Nomura Real Estate Holdings,Inc.'s results for the first quarter of the fiscal year ending March 2027 showed substantial year-on-year declines in revenue, operating profit and quarterly net income attributable to owners of the parent, with a particularly notable downturn in the Housing and Urban Development segments. The full-year forecast was left unchanged, while the company indicated that it expects to increase its dividend.
Nomura Real Estate Holdings,Inc.'s consolidated results for the first quarter of the fiscal year ending March 2027 showed revenue down 13.7% year on year to ¥191.1 billion, operating profit down 30.6% to ¥25.5 billion, and quarterly net income attributable to owners of the parent down 36.5% to ¥14.7 billion, resulting in substantial declines in revenue and earnings across all key metrics. The main factors were declines in the Housing and Urban Development segments, while the full-year earnings forecast was left unchanged.
The six main business segments are Housing, Urban Development, Overseas, Asset Management, Brokerage and CRE, and Property Management. The businesses include residential development and the development and operation of commercial facilities and offices, overseas real estate investment, asset management, brokerage and CRE services, and property management. In the latest results, business profit in the Housing segment fell 16.9%, while the Urban Development segment fell 50.6%. Brokerage and CRE and Property Management reported higher revenue, while the Overseas segment swung to a loss.
On the balance sheet, total assets increased 0.9% from the previous fiscal year-end to ¥2.8369 trillion. On the liabilities side, commercial paper increased 94.7% to ¥148.0 billion and short-term borrowings increased 22.8% to ¥175.1 billion. Notes and accounts payable decreased 35.2% to ¥56.8 billion. Net assets were nearly unchanged at ¥802.3 billion. No consolidated quarterly cash flow statement was prepared for the cumulative first quarter. Depreciation and amortization edged down to ¥6.8 billion from ¥7.0 billion in the same period of the previous year.
For the full year, the company expects revenue to increase 14.6% year on year to ¥1.08 trillion, operating profit to increase 1.3% to ¥140.0 billion, and net income attributable to owners of the parent to increase 3.8% to ¥86.0 billion. The annual dividend is expected to increase to ¥44 for the fiscal year ending March 2027, from ¥40 for the fiscal year ended March 2026.