Nomura Real Estate (3231) Q3 2026 earnings summary

Executive summary

• Operating revenue for the third quarter was ¥581.5 billion, up 1.7% year-over-year, but business profit declined to ¥86.2 billion and profit attributable to owners of parent dropped 31.2% to ¥42.9 billion, mainly due to timing of residential and property sales and extraordinary losses from building redevelopment.

• Comprehensive income decreased 39.2% year-over-year to ¥33,358 million.

• Full-year forecasts for business profit and ordinary profit have been revised upward, with consolidated business profit expected at ¥137 billion and profit attributable to owners of parent at ¥75 billion.

• Upward revisions in domestic business units offset a downward revision in overseas business profit due to delayed property sales in London and Vietnam.

Financial highlights

• Operating revenue: ¥581.5 billion (up ¥9.7 billion YoY); business profit: ¥86.2 billion (down ¥15.0 billion YoY); profit attributable to owners: ¥42.9 billion (down ¥19.4 billion YoY).

• Gross profit ratio for the quarter was 26.3%, expected to remain around 25% for the full year.

• Extraordinary losses recognized due to impairment and demolition costs, including Hamamatsucho Building redevelopment.

• Basic EPS for 3Q: ¥50.04 (down ¥22.23 YoY, adjusted for stock split).

• Full-year profit attributable to parent is forecasted at ¥75 billion.

Outlook and guidance

• Full-year operating revenue forecast revised up to ¥950 billion; business profit forecast at ¥137 billion; profit attributable to owners forecast at ¥75 billion.

• Dividend per share forecast raised to ¥40 (post-split basis), with a payout ratio of 45.7%.

• Upward revision driven by improved gross profit ratio in Residential Development, increased property sales, and higher transaction value in brokerage and management.

• Profit growth at the 8% level is expected to be maintained.