Nomura Real Estate (3231) Q4 2026 earnings summary

Executive summary

• Achieved record operating revenue of JPY 942.5B (up 24.4% YoY), business profit of JPY 147.3B, and net profit of JPY 82.8B for FY March 2026, surpassing growth targets and marking the 14th consecutive annual dividend increase.

• Strong domestic performance in housing sales and commercial real estate offset significant declines in the overseas segment.

• First year of the three-year business plan showed good progress, with high asset and capital efficiency (ROA 5.4%, ROE 10.7%).

• Extraordinary losses were recognized due to impairment and demolition costs for the Hamamatsucho Building.

• Comprehensive income decreased 3.0% year-over-year to ¥88,206 million.

Financial highlights

• Operating revenue reached JPY 942.5B (+24.4% YoY), business profit JPY 147.3B (+17.8% YoY), net profit JPY 82.8B (+10.8% YoY), and basic EPS was ¥96.69.

• Gross profit ratio for housing sales at 26.6% on JPY 311.1B revenue.

• Dividend per share for FY26/3 was JPY 40 (up JPY 6 YoY), payout ratio 41.4%.

• Shareholders’ equity ratio improved to 28.5%.

• Cash and cash equivalents at year-end: ¥36,842 million.

Outlook and guidance

• FY March 2027 guidance: operating revenue JPY 1.08T (+14.6% YoY), business profit JPY 150B (+1.8% YoY), net profit JPY 86B (+3.8% YoY), and EPS ¥100.68—all projected as record highs.

• Dividend per share is projected at JPY 44, with a payout ratio of 43.7%.

• Growth expected in Residential Development and Investment Management, with stable or slightly lower profit in Commercial Real Estate and Overseas segments.

• Average annual business profit growth rate expected at 9.5% over two years, exceeding 8.5% target.

• Annual dividend forecast for FY2027 is JPY 44.00 per share, with a payout ratio target of 40–50%.