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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Heiwa Real Estate REIT's annualizedNet Income for the quarter that ended in Nov. 2025 was 円10,413 Mil.
Heiwa Real Estate REIT's average Total Assets over the quarter that ended in Nov. 2025 was 円267,670 Mil. Therefore, Heiwa Real Estate REIT's annualized ROA % for the quarter that ended in Nov. 2025 was 3.89%.
The historical rank and industry rank for Heiwa Real Estate REIT's ROA % or its related term are showing as below:
TSE:8966'
s ROA % Range Over the Past 10 Years
Min: 1.68 Med: 3.19 Max: 4.03
Current: 3.86
During the past 13 years, Heiwa Real Estate REIT's highest ROA % was 4.03%. The lowest was 1.68%. And the median was 3.19%.
TSE:8966's ROA % is ranked better than 56.81% of 933
companies
in the REITs industry
Industry Median: 3.21
vs TSE:8966: 3.86
Heiwa Real Estate REIT (TSE:8966) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Nov. 2025) net income data. The Revenue data used here is two times the semi-annual (Nov. 2025) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the REIT - Diversified subindustry, Heiwa Real Estate REIT's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs REITs Industry
For the REITs industry and Real Estate sector, Heiwa Real Estate REIT's ROA % distribution charts can be found below:
* The bar in red indicates where Heiwa Real Estate REIT's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Nov. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Heiwa Real Estate REIT (TSE:8966) has a ROA % of 3.89% as of Nov. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Heiwa Real Estate REIT and its competitors. This is 22% above median its historical median of 3.19. Over the past decade, Heiwa Real Estate REIT's ROA % has ranged from 1.68 to 4.03. According to the industry distribution chart, Heiwa Real Estate REIT ranks #403 out of 933 companies in the REITs industry, placing it in the top 43.2%.
Is Heiwa Real Estate REIT's ROA % too high?
Heiwa Real Estate REIT's current ROA % of 3.89% is 22% above median its 10-year median of 3.19. Over the past 10 years, this metric has ranged from a low of 1.68 to a high of 4.03. The REITs industry median ROA % is 3.21. Heiwa Real Estate REIT's value of 3.89% is 21.2% above this industry median. Based on the distribution chart, Heiwa Real Estate REIT ranks #403 out of 933 companies in the REITs industry, which is above the industry midpoint. 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 ROA % compare to VICI and WPC?
According to the REITs industry distribution chart, Heiwa Real Estate REIT ranks #403 out of 933 companies for ROA %. This puts Heiwa Real Estate REIT in the upper half of its industry. The industry median ROA % is 3.21. Heiwa Real Estate REIT's value of 3.89% is 21.2% above this benchmark. Historically, Heiwa Real Estate REIT's own ROA % has ranged from 1.68 to 4.03 over the past decade. While the company's 10-year median is 3.19 vs. the industry median of 3.21, 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 ROA % for a REITs company?
The median ROA % among REITs companies is 3.21, based on 933 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Heiwa Real Estate REIT's current ROA % of 3.89% is 21.2% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Heiwa Real Estate REIT and its competitors. For the REITs industry, the median ROA % is 3.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Heiwa Real Estate REIT's current ROA % is 3.89%, which is 22% above median its own 10-year median of 3.19. 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 ROA % is 3.89%, which is 22% above median its 10-year median of 3.19 and 21.2% above the REITs industry median of 3.21. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Heiwa Real Estate REIT (TSE:8966), the current ROA % is 3.89% 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:
ROA %: 3.89% (22% above median its 10-year median of 3.19)
GF Value™: 円163,138.94 vs. price of 円135,500.00 (16.9% below fair value)
Industry Position: 21.2% above the REITs median (#403 of 933)
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
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