Nomura Real Estate (3231) Q2 2025 earnings summary

Executive summary

• Operating revenue for the six months ended September 30, 2024, reached ¥381.3 billion, up 3.5% year-over-year, with operating profit at ¥68.3 billion, up 11.4%, and profit attributable to owners at ¥42.5 billion, up 29.0%.

• Record highs in operating revenue and profits were driven by increased housing unit sales, higher average sales prices, and growth in the hotel business, including the newly consolidated UDS.

• Comprehensive income increased 53.7% year-over-year to ¥58,208 million.

• No changes to full-year earnings or dividend forecasts; treasury share buybacks up to ¥5.0 billion were announced.

Financial highlights

• Operating revenue and profit lines reached record highs for the second quarter, with business profit at ¥68.9 billion (+¥7.5 billion YoY).

• Gross profit margin for housing sales in the first six months was 26.7%, with full-year margin expected in the 26% range.

• Basic EPS rose to ¥245.96, up ¥56.60 year-over-year.

• Dividend per share set at ¥165, marking 13 consecutive years of increases; payout ratio expected at 40.7%.

• Extraordinary losses decreased significantly to ¥0.9 billion from ¥6.3 billion YoY.

Outlook and guidance

• Full-year forecast: operating revenue ¥790,000 million (+7.5%), operating profit ¥114,000 million (+1.7%), profit attributable to owners ¥70,000 million (+2.7%), EPS ¥405.68.

• Full-year guidance remains unchanged due to steady performance and strong contract progress.

• Contract progress for housing sales exceeded 91% of the full-year plan.

• Dividend per share is expected to increase to ¥165.0, with a total return ratio projected at 47.8%.

• Business profit is expected to exceed the Phase I target of ¥115.0 billion in the Mid- to Long-term Business Plan.