1.9%. The fair value is estimated to be JP¥85,618, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 8.9%. For the next 3 years, revenue is forecast to grow by 9.4% per annum. Earnings is also forecast to grow by 17% per annum over the same time period. Announcement • Oct 13
Japan Hotel REIT Investment Corporation Announces Directorate Changes Japan Hotel REIT Investment Corporation announced that The term of office of the Executive Director Kaname Masuda, and two Supervisory Directors, Tetsuya Mishiku and Mayumi Umezawa, applied for resignation for the purpose of an adjustment of their terms of office, and one Supervisory Director, Hiroto Kashii, applied for resignation, with each of such resignations to be effected at the closing of this General Meeting of Unitholders. Therefore, JHR proposes to elect one Executive Director and three Supervisory Directors. New Risk • Sep 23
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.8% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (8.1% operating cash flow to total debt). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (3.8% increase in shares outstanding). Reported Earnings • Aug 26
First half 2023 earnings released: EPS: JP¥1,096 (vs JP¥106 loss in 1H 2022) First half 2023 results: EPS: JP¥1,096 (up from JP¥106 loss in 1H 2022). Revenue: JP¥11.3b (up 108% from 1H 2022). Net income: JP¥4.90b (up JP¥5.37b from 1H 2022). Profit margin: 43% (up from net loss in 1H 2022). The move to profitability was driven by higher revenue. Revenue is forecast to grow 9.0% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Hotel and Resort REITs industry in Asia. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Aug 25
Japan Hotel REIT Investment Corporation Provides Earnings Guidance for the Full Year of Fiscal Year Ending December 31, 2023 Japan Hotel REIT Investment Corporation provided earnings guidance for the full year of fiscal year ending December 31, 2023. For the full year, the company expects operating revenue of JPY 24,928 million, operating income of JPY 13,288 million and net income of JPY 11,416 million. Reported Earnings • Apr 29
Full year 2022 earnings released: EPS: JP¥598 (vs JP¥290 in FY 2021) Full year 2022 results: EPS: JP¥598 (up from JP¥290 in FY 2021). Revenue: JP¥14.9b (up 9.4% from FY 2021). Net income: JP¥2.67b (up 106% from FY 2021). Profit margin: 18% (up from 9.5% in FY 2021). Net asset value (NAV) per share: JP¥50,050 (flat on FY 2021). The current share price is 53% higher than NAV per share. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 111 percentage points per year, which is a significant difference in performance. Reported Earnings • Feb 23
Full year 2022 earnings released Full year 2022 results: Revenue: JP¥14.9b (up 9.4% from FY 2021). Net income: JP¥2.67b (up 106% from FY 2021). Profit margin: 18% (up from 9.5% in FY 2021). Upcoming Dividend • Dec 22
Upcoming dividend of JP¥333 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 20 March 2023. Trailing yield: 0.5%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (3.9%). Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. No independent directors (4 non-independent directors). Substitute Executive Director Hisashi Furukawa was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Aug 25
First half 2022 earnings released: JP¥105 loss per share (vs JP¥333 loss in 1H 2021) First half 2022 results: JP¥105 loss per share (up from JP¥333 loss in 1H 2021). Revenue: JP¥5.43b (up 18% from 1H 2021). Net loss: JP¥471.0m (loss narrowed 68% from 1H 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 86 percentage points per year, which is a significant difference in performance. Board Change • Apr 27
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 4 non-independent directors. Substitute Executive Director Hisashi Furukawa was the last director to join the board, commencing their role in 2019. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 27
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: JP¥290 (down from JP¥342 in FY 2020). Revenue: JP¥13.6b (down 1.5% from FY 2020). Net income: JP¥1.30b (down 15% from FY 2020). Profit margin: 9.5% (down from 11% in FY 2020). Revenue missed analyst estimates by 100%. Earnings per share (EPS) also missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 170%, compared to a 12% growth forecast for the reits industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 69 percentage points per year, which is a significant difference in performance. Announcement • Feb 26
Japan Hotel Reit Investment Corporation Announces Dividend for Year 2021 Japan Hotel REIT Investment Corporation announced dividend of JPY 366 for the year 2021,as compared to JPY 410 for previous year. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥120 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 22 March 2022. Trailing yield: 0.2%. Lower than top quartile of Japanese dividend payers (3.3%). Lower than average of industry peers (3.5%). Announcement • Dec 16
An unknown buyer completed the acquisition of Ibis Tokyo Shinjuku from Japan Hotel REIT Investment Corporation (TSE:8985). An unknown buyer agreed to acquire Ibis Tokyo Shinjuku from Japan Hotel REIT Investment Corporation (TSE:8985) for ¥11.3 billion on September 15, 2021. JHR plans to improve ready liquidity by allocating a portion of the transfer proceeds to repay existing loans and using the remaining amount as cash on hand. In addition, JHR expects the gain on sale of properties in the amount of ¥3.165 billion by the Sale and plans to allocate part of the amount or the entire amount to dividends. The transaction is expected to close on December 15 2021. Japan Hotel REIT Advisors Co., Ltd. acted as the broker in the transaction.
An unknown buyer completed the acquisition of Ibis Tokyo Shinjuku from Japan Hotel REIT Investment Corporation (TSE:8985) on December 15, 2021. Reported Earnings • Aug 26
First half 2021 earnings released: JP¥333 loss per share (vs JP¥124 loss in 1H 2020) The company reported a poor first half result with increased losses, weaker revenues and weaker control over costs. First half 2021 results: Revenue: JP¥4.59b (down 17% from 1H 2020). Net loss: JP¥1.49b (loss widened 170% from 1H 2020). Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Reported Earnings • Apr 25
Full year 2020 earnings released: EPS JP¥342 (vs JP¥3,448 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥13.8b (down 51% from FY 2019). Net income: JP¥1.53b (down 90% from FY 2019). Profit margin: 11% (down from 54% in FY 2019). The decrease in margin was driven by lower revenue. Net asset value (NAV) per share: JP¥49,570 (down 6.5% from FY 2019). The current share price is 23% higher than NAV per share. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Announcement • Mar 17
Japan Hotel REIT Investment Corporation announced that it has received ¥300.0396 million in funding from SC J-REIT Investments GK On March 16, 2021, Japan Hotel REIT Investment Corporation (TSE:8985) closed the transaction. Announcement • Mar 05
Japan Hotel REIT Investment Corporation announced that it expects to receive ¥300.0396 million in funding from SC J-REIT Investments GK Japan Hotel REIT Investment Corporation (TSE:8985) announced a private placement of 4,659 units at a price of ¥64,400 for gross proceeds of ¥300,039,600 on March 4, 2021. The company is raising funding through third-party capital increase. The transaction will include participation from SC J-REIT Investments GK. The subscription date is March 12, 2021 and the payment date is March 16, 2021. Post closing of the transaction, the capita of the company will increase from 4,462,347 units to 4,467,006 units. The company will pay ¥13,000,000 for issue expenses. Price Target Changed • Mar 04
Price target raised to JP¥59,755 Up from JP¥54,273, the current price target is provided by 1 analyst. The new target price is 5.3% below the current share price of JP¥63,100. As of last close, the stock is down 3.4% over the past year. Reported Earnings • Feb 27
Full year 2020 earnings released: EPS JP¥342 (vs JP¥3,448 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥13.8b (down 51% from FY 2019). Net income: JP¥1.53b (down 90% from FY 2019). Profit margin: 11% (down from 54% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 08
New 90-day high: JP¥58,000 The company is up 1.0% from its price of JP¥57,700 on 10 November 2020. The Japanese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the REITs industry, which is up 8.0% over the same period. Announcement • Jan 09
Japan Hotel Reit Investment Corporation Revises Earnings Forecast for the Full Fiscal Year Ended December 31, 2020 Japan Hotel REIT Investment Corporation revised earnings forecast for the full fiscal year ended December 31, 2020. For the year, the company now expects operating revenue of JPY 13,818 million, operating income of JPY 3,094 million and net income of JPY 1,435 million against operating revenue of JPY 13,318 million, operating income of JPY 2,283 million and net income of JPY 571 million expected previously. Announcement • Dec 05
Japan Hotel REIT Investment Corporation to Report Fiscal Year 2020 Results on Feb 25, 2021 Japan Hotel REIT Investment Corporation announced that they will report fiscal year 2020 results on Feb 25, 2021 Announcement • Oct 29
Japan Hotel REIT Investment Corporation Revises Earnings Forecast for the Fiscal Year Ending December 2020 Japan Hotel REIT Investment Corporation revised earnings forecast for the fiscal year ending December 2020. For the year ending December 31, 2020, the company now expects operating revenue of ¥13,318 million compared to previous guidance of ¥13,126 million, operating income of ¥2,283 million compared to previous guidance of ¥2,085 million, ordinary income of ¥442 million compared to previous guidance of ¥244 million, net income of ¥571 million compared to previous guidance of ¥243 million. 
