Japan Hotel REIT InvestmentNIPOF 75 ROE % is 9.72% as of Dec. 2025, which is 36% above its 10-year median of 7.13. GuruFocus rates NIPOF with a GF Score™ of 75/100 and a GF Value™ of $755.11 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 933 REITs companies, Japan Hotel REIT Investment ranks better than 71.49% on this metric.
The historical rank and industry rank for Japan Hotel REIT Investment's ROE % or its related term are showing as below:
NIPOF'
s ROE % Range Over the Past 10 Years
Min: 0.59 Med: 7.13 Max: 9.72
Current: 9.55
During the past 13 years, Japan Hotel REIT Investment's highest ROE % was 9.72%. The lowest was 0.59%. And the median was 7.13%.
NIPOF's ROE % is ranked better than 71.49% of 933
companies
in the REITs industry
Industry Median: 6.2
vs NIPOF: 9.55
Japan Hotel REIT Investment (OTCPK:NIPOF) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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 - Hotel & Motel subindustry, Japan Hotel REIT Investment's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs REITs Industry
For the REITs industry and Real Estate sector, Japan Hotel REIT Investment's ROE % distribution charts can be found below:
* The bar in red indicates where Japan Hotel REIT Investment's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Japan Hotel REIT Investment (NIPOF) has a ROE % of 9.72% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Japan Hotel REIT Investment and its competitors. This is 36% above median its historical median of 7.13. Over the past decade, Japan Hotel REIT Investment's ROE % has ranged from 0.59 to 9.72. According to the industry distribution chart, Japan Hotel REIT Investment ranks #266 out of 933 companies in the REITs industry, placing it in the top 28.5%.
Is Japan Hotel REIT Investment's ROE % too high?
Japan Hotel REIT Investment's current ROE % of 9.72% is 36% above median its 10-year median of 7.13. Over the past 10 years, this metric has ranged from a low of 0.59 to a high of 9.72. The REITs industry median ROE % is 6.20. Japan Hotel REIT Investment's value of 9.72% is 56.8% above this industry median. Based on the distribution chart, Japan Hotel REIT Investment ranks #266 out of 933 companies in the REITs industry, which is above the industry midpoint. Overall, Japan Hotel REIT Investment has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Japan Hotel REIT Investment's ROE % compare to HST and RHP?
According to the REITs industry distribution chart, Japan Hotel REIT Investment ranks #266 out of 933 companies for ROE %. This puts Japan Hotel REIT Investment in the upper half of its industry. The industry median ROE % is 6.20. Japan Hotel REIT Investment's value of 9.72% is 56.8% above this benchmark. Historically, Japan Hotel REIT Investment's own ROE % has ranged from 0.59 to 9.72 over the past decade. While the company's 10-year median is 7.13 vs. the industry median of 6.20, 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 ROE % for a REITs company?
The median ROE % among REITs companies is 6.20, based on 933 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Japan Hotel REIT Investment's current ROE % of 9.72% is 56.8% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Japan Hotel REIT Investment and its competitors. For the REITs industry, the median ROE % is 6.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Hotel REIT Investment's current ROE % is 9.72%, which is 36% above median its own 10-year median of 7.13. 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?
Based on GuruFocus' analysis, Japan Hotel REIT Investment (NIPOF) is currently considered Possible Value Trap. The stock's GF Value™ is $755.11, compared to a current price of $471.74 — trading 37.5% below its estimated fair value. The current ROE % is 9.72%, which is 36% above median its 10-year median of 7.13 and 56.8% above the REITs industry median of 6.20. Japan Hotel REIT Investment's overall GF Score™ is 75/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Japan Hotel REIT Investment (NIPOF), the current ROE % is 9.72% 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 (NIPOF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Hotel REIT Investment stock appears to be undervalued.
The current stock price of $471.74 is trading 37.5% below its estimated GF Value™ of $755.11.
GuruFocus considers Japan Hotel REIT Investment to be Possible Value Trap.
Key valuation signals for NIPOF:
ROE %: 9.72% (36% above median its 10-year median of 7.13)
GF Value™: $755.11 vs. price of $471.74 (37.5% below fair value)
Industry Position: 56.8% above the REITs median (#266 of 933)
No single metric tells the full story. See the NIPOF 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.
75GF Score
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