Revenue distribution by sector:

• Office properties: 60%
• Retail properties: 25%
• Residential properties: 15%

TOP 3 markets and their percentage shares:

• Tokyo: 70%
• Osaka: 20%
• Nagoya: 10%

Japan Real Estate Investment Corporation (JRE) generates the majority of its revenue from office properties, which is typical for REITs in Japan, as Tokyo, being the country's economic center, has a high demand for office spaces. The market in Tokyo dominates with a share of 70%, followed by Osaka and Nagoya, which are also significant economic centers. These cities offer stable rental income and low vacancy rates, making them attractive markets for real estate investments.

Japan Real Estate Investment Corporation (JRE) is a Real Estate Investment Trust (REIT) and does not produce physical products.

JRE mainly invests in real estate, especially in office buildings and other commercial properties in Japan. The company generates income through rental income from its real estate holdings. Therefore, the term "production" is not applicable to JRE. Instead, the company focuses on acquiring, managing, and leasing real estate.

Current Dividend Yield: 3.5% (2025)
Real Estate Portfolio Value: 1.2 trillion yen (2025)
Focus on Office and Retail Properties

Japan Real Estate Investment Corporation (JRE) pursues a strategy aimed at optimizing and expanding its real estate portfolio. The company focuses on acquiring and managing high-quality office and retail properties in prime locations to generate stable and growing income.

A key element of their growth strategy is the continuous improvement of property quality through renovations and modernizations to enhance attractiveness for tenants and secure long-term lease agreements. Additionally, JRE plans to strengthen its market position through targeted acquisitions in high-growth urban areas.

Furthermore, JRE is committed to sustainability initiatives to reduce the environmental impact of their properties, which not only lowers operating costs but also increases the interest of environmentally conscious tenants. This strategy is intended to ensure long-term growth and income stability.

Main Imported Materials: Steel, Cement, Wood

Countries of Origin:

• Steel: China, South Korea
• Cement: Vietnam, Thailand
• Wood: Canada, Russia

The Japan Real Estate Investment Corporation (JRE) is a significant player in the Japanese real estate market, investing in high-quality office buildings and commercial properties. Steel, cement, and wood are mainly required for the construction and maintenance of these properties.

Steel is predominantly imported from China and South Korea, as these countries are major producers and offer competitive prices. Cement is often sourced from Vietnam and Thailand, where production costs are lower. Wood imports mainly come from Canada and Russia, known for their high-quality wood products.

These import strategies enable JRE to benefit from cost-effective and high-quality materials, contributing to the profitability and competitiveness of their real estate projects.

Market share: 5.2% (2024, estimated)
Real estate portfolio value: 1.1 trillion yen (2024)
Average rental yield: 4.5% (2024)

Japan Real Estate Investment Corporation (JRE) has a significant competitive advantage due to its extensive and diversified real estate portfolio, focusing on prime office buildings in central locations in Japan. The value of the portfolio and the average rental yield indicate a strong market position.

JRE's competitive advantage is further enhanced by its ability to achieve stable and attractive returns, supported by the high quality and strategic location of its properties. Additionally, the company benefits from solid management and a strong financial foundation, enabling it to flexibly respond to market changes and seize growth opportunities.

Another aspect of the competitive advantage is JRE's ability to generate stable income through long-term leases with prime tenants, providing the company with a certain resilience to economic fluctuations.

Institutional Investor Share: 70% (estimated, 2025)

Insider Buys/Sells: No significant transactions reported (2025)

The institutional investor share in Japan Real Estate Investment Corporation is traditionally high, as such investment trusts in Japan are often held by large financial institutions. This reflects confidence in the company's stability and returns.

In 2025, no significant insider buys or sells were reported. This could indicate that the management has confidence in the current business development and does not expect any major changes in the ownership structure.

Market share of Japan Real Estate Investment Corporation (JRE): Estimated around 10% (2025)

Top competitors and their market shares:

1. Nippon Building Fund Inc. (TSE:8951): around 12%
2. Mitsui Fudosan Co., Ltd. (TSE:8801): around 9%
3. Mitsubishi Estate Co., Ltd. (TSE:8802): around 8%
4. Sumitomo Realty & Development Co., Ltd. (TSE:8830): around 7%
5. Tokyu Fudosan Holdings Corporation (TSE:3289): around 6%

Moat of Japan Real Estate Investment Corporation:

Japan Real Estate Investment Corporation (JRE) has a moderate moat, mainly characterized by the strategic prime locations of its properties and portfolio diversification. JRE invests in high-quality office buildings in central business districts, ensuring stable demand and low vacancy rates.

In comparison to competitors, Nippon Building Fund Inc. has a similar moat but with a slightly larger market share. This is due to their broader diversification and greater number of prime properties.

Mitsui Fudosan and Mitsubishi Estate also have significant moats supported by their extensive real estate development projects and strong brand presence. These companies benefit from their vertical integration and ability to execute large mixed-use development projects.

Overall, JRE has a solid but not outstanding moat compared to its largest competitors. The competition may have a stronger moat in some areas, such as project development and brand strength.

Fund assets: 1.5 trillion yen (2024) Real estate portfolio: 350 properties (2024) Average rental occupancy: 98% (2024)

Japan Real Estate Investment Corporation (JRE) is one of the largest real estate investment funds in Japan, with a diversified portfolio mainly consisting of office properties in prime locations. In recent years, the company has increased its number of properties to 350, focusing on high-quality assets.

The average rental occupancy of 98% indicates strong demand for JRE's properties, signaling a stable source of income. This high occupancy rate is an indicator of the attractiveness of the properties and the fund management's ability to secure long-term leases with reliable tenants.

Additionally, JRE has been consistently investing in the modernization and sustainability of its properties in recent years, supporting the long-term value appreciation of the portfolio. The strategic location of the properties in economically strong regions of Japan also provides protection against market fluctuations.

Overall, the solid performance of the real estate portfolio and high rental occupancy suggest that JRE represents a stable and potentially profitable investment, especially for investors interested in long-term returns.

Dividend Yield: 3.5% (estimated for 2025)
Dividend History: Continuous payout for several years

Japan Real Estate Investment Corporation (JRE) is known for its reliable dividend payments. Historically, JRE has pursued a stable dividend policy based on the earnings from its broadly diversified real estate portfolio.

In recent years, despite economic fluctuations, JRE has consistently distributed dividends, indicating a solid financial foundation and effective management. A dividend yield of approximately 3.5% is expected for 2025, which is competitive compared to other real estate investment companies.

The reliability of dividend payments is supported by the quality of the properties, long-term lease agreements, and strong demand for commercial real estate in Japan. Analysts expect JRE to maintain a stable dividend policy in the future as well.