Nomura Real Estate (3231) Q1 2027 earnings summary

Executive summary

• First quarter operating revenue was ¥191.064 billion, business profit ¥27.1 billion, and net profit attributable to owners ¥14.7 billion, all declining year-over-year, but progress is on track for full-year targets.

• Comprehensive income rose 37.1% year-over-year to ¥18.013 billion, despite lower profits.

• Full-year forecasts remain unchanged, expecting record-high operating revenue and profits, and a dividend increase for the 15th consecutive year.

Financial highlights

• Q1 operating revenue was ¥191.064 billion, down 13.7% year-over-year; business profit was ¥27.1 billion; net profit was ¥14.7 billion, all down from last year.

• Gross profit margin for housing sales in Q1 was 26.9%, expected to remain around 26% for the full year.

• Shareholders’ equity ratio stood at 28.3%, with total assets at ¥2,836.8 billion and interest-bearing debt at ¥1,696.5 billion.

• ROA for FY26/3 was 5.4% and ROE was 10.7%, both exceeding long-term targets.

• Basic EPS for Q1 was ¥17.23, down from ¥26.99 year-over-year.

Outlook and guidance

• Full-year operating revenue forecast is ¥1,080.0 billion, up 14.6% year-over-year; profit attributable to owners is projected at ¥86.0 billion, up 3.8% year-over-year; basic EPS forecast is ¥100.48.

• Annual dividend per share forecast is ¥44.0, up ¥4.0 year-over-year, with a payout ratio of 43.7%.

• No revision to full-year outlook despite cost and supply chain concerns; contingency reserves are expected to absorb material cost increases.