Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Japan Hotel REIT Investment's annualized net income for the quarter that ended in Dec. 2025 was €157.5 Mil. Japan Hotel REIT Investment's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €1,451.0 Mil. Therefore, Japan Hotel REIT Investment's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 10.86%.
The historical rank and industry rank for Japan Hotel REIT Investment's Return-on-Tangible-Equity or its related term are showing as below:
FRA:2SN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.69 Med: 8.55 Max: 12.79
Current: 10.75
During the past 13 years, Japan Hotel REIT Investment's highest Return-on-Tangible-Equity was 12.79%. The lowest was 0.69%. And the median was 8.55%.
FRA:2SN's Return-on-Tangible-Equity is ranked better than 74.92% of 937
companies
in the REITs industry
Industry Median: 6.27
vs FRA:2SN: 10.75
Japan Hotel REIT Investment (FRA:2SN) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Japan Hotel REIT Investment Return-on-Tangible-Equity Related Terms
Japan Hotel REIT Investment Return-on-Tangible-Equity Historical Data
* 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.
Japan Hotel REIT Investment Return-on-Tangible-Equity Chart
FRA:2SN vs HST, RHP, APLE: Return-on-Tangible-Equity Comparison
For the REIT - Hotel & Motel subindustry, Japan Hotel REIT Investment's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Hotel REIT Investment Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Japan Hotel REIT Investment's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Japan Hotel REIT Investment's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 10.86% mean?
Japan Hotel REIT Investment (FRA:2SN) has a Return-on-Tangible-Equity of 10.86% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Japan Hotel REIT Investment and its competitors. This is 27% above median its historical median of 8.55. Over the past decade, Japan Hotel REIT Investment's Return-on-Tangible-Equity has ranged from 0.69 to 12.79. According to the industry distribution chart, Japan Hotel REIT Investment ranks #235 out of 937 companies in the REITs industry, placing it in the top 25.1%.
Is Japan Hotel REIT Investment's Return-on-Tangible-Equity too high?
Japan Hotel REIT Investment's current Return-on-Tangible-Equity of 10.86% is 27% above median its 10-year median of 8.55. Over the past 10 years, this metric has ranged from a low of 0.69 to a high of 12.79. The REITs industry median Return-on-Tangible-Equity is 6.27. Japan Hotel REIT Investment's value of 10.86% is 73.2% above this industry median. Based on the distribution chart, Japan Hotel REIT Investment ranks #235 out of 937 companies in the REITs industry, which is above the industry midpoint. Overall, Japan Hotel REIT Investment has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Japan Hotel REIT Investment's Return-on-Tangible-Equity compare to HST and RHP?
According to the REITs industry distribution chart, Japan Hotel REIT Investment ranks #235 out of 937 companies for Return-on-Tangible-Equity. This puts Japan Hotel REIT Investment in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.27. Japan Hotel REIT Investment's value of 10.86% is 73.2% above this benchmark. Historically, Japan Hotel REIT Investment's own Return-on-Tangible-Equity has ranged from 0.69 to 12.79 over the past decade. While the company's 10-year median is 8.55 vs. the industry median of 6.27, Japan Hotel 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 Return-on-Tangible-Equity for a REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.27, based on 937 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Japan Hotel REIT Investment's current Return-on-Tangible-Equity of 10.86% is 73.2% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Japan Hotel REIT Investment and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Hotel REIT Investment's current Return-on-Tangible-Equity is 10.86%, which is 27% above median its own 10-year median of 8.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Hotel REIT Investment stock overvalued right now?
Japan Hotel REIT Investment (FRA:2SN) has a current Return-on-Tangible-Equity of 10.86%. The stock's GF Value™ is €635.54, compared to a current price of €425.75 — trading 33% below its estimated fair value. The current Return-on-Tangible-Equity is 10.86%, which is 27% above median its 10-year median of 8.55 and 73.2% above the REITs industry median of 6.27. Japan Hotel REIT Investment's overall GF Score™ is 80/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Japan Hotel REIT Investment (FRA:2SN), the current Return-on-Tangible-Equity is 10.86% 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 Japan Hotel REIT Investment (FRA:2SN) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Hotel REIT Investment stock appears to be undervalued.
The current stock price of €425.75 is trading 33% below its estimated GF Value™ of €635.54.
Key valuation signals for FRA:2SN:
Return-on-Tangible-Equity: 10.86% (27% above median its 10-year median of 8.55)
GF Value™: €635.54 vs. price of €425.75 (33% below fair value)
Industry Position: 73.2% above the REITs median (#235 of 937)
No single metric tells the full story. See the FRA:2SN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Hotel REIT Investment Corp is a real estate investment trust. It aims to achieve stable earnings and sustainable growth in the asset from mid- to long-term perspectives. The company invests in business hotels, resort hotels, and city hotels, mainly located in the metropolitan areas and other cities of Japan.
80GF Score
Get the complete analysis for FRA:2SN
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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