Nomura Real Estate Holdings, Inc.
3231・Prime Market・Real Estate
Residential Business
The largest segment of the Nomura Real Estate Group. Operates for-sale housing, rental housing, hotels, and senior residences
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (segment total, including internal revenue) | ¥433,408 million | ¥368,456 million | ↑ |
| Business profit | ¥61,736 million | ¥48,782 million | ↑ |
| Operating profit | ¥60,588 million | ¥47,894 million | ↑ |
| Segment assets | ¥824,225 million | ¥784,460 million | ↑ |
| Depreciation and amortization | ¥2,622 million | ¥2,451 million | ↑ |
| Investment in equity-method affiliates | ¥1,100 million | ¥608 million | ↑ |
| Increase in property, plant and equipment and intangible assets | ¥11,694 million | ¥9,860 million | ↑ |
Business Details
Centered on Nomura Real Estate Development Co., Ltd., this segment engages in the development and sale of condominiums and detached houses, the development and operation of rental apartments and senior housing, and the development and operation of hotels. It comprises Nomura Real Estate Wellness Co., Ltd., Nomura Real Estate Hotels Co., Ltd., UDS Co., Ltd., Okinawa UDS Co., Ltd., and others, with revenue composed of five categories: for-sale housing, leasing, operations, sale (income-producing real estate), and other. It is the largest segment, accounting for approximately 46% of the Group's total revenue.
Recent Overview
FY2026 (ending March 2026) achieved substantial increases in both revenue and business profit
In the Residential Business for FY2026 (ending March 2026), revenue increased to ¥433,408 million (up ¥64,951 million, or 17.6%, year on year) and business profit increased to ¥61,736 million (up ¥12,953 million, or 26.6%, year on year), representing higher revenue and profit. While impairment losses of ¥163 million (Residential Business) were recorded, increased deliveries of for-sale housing and the sale of income-producing real estate contributed positively. For FY2027 (ending March 2027), revenue is forecast at ¥500,000 million (up 15.4% year on year) and business profit at ¥69,000 million (up 11.8% year on year), continuing the growth trend.
Key Products
Growth Drivers
- Rising average selling prices and improving gross margins for for-sale housing
- Growth in the Hotel Business (expansion of operating revenue due to the full consolidation of UDS Co., Ltd. and the transfer of Nomura Real Estate Hotels Co., Ltd. from the Residential segment)
- Increased rental income from Rental Housing & Senior Residences
- Growth targets set for FY2027 (ending March 2027) of revenue of ¥500,000 million and business profit of ¥69,000 million
- Policy of expanding business profit in the Residential segment based on the long-term management policy
Risks
- Profit pressure from building reconstruction-related losses (¥14,753 million recorded on a consolidated basis in FY2026 (ending March 2026))
- Risk of quarterly performance fluctuations due to concentration or dispersion of delivery timing for for-sale housing
- Risk of increased development costs due to rising construction costs and extended construction periods
- Impact of rising mortgage rates from the gradual increase in policy interest rates on demand for for-sale housing
- Risk of changes to the sale of income-producing real estate plan (revenue fluctuations depending on sale timing)
- Risk of increased inventory valuation losses (¥2,577 million recorded on a consolidated basis in FY2026 (ending March 2026), up from ¥1,123 million in the prior period)
Last updated: June 23, 2026