Nomura Real Estate (3231) Q4 2026 earnings summary

Executive summary

• Achieved record operating revenue of JPY 942.5 billion (up 24.4% YoY), business profit of JPY 147.3 billion (+17.8% YoY), and net profit of JPY 82.8 billion (+10.8% YoY) for FY March 2026, with a 14th consecutive annual dividend increase.

• Surpassed business profit growth targets and made strong progress in the first year of the three-year business plan.

• All major domestic business units posted revenue and profit growth, especially in housing sales and commercial real estate, while the overseas segment declined due to lower sales in Vietnam.

• Extraordinary losses were recognized due to impairment and demolition costs for the Hamamatsucho Building.

Financial highlights

• ROA reached 5.4% and ROE 10.7%, both exceeding long-term targets.

• Housing sales for FY March 2026 totaled JPY 311.1 billion with a gross profit ratio of 26.6%.

• Commercial real estate segment operating revenue was JPY 218.3 billion, gross profit JPY 60 billion.

• Dividend per share for FY26/3 was JPY 40.0 (up 6.0 YoY), with a payout ratio of 41.4%.

• Shareholders’ equity ratio improved to 28.5%; debt-to-equity ratio at 2.0x.

Outlook and guidance

• FY March 2027 guidance: operating revenue JPY 1,080.0 billion (+14.6% YoY), business profit JPY 150.0 billion (+1.8% YoY), net profit JPY 86.0 billion (+3.8% YoY), and dividend per share of JPY 44.0.

• Growth expected in Residential Development and Investment Management, with stable or slightly lower profit in Commercial Real Estate and Overseas segments.

• Overseas segment business profit expected to decline due to revised property supply plan amid geopolitical risks.

• Average annual business profit growth rate for first two years of the plan expected at 9.5%, exceeding the 8.5% target.