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 business profit at ¥68.9 billion and profit attributable to owners at ¥42.5 billion, marking record highs and steady progress toward full-year guidance.

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

Financial highlights

• Operating revenue and profit reached record highs for the second quarter, with business profit at ¥68.9 billion (+¥7.5 billion YoY) and profit attributable to owners at ¥42.5 billion (+¥9.5 billion YoY).

• Residential development, overseas, and service/management units saw year-on-year sales and profit growth, while commercial real estate revenue and profit declined due to timing of property sales.

• Gross profit margin for housing sales was 26.7% for the first six months.

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

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

Outlook and guidance

• No change to original full-year earnings guidance; full-year business profit forecast at ¥118.0 billion, profit attributable to owners at ¥70.0 billion, and basic EPS at ¥405.68.

• Full-year gross margin for housing sales expected in the 26% range.

• Dividend per share is expected to increase to ¥165.0, marking the 13th consecutive year of dividend growth.

• Total return ratio projected at 47.8%, with a dividend payout ratio of 40.7%.

• No changes to previously announced forecasts; business profit is expected to exceed the Phase I target of ¥115.0 billion in the Mid- to Long-term Business Plan.