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Japan Prime Realty Investment Corporation (8955.T)

Company Dividend Discount ModelIndustry: REIT - DiversifiedSector: Real Estate

Valuation Snapshot

Stable Growth$289,257.10 - $538,239.12$391,148.08
Multi-Stage$478,000.72 - $524,421.15$500,769.21
Blended Fair Value$445,958.64
Current Price$92,600.00
Upside381.60%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS2.23%4.22%8,708.898,794.268,625.828,482.678,155.247,798.717,672.007,359.616,692.926,228.38
YoY Growth---0.97%1.95%1.69%4.01%4.57%1.65%4.24%9.96%7.46%8.08%
Dividend Yield--11.04%10.05%9.31%8.50%9.54%6.55%7.36%8.22%5.81%6.03%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)34,007.59
(-) Cash Dividends Paid (M)22,733.98
(=) Cash Retained (M)11,273.61
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)6,801.524,250.952,550.57
Cash Retained (M)11,273.6111,273.6111,273.61
(-) Cash Required (M)-6,801.52-4,250.95-2,550.57
(=) Excess Retained (M)4,472.107,022.668,723.04
(/) Shares Outstanding (M)1.741.741.74
(=) Excess Retained per Share2,569.724,035.315,012.36
LTM Dividend per Share13,063.2113,063.2113,063.21
(+) Excess Retained per Share2,569.724,035.315,012.36
(=) Adjusted Dividend15,632.9317,098.5118,075.57
WACC / Discount Rate6.48%6.48%6.48%
Growth Rate1.02%2.02%3.02%
Fair Value$289,257.10$391,148.08$538,239.12
Upside / Downside212.37%322.41%481.25%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)34,007.5934,695.6035,397.5436,113.6736,844.2937,589.6938,717.38
Payout Ratio66.85%71.48%76.11%80.74%85.37%90.00%92.50%
Projected Dividends (M)22,733.9824,800.3426,941.0029,158.1331,453.9533,830.7235,813.57

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.48%6.48%6.48%
Growth Rate1.02%2.02%3.02%
Year 1 PV (M)23,062.1523,290.4423,518.73
Year 2 PV (M)23,296.9123,760.4124,228.48
Year 3 PV (M)23,446.9524,150.1524,867.28
Year 4 PV (M)23,520.3724,465.5725,438.99
Year 5 PV (M)23,524.6124,712.2125,947.29
PV of Terminal Value (M)715,016.41751,112.74788,652.38
Equity Value (M)831,867.40871,491.53912,653.14
Shares Outstanding (M)1.741.741.74
Fair Value$478,000.72$500,769.21$524,421.15
Upside / Downside416.20%440.79%466.33%

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