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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. Heiwa Real Estate REIT's
Operating Income
for the
six
months ended in Nov. 2025 was 円5,985 Mil. Heiwa Real Estate REIT's Interest Expense for the
six
months ended in Nov. 2025 was 円-694 Mil.
Heiwa Real Estate REIT's interest coverage for the quarter that ended in Nov. 2025 was 8.62.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Heiwa Real Estate REIT's Interest Coverage or its related term are showing as below:
TSE:8966'
s Interest Coverage Range Over the Past 10 Years
Min: 5.14 Med: 9.6 Max: 10.65
Current: 8.98
TSE:8966's Interest Coverage is ranked better than 76.55% of 695
companies
in the REITs industry
Industry Median: 3.12
vs TSE:8966: 8.98
Heiwa Real Estate REIT (TSE:8966) 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 .
Heiwa Real Estate REIT Interest Coverage Related Terms
Heiwa Real Estate REIT Interest Coverage Historical Data
* Premium members only.
The historical data trend for Heiwa Real Estate REIT'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.
TSE:8966 vs VICI, WPC: Interest Coverage Comparison
For the REIT - Diversified subindustry, Heiwa Real Estate REIT'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.
Heiwa Real Estate REIT Interest Coverage vs REITs Industry
For the REITs industry and Real Estate sector, Heiwa Real Estate REIT's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Heiwa Real Estate REIT's Interest Coverage falls into.
Heiwa Real Estate REIT 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.
Heiwa Real Estate REIT (TSE:8966) has a Interest Coverage of 8.62 as of Nov. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Heiwa Real Estate REIT and its competitors. This is 10% below median its historical median of 9.60. Over the past decade, Heiwa Real Estate REIT's Interest Coverage has ranged from 5.14 to 10.65. According to the industry distribution chart, Heiwa Real Estate REIT ranks #163 out of 695 companies in the REITs industry, placing it in the top 23.5%.
Is Heiwa Real Estate REIT's Interest Coverage too high?
Heiwa Real Estate REIT's current Interest Coverage of 8.62 is 10% below median its 10-year median of 9.60. Over the past 10 years, this metric has ranged from a low of 5.14 to a high of 10.65. The REITs industry median Interest Coverage is 3.12. Heiwa Real Estate REIT's value of 8.62 is 176.3% above this industry median. Based on the distribution chart, Heiwa Real Estate REIT ranks #163 out of 695 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Heiwa Real Estate REIT has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Heiwa Real Estate REIT's Interest Coverage compare to VICI and WPC?
According to the REITs industry distribution chart, Heiwa Real Estate REIT ranks #163 out of 695 companies for Interest Coverage. This places Heiwa Real Estate REIT in the top 24% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 3.12. Heiwa Real Estate REIT's value of 8.62 is 176.3% above this benchmark. Historically, Heiwa Real Estate REIT's own Interest Coverage has ranged from 5.14 to 10.65 over the past decade. While the company's 10-year median is 9.60 vs. the industry median of 3.12, Heiwa Real Estate REIT 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 3.12, based on 695 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. Heiwa Real Estate REIT's current Interest Coverage of 8.62 is 176.3% 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 Heiwa Real Estate REIT and its competitors. For the REITs industry, the median Interest Coverage is 3.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Heiwa Real Estate REIT's current Interest Coverage is 8.62, which is 10% below median its own 10-year median of 9.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heiwa Real Estate REIT stock overvalued right now?
Based on GuruFocus' analysis, Heiwa Real Estate REIT (TSE:8966) is currently considered Modestly Undervalued. The stock's GF Value™ is 円163,138.94, compared to a current price of 円135,500.00 — trading 16.9% below its estimated fair value. The current Interest Coverage is 8.62, which is 10% below median its 10-year median of 9.60 and 176.3% above the REITs industry median of 3.12. Heiwa Real Estate REIT's overall GF Score™ is 70/100 with 4 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 Heiwa Real Estate REIT (TSE:8966), the current Interest Coverage is 8.62 as of Nov. 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 Heiwa Real Estate REIT (TSE:8966) Overvalued in 2026?
Based on GuruFocus' analysis, Heiwa Real Estate REIT stock appears to be undervalued.
The current stock price of 円135,500.00 is trading 16.9% below its estimated GF Value™ of 円163,138.94.
GuruFocus considers Heiwa Real Estate REIT to be Modestly Undervalued.
Key valuation signals for TSE:8966:
Interest Coverage: 8.62 (10% below median its 10-year median of 9.60)
GF Value™: 円163,138.94 vs. price of 円135,500.00 (16.9% below fair value)
Industry Position: 176.3% above the REITs median (#163 of 695)
No single metric tells the full story. See the TSE:8966 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Heiwa Real Estate REIT Inc is a real estate company that invests in office buildings and residential buildings located in the Tokyo Metropolitan Area and other cities across Japan. The company leases its buildings for rental revenue and renovates its properties. The tenants include both individuals and businesses from various industries such as wholesale and retail, manufacturing, and information and technology services.
70GF Score
Get the complete analysis for TSE:8966
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