Nomura Real Estate (3231) Q4 2025 earnings summary

Executive summary

• Achieved record highs in FY 2024: operating revenue of ¥757.6 billion (up 3.1% YoY), business profit of ¥125.1 billion (up 10.1% YoY), and profit attributable to owners of parent of ¥74.8 billion (up 9.8% YoY), with comprehensive income up 36.7% to ¥90.9 billion.

• Growth was driven by higher average housing sales prices, hotel business consolidation, UDS contributions, and strong overseas performance, notably in Vietnam.

• Dividend per share increased for the 14th consecutive year, with a forecasted rise to ¥36.0 for FY2026.

• A 5-for-1 stock split was executed on April 1, 2025, to improve share liquidity and broaden the investor base.

Financial highlights

• Business profit increased by ¥11.4 billion (10.1% YoY); operating profit was ¥118.9 billion (+6.1% YoY); ordinary profit ¥106.7 billion (+8.6% YoY); profit attributable to owners ¥74.8 billion (+9.8% YoY).

• Basic EPS was ¥86.77 (post-split); dividend payout ratio was 39.2%; total return ratio 45.9%.

• Shareholders’ equity ratio decreased to 27.9% due to business expansion and asset growth; debt-to-equity ratio rose to 2.1.

• ROA was 5.1% and ROE was 10.4%, both exceeding mid-term targets.

• Cash and cash equivalents at year-end were ¥35,894 million, down ¥17,916 million YoY.

Outlook and guidance

• FY2026 forecast: operating revenue ¥940.0 billion (+24% YoY), business profit ¥135.0 billion (+7.8% YoY), profit attributable to owners ¥75.0 billion, and basic EPS ¥87.33.

• Dividend forecast for FY2026 is ¥36.00 per share (post-split), with a payout ratio of 41.2% and a 14-year streak of increases.

• Expectation of robust housing sales, increased property sales in both residential and commercial real estate, and one-off costs due to demolition for new construction.