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Nomura Real Estate Holdings (JP:3231)
:3231
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Nomura Real Estate Holdings
(OTC:3231)
Rating:66Neutral
Price Target:
¥910.00
▲(8.57%Upside)
Nomura Real Estate Holdings (3231) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$766.91B
Dividend Yield3.88%
Average Volume (3M)2.95M
Price to Earnings (P/E)9.7
Beta (1Y)0.78
Revenue Growth3.12%
EPS Growth10.52%
CountryJP
Employees7,695
SectorReal Estate
Sector Strength60
IndustryReal Estate - Services
Share Statistics
EPS (TTM)14.50
Shares Outstanding917,474,700
10 Day Avg. Volume2,629,940
30 Day Avg. Volume2,945,680
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)0.20
Price to Sales (P/S)0.00
P/FCF Ratio-2.58
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$923.41Price Target Upside10.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Nomura Real Estate Holdings Business Overview & Revenue Model
Company DescriptionNomura Real Estate Holdings, Inc. is a prominent Japanese real estate company engaged in a diverse range of activities within the real estate sector. The company operates primarily in development, leasing, and management of residential, office, and commercial properties. Its core services include real estate development, property sales, and property management, catering to both individual and corporate clients. Nomura Real Estate Holdings is recognized for its comprehensive approach to urban development, focusing on creating sustainable and innovative living and working spaces.
How the Company Makes MoneyNomura Real Estate Holdings generates revenue through several key streams. The primary source of income is its development sector, where the company engages in the planning, design, and construction of residential, office, and commercial buildings. Sales of these developed properties, particularly condominiums and office spaces, contribute significantly to its earnings. Additionally, the company earns revenue from property leasing and management services, providing long-term income through rental agreements and property management contracts. Nomura Real Estate also benefits from its involvement in real estate investment trusts (REITs) and partnerships with other real estate and construction firms, which enhance its market presence and financial performance. The company's strategic focus on urban redevelopment and sustainable projects further supports its revenue growth by attracting investments and meeting the evolving demands of modern urban environments.
Nomura Real Estate Holdings Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q2-2024)
| % Change Since: -5.41%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong performance in domestic operations, particularly in residential and commercial real estate. Challenges were noted in net income and overseas operations, specifically due to extraordinary losses and market conditions in the U.K. However, shareholder returns and strategic asset management were positive aspects.Q2-2024 Updates
Positive Updates
Record Operating Revenue
Operating revenue for the second quarter was JPY 368.3 billion, indicating strong performance in the Residential and Commercial Real Estate business units.
Increase in Business Profit
Business profit increased by JPY 8.9 billion, a 17.2% rise compared to the same period last year, driven by higher income in residential and commercial real estate development.
Consistent Shareholder Returns
Plan to raise full year dividend to JPY 130 per share for the 12th consecutive year and acquire treasury shares up to JPY 7 billion, resulting in a total return ratio of 45.5%.
Strong Residential Development Performance
Improved gross profit ratio in housing sales and higher rental housing sales with a total of JPY 16.8 billion in sales.
Strategic Asset Replacement
Commercial Real Estate Business Unit saw overall operating revenue and business profit improvement despite a decrease in office rental revenue.
Improved Vacancy Rate
Vacancy rate of leased assets averaged 4.0%, a 0.5 percentage point improvement from the previous quarter.
Property Brokerage & CRE Division Growth
Operating revenue increased due to higher brokerage transaction volume in both retail and wholesale sectors.
Property & Facility Management Expansion
Sales increased due to a higher number of housing units under management and an increase in sales of construction work on order.
Negative Updates
Net Income Decline
Net income decreased by JPY 0.9 billion, a 2.7% decline due to extraordinary losses including impairment losses on intangible assets.
Challenges in Overseas Business
Overseas business profit was lower year-on-year due to timing issues, with specific declines in Vietnam despite progress in Thailand.
Lothbury's Impairment Loss
Faced increasing cancellations by investors leading to impairment loss at U.K.-based Lothbury due to a sharp rise in interest rates.
Company Guidance
During the Nomura Real Estate Holdings earnings call for the second quarter of fiscal year 2024, several key metrics and guidance were highlighted. The company reported consolidated operating revenue of JPY 368.3 billion, with a business profit of JPY 61.4 billion, marking a 17.2% increase from the previous year, mainly due to strong performance in residential and commercial real estate development. Despite this, net income decreased by 2.7% to JPY 32.9 billion, attributed to extraordinary losses, including impairment losses from their U.K. subsidiary, Lothbury. The company maintained its full-year forecast, with expectations of continued strong sales in housing and property development. Shareholder returns were emphasized, with a planned dividend of JPY 130 per share and a total return ratio of 45.5%. The call also discussed strategic land acquisitions worth JPY 183 billion and a land bank of approximately JPY 1.8 trillion, positioning the company for mid- to long-term growth, while overseas business units are in an expansion phase with investments totaling JPY 610 billion.Nomura Real Estate Holdings Financial Statement Overview
Summary
Nomura Real Estate Holdings shows strong revenue growth and improved profitability margins. However, increased leverage and recent negative cash flows present potential financial risks. Monitoring cash flow management and leverage levels is crucial for sustaining long-term growth and stability.Income Statement
Nomura Real Estate Holdings has shown a consistent growth trajectory, with Total Revenue increasing from 580.66B JPY in 2021 to 757.64B JPY in 2025. The Gross Profit Margin increased from 31.52% in 2021 to 35.19% in 2025, indicating stronger profitability. Net Profit Margin improved to 9.87% in 2025 from 7.27% in 2021, showing enhanced efficiency in converting revenue to profit. However, the company faces challenges with fluctuating EBIT and EBITDA margins, which suggests some volatility in operational efficiency.75
Positive
Balance Sheet
The balance sheet reflects a solid equity base with Stockholders' Equity growing from 584.73B JPY in 2021 to 750.18B JPY in 2025. The Debt-to-Equity ratio increased from 1.72 in 2021 to 2.06 in 2025, indicating rising leverage, which could pose a risk if not managed carefully. The Equity Ratio decreased slightly over the years, suggesting increased reliance on debt. Despite this, the company has maintained a strong asset base.70
Positive
Cash Flow
The company's cash flow statement shows a challenging scenario with negative Free Cash Flow in 2025 at -251.43B JPY, a significant decline from a positive 4.87B JPY in 2024. The Operating Cash Flow also turned negative in 2025, indicating operational cash challenges. Despite these issues, the company has managed substantial Financing Cash Flows, which have helped support its capital expenditures and debt obligations.65
Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 757.64B | 734.72B | 654.74B | 645.05B | 580.66B | Gross Profit |
| 266.60B | 244.47B | 222.66B | 205.31B | 183.06B | EBIT |
| 118.96B | 112.11B | 99.60B | 91.21B | 76.33B | EBITDA |
| 139.85B | 132.56B | 120.19B | 110.30B | 96.36B | Net Income Common Stockholders |
| 74.83B | 68.16B | 64.52B | 55.31B | 42.20B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 140.32B | 102.96B | 61.38B | 102.91B | 100.39B | Total Assets |
| 2.69T | 2.25T | 2.11T | 2.04T | 1.92T | Total Debt |
| 1.55T | 1.19T | 1.12T | 1.02T | 1.01T | Net Debt |
| 1.51T | 1.14T | 1.09T | 953.70B | 936.88B | Total Liabilities |
| 1.94T | 1.56T | 1.45T | 1.42T | 1.33T | Stockholders Equity |
| 750.18B | 691.28B | 653.96B | 619.69B | 584.73B |
| Cash Flow | Free Cash Flow | |||
| -251.43B | 4.87B | -86.87B | 16.18B | -109.17B | Operating Cash Flow |
| -84.09B | 70.88B | -42.81B | 52.79B | -63.50B | Investing Cash Flow |
| -203.36B | -83.64B | -62.90B | -46.28B | -55.79B | Financing Cash Flow |
| 318.46B | 39.92B | 65.67B | -9.62B | 112.38B |
Nomura Real Estate Holdings Technical Analysis
Negative
838.20
Price Trends
858.72
Negative
837.56
Positive
796.55
Positive
Market Momentum
-5.06
Positive
44.23
Neutral
34.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3231, the sentiment is Negative. The current price of 838.2 is below the 20-day moving average (MA) of 848.05, below the 50-day MA of 858.72, and above the 200-day MA of 796.55, indicating a neutral trend. The MACD of -5.06 indicates Positive momentum. The RSI at 44.23 is Neutral, neither overbought nor oversold. The STOCH value of 34.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3231.
Nomura Real Estate Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥185.54B | 12.74 | 2.39% | 8.04% | 167.85% | ||
73 Outperform | $166.74B | 10.93 | 13.76% | 2.60% | 1.60% | 29.82% | |
72 Outperform | $2.61T | 13.58 | 8.93% | 1.22% | 4.81% | 8.37% | |
71 Outperform | $531.11B | 7.74 | 12.90% | 3.50% | 26.88% | 75.98% | |
69 Neutral | ¥1.09T | 10.53 | 12.74% | 3.52% | 45.14% | 17.11% | |
66 Neutral | $766.91B | 9.66 | 10.23% | 3.88% | 3.12% | 10.52% | |
61 Neutral | $2.83B | 10.92 | 0.41% | 8438.90% | 5.75% | -21.03% |
* Real Estate Sector Average
Performance Comparison
JP:3231
Nomura Real Estate Holdings
838.20
37.15
4.64%
JP:1766
Token Corporation
13,700.00
2,988.60
27.90%
JP:2337
Ichigo
382.00
5.60
1.49%
JP:8830
Sumitomo Realty & Development Co
5,534.00
674.61
13.88%
JP:8804
Tokyo Tatemono Co
2,542.50
58.00
2.33%
JP:3003
Hulic Co
1,434.00
1.24
0.09%
Nomura Real Estate Holdings Corporate Events
Nomura Real Estate Unveils Ambitious 2030 Business Plan
Apr 24, 2025
Nomura Real Estate Group has announced a new business plan extending to 2030, following the successful achievement of its previous targets. The plan outlines a long-term management policy and a three-year strategy to enhance customer-centric value creation, financial growth, and sustainable development. The company aims for high profit growth, improved asset and capital efficiency, and robust collaboration across its sectors to secure a strong market position and meet evolving customer needs.
Nomura Real Estate Holdings Reports Strong Financial Growth and Announces Stock Split
Apr 24, 2025
Nomura Real Estate Holdings reported a significant increase in its financial performance for the fiscal year ending March 31, 2025, with comprehensive income rising by 36.7% compared to the previous year. The company also announced a stock split and an increase in dividends, reflecting its strong financial position and commitment to returning value to shareholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.