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, driven by increased property sales in Commercial Real Estate, while business profit declined to ¥86.2 billion and profit attributable to owners of parent dropped 31.2% to ¥42.9 billion due to lower housing sales profit and extraordinary losses from redevelopment projects.

• 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 ¥137.0 billion and profit attributable to owners of parent at ¥75.0 billion, exceeding the 8% growth target.

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

• Ordinary profit fell 20.4% year-over-year to ¥70,099 million.

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

• Contract progress rate for scheduled housing sales reached 99.6% against a ¥310 billion target.

• Extraordinary losses recognized due to impairment and demolition costs, including a significant loss of ¥6,117 million in Residential Development.

Outlook and guidance

• Full-year operating revenue forecast revised up to ¥950.0 billion, business profit to ¥137.0 billion, and profit attributable to owners to ¥75.0 billion; dividend per share forecast raised to ¥40.0, 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, with dividends aligned to profit growth.