Nomura Real Estate (3231) Q2 2027 earnings summary

Executive summary

• H1 FY27/3 revenue was ¥378,470m, operating profit ¥46,500m, business profit ¥50,900m and profit attributable to owners of parent ¥27,325m.

• Revenue and profits declined YoY, mainly on lower Commercial Real Estate property sales and higher Property & Facility Management expenses; Residential Development and Brokerage & CRE grew.

• FY27/3 forecasts were revised upward for revenue, operating profit, business profit and ordinary profit on favorable domestic progress; attributable profit guidance was unchanged.

Financial highlights

• Revenue was ¥378,470m vs ¥397,700m YoY; operating profit ¥46,500m vs ¥57,100m; business profit ¥50,900m vs ¥60,700m.

• Ordinary profit was ¥39,040m vs ¥50,800m YoY; attributable profit was ¥27,325m vs ¥31,300m.

• Operating gross profit was ¥127,158m vs ¥133,091m YoY, while SG&A rose to ¥80,658m from ¥75,897m.

• Housing sales gross profit ratio was 27.9%, up 2.1 percentage points YoY; consolidated operations gross profit ratio was 33.6% in H1 FY27/3.

• Comprehensive income rose 106.8% YoY to ¥33,499m, including ¥6,090m of other comprehensive income.

Outlook and guidance

• FY27/3 forecast: revenue ¥1,085,000m, operating profit ¥146,000m, business profit ¥153,000m, ordinary profit ¥127,000m and attributable profit ¥86,000m.

• Versus prior guidance, revenue increased ¥5,000m, operating profit ¥6,000m, business profit ¥3,000m and ordinary profit ¥2,000m; attributable profit was unchanged.

• Residential Development housing sales forecast is ¥350,000m and 3,700 units, with gross profit ratio in the 27% range; contract progress reached 82.7%.

• Overseas business profit forecast was revised to a ¥3,000m loss as some housing project sales shifted; Property & Facility Management forecast rose ¥5,000m in revenue and ¥2,000m in business profit.

• Annual dividend forecast is ¥44 per share, up ¥4 YoY and marking a 15th consecutive annual increase; forecast payout ratio is 43.8%.