Nomura Real Estate (3231) Q2 2026 earnings summary

Executive summary

• Operating revenue for the first half of FY26/3 was ¥397.7 billion, up 4.3% year-over-year, driven by increased property sales in Commercial Real Estate.

• Business profit declined 12.0% year-over-year to ¥60.7 billion, mainly due to lower housing sales profit in Residential Development.

• Profit attributable to owners of parent fell 26.2% year-over-year to ¥31.3 billion, impacted by impairment loss for Hamamatsucho Building.

• Comprehensive income declined 72.2% year-over-year to ¥16.2 billion.

• 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).

• Extraordinary losses included impairment loss for Hamamatsucho Building; demolition costs of ¥13.9 billion to be recorded in Q3.

• Basic EPS: ¥36.48; DPS: ¥18.00 (pre-split figures).

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

• Comprehensive income: ¥16.2 billion (−72.2% YoY).

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%.

• Full-year earnings forecast remains unchanged; steady progress toward achieving targets.

• Both revenue and profit expected to increase for the full year, driven by housing and property sales.

• Group aims for 8% business profit growth for the fiscal year.