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. Daiwa Office Investment's
Operating Income
for the
six
months ended in Nov. 2025 was 円8,594 Mil. Daiwa Office Investment's Interest Expense for the
six
months ended in Nov. 2025 was 円-948 Mil.
Daiwa Office Investment's interest coverage for the quarter that ended in Nov. 2025 was 9.06.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Daiwa Office Investment's Interest Coverage or its related term are showing as below:
TSE:8976'
s Interest Coverage Range Over the Past 10 Years
Min: 8.72 Med: 13.4 Max: 17.71
Current: 9.26
TSE:8976's Interest Coverage is ranked better than 76.82% of 699
companies
in the REITs industry
Industry Median: 3.11
vs TSE:8976: 9.26
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 .
Daiwa Office Investment Interest Coverage Related Terms
Daiwa Office Investment Interest Coverage Historical Data
* Premium members only.
The historical data trend for Daiwa Office 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.
TSE:8976 vs BXP, ARE, VNO: Interest Coverage Comparison
For the REIT - Office subindustry, Daiwa Office 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.
Daiwa Office Investment Interest Coverage vs REITs Industry
For the REITs industry and Real Estate sector, Daiwa Office Investment's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Daiwa Office Investment's Interest Coverage falls into.
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.
Daiwa Office Investment (TSE:8976) has a Interest Coverage of 9.06 as of Nov. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Daiwa Office Investment and its competitors. This is 32% below median its historical median of 13.40. Over the past decade, Daiwa Office Investment's Interest Coverage has ranged from 8.72 to 17.71. According to the industry distribution chart, Daiwa Office Investment ranks #162 out of 699 companies in the REITs industry, placing it in the top 23.2%.
Is Daiwa Office Investment's Interest Coverage too high?
Daiwa Office Investment's current Interest Coverage of 9.06 is 32% below median its 10-year median of 13.40. Over the past 10 years, this metric has ranged from a low of 8.72 to a high of 17.71. The REITs industry median Interest Coverage is 3.11. Daiwa Office Investment's value of 9.06 is 191.3% above this industry median. Based on the distribution chart, Daiwa Office Investment ranks #162 out of 699 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Daiwa Office Investment has a GF Score™ of 62/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Daiwa Office Investment's Interest Coverage compare to BXP and ARE?
According to the REITs industry distribution chart, Daiwa Office Investment ranks #162 out of 699 companies for Interest Coverage. This places Daiwa Office Investment in the top 23% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 3.11. Daiwa Office Investment's value of 9.06 is 191.3% above this benchmark. Historically, Daiwa Office Investment's own Interest Coverage has ranged from 8.72 to 17.71 over the past decade. While the company's 10-year median is 13.40 vs. the industry median of 3.11, Daiwa Office 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 3.11, 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. Daiwa Office Investment's current Interest Coverage of 9.06 is 191.3% 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 Daiwa Office Investment 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. Daiwa Office Investment's current Interest Coverage is 9.06, which is 32% below median its own 10-year median of 13.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daiwa Office Investment stock overvalued right now?
Based on GuruFocus' analysis, Daiwa Office Investment (TSE:8976) is currently considered Fairly Valued. The stock's GF Value™ is 円349,173.95, compared to a current price of 円331,500.00 — trading 5.1% below its estimated fair value. The current Interest Coverage is 9.06, which is 32% below median its 10-year median of 13.40 and 191.3% above the REITs industry median of 3.11. Daiwa Office Investment's overall GF Score™ is 62/100 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 Daiwa Office Investment (TSE:8976), the current Interest Coverage is 9.06 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 Daiwa Office Investment (TSE:8976) Overvalued in 2026?
Based on GuruFocus' analysis, Daiwa Office Investment stock appears to be undervalued.
The current stock price of 円331,500.00 is trading 5.1% below its estimated GF Value™ of 円349,173.95.
GuruFocus considers Daiwa Office Investment to be Fairly Valued.
Key valuation signals for TSE:8976:
Interest Coverage: 9.06 (32% below median its 10-year median of 13.40)
GF Value™: 円349,173.95 vs. price of 円331,500.00 (5.1% below fair value)
Industry Position: 191.3% above the REITs median (#162 of 699)
No single metric tells the full story. See the TSE:8976 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daiwa Office Investment Corp is a real estate investment trust focused on acquiring, managing, and leasing office properties located in the Five Central Wards of Tokyo. The vast majority of the company's real estate portfolio is composed of office buildings fairly evenly distributed between Tokyo's Five Central Wards in terms of total value. Daiwa derives nearly all of its income in the form of rental revenue from leasing its properties. The firm has a varied tenant base from a number of industries, including the entertainment, retail, insurance, and food and beverage companies.
62GF Score
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