Nomura Real Estate (3231) Q3 2025 earnings summary

Executive summary

• Operating revenue for the third quarter reached ¥571.8 billion, business profit ¥101.3 billion, and net profit ¥62.4 billion, all record highs for the period, with profit attributable to owners of parent up 44.4% year-over-year.

• All major business units posted year-on-year increases in operating revenue and profit, driven by increased housing unit sales, higher average prices, and expansion in hotel and overseas businesses.

• Full-year earnings and dividend forecasts were revised upward due to strong performance, with a planned 5-for-1 stock split effective April 1, 2025.

• Growth was especially notable in Residential Development, Commercial Real Estate, and Overseas segments, including significant contributions from Vietnam.

• Dividend per share forecast for FY25/3 was raised to ¥170, marking 13 consecutive years of increases.

Financial highlights

• Operating revenue for the third quarter was ¥571.8 billion (up 10.3% YoY), business profit ¥101.3 billion (up ¥20.9 billion YoY), and net profit ¥62.4 billion (up 44.4% YoY).

• Full-year operating revenue forecast revised to ¥760 billion, with business profit, ordinary profit, and net profit each revised up by ¥2 billion.

• Gross profit ratio of housing sales was 27% through Q3, expected to be 26% for the full year.

• Basic EPS rose to ¥361.34 (up ¥112.93 YoY).

• Cash and cash equivalents at period end were ¥31,301 million, down ¥22,510 million from the previous fiscal year end.

Outlook and guidance

• Full-year forecasts for business profit, ordinary profit, and profit attributable to owners of parent were revised upward, with operating revenue expected at ¥760 billion, business profit at ¥120 billion, and net profit at ¥72 billion.

• Dividend forecast raised to ¥170 per share, with a payout ratio of 40.7% and total return ratio of 47.7%.

• Business profit target of ¥115 billion for Phase I of the Mid- to Long-term Business Plan expected to be exceeded.

• Segment guidance adjusted, with Residential Development and Commercial Real Estate revenue forecasts lowered, but business profit forecast for Residential Development raised.

• 5-for-1 stock split effective April 1, 2025, to expand investor base and improve liquidity.