Nomura Real Estate (3231) Q1 2026 earnings summary

Executive summary

• Operating revenue for the first quarter rose 10.2% year-over-year to JPY 221.4 billion, while business profit was JPY 38.6 billion and profit attributable to owners was JPY 23.1 billion, in line with full-year forecasts.

• Business profit increased 0.7% year-over-year, but operating profit declined 3.6% and net profit fell 5.0%.

• Comprehensive income dropped 50.0% year-over-year to JPY 13,136 million, mainly due to negative foreign currency translation adjustments.

• No changes were made to the full-year earnings and dividend forecasts announced in April 2025.

Financial highlights

• Gross profit ratio for housing sales in Q1 was 25.9%; full-year gross margin expected at 24%.

• Property sales in Q1 totaled JPY 36.5 billion, with gross profits of JPY 10.4 billion; full-year gross profit on sales expected between JPY 40-50 billion.

• Operating revenue and profit increased in commercial real estate and property brokerage units, with commercial real estate revenue up 55.0% and business profit up 25.4%.

• Basic earnings per share for 1Q was 26.99 yen, adjusted for a 5-for-1 stock split effective April 2025.

• Total assets decreased 1.1% from March 31, 2025, to JPY 2,657,669 million; net assets slightly decreased to JPY 750,388 million.

Outlook and guidance

• Full-year operating revenue is forecast at JPY 940 billion, up JPY 182.3 billion from the previous year, with business profit expected to reach JPY 135 billion.

• Profit attributable to owners of parent is forecast at JPY 75 billion, with a dividend per share of JPY 36.00, marking the 14th consecutive year of dividend increases.

• Largest booking of housing sales expected in Q4; full-year housing sales revenue planned at JPY 320 billion.

• Progress rate of housing sales contracts at 75.3% against the annual plan.

• No changes to previously announced forecasts.