OTCPK:JRHI.F

Stock Analysis Report

Japan Rental Housing Investments

Executive Summary

Japan Rental Housing Investment Corporation (hereinafter referred to as “the Investment Corporation”) is listed on the Tokyo Stock Exchange in June 2006 (stock code: 8986) and is located in the metropolitan area and major cities throughout Japan (Sapporo City, Sendai City) It is a rental apartment specialized REIT (REIT) that invests in rental apartments in Nagoya City, Osaka City, Fukuoka City, etc.


Snowflake Analysis

Second-rate dividend payer and slightly overvalued.

Share Price & News

How has Japan Rental Housing Investments's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JRHI.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

JRHI.F

-10.1%

US REITs

-10.6%

US Market


1 Year Return

n/a

JRHI.F

5.9%

US REITs

5.2%

US Market

Return vs Industry: Insufficient data to determine how JRHI.F performed against the US REITs industry.

Return vs Market: Insufficient data to determine how JRHI.F performed against the US Market.


Shareholder returns

JRHI.FIndustryMarket
7 Day0%-10.1%-10.6%
30 Day0%-6.5%-8.5%
90 Day0%-4.5%-4.6%
1 Yearn/a10.1%5.9%7.4%5.2%
3 Yearn/a24.8%9.3%31.7%23.2%
5 Year15.5%15.5%48.4%17.9%56.4%39.3%

Price Volatility Vs. Market

How volatile is Japan Rental Housing Investments's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Japan Rental Housing Investments undervalued compared to its fair value and its price relative to the market?

27.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JRHI.F ($825) is trading above our estimate of fair value ($5.09)

Significantly Below Fair Value: JRHI.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JRHI.F is good value based on its PE Ratio (27.2x) compared to the REITs industry average (37.8x).

PE vs Market: JRHI.F is poor value based on its PE Ratio (27.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate JRHI.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: JRHI.F is good value based on its PB Ratio (1.6x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Japan Rental Housing Investments forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

4.5%

Forecasted Real Estate industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if JRHI.F's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if JRHI.F's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if JRHI.F's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if JRHI.F's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if JRHI.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Japan Rental Housing Investments performed over the past 5 years?

6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JRHI.F has high quality earnings.

Growing Profit Margin: JRHI.F's current net profit margins (38%) are lower than last year (38.6%).


Past Earnings Growth Analysis

Earnings Trend: JRHI.F's earnings have grown by 6.6% per year over the past 5 years.

Accelerating Growth: JRHI.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JRHI.F had negative earnings growth (-4.2%) over the past year, making it difficult to compare to the REITs industry average (8.1%).


Return on Equity

High ROE: JRHI.F's Return on Equity (5.8%) is considered low.


Next Steps

Financial Health

How is Japan Rental Housing Investments's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: JRHI.F has a high level of physical assets or inventory.

Debt Coverage by Assets: JRHI.F's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: JRHI.F's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if JRHI.F has a sufficient allowance for bad loans.

Low Risk Liabilities: JRHI.F reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if JRHI.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: JRHI.F has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if JRHI.F has an appropriate level of bad loans.


Next Steps

Dividend

What is Japan Rental Housing Investments's current dividend yield, its reliability and sustainability?

3.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JRHI.F's dividend (3.85%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: JRHI.F's dividend (3.85%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.4%), JRHI.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Yutaka Higashino (66yo)

2.8yrs

Tenure

Mr. Yutaka Higashino serves as the Chief Executive Officer and President at Mi-Casa Asset Management Inc., the Asset Manager for Japan Rental Housing Investments Inc. Mr. Higashino joined Mi-Casa Asset Man ...


Leadership Team

NamePositionTenureCompensationOwnership
Yutaka Higashino
CEO & President of Mi-Casa Asset Management Inc2.8yrsno datano data
Seiji Kimoto
CFO, Executive Officer & GM of Business Mgmt Dept for Mi-Casa Asset Management Inc1.5yrsno datano data
Koji Watanabe
Managing Director of Mi-Casa Asset Management Inc.1.5yrsno datano data
Ikuo Syouda
Executive Director1.4yrsno datano data
Ikuo Shoda
Executive Director1.4yrsno datano data

1.5yrs

Average Tenure

Experienced Management: JRHI.F's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yutaka Higashino
CEO & President of Mi-Casa Asset Management Inc2.8yrsno datano data
Ikuo Syouda
Executive Director1.4yrsno datano data
Ikuo Shoda
Executive Director1.4yrsno datano data
Kouhei Yabuta
Supervisory Director13.8yrsno datano data
Jun Nagamine
Supervisory Director10.8yrsno datano data
Masaki Yamane
Substitute Executive Director1.4yrsno datano data

2.4yrs

Average Tenure

64yo

Average Age

Experienced Board: JRHI.F's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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

Japan Rental Housing Investments Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Japan Rental Housing Investments Inc.
  • Ticker: JRHI.F
  • Exchange: OTCPK
  • Founded: 2005
  • Industry: Residential REITs
  • Sector: Real Estate
  • Market Cap: JP¥170.566b
  • Listing Market Cap: JP¥1.572b
  • Shares outstanding: 1.64m
  • Website: https://www.jrhi.co.jp

Location

  • Japan Rental Housing Investments Inc.
  • 4-17-33 Minami Aoyama
  • Minato-ku
  • Tokyo
  • 107-0062
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8986TSE (The Tokyo Stock Exchange)YesInvestment SecuritiesJPJPYJun 2006
JRHI.FOTCPK (Pink Sheets LLC)YesInvestment SecuritiesUSUSDJun 2006

Biography

Japan Rental Housing Investment Corporation (hereinafter referred to as “the Investment Corporation”) is listed on the Tokyo Stock Exchange in June 2006 (stock code: 8986) and is located in the metropolitan area and major cities throughout Japan (Sapporo City, Sendai City) It is a rental apartment specialized REIT (REIT) that invests in rental apartments in Nagoya City, Osaka City, Fukuoka City, etc. After the acquisition of Prospect Reit Investment Corporation in July 2010, the Investment Corporation will actively replace properties (acquisition of new properties) with the management ability of the asset management company Daiwa Real Estate Asset Management Co., Ltd. And the sale of existing properties), drastic operation reinforcement (achievement of high occupancy rate), various cost reductions, etc., and we have achieved improvement in distribution. In December 2015, Daiwa Securities Group Inc. (hereinafter referred to as “Daiwa Securities Group Inc.”) will acquire additional shares of the asset management company, and the Investment Corporation will bring Daiwa Securities Group Inc. as a new sponsor have become. The Investment Corporation will use its support based on the sponsor-support agreement concluded between the asset management company and the Daiwa Securities Group headquarters to aim for sustainable and stable growth. The Investment Corporation will continue to aim to maximize the profits of its investors. We would like to ask all investors for their continued support and rewards. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:01
End of Day Share Price2019/07/22 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.