| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 146611.15 | 6 |
| Intrinsic value (DCF) | 53110.62 | -62 |
| Graham-Dodd Method | 16627.05 | -88 |
| Graham Formula | 34900.76 | -75 |
Nippon Accommodations Fund Inc. (NAF) is a Japanese real estate investment trust (REIT) specializing in diversified accommodation assets. Established in 2005 under the Investment Trust and Investment Corporation Act of Japan, NAF operates as an externally managed fund with Mitsui Fudosan Accommodations Fund Management Co., Ltd. (MFAFM) serving as its asset management company. MFAFM, a wholly-owned subsidiary of Mitsui Fudosan Co., Ltd., oversees the acquisition, management, and renovation of NAF's properties. NAF focuses on high-quality accommodation assets, leveraging Mitsui Fudosan's extensive real estate expertise to optimize returns. The REIT is listed on the Tokyo Stock Exchange and plays a significant role in Japan's real estate sector, particularly in the hospitality and lodging segments. With a market capitalization of approximately ¥287 billion, NAF offers investors exposure to Japan's stable and growing accommodation market, supported by strong tourism demand and domestic business travel.
Nippon Accommodations Fund Inc. presents a stable investment opportunity within Japan's REIT sector, supported by its affiliation with Mitsui Fudosan, one of Japan's largest real estate developers. The fund's focus on accommodation assets provides resilience against economic downturns, given the consistent demand for lodging in Japan's major cities. However, investors should be cautious of the high total debt of ¥166 billion, which could pose risks in a rising interest rate environment. The fund's low beta of 0.138 indicates lower volatility compared to the broader market, making it attractive for conservative investors. With a dividend yield derived from a dividend per share of ¥4,478.80, NAF offers income potential, though its growth may be constrained by the capital-intensive nature of real estate investments.
Nippon Accommodations Fund Inc. benefits from a strong competitive position due to its affiliation with Mitsui Fudosan, which provides access to high-quality properties and operational expertise. The fund's focus on accommodation assets differentiates it from general diversified REITs, allowing it to capitalize on Japan's tourism and business travel sectors. However, its reliance on a single asset class also exposes it to sector-specific risks, such as fluctuations in tourism demand. NAF's external management structure under MFAFM ensures professional oversight but may lead to higher management fees compared to internally managed REITs. The fund's large-scale property acquisitions and renovations are supported by Mitsui Fudosan's financial strength, but its high debt levels could limit flexibility in a tightening credit market. Compared to peers, NAF's niche focus provides stability but may lack the diversification benefits of broader REITs.