2016 All-Japan Research Team: REITs, No. 2: Tomohiro Araki
Institutional Investor Research is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

2016 All-Japan Research Team: REITs, No. 2: Tomohiro Araki

2016-04-tom-johnson-all-japan-research-team-tomohiro-araki-small.jpg

It’s five years at No. 2 for Nomura’s Tomohiro Araki.

< The 2016 All-Japan Research Team

2016-04-tom-johnson-all-japan-research-team-tomohiro-araki.jpg

Tomohiro Araki

Nomura

First-place appearances: 2


Total appearances: 7


Team debut: 2010


It’s five years at No. 2 for Nomura’s Tomohiro Araki, whom one portfolio manager hails as “forthright and honest about his opinions, offering balanced and useful thoughts.” Following 35 Japanese real estate investment trusts, five more than a year ago, the analyst expects to continue to increase coverage. In early September, after the domestic sector had shed 11.9 percent of its value during the preceding month, which was largely in line with Japan’s broad market decline over the period, he predicted a rally. The investment community was overreacting to concerns about an interest rate hike in the U.S., Araki reasoned, and the J-REITs should be buoyed by rents and occupancy rates that remained high. Sure enough, through the middle of last month, the group jumped 26.2 percent, outpacing domestic shares overall by 35.3 percentage points. Leading the charge going forward will be hotel and office REITs, he predicts, for their safe, reliable and high dividend yields. Among the 40-year-old researcher’s favorite names on this theme is Activia Properties, a Tokyo-headquartered metropolitan commercial REIT whose stock he assigns a year-end target price of ¥622,000. It was trading at ¥582,000 in mid-March. The 40-year-old researcher “always makes himself available for constructive conversations,” observes another client.



Gift this article