Nomura Real Estate (3231) Q1 2025 earnings summary

Executive summary

• Operating revenue for FY25/3 Q1 was ¥200.9 billion, down 4.0% year-over-year; business profit was ¥38.3 billion, down 0.5% year-over-year; profit attributable to owners of parent was ¥24.4 billion, up 0.4% year-over-year.

• Comprehensive income rose 0.5% year-over-year to ¥26,274 million.

• Residential Development and Overseas segments saw profit increases, while Commercial Real Estate experienced a decline in business profit due to lower property sales gross profit.

• No changes were made to the full-year earnings or dividend forecasts announced in April 2024.

Financial highlights

• Operating revenue: ¥200.9 billion (down ¥8.4 billion YoY).

• Business profit: ¥38.3 billion (down ¥0.1 billion YoY).

• Ordinary profit: ¥33.7 billion (down ¥1.7 billion YoY).

• Basic EPS: ¥141.39 (up ¥1.48 YoY).

• Gross profit increased to ¥71,755 million from ¥69,401 million year-over-year.

Outlook and guidance

• FY25/3 business profit forecast remains at ¥118.0 billion, with profit attributable to owners of parent forecast at ¥70.0 billion.

• Dividend per share is expected to rise to ¥165.0, marking the 13th consecutive year of increases, with a payout ratio of 40.7%.

• Mid- to Long-term Business Plan targets business profit of ¥115.0 billion for Phase I (FY25/3), with an average annual growth rate of 8.4%.