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Stock Analysis & ValuationMitsui Fudosan Logistics Park Inc. (3471.T)

Professional Stock Screener
Previous Close
¥115,400.00
Sector Valuation Confidence Level
Low
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)n/an/a
Intrinsic value (DCF)44068.54-62
Graham-Dodd Method28407.56-75
Graham Formula45878.76-60

Strategic Investment Analysis

Company Overview

Mitsui Fudosan Logistics Park Inc. is a Japanese real estate investment trust (REIT) specializing in logistics facilities. Headquartered in Tokyo, the company leverages its extensive client network and property management expertise derived from its parent company, Mitsui Fudosan, to operate and lease high-quality logistics properties. As part of Japan's growing logistics real estate sector, the REIT benefits from increasing demand driven by e-commerce expansion and supply chain modernization. With a market capitalization of ¥319.4 billion, Mitsui Fudosan Logistics Park focuses on stable income generation through long-term leases, supported by Japan's robust industrial and retail logistics infrastructure. The company's strategic positioning in key logistics hubs enhances its ability to attract tenants seeking efficient distribution centers. Its diversified portfolio and strong parentage provide resilience in a competitive market.

Investment Summary

Mitsui Fudosan Logistics Park Inc. presents a stable investment opportunity within Japan's logistics REIT sector, supported by steady revenue growth (¥24.8 billion in FY 2024) and strong net income (¥8.7 billion). The company's low beta (0.425) suggests lower volatility relative to the broader market, appealing to risk-averse investors. A high dividend yield (¥6,107 per share) enhances income appeal, though investors should note the significant debt load (¥159.7 billion). The REIT benefits from Japan's e-commerce boom and supply chain investments, but competition and interest rate sensitivity pose risks. Conservative investors may find its parent-company backing and logistics sector tailwinds attractive.

Competitive Analysis

Mitsui Fudosan Logistics Park Inc. holds a competitive edge through its affiliation with Mitsui Fudosan, one of Japan's largest real estate developers, which provides access to prime logistics properties and leasing expertise. The REIT's focus on modern, strategically located logistics facilities aligns with tenant demand for efficient distribution networks, particularly in urban and industrial hubs. However, it faces intense competition from domestic and global logistics REITs, which may offer larger portfolios or lower-cost alternatives. The company's relatively smaller scale (compared to diversified REIT giants) limits diversification but allows for targeted growth in high-demand logistics nodes. Its strong operating cash flow (¥15.3 billion) supports reinvestment, but high leverage (debt-to-equity concerns) could constrain expansion. Tenant retention and lease-up rates will be critical in maintaining occupancy in a market where new supply is increasing.

Major Competitors

  • Japan Logistics Fund Inc. (3281.T): A pure-play logistics REIT with a nationwide portfolio, Japan Logistics Fund emphasizes large-scale, modern facilities. It competes closely with Mitsui Fudosan Logistics Park in urban logistics but has higher leverage. Strengths include economies of scale, while weaknesses include exposure to regional demand fluctuations.
  • Nippon Prologis REIT Inc. (3282.T): Backed by Prologis, the global logistics real estate leader, this REIT benefits from international best practices and a premium portfolio. It outperforms Mitsui Fudosan Logistics Park in brand recognition but trades at a higher valuation, potentially limiting yield-focused investors.
  • Daiwa House Logistics Trust (3287.T): Affiliated with Daiwa House, this REIT combines logistics with last-mile delivery assets. It offers diversification but lacks Mitsui Fudosan Logistics Park's focus on core logistics hubs. Its newer portfolio may face lease-up risks in a competitive environment.
  • Nomura Real Estate Master Fund Inc. (3462.T): A diversified REIT with significant logistics exposure, Nomura Real Estate Master Fund provides broader sector exposure but less specialization. Its mixed-asset approach reduces logistics sector risk but dilutes growth potential compared to Mitsui Fudosan Logistics Park's targeted strategy.
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