Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Japan Prime Realty Investment's Probability of Financial Distress (%) is 0.02%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Japan Prime Realty Investment (FRA:58JA) Probability of Financial Distress (%) Explanation
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Japan Prime Realty Investment Probability of Financial Distress (%) Related Terms
FRA:58JA vs VICI, WPC: Probability of Financial Distress (%) Comparison
For the REIT - Diversified subindustry, Japan Prime Realty Investment's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Japan Prime Realty Investment Probability of Financial Distress (%) vs REITs Industry
For the REITs industry and Real Estate sector, Japan Prime Realty Investment's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Japan Prime Realty Investment's Probability of Financial Distress (%) falls into.
Japan Prime Realty Investment Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
LPFD
=
-20.12 * NIMTAAVG
+
1.60 * TLMTA
-
7.88 * EXRETAVG
+
1.55 * SIGMA
-
0.005 * RSIZE
-
2.27 * CASHMTA
+
0.070 * MB
-
0.09 * PRICE
-
8.87
=
-8.50
The Probability of Financial Distress (%) (PFD) was then obtianed by:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
What does a Probability of Financial Distress (%) of 0.02% mean?
Japan Prime Realty Investment (FRA:58JA) has a Probability of Financial Distress (%) of 0.02% as of Jun. 27, 2026.
Is Japan Prime Realty Investment's Probability of Financial Distress (%) too high?
Japan Prime Realty Investment's current Probability of Financial Distress (%) is 0.02%. Overall, Japan Prime Realty Investment has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Japan Prime Realty Investment's Probability of Financial Distress (%) compare to VICI and WPC?
Japan Prime Realty Investment's Probability of Financial Distress (%) of 0.02% can be compared against companies in the REITs industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Probability of Financial Distress (%) for a REITs company?
A good Probability of Financial Distress (%) depends on the REITs industry context. However, Probability of Financial Distress (%) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Probability of Financial Distress (%) mean?
A high Probability of Financial Distress (%) can signal that a stock is expensive relative to its fundamentals. Japan Prime Realty Investment's current Probability of Financial Distress (%) is 0.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Prime Realty Investment stock overvalued right now?
Based on GuruFocus' analysis, Japan Prime Realty Investment (FRA:58JA) is currently considered Fairly Valued. The stock's GF Value™ is €492.41, compared to a current price of €510.00 — trading 3.6% above its estimated fair value. The current Probability of Financial Distress (%) is 0.02%. Japan Prime Realty Investment's overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Probability of Financial Distress (%) calculated?
Probability of Financial Distress (%) is calculated from a company's financial statements. For Japan Prime Realty Investment (FRA:58JA), the current Probability of Financial Distress (%) is 0.02% as of Jun. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Japan Prime Realty Investment (FRA:58JA) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Prime Realty Investment stock appears to be overvalued.
The current stock price of €510.00 is trading 3.6% above its estimated GF Value™ of €492.41.
GuruFocus considers Japan Prime Realty Investment to be Fairly Valued.
Key valuation signals for FRA:58JA:
Probability of Financial Distress (%): 0.02%
GF Value™: €492.41 vs. price of €510.00 (3.6% above fair value)
No single metric tells the full story. See the FRA:58JA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Prime Realty Investment Business Description
Japan Prime Realty Investment Corporation, or JPR, is a Japanese real estate investment trust involved in the ownership of properties in the Greater Tokyo region. The majority of JPR's real estate portfolio is comprised of office buildings, with retail properties making up the rest of the company's holdings. The vast majority of JPR's assets are in the Tokyo metropolitan area, which are mostly concentrated in Central Tokyo. The company generates nearly all of its revenue through collecting funds from investors, investing that money into real estate properties, and then collecting rental income from those properties. Its collection of tenants is fairly evenly distributed among service, information and communication, manufacturing, finance, retail, and real estate companies.
68GF Score
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