Nomura Real Estate Holdings, Inc.
3231・Prime Market・Real Estate
Business
Nomura Real Estate Holdings is a comprehensive real estate group centered on Nomura Real Estate, operating with 112 companies including 44 consolidated subsidiaries and 68 equity-method affiliates. The group operates six segments—Residential (condominium sales, leasing, hotels, senior housing), Urban Development (offices, commercial facilities, logistics), Overseas (mainly Asia), Asset Management (REITs, private funds), Brokerage & CRE, and Property & Facility Management—covering the entire real estate value chain from development to operation, management, brokerage, and asset management. Its customer base ranges broadly from individual home buyers to institutional and overseas investors, and it has Nomura Holdings as another related company.
Business Model
The company combines stable income from real estate development, acquisition, leasing and operation with profit realization through the planned sale of income-producing properties, plus fee income from the formation and management of REITs and private funds, brokerage commission income, and stock-type revenue from property management contracts. In FY2026 (ending March 2026), the sale of income-producing properties by the Urban Development segment (¥218,396 million) significantly boosted consolidated net sales, and combined with stable income from residential condominium sales, leasing, and operation/management, the company achieved business profit of ¥147,384 million.
Company Strengths
Possesses an integrated in-house group structure covering development, sale, leasing, operation, brokerage, asset management, and property management. In FY2026 (ending March 2026), all segments—Housing, Urban Development, Brokerage, Operation & Management, and Asset Management—achieved growth in both revenue and profit, demonstrating a diversified earnings structure with low dependence on any single business.
Sales of income-producing real estate in the Urban Development segment reached ¥218,396 million, up ¥105,086 million year on year, driven by the continued execution of large-scale development projects such as BLUE FRONT SHIBAURA (TOWER S: completed February 2025). The company has systematically transferred properties from fixed assets to real estate for sale (equivalent to a book value of ¥108,632 million), maintaining a robust sales pipeline.
The Brokerage & CRE segment recorded a high business profit margin of 29.5% (business profit of ¥18,994 million on revenue of ¥64,363 million), while the Asset Management segment achieved 64.7% (business profit of ¥10,575 million on revenue of ¥16,340 million). Steady growth in assets under management for private REITs and private funds has supported stable growth in management fee income, lifting overall group profitability.
ENVALITH's Perspective
Performance Trend
Net sales increased 46.1% over five fiscal periods, from ¥645,049 million in FY2022 (ended March 2022) to ¥942,505 million in FY2026 (ending March 2026). The FY2026 revenue growth rate of 24.4% is the highest in the past five fiscal periods, driven by the Urban Development segment (net sales up 52.2%) and the Residential segment (up 17.6%). The operating margin declined slightly to 14.7% (from 15.7% in the prior period), impacted by an increase in extraordinary losses (¥34,826 million) and higher SG&A expenses (¥164,339 million). External factors, including firm domestic real estate market conditions and rising prices for condominium units, supported performance. For FY2027 (ending March 2027), the company forecasts net sales of ¥1,080,000 million (up 14.6%) and operating profit of ¥140,000 million (up 1.3%); while the revenue growth trend is expected to continue, profit growth is projected to decelerate.
Growth Strategy
Advancing a three-year plan targeting business profit of ¥160.0 billion and ROE of 10% or higher in FY2028 (ending March 2028)
In FY2026 (ending March 2026), business profit reached ¥61,736 million (up 26.6% year on year). For FY2027 (ending March 2027), the company forecasts net sales of ¥500,000 million and business profit of ¥69,000 million. Growth drivers include rising average selling prices for condominiums and expanding operating revenue from hotels and senior housing.
Following the completion of BLUE FRONT SHIBAURA TOWER S (February 2025), leasing revenue has expanded. The company continues to advance its development pipeline, including TOWER N (scheduled for completion in FY2031, ending March 2031). In FY2026 (ending March 2026), it recorded a gain on sale of fixed assets of ¥17,351 million, executing planned asset sales.
In FY2026 (ending March 2026), net sales were ¥16,340 million and business profit was ¥10,575 million. For FY2027 (ending March 2027), the company plans a substantial expansion to net sales of ¥25,000 million (up 53.0% year on year). Growth in assets under management for REITs and private funds, along with expanding management fees, is expected to drive earnings.
The annual dividend for FY2026 (ending March 2026) was ¥40.0 (payout ratio of 41.4%). For FY2027 (ending March 2027), the company plans to increase the dividend to ¥44.0 (expected payout ratio of 43.7%). Based on the long-term management policy formulated in April 2025, the company has set a financial policy with a DOE floor of 4%, aiming for continued expansion of shareholder returns.
In FY2026 (ending March 2026), the overseas segment recorded net sales of ¥3,718 million (down 60.5% year on year) and business profit of ¥2,792 million (down 57.8% year on year), a decline in both revenue and profit. However, this includes equity in earnings of affiliates of ¥6,616 million. Leveraging an investment balance of ¥289,793 million in equity-method affiliates, the company aims to achieve its three-year plan target of ¥11.0 billion in overseas business profit.
Last updated: July 19, 2026