Nomura Real Estate (3231) Q4 2025 earnings summary

Executive summary

• Achieved record highs in operating revenue (¥757.6 billion), business profit (¥125.1 billion), and profit attributable to owners (¥74.8 billion) for FY2024, with business profit up 10.1% and net profit up 9.8% year-over-year.

• Growth was driven by strong housing sales, higher average prices, UDS Ltd. acquisition, hotel business consolidation, and overseas expansion, notably in Vietnam.

• Dividend per share increased for the 14th consecutive year, with a forecasted rise to ¥36.0 for FY2026.

• Commercial real estate BU saw a decline in revenue and profit due to reduced property sales, offset by strong group performance.

• A 5-for-1 stock split was executed on April 1, 2025, to improve share liquidity.

Financial highlights

• FY2024 gross profit ratio reached 26.9% due to rising average housing prices; FY2025 gross profit ratio expected at 24%.

• Operating profit: ¥118.9 billion (up 6.1% YoY); ordinary profit: ¥106.7 billion (up 8.6% YoY); basic EPS: ¥86.77.

• Shareholders’ equity ratio decreased to 27.9% due to business expansion and asset growth; debt-to-equity ratio rose to 2.1.

• Land acquisition for high-end housing secured for about 2,000 units, equivalent to ¥450 billion in sales, covering bookings through FY2028.

• Rental housing land bank at 36 projects (¥115.8 billion); commercial real estate land bank exceeded ¥1 trillion, mainly logistics.

Outlook and guidance

• FY2026 forecast: operating revenue ¥940 billion (+24% YoY), business profit ¥135 billion (+7.8% YoY), net income ¥75 billion, EPS ¥87.33, all projected as record highs.

• Expecting robust housing and property sales, with Vietnam continuing to contribute to overseas earnings.

• FY2026 dividend forecast at ¥36, payout ratio 41.2%, marking 14 consecutive years of dividend increases.