| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 218576.01 | 27 |
| Intrinsic value (DCF) | 56860.25 | -67 |
| Graham-Dodd Method | 69492.03 | -60 |
| Graham Formula | 87879.57 | -49 |
Hulic Reit, Inc. is a Japanese real estate investment trust (REIT) specializing in Tokyo commercial properties, listed on the Tokyo Stock Exchange since February 2014. Backed by its sponsor, Hulic Co., Ltd., the REIT leverages extensive investment expertise to acquire and manage high-demand office assets in Tokyo, ensuring stable long-term returns. Hulic Reit focuses on a dual strategy: investing in core Tokyo commercial properties for steady income and 'next-generation asset plus' opportunities to enhance medium-to-long-term growth. With a market capitalization of ¥214.8 billion, the REIT prioritizes maximizing unitholder value through disciplined asset management and strategic expansion. Operating in Japan's competitive REIT sector, Hulic Reit benefits from strong sponsor support, prime Tokyo locations, and a commitment to sustainable profitability. Its portfolio targets institutional and corporate tenants, capitalizing on Tokyo's status as Asia's leading financial and business hub.
Hulic Reit presents a stable investment opportunity with a low beta (0.281), reflecting resilience against market volatility. The REIT generates solid revenue (¥22.8 billion) and net income (¥10.4 billion), supported by high occupancy rates in Tokyo's office market. A generous dividend yield (¥7,654 per share) enhances attractiveness for income-focused investors. However, high leverage (total debt ¥187.6 billion) and exposure to Tokyo's cyclical commercial real estate market pose risks. The REIT's reliance on sponsor Hulic Co. provides strategic advantages but also creates dependency. Investors should weigh Hulic Reit's strong cash flow (¥27.7 billion operating cash flow) against Japan's slow economic growth and potential office space oversupply.
Hulic Reit's competitive edge stems from its exclusive focus on Tokyo's commercial real estate, where its sponsor Hulic Co. has deep market expertise. This specialization allows targeted acquisitions in high-demand districts like Marunouchi and Otemachi. The REIT's 'next-generation asset plus' strategy differentiates it by blending traditional office investments with value-add opportunities, such as redevelopments or ESG-compliant properties. However, its mid-size scale (¥214.8 billion market cap) limits diversification compared to larger Japanese REITs. Hulic Reit benefits from lower volatility (beta 0.28) than peers, appealing to risk-averse investors, but its high debt-to-equity ratio could constrain growth during rising interest rates. The REIT's sponsor-backed model ensures pipeline access but may limit independent deal sourcing. In a sector dominated by giants like Mitsubishi Estate, Hulic Reit competes by offering niche Tokyo exposure with sponsor-backed stability.