Tokyo Tatemono: Benefiting from base in Yaesu, where rents are rising strongly

研报英文原文证据摘录

Tokyo Tatemono: Benefiting from base in Yaesu, where rents are rising strongly

Global Markets Research

16 June 2026Tokyo Tatemono

8804.T 8804 JP / EQUITY: JAPAN HOUSING & REAL ESTATE

RatingBenefiting from base in Yaesu, where rents are

Up from Neutral Buyrising strongly

Target price

Likely to achieve medium-term plan targets early, we expect revisions to long-term vision Remains JPY 4,450

based on strong earnings, changes in operating environment

Closing price JPY 3,309We raise rating from Neutral to Buy as stock looks strongly undervalued 12 June 2026

Tokyo Tatemono's share price has been weak on concerns about rising interest rates but its

Implied upside +34.5%earnings have been steady. We regard the stock as highly undervalued and raise our rating

from Neutral to Buy. We think the share price could turn upwards if quarterly results

announcements or results briefings provide fresh evidence of favorable earnings. The medium-

term business plan has targets of business profits of ¥95bn, ROE of 10%, and a dividend

Relative performance chartpayout ratio of 40% for the final year of 27/12, but we think the company will achieve these one

year ahead of schedule. It is also due to publish its next medium-term plan in February 2027.

This next plan could well incorporate hikes to the numerical targets in the company's long-term

vision, which posits business profits of ¥120bn in 30/12, by factoring in faster-than-expected

interest rate increases under entrenched inflation and changes to initiatives and strategies

aimed at achieving these targets. Office rents have also continued to rise by more than

expected in the company's home turf of the Yaesu, Nihombashi, and Kyobashi districts of

Tokyo, and we think it will also factor this in. The company has also been making better-than-