S
ankei Real Estate (TSE:2972) reported a net profit margin of 43.8%, a sharp rise from 20.9% a year earlier. Year‑over‑year earnings grew 4.9%, comfortably outpacing the company’s five‑year average of 1.4% per year. The firm’s earnings quality is underscored by a P/E ratio of 20.7x, higher than the peer group average of 19.7x and the Asian Office REITs industry average of 20.4x, indicating a valuation premium. Shares trade at ¥99,400, well above the discounted‑cash‑flow fair value estimate of ¥64,166.39. While the improved profitability attracts investors, concerns about the sustainability of financial performance and dividend payouts remain central to the current outlook.