ESCON Japan REIT Investment (TSE:2971) Interest Coverage: 6.86 (As of Jan. 2026) — 60% Below Median

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TSE:2971 ESCON Japan REIT Investment Corp TSE:2971
60 GF Score
Price 円111,800.00
GF Value 円134,549.18
Valuation Modestly Undervalued
! 7 Warning Signs
View Full Analysis

What is ESCON Japan REIT Investment Interest Coverage?

ESCON Japan REIT Investment TSE:2971 -1.32% 60 Interest Coverage is 6.86 as of Jan. 2026, which is 60% below its 10-year median of 17.29. GuruFocus rates TSE:2971 with a GF Score™ of 60/100 and a GF Value™ of 円134,549.18 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 684 REITs companies, ESCON Japan REIT Investment ranks better than 73.83% on this metric.

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. ESCON Japan REIT Investment's Operating Income for the six months ended in Jan. 2026 was 円1,615 Mil. ESCON Japan REIT Investment's Interest Expense for the six months ended in Jan. 2026 was 円-235 Mil. ESCON Japan REIT Investment's interest coverage for the quarter that ended in Jan. 2026 was 6.86. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for ESCON Japan REIT Investment's Interest Coverage or its related term are showing as below:

TSE:2971' s Interest Coverage Range Over the Past 10 Years
Min: 7.49   Med: 17.29   Max: 18.3
Current: 7.49


TSE:2971's Interest Coverage is ranked better than
73.83% of 684 companies
in the REITs industry
Industry Median: 3.075 vs TSE:2971: 7.49

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


ESCON Japan REIT Investment  (TSE:2971) 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 .


ESCON Japan REIT Investment Interest Coverage Related Terms


ESCON Japan REIT Investment Interest Coverage Historical Data

* Premium members only.

The historical data trend for ESCON Japan REIT Investment'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.

ESCON Japan REIT Investment Interest Coverage Chart

ESCON Japan REIT Investment Annual Data
Trend Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25
Interest Coverage
Get a 7-Day Free Trial 17.93 17.29 16.09 14.14 9.07

ESCON Japan REIT Investment Semi-Annual Data
Oct17 Apr18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24 Jan25 Jul25 Jan26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.68 12.92 10.32 8.22 6.86

TSE:2971 vs SPG, O, KIM: Interest Coverage Comparison

For the REIT - Retail subindustry, ESCON Japan REIT Investment'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.


ESCON Japan REIT Investment Interest Coverage vs REITs Industry

For the REITs industry and Real Estate sector, ESCON Japan REIT Investment's Interest Coverage distribution charts can be found below:

* The bar in red indicates where ESCON Japan REIT Investment's Interest Coverage falls into.


TSE:2971
60GF Score
ESCON Japan REIT Investment Corp TSE:2971
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

ESCON Japan REIT Investment 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

ESCON Japan REIT Investment's Interest Coverage for the fiscal year that ended in Jul. 2025 is calculated as

Here, for the fiscal year that ended in Jul. 2025, ESCON Japan REIT Investment's Interest Expense was 円-343 Mil. Its Operating Income was 円3,108 Mil. And its Long-Term Debt & Capital Lease Obligation was 円21,715 Mil.

Interest Coverage=-1* Operating Income (A: Jul. 2025 )/Interest Expense (A: Jul. 2025 )
=-1*3107.735/-342.553
=9.07

ESCON Japan REIT Investment's Interest Coverage for the quarter that ended in Jan. 2026 is calculated as

Here, for the six months ended in Jan. 2026, ESCON Japan REIT Investment's Interest Expense was 円-235 Mil. Its Operating Income was 円1,615 Mil. And its Long-Term Debt & Capital Lease Obligation was 円24,650 Mil.

Interest Coverage=-1* Operating Income (Q: Jan. 2026 )/Interest Expense (Q: Jan. 2026 )
=-1*1615.38/-235.466
=6.86

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 6.86 mean?
ESCON Japan REIT Investment (TSE:2971) has a Interest Coverage of 6.86 as of Jan. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ESCON Japan REIT Investment and its competitors. This is 60% below median its historical median of 17.29. Over the past decade, ESCON Japan REIT Investment's Interest Coverage has ranged from 7.49 to 18.30. According to the industry distribution chart, ESCON Japan REIT Investment ranks #179 out of 684 companies in the REITs industry, placing it in the top 26.2%.
Is ESCON Japan REIT Investment's Interest Coverage too high?
ESCON Japan REIT Investment's current Interest Coverage of 6.86 is 60% below median its 10-year median of 17.29. Over the past 10 years, this metric has ranged from a low of 7.49 to a high of 18.30. The REITs industry median Interest Coverage is 3.08. ESCON Japan REIT Investment's value of 6.86 is 123.1% above this industry median. Based on the distribution chart, ESCON Japan REIT Investment ranks #179 out of 684 companies in the REITs industry, which is above the industry midpoint. Overall, ESCON Japan REIT Investment has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ESCON Japan REIT Investment's Interest Coverage compare to SPG and O?
According to the REITs industry distribution chart, ESCON Japan REIT Investment ranks #179 out of 684 companies for Interest Coverage. This puts ESCON Japan REIT Investment in the upper half of its industry. The industry median Interest Coverage is 3.08. ESCON Japan REIT Investment's value of 6.86 is 123.1% above this benchmark. Historically, ESCON Japan REIT Investment's own Interest Coverage has ranged from 7.49 to 18.30 over the past decade. While the company's 10-year median is 17.29 vs. the industry median of 3.08, ESCON Japan REIT Investment 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 3.08, based on 684 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. ESCON Japan REIT Investment's current Interest Coverage of 6.86 is 123.1% 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 ESCON Japan REIT Investment and its competitors. For the REITs industry, the median Interest Coverage is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ESCON Japan REIT Investment's current Interest Coverage is 6.86, which is 60% below median its own 10-year median of 17.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ESCON Japan REIT Investment stock overvalued right now?
Based on GuruFocus' analysis, ESCON Japan REIT Investment (TSE:2971) is currently considered Modestly Undervalued. The stock's GF Value™ is 円134,549.18, compared to a current price of 円111,800.00 — trading 16.9% below its estimated fair value. The current Interest Coverage is 6.86, which is 60% below median its 10-year median of 17.29 and 123.1% above the REITs industry median of 3.08. ESCON Japan REIT Investment's overall GF Score™ is 60/100 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 ESCON Japan REIT Investment (TSE:2971), the current Interest Coverage is 6.86 as of Jan. 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 ESCON Japan REIT Investment (TSE:2971) Overvalued in 2026?

Based on GuruFocus' analysis, ESCON Japan REIT Investment stock appears to be undervalued. The current stock price of 円111,800.00 is trading 16.9% below its estimated GF Value™ of 円134,549.18. GuruFocus considers ESCON Japan REIT Investment to be Modestly Undervalued.

Key valuation signals for TSE:2971:

  • Interest Coverage: 6.86 (60% below median its 10-year median of 17.29)
  • GF Value™: 円134,549.18 vs. price of 円111,800.00 (16.9% below fair value)
  • GF Score™: 60/100 with 7 warning signs
  • Industry Position: 123.1% above the REITs median (#179 of 684)

No single metric tells the full story. See the TSE:2971 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


ESCON Japan REIT Investment Business Description

Industry Real EstateREITs
Address Okura Prestige Tower 20F, 2-10-4 Toranomon, Minato-ku, Tokyo, JPN, 105-0001
ESCON Japan REIT Investment Corp is a Japanese real estate investment trust that invests in lifestyle-related assets. Its main investment is leasehold land properties known as "sokochi," with stable, high-quality commercial facilities occupying the site.
60GF Score

Get the complete analysis for TSE:2971

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円111,800.00
Price
円134,549.18
GF Value