Japan Real Estate Investment (Japan Real Estate Investment) Operating Income : $257.7 Mil (TTM As of Sep. 2023)

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What is Japan Real Estate Investment Operating Income?

Japan Real Estate Investment's Operating Income for the six months ended in Sep. 2023 was $122.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was $257.7 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Japan Real Estate Investment's Operating Income for the six months ended in Sep. 2023 was $122.1 Mil. Japan Real Estate Investment's Revenue for the six months ended in Sep. 2023 was $261.3 Mil. Therefore, Japan Real Estate Investment's Operating Margin % for the quarter that ended in Sep. 2023 was 46.72%.

Good Sign:

Japan Real Estate Investment Corp operating margin is expanding. Margin expansion is usually a good sign.

Japan Real Estate Investment's 5-Year average Growth Rate for Operating Margin % was 1.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Japan Real Estate Investment's annualized ROC % for the quarter that ended in Sep. 2023 was 3.06%. Japan Real Estate Investment's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 3.39%.

Japan Real Estate Investment Operating Income Historical Data

The historical data trend for Japan Real Estate Investment's Operating Income can be seen below:

* 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.

* Premium members only.

Japan Real Estate Investment Operating Income Chart

Japan Real Estate Investment Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Operating Income

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288.66

320.61

316.57

245.31

237.34

Japan Real Estate Investment Semi-Annual Data
	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
Operating Income	Get a 7-Day Free Trial															144.27	125.92	127.49	122.08	135.61

Japan Real Estate Investment Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was $257.7 Mil.

Japan Real Estate Investment (OTCPK:JREIF) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Japan Real Estate Investment's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	244.156 * ( 1 - 0.07% )	/	( (8372.317	+	7569.621)	/ 2 )
=	243.9850908	/	7970.969
=	3.06 %

where

	Invested Capital		(Q: Mar. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	7834.242	-	40.066	-	( 174.626	-	max(0, 825.769	-	247.628	+	174.626	))
=	8372.317

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	7151.353	-	44.985	-	( 196.751	-	max(0, 713.92	-	250.667	+	196.751	))
=	7569.621

Note: The Operating Income data used here is two times the semi-annual (Sep. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Japan Real Estate Investment's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	243.252	/	( ( (7520.865 + max(8.842, 0))	+	(6841.466 + max(-15.41, 0)) )	/	2 )
=	243.252	/	( ( 7529.707	+	6841.466 )	/	2 )
=	243.252	/	7185.5865
=	3.39 %

where Working Capital is:

	Working Capital		(Q: Mar. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(3.656	+	0	+	69.346)	-	(40.066	+	0	+	24.094)
=	8.842

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(3.837	+	0	+	50.079)	-	(44.985	+	0	+	24.341)
=	-15.41

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Sep. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Japan Real Estate Investment's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	122.078	/	261.273
	=	46.72 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Japan Real Estate Investment Operating Income Related Terms

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Japan Real Estate Investment (Japan Real Estate Investment) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Japan Real Estate Investment Corp (OTCPK:JREIF) » Definitions » Operating Income

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Traded in Other Exchanges

8952:Japan

Address

3-3-1 Marunouchi, Chiyoda-ku, Tokyo, JPN, 100-0005

Website

http://www.j-re.co.jp

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, most of 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 largest customers in terms of total leased space.