NTT UD REIT Investment Corporation — Cyborg Score 7/10

Solid
Real Estate Investment Trusts (J-REIT) - Office & Residential Properties

Strategic Profile

The fund aims to achieve sustainable growth in asset and stable earnings from mid- to long-term perspectives and mainly invests in office buildings and residences in Tokyo metropolitan area. Management recently rolled out a capital return package built around a buyback and higher distributions as a clear signal prioritizing unitholder value despite softer recent earnings.

Cyborg Score Rationale

NTT UD REIT has a dividend yield of 4.31% with dividend payments increased over the last 10 years and well covered by earnings with a payout ratio of 79.95%. The REIT trades at a 24.2x valuation multiple above the JP REITs industry average of 20.8x and peer average of 21x, suggesting investors assign it a higher quality or lower risk profile.

Top Insights

  • Dividend yield of 4.31% is in the top 25% of dividend payers in the JP market.
  • Share price has delivered strong year-to-date performance around 15 percent and one year total shareholder return above 24 percent.
  • Earnings have declined slightly over the past five years and return on equity at 5.8 percent indicates market pays premium for stability rather than rapid profit growth.
  • Received 4 Stars rating in 2025 GRESB Real Estate Assessment for the 2nd consecutive year.

Named Competitors

  • TOKYU REIT — J-REIT with mixed portfolio focus
  • United Urban Investment Corporation — Diversified J-REIT investor
  • MORI TRUST REIT — Premium property J-REIT

Recent Developments

  • (January 2026) Dividend distribution of JPY 3,140 per unit for October 2025 period began
  • (December 2025) Financial results announced for 46th fiscal period ending October 31, 2025
  • (2025) Achieved 4-star GRESB Real Estate Assessment rating for second consecutive year

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