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Nomura Real Estate Holdings (JP:3231)
:3231
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Nomura Real Estate Holdings
(3231)
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Rating:63Neutral
Price Target:
¥966.00
▲(2.34% Upside)
Nomura Real Estate Holdings' overall stock score is driven by strong financial performance, despite challenges with high leverage and negative cash flows. The valuation is attractive with a low P/E ratio and a solid dividend yield, but technical indicators suggest caution due to bearish trends. The absence of earnings call and corporate events data limits additional insights.
Positive Factors
Profit Margins
Strong profit margins indicate effective cost management and pricing power, supporting long-term profitability despite revenue challenges.
Free Cash Flow Growth
Positive free cash flow growth suggests improving cash generation capabilities, which can support future investments and debt reduction.
Market Position
A strong market position in the Japanese real estate sector provides a competitive advantage and opportunities for sustained growth and expansion.
Negative Factors
High Leverage
High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.
Negative Cash Flow
Negative cash flow highlights liquidity challenges, which may affect the company's ability to meet obligations and fund operations sustainably.
Revenue Growth Decline
Declining revenue growth could signal market saturation or competitive pressures, potentially affecting long-term revenue prospects.
Nomura Real Estate Holdings (3231) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥865.67B
Dividend Yield3.75%
Average Volume (3M)2.33M
Price to Earnings (P/E)12.8
Beta (1Y)0.79
Revenue Growth3.52%
EPS Growth-17.58%
CountryJP
Employees7,695
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)9.49
Shares Outstanding917,895,700
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nomura Real Estate Holdings Business Overview & Revenue Model
Company DescriptionNomura 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 sells condominiums and houses; operates housing with services for the elderly; develops rental properties; provides Internet advertising services for housing and living assistance services; and offers consignment services for planning and management for commercial facilities. It also provides asset management services for real estate securitization, including REITs and private placement funds; and real estate brokerage and consulting, insurance agency, and real estate information website management services. In addition, the company engages in the management of properties, such as condominiums and educational facilities; provision of renovation and repair work for tenants; remodeling of condominiums and housing; and provision of cleaning services for condominiums and office buildings. Further, it participates in, promotes, and supports urban development projects and reconstruction of housing complexes; and manages fitness clubs. Nomura Real Estate Holdings, Inc. was founded in 1957 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyNomura 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 portion of its revenue by delivering housing units to consumers and investors. In addition, the commercial leasing segment generates steady income from long-term leases with businesses. The company also earns fees from property management services and real estate investment activities. Strategic partnerships with local governments, financial institutions, and other developers enhance its market reach and operational efficiency, while also allowing for joint ventures that can result in shared revenue streams.
Nomura Real Estate Holdings Earnings Call Summary
Earnings Call Date:Oct 25, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Jan 28, 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.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 strong revenue growth and operational efficiency, but faces challenges with high leverage and negative cash flows. The company needs to address its liquidity issues to ensure long-term financial stability. While profitability metrics remain strong, the high debt levels could pose risks if not managed carefully.Income Statement
Nomura Real Estate Holdings shows a stable revenue growth trajectory with a TTM revenue growth rate of 2.71%. The gross profit margin is healthy at 34.36%, indicating efficient cost management. However, the net profit margin has slightly decreased to 9.46% in the TTM, reflecting some pressure on profitability. Overall, the company maintains strong EBIT and EBITDA margins, suggesting robust operational efficiency.75
Positive
Balance Sheet
The company's balance sheet reveals a high debt-to-equity ratio of 2.10 in the TTM, indicating significant leverage, which could pose financial risk. However, the return on equity remains solid at 9.98%, showcasing effective utilization of equity. The equity ratio is moderate, reflecting a balanced asset structure.65
Positive
Cash Flow
The cash flow statement highlights challenges with negative operating and free cash flows in the TTM, indicating liquidity issues. The free cash flow to net income ratio is high at 2.53, suggesting that the company is generating cash relative to its net income, but the negative growth in free cash flow is concerning.50
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 774.04B | 757.64B | 734.72B | 654.74B | 645.05B | 580.66B |
| Gross Profit | 262.14B | 266.60B | 244.47B | 222.66B | 205.31B | 183.06B |
| EBITDA | 133.23B | 139.85B | 132.56B | 120.19B | 110.30B | 96.36B |
| Net Income | 63.68B | 74.83B | 68.16B | 64.52B | 55.31B | 42.20B |
Balance Sheet | ||||||
| Total Assets | 2.78T | 2.69T | 2.25T | 2.11T | 2.04T | 1.92T |
| Cash, Cash Equivalents and Short-Term Investments | 138.13B | 140.32B | 102.96B | 61.38B | 102.91B | 100.39B |
| Total Debt | 1.69T | 1.55T | 1.19T | 1.12T | 1.02T | 1.01T |
| Total Liabilities | 2.03T | 1.94T | 1.56T | 1.45T | 1.42T | 1.33T |
| Stockholders Equity | 748.10B | 750.18B | 691.28B | 653.96B | 619.69B | 584.73B |
Cash Flow | ||||||
| Free Cash Flow | -300.27B | -251.43B | 4.87B | -86.87B | 16.18B | -109.17B |
| Operating Cash Flow | -137.78B | -84.09B | 70.88B | -42.81B | 52.79B | -63.50B |
| Investing Cash Flow | -212.21B | -203.36B | -83.64B | -62.90B | -46.28B | -55.79B |
| Financing Cash Flow | 362.66B | 318.46B | 39.92B | 65.67B | -9.62B | 112.38B |
Nomura Real Estate Holdings Technical Analysis
Positive
943.90
Price Trends
924.06
Positive
913.57
Positive
875.84
Positive
Market Momentum
6.91
Negative
54.28
Neutral
75.38
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 above the 20-day moving average (MA) of 936.26, above the 50-day MA of 924.06, and above the 200-day MA of 875.84, indicating a bullish trend. The MACD of 6.91 indicates Negative momentum. The RSI at 54.28 is Neutral, neither overbought nor oversold. The STOCH value of 75.38 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥728.00B | 12.21 | 10.73% | 3.03% | -19.09% | 16.31% | |
76 Outperform | ¥3.67T | 18.40 | 8.82% | 0.98% | 0.49% | 12.19% | |
74 Outperform | ¥1.30T | 12.01 | 12.91% | 3.34% | 45.15% | 19.80% | |
74 Outperform | ¥199.25B | 11.84 | ― | 2.33% | 6.06% | 40.37% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | ¥865.67B | 12.78 | 8.38% | 3.75% | 3.52% | -17.58% | |
56 Neutral | ¥184.26B | 9.75 | 16.39% | 2.38% | 7.21% | 112.45% |
* Real Estate Sector Average
JP:3231
Nomura Real Estate Holdings
943.90
232.09
32.61%
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404.12
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418.00
69.81
20.05%
JP:8830
Sumitomo Realty & Development Co
7,847.00
3,210.64
69.25%
JP:8804
Tokyo Tatemono Co
3,500.00
1,101.34
45.91%
JP:1766
Token Corporation
14,700.00
2,954.53
25.15%
Nomura Real Estate Holdings Corporate Events
Nomura Real Estate Holdings Reports Mixed Half-Year Results Amid Profit Decline
Oct 30, 2025
Nomura Real Estate Holdings reported a mixed performance for the first half of the fiscal year 2025, with operating revenue increasing by 4.3% to 397,749 million yen, while profits saw a decline. Operating profit decreased by 16.3%, and profit attributable to owners of the parent fell by 26.2%. This downturn in profits is attributed to changes in business profit definitions and market conditions. Despite the profit decline, the company maintains a stable financial position with total assets of 2,775,077 million yen and a shareholders’ equity ratio of 27.0%. The company has also announced a stock split and adjusted its dividend forecasts accordingly. The forecast for the full fiscal year ending March 31, 2026, anticipates a 24.1% increase in operating revenue, indicating a positive outlook for future growth.
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.