Nomura Real Estate Holdings (3231) AI Stock Analysis

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Nomura Real Estate Holdings

(OTC:3231)

Rating:68Neutral

Price Target:

¥936.00

▲(1.97% Upside)

The overall stock score of Nomura Real Estate Holdings is primarily influenced by its strong financial performance, despite the risks associated with increased leverage and negative cash flows. Its attractive valuation, with a low P/E ratio and high dividend yield, adds to the stock's appeal. Neutral technical indicators suggest stability rather than strong upward momentum.

Nomura Real Estate Holdings (3231) vs. iShares MSCI Japan ETF (EWJ)

Market Cap

$840.00B

Dividend Yield3.7%

Average Volume (3M)2.97M

Price to Earnings (P/E)10.7

Beta (1Y)0.81

Revenue Growth7.14%

EPS Growth8.42%

CountryJP

Employees7,695

SectorReal Estate

Sector Strength55

IndustryReal Estate - Services

Share Statistics

EPS (TTM)26.99

Shares Outstanding917,650,200

10 Day Avg. Volume3,289,210

30 Day Avg. Volume2,966,816

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap2.58

Enterprise Value/Revenue2.86

Enterprise Value/Gross Profit8.13

Enterprise Value/Ebitda15.50

Forecast

1Y Price Target

$1,049.18

Price Target Upside14.30% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Nomura Real Estate Holdings Business Overview & Revenue Model

Company DescriptionNomura Real Estate Holdings Inc. is a prominent real estate company based in Japan, engaged in the development, leasing, and management of residential, office, and commercial properties. The company operates through several segments, including Residential Development, Leasing, Investment Management, Property Brokerage & CRE, and Property & Facility Management. Nomura Real Estate Holdings is recognized for its expertise in creating high-quality living spaces and urban development projects, catering to a diverse clientele ranging from individual homeowners to corporate and institutional clients.

How the Company Makes MoneyNomura Real Estate Holdings generates revenue through multiple streams. The Residential Development segment is a key revenue driver, focusing on the sale of condominiums and detached housing. The Leasing segment contributes through rental income from office buildings, commercial facilities, and other properties. The Investment Management segment earns management fees from real estate investment trusts (REITs) and private funds. Additionally, the Property Brokerage & CRE segment facilitates real estate transactions, earning commissions and fees in the process. The Property & Facility Management segment provides building management, maintenance, and related services, generating additional income. Strategic partnerships and joint ventures in various real estate projects also enhance the company's earnings potential.

Nomura Real Estate Holdings Earnings Call Summary

Earnings Call Date:Jul 30, 2025

(Q2-2024)

% Change Since: 8.87%|

Next Earnings Date:Oct 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 demonstrates robust revenue growth and improved profitability margins. However, increased leverage and recent negative cash flows highlight potential financial risks, necessitating careful monitoring of cash flow management and leverage levels.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

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
EBITDA	139.85B	132.56B	120.19B	110.30B	96.36B
Net Income	74.83B	68.16B	64.52B	55.31B	42.20B
Balance Sheet
Total Assets	2.69T	2.25T	2.11T	2.04T	1.92T
Cash, Cash Equivalents and Short-Term Investments	140.32B	102.96B	61.38B	102.91B	100.39B
Total Debt	1.55T	1.19T	1.12T	1.02T	1.01T
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

Technical Analysis Sentiment

Positive

Last Price917.90

Price Trends

50DMA

853.57

Positive

100DMA

857.43

Positive

200DMA

814.54

Positive

Market Momentum

MACD

11.06

Negative

RSI

70.15

Negative

STOCH

91.41

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3231, the sentiment is Positive. The current price of 917.9 is above the 20-day moving average (MA) of 860.80, above the 50-day MA of 853.57, and above the 200-day MA of 814.54, indicating a bullish trend. The MACD of 11.06 indicates Negative momentum. The RSI at 70.15 is Negative, neither overbought nor oversold. The STOCH value of 91.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3231.

Nomura Real Estate Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1766	81 Outperform	¥195.89B	12.41		2.26%	8.04%	167.85%
3003	74 Outperform	$1.20T	11.65	12.70%	3.58%	46.99%	8.97%
2337	72 Outperform	$186.00B	13.20	13.04%	2.46%	-26.42%	1.17%
8830	72 Outperform	$2.82T	14.69	8.98%	1.17%	4.81%	8.36%
8804	72 Outperform	¥577.07B	10.53	10.28%	4.08%	26.88%	75.98%
3231	68 Neutral	$840.00B	10.74	10.32%	3.70%	7.14%	8.42%
Sector *	63 Neutral	$6.81B	13.62	-1.43%	7.31%	4.60%	-32.65%

* Real Estate Sector Average

Performance Comparison

JP:3231

Nomura Real Estate Holdings

917.90

173.15

23.25%

JP:1766

Token Corporation

14,570.00

3,575.69

32.52%

JP:2337

Ichigo

425.00

69.03

19.39%

JP:8830

Sumitomo Realty & Development Co

5,959.00

1,465.89

32.63%

JP:8804

Tokyo Tatemono Co

2,762.50

494.27

21.79%

JP:3003

Hulic Co

1,578.50

234.84

17.48%

Nomura Real Estate Holdings Corporate Events

Nomura Real Estate Continues Share-Based Compensation Plans

Jul 30, 2025

Nomura Real Estate Holdings has announced the continuation of its performance-based share-based compensation plan for officers and an incentive plan for employees. This decision, made by the Board of Directors, aims to align the interests of directors and employees with shareholders and enhance corporate value over the medium to long term. The company will allocate additional funds to the trust systems and acquire shares from the stock market to support these plans, reflecting its commitment to incentivizing performance and value sharing.

The most recent analyst rating on (JP:3231) stock is a Buy with a Yen4300.00 price target. To see the full list of analyst forecasts on Nomura Real Estate Holdings stock, see the JP:3231 Stock Forecast page.

Nomura Real Estate Holdings Reports Q1 2025 Financial Results

Jul 30, 2025

Nomura Real Estate Holdings reported a 10.2% increase in operating revenue for the first quarter of 2025, reaching 221,419 million yen. Despite the revenue growth, the company saw a decline in operating profit by 3.6% and a 5.0% decrease in profit attributable to owners of the parent. The company conducted a stock split in April 2025, affecting earnings per share calculations. The forecast for the fiscal year ending March 31, 2026, anticipates a 24.1% increase in operating revenue, with modest growth in profits. The company plans to pay dividends adjusted for the stock split, reflecting a stable financial strategy.

Nomura Real Estate Emphasizes Independence Amid Significant Stake by Nomura Holdings

Jun 26, 2025

Nomura Real Estate Holdings announced its relationship with Nomura Holdings, which holds a 37.23% voting stake in the company. Despite this significant shareholding, Nomura Real Estate maintains its independence in governance and decision-making, ensuring that transactions with Nomura Holdings are conducted at arm’s length, thus protecting minority shareholders.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 02, 2025