Nomura Real Estate (3231) Q2 2026 earnings summary

Executive summary

• Operating revenue for the first six months was ¥397.7 billion, up 4.3% year-over-year, but business profit declined 12.0% to ¥60.7 billion and profit attributable to owners of parent fell 26.2% to ¥31.3 billion, mainly due to impairment and demolition losses for the Hamamatsucho Building.

• Comprehensive income dropped 72.2% year-over-year to ¥16,196 million.

• Full-year forecasts remain unchanged, with record-high revenue and profit expected, and a 14th consecutive year of dividend increases.

Financial highlights

• Operating revenue: ¥397.7 billion (+4.3% YoY); business profit: ¥60.7 billion (−12.0% YoY); profit attributable to owners of parent: ¥31.3 billion (−26.2% YoY); basic EPS: ¥36.48.

• Extraordinary losses included impairment and demolition costs for Hamamatsucho Building, with ¥13.9 billion to be recorded in Q3.

• Cumulative gross profit ratio as of Q2 was 25.8%; full-year gross profit ratio expected in the high 24% range.

• Contract progress rate for planned full-year sales reached 86.5% at Q2 end.

• Commercial real estate property sales in H1 totaled ¥79 billion with gross profit of ¥25.9 billion.

Outlook and guidance

• Full-year forecast: operating revenue ¥940.0 billion (+24.1% YoY), business profit ¥135.0 billion (+7.9% YoY), profit attributable to owners of parent ¥75.0 billion (+0.2% YoY), basic EPS ¥87.49.

• Dividend per share forecast: ¥36.0 (up ¥2.0 YoY), payout ratio 41.1%.

• Group remains committed to achieving 8% business profit growth target.