Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Nippon Building Fund's
Operating Income
for the
six
months ended in Dec. 2025 was €116.2 Mil. Nippon Building Fund's Interest Expense for the
six
months ended in Dec. 2025 was €-10.2 Mil.
Nippon Building Fund's interest coverage for the quarter that ended in Dec. 2025 was 11.44.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Nippon Building Fund's Interest Coverage or its related term are showing as below:
FRA:S4C'
s Interest Coverage Range Over the Past 10 Years
Min: 7.06 Med: 14.35 Max: 19.22
Current: 13.78
FRA:S4C's Interest Coverage is ranked better than 81.4% of 699
companies
in the REITs industry
Industry Median: 3.11
vs FRA:S4C: 13.78
Nippon Building Fund (FRA:S4C) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Nippon Building Fund Interest Coverage Related Terms
Nippon Building Fund Interest Coverage Historical Data
* Premium members only.
The historical data trend for Nippon Building Fund's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:S4C vs BXP, ARE, VNO: Interest Coverage Comparison
For the REIT - Office subindustry, Nippon Building Fund's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.
Nippon Building Fund Interest Coverage vs REITs Industry
For the REITs industry and Real Estate sector, Nippon Building Fund's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nippon Building Fund's Interest Coverage falls into.
Nippon Building Fund Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Nippon Building Fund (FRA:S4C) has a Interest Coverage of 11.44 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nippon Building Fund and its competitors. This is 20% below median its historical median of 14.35. Over the past decade, Nippon Building Fund's Interest Coverage has ranged from 7.06 to 19.22. According to the industry distribution chart, Nippon Building Fund ranks #130 out of 699 companies in the REITs industry, placing it in the top 18.6%.
Is Nippon Building Fund's Interest Coverage too high?
Nippon Building Fund's current Interest Coverage of 11.44 is 20% below median its 10-year median of 14.35. Over the past 10 years, this metric has ranged from a low of 7.06 to a high of 19.22. The REITs industry median Interest Coverage is 3.11. Nippon Building Fund's value of 11.44 is 267.8% above this industry median. Based on the distribution chart, Nippon Building Fund ranks #130 out of 699 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Building Fund has a GF Score™ of 56/100, reflecting its overall financial health beyond just this single metric.
How does Nippon Building Fund's Interest Coverage compare to BXP and ARE?
According to the REITs industry distribution chart, Nippon Building Fund ranks #130 out of 699 companies for Interest Coverage. This places Nippon Building Fund in the top 19% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 3.11. Nippon Building Fund's value of 11.44 is 267.8% above this benchmark. Historically, Nippon Building Fund's own Interest Coverage has ranged from 7.06 to 19.22 over the past decade. While the company's 10-year median is 14.35 vs. the industry median of 3.11, Nippon Building Fund has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a REITs company?
The median Interest Coverage among REITs companies is 3.11, based on 699 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nippon Building Fund's current Interest Coverage of 11.44 is 267.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nippon Building Fund and its competitors. For the REITs industry, the median Interest Coverage is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Building Fund's current Interest Coverage is 11.44, which is 20% below median its own 10-year median of 14.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Building Fund stock overvalued right now?
Nippon Building Fund (FRA:S4C) has a current Interest Coverage of 11.44. The stock's GF Value™ is €580.89, compared to a current price of €685.00 — trading 17.9% above its estimated fair value. The current Interest Coverage is 11.44, which is 20% below median its 10-year median of 14.35 and 267.8% above the REITs industry median of 3.11. Nippon Building Fund's overall GF Score™ is 56/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Nippon Building Fund (FRA:S4C), the current Interest Coverage is 11.44 as of Dec. 2025. 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 Nippon Building Fund (FRA:S4C) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Building Fund stock appears to be overvalued.
The current stock price of €685.00 is trading 17.9% above its estimated GF Value™ of €580.89.
Key valuation signals for FRA:S4C:
Interest Coverage: 11.44 (20% below median its 10-year median of 14.35)
GF Value™: €580.89 vs. price of €685.00 (17.9% above fair value)
Industry Position: 267.8% above the REITs median (#130 of 699)
No single metric tells the full story. See the FRA:S4C stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Building Fund Inc is a Japanese real estate investment trust engaged in the acquisition, ownership, and leasing of properties in the Greater Tokyo area. The company's real estate portfolio comprises of large corporate office buildings. The majority of these are located in the five wards of Tokyo's central business district. Office space located throughout the rest of Tokyo also makes up a substantial percentage of Nippon Building Fund's assets. The company derives the majority of its income in the form of rental revenue from tenants. Nippon Building Fund's customers are firms from the service, electrical equipment, and information and communications industries in terms of square footage used.
56GF Score
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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