Nomura Real Estate Holdings (JP:3231)
:3231
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Nomura Real Estate Holdings
(3231)
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Rating:57Neutral
Price Target:
¥1,191.00
▲(26.18% Upside)
Action:ReiteratedDate:01/30/26
The score is held back primarily by weak cash flow (negative operating and free cash flow) and elevated leverage alongside a sharp reported TTM revenue contraction, which outweigh solid margins. Technicals are moderately supportive on a medium-term basis, and valuation/dividend yield provide a modest offset.
Positive Factors
Diversified real estate business model
The company operates across development, leasing and fee-based management, reducing single-segment dependency. This diversification smooths revenue volatility over cycles: development provides upside, leasing supplies recurring cash, and management fees create stickier income as portfolios and contracts scale.
Negative Factors
Weak operating and free cash flow
Persistent negative operating and free cash flow creates ongoing funding requirements, increasing reliance on external financing or asset disposals. Over months, cash burn constrains reinvestment, weakens liquidity buffers and elevates execution risk on new projects or lease rollovers.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified real estate business model
The company operates across development, leasing and fee-based management, reducing single-segment dependency. This diversification smooths revenue volatility over cycles: development provides upside, leasing supplies recurring cash, and management fees create stickier income as portfolios and contracts scale.
Read all positive factors
Nomura Real Estate Holdings (3231) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥958.43B
Dividend Yield3.68%
Average Volume (3M)2.33M
Price to Earnings (P/E)17.8
Beta (1Y)0.82
Revenue Growth3.52%
EPS Growth-17.58%
CountryJP
Employees7,695
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)13.56
Shares Outstanding917,927,700
10 Day Avg. Volume2,551,950
30 Day Avg. Volume2,333,623
Financial Highlights & Ratios
PEG Ratio0.95
Price to Book (P/B)1.00
Price to Sales (P/S)0.99
P/FCF Ratio-2.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,160.00Price Target Upside22.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)102.54
Revenue Forecast (FY)¥977.12B
Nomura Real Estate Holdings Business Overview & Revenue Model
Company Description
Nomura Real Estate Holdings, Inc. is a leading Japanese real estate company engaged in a variety of sectors, including residential, commercial, and logistics properties. The company operates through multiple segments such as residential developmen...
How the Company Makes Money
Nomura Real Estate Holdings generates revenue primarily through the development and sale of residential properties, leasing of commercial and retail spaces, and property management services. The residential segment accounts for a significant porti...
Nomura Real Estate Holdings Earnings Call Summary
Earnings Call Date:Oct 25, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Apr 24, 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
68
Positive
Balance Sheet
48
Neutral
Cash Flow
32
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 767.35B | 757.64B | 734.72B | 654.74B | 645.05B | 580.66B |
| Gross Profit | 231.03B | 245.71B | 224.02B | 202.07B | 185.81B | 162.64B |
| EBITDA | 111.88B | 141.03B | 131.19B | 118.90B | 109.37B | 92.25B |
| Net Income | 55.37B | 74.83B | 68.16B | 64.52B | 55.31B | 42.20B |
Balance Sheet | ||||||
| Total Assets | 2.84T | 2.69T | 2.25T | 2.11T | 2.04T | 1.92T |
| Cash, Cash Equivalents and Short-Term Investments | 150.54B | 140.32B | 102.96B | 61.38B | 102.91B | 100.39B |
| Total Debt | 1.76T | 1.55T | 1.19T | 1.12T | 991.74B | 1.01T |
| Total Liabilities | 2.09T | 1.94T | 1.56T | 1.45T | 1.42T | 1.33T |
| Stockholders Equity | 746.52B | 750.18B | 691.28B | 653.96B | 619.69B | 584.73B |
Cash Flow | ||||||
| Free Cash Flow | -317.15B | -251.43B | 19.52B | -89.01B | 21.25B | -111.38B |
| Operating Cash Flow | -161.47B | -84.09B | 85.54B | -44.94B | 57.87B | -65.72B |
| Investing Cash Flow | -199.09B | -203.36B | -83.64B | -62.90B | -46.28B | -55.79B |
| Financing Cash Flow | 377.68B | 318.46B | 39.92B | 65.67B | -9.62B | 112.38B |
Nomura Real Estate Holdings Technical Analysis
Positive
943.90
Price Trends
1053.60
Negative
999.28
Positive
935.14
Positive
Market Momentum
-1.02
Negative
51.61
Neutral
74.42
Neutral
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 943.9 is below the 20-day moving average (MA) of 1031.21, below the 50-day MA of 1053.60, and above the 200-day MA of 935.14, indicating a neutral trend. The MACD of -1.02 indicates Negative momentum. The RSI at 51.61 is Neutral, neither overbought nor oversold. The STOCH value of 74.42 is Neutral, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥136.53B | 20.19 | 15.81% | 2.93% | 84.20% | 137.87% | |
73 Outperform | ¥4.49T | 16.16 | 9.64% | 0.97% | 0.49% | 12.19% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | ¥1.43T | 11.39 | 13.29% | 3.25% | 45.15% | 19.80% | |
65 Neutral | ¥781.59B | 12.53 | 10.59% | 2.94% | -19.09% | 16.31% | |
63 Neutral | ¥216.25B | 21.96 | 16.39% | 2.38% | 7.21% | 112.45% | |
57 Neutral | ¥958.43B | 17.83 | 7.40% | 3.68% | 3.52% | -17.58% |
* Real Estate Sector Average
JP:3231
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Nomura Real Estate Holdings Corporate Events
Nomura Real Estate Raises Full-Year Dividend Forecast on Stronger Earnings Outlook
Jan 28, 2026
Nomura Real Estate Holdings has revised its forecast for the fiscal year-end dividend, raising the planned payout from ¥18 to ¥22 per share and lifting the total annual dividend forecast from ¥36 to ¥40 per share. Citing strong...
Nomura Real Estate Posts Profit Drop for Nine Months but Lifts Full-Year Revenue Outlook
Jan 28, 2026
Nomura Real Estate Holdings reported a modest 1.7% increase in operating revenue to ¥581.6 billion for the nine months ended December 31, 2025, but profits declined sharply, with operating profit down 18.7% to ¥80.3 billion and profit at...
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.