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Nomura Real Estate Holdings
(3231)
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Rating:61Neutral
Price Target:
¥947.00
▲(0.05% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by mixed fundamentals: strong revenue growth and solid margins are offset by high leverage and inconsistent cash conversion. Technicals are weak with the stock trading below major moving averages and negative momentum. Valuation is a key positive, supported by a low P/E and high dividend yield.
Positive Factors
Diversified revenue streams: development, leasing, services
Nomura Real Estate's mix of development profits plus recurring rental and management fees provides structural revenue diversification. Development cycles can be volatile, but steady leasing and contracted management fees support baseline cashflows and reduce earnings cyclicality over multi‑year horizons.
Negative Factors
High leverage: debt-to-equity ~2.0x
A debt/equity ratio near 2x is typical in development but increases sensitivity to rising funding costs and property value declines. High leverage constrains financial flexibility, raises refinancing and interest risk, and can magnify downturn losses, making capital structure management a persistent company risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue streams: development, leasing, services
Nomura Real Estate's mix of development profits plus recurring rental and management fees provides structural revenue diversification. Development cycles can be volatile, but steady leasing and contracted management fees support baseline cashflows and reduce earnings cyclicality over multi‑year horizons.
Read all positive factors
Nomura Real Estate Holdings (3231) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥842.19B
Dividend Yield4.35%
Average Volume (3M)2.33M
Price to Earnings (P/E)10.6
Beta (1Y)0.65
Revenue Growth17.22%
EPS Growth1.86%
CountryJP
Employees9,043
SectorReal Estate
Sector Strength53
IndustryReal Estate - Development
Share Statistics
EPS (TTM)86.93
Shares Outstanding917,942,700
10 Day Avg. Volume2,551,950
30 Day Avg. Volume2,333,623
Financial Highlights & Ratios
PEG Ratio0.91
Price to Book (P/B)1.08
Price to Sales (P/S)0.92
P/FCF Ratio254.61
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)102.51
Revenue Forecast (FY)¥1.07T
Nomura Real Estate Holdings Business Overview & Revenue Model
Company Description
Nomura Real Estate Holdings, Inc. operates as a real estate company in Japan and internationally. The company develops, leases, and manages office buildings, commercial facilities, logistics facilities, hotels, and other properties; develops and s...
How the Company Makes Money
Nomura Real Estate Holdings makes money primarily through a combination of (1) development and sale profits and (2) recurring fee and rental income. (1) Development and sale: The company develops residential properties (notably condominiums and ho...
Nomura Real Estate Holdings Earnings Call Summary
Earnings Call Date:Oct 25, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
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.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.
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.
Read all updates
Q2-2024 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
78
Positive
Balance Sheet
56
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 912.15B | 942.50B | 757.64B | 734.72B | 654.74B | 645.05B |
| Gross Profit | 264.37B | 273.22B | 245.71B | 224.02B | 202.07B | 185.81B |
| EBITDA | 146.62B | 157.70B | 141.03B | 131.19B | 118.90B | 109.37B |
| Net Income | 74.42B | 82.88B | 74.83B | 68.16B | 64.52B | 55.31B |
Balance Sheet | ||||||
| Total Assets | 2.84T | 2.81T | 2.69T | 2.25T | 2.11T | 2.04T |
| Cash, Cash Equivalents and Short-Term Investments | 177.77B | 169.83B | 140.32B | 102.96B | 61.38B | 102.91B |
| Total Debt | 1.70T | 1.60T | 1.55T | 1.19T | 1.12T | 991.74B |
| Total Liabilities | 2.03T | 2.01T | 1.94T | 1.56T | 1.45T | 1.42T |
| Stockholders Equity | 801.67B | 801.32B | 750.18B | 691.28B | 653.96B | 619.69B |
Cash Flow | ||||||
| Free Cash Flow | 20.94B | 3.40B | -251.43B | 19.52B | -89.01B | 21.25B |
| Operating Cash Flow | 80.02B | 72.57B | -84.09B | 85.54B | -44.94B | 57.87B |
| Investing Cash Flow | -49.72B | -58.97B | -203.36B | -83.64B | -62.90B | -46.28B |
| Financing Cash Flow | 814.00M | 15.54B | 318.46B | 39.92B | 65.67B | -9.62B |
Nomura Real Estate Holdings Technical Analysis
Negative
946.50
Price Trends
930.07
Negative
970.83
Negative
969.69
Negative
Market Momentum
-6.23
Positive
38.32
Neutral
2.81
Positive
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 946.5 is above the 20-day moving average (MA) of 943.65, above the 50-day MA of 930.07, and below the 200-day MA of 969.69, indicating a bearish trend. The MACD of -6.23 indicates Positive momentum. The RSI at 38.32 is Neutral, neither overbought nor oversold. The STOCH value of 2.81 is Positive, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | ¥703.49B | 14.01 | 8.82% | 3.34% | -5.83% | -26.32% | |
61 Neutral | ¥842.19B | 10.58 | 10.89% | 4.23% | 17.22% | 1.86% | |
61 Neutral | ¥143.50B | 7.65 | 14.49% | 2.93% | 12.51% | 12.42% | |
58 Neutral | ¥1.34T | 11.18 | 13.09% | 3.51% | 22.88% | 16.05% | |
56 Neutral | ¥3.33T | 15.78 | 9.02% | 1.20% | 4.29% | 12.72% | |
54 Neutral | ¥169.15B | 9.90 | 15.16% | 2.66% | 27.38% | 29.98% |
* Real Estate Sector Average
JP:3231
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4.53%
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Nomura Real Estate Holdings Corporate Events
Nomura Real Estate Q1 Profit Falls, Full-Year Outlook and Dividend Plan Intact
Jul 30, 2026
Nomura Real Estate Holdings reported a notable year-on-year decline in first-quarter results for the three months to June 30, 2026, with operating revenue down 13.7% to ¥191.1 billion and profit attributable to owners of parent falling 36.5% ...
Nomura Real Estate Affirms Independence Despite 37.6% Stake Held by Nomura Holdings
Jun 24, 2026
Nomura Real Estate Holdings has clarified its relationship with associated company Nomura Holdings, which owns 37.59% of its voting rights, noting that while the two groups cooperate in housing sales, brokerage and real estate fund management, the...
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.