ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Japan Real Estate Investment's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 3.50%.
As of today (2026-06-27), Japan Real Estate Investment's WACC % is 2.21%. Japan Real Estate Investment's ROC % is 3.42% (calculated using TTM income statement data).
Japan Real Estate Investment generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Japan Real Estate Investment (TSE:8952) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Japan Real Estate Investment's WACC % is 2.21%. Japan Real Estate Investment's ROC % is 3.42% (calculated using TTM income statement data).
Japan Real Estate Investment generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of 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.
Japan Real Estate Investment ROC % Related Terms
Japan Real Estate Investment ROC % 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.
Note:
The Operating Income data used here is two times the semi-annual (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 Real Estate Investment (TSE:8952) has a ROC % of 3.50% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Japan Real Estate Investment and its competitors.
Is Japan Real Estate Investment's ROC % too high?
Japan Real Estate Investment's current ROC % is 3.50%. The REITs industry median ROC % is 3.74. Japan Real Estate Investment's value of 3.50% is 6.4% below this industry median. Overall, Japan Real Estate Investment has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Japan Real Estate Investment's ROC % compare to BXP and ARE?
Japan Real Estate Investment's ROC % of 3.50% can be compared against companies in the REITs industry. The industry median ROC % is 3.74. Japan Real Estate Investment's value of 3.50% is 6.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a REITs company?
The median ROC % among REITs companies is 3.74, based on 749 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Japan Real Estate Investment's current ROC % of 3.50% is 6.4% below 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Japan Real Estate Investment and its competitors. For the REITs industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Real Estate Investment's current ROC % is 3.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Real Estate Investment stock overvalued right now?
Based on GuruFocus' analysis, Japan Real Estate Investment (TSE:8952) is currently considered Fairly Valued. The stock's GF Value™ is 円111,805.74, compared to a current price of 円118,000.00 — trading 5.5% above its estimated fair value. The current ROC % is 3.50% and 6.4% below the REITs industry median of 3.74. Japan Real Estate Investment's overall GF Score™ is 64/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Japan Real Estate Investment (TSE:8952), the current ROC % is 3.50% as of Mar. 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 Japan Real Estate Investment (TSE:8952) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Real Estate Investment stock appears to be overvalued.
The current stock price of 円118,000.00 is trading 5.5% above its estimated GF Value™ of 円111,805.74.
GuruFocus considers Japan Real Estate Investment to be Fairly Valued.
Key valuation signals for TSE:8952:
ROC %: 3.50%
GF Value™: 円111,805.74 vs. price of 円118,000.00 (5.5% above fair value)
No single metric tells the full story. See the TSE:8952 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Real Estate Investment Corp, or J-REIT, is a Japanese real estate investment trust that invests in, owns, and leases office properties. The vast majority of the company's real estate portfolio is located within Tokyo's 23 wards and the Tokyo metropolitan area in terms of total value. Within this area, J-REIT's offices reside within the Tokyo central business district. The company derives nearly all of its income in the form of rental revenue from the leasing of its office properties. While J-REIT tenants hail from a diverse assortment of industries, firms from the service, information services, electric devices, and financial services industries are its customers.
64GF Score
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