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Stock Analysis & ValuationOne REIT, Inc. (3290.T)

Professional Stock Screener
Previous Close
¥90,900.00
Sector Valuation Confidence Level
Low
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)336405.44270
Intrinsic value (DCF)53014.80-42
Graham-Dodd Method92793.712
Graham Formula109947.1621

Strategic Investment Analysis

Company Overview

One REIT, Inc. is a Japanese real estate investment trust (REIT) specializing in office buildings and commercial facilities primarily in the Tokyo metropolitan area and other major cities. Founded in 2013 and headquartered in Tokyo, the company focuses on generating stable earnings and long-term asset growth by investing in high-quality properties. With a market capitalization of approximately ¥65.4 billion, One REIT operates in the competitive REIT - Office sector, leveraging Japan's urban real estate demand. The trust's portfolio is strategically positioned in government-decreed cities, ensuring steady rental income and capital appreciation. One REIT's disciplined investment approach and focus on prime locations make it a notable player in Japan's real estate market, appealing to income-focused investors seeking exposure to commercial property assets.

Investment Summary

One REIT presents a stable investment opportunity with its focus on prime office and commercial properties in Japan's major urban centers. The company's low beta (0.348) suggests lower volatility compared to the broader market, making it attractive for risk-averse investors. With a solid dividend yield (¥14,052 per share) and consistent operating cash flow (¥4.75 billion), One REIT offers reliable income. However, high total debt (¥65.5 billion) relative to market cap raises leverage concerns. The REIT's concentration in Tokyo and major cities provides stability but also exposes it to regional economic fluctuations. Investors should weigh the steady income potential against the risks of Japan's real estate market dynamics and interest rate sensitivity.

Competitive Analysis

One REIT's competitive advantage lies in its strategic focus on Tokyo and other major Japanese cities, where demand for office and commercial space remains resilient. The company's disciplined asset selection and management ensure high occupancy rates and stable rental income. Compared to peers, One REIT's moderate size allows for agile portfolio adjustments, though it lacks the scale of larger REITs. The trust's low beta indicates lower market correlation, appealing to conservative investors. However, its heavy reliance on the Tokyo market poses concentration risks, especially given Japan's slow economic growth and demographic challenges. One REIT's leverage ratio is in line with industry norms but requires careful monitoring. The company's ability to maintain dividend payouts and navigate Japan's real estate cycle will be critical for long-term competitiveness.

Major Competitors

  • GLP J-REIT (3281.T): GLP J-REIT focuses on logistics facilities, a high-growth segment in Japan's REIT market. Its larger scale (market cap ~¥1.1 trillion) and global parentage (GLP) provide strong access to capital and development expertise. However, its specialization in logistics makes it less comparable to One REIT's office-focused portfolio. GLP J-REIT's international backing is a strength but may face higher currency risk.
  • Tokyu REIT, Inc. (3289.T): Tokyu REIT invests in diversified properties including offices, retail, and residential in Tokyo. Its connection to Tokyu Group provides development advantages, but its broader focus dilutes pure office exposure compared to One REIT. Tokyu's larger size (~¥400B market cap) offers better liquidity but may limit growth flexibility.
  • Nippon Prologis REIT, Inc. (3287.T): Another logistics-focused J-REIT with ties to Prologis, the global warehouse giant. Its ~¥900B market cap and premium assets command lower yields than One REIT. While structurally different from One REIT's office focus, it competes for investor capital in Japan's REIT sector with superior scale and international backing.
  • Nomura Real Estate Master Fund, Inc. (3462.T): One of Japan's largest office REITs (~¥600B market cap) with prime Tokyo assets. Its Nomura affiliation provides financing advantages but may trade at premium valuations. Compared to One REIT, it offers greater liquidity and diversification but potentially lower yield due to its blue-chip status.
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