F3/27 1Q Results: Timing of Property Bookings Depressed Profit YoY, but Business Healthy Domestically and in Line with Plan Overseas

Research evidence excerpt

F3/27 1Q Results: Timing of Property Bookings Depressed Profit YoY, but Business Healthy Domestically and in Line with Plan Overseas

Update

July 30, 2026 10:49 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MNomura Real Estate Holdings (3231) | Japan Toshiyuki Anegawa

Equity Analyst

F3/27 1Q Results: Timing of Toshiyuki.Anegawa@morganstanleymufg.com +81 3 6836-8914

Property Bookings Depressed

Profit YoY, but Business Healthy

Nomura Real Estate Holdings (3231.T, 3231 JP)

Real Estate | Japan

Domestically and in Line with Stock Rating Equal-weight

Industry View In-Line

Price target ¥1,000Plan Overseas Shr price, close (Jul 30, 2026) ¥973

Mkt cap, curr, basic (bn) ¥830.9

Avg daily trading value (bn) ¥3.0

AlphaSignals Earnings Reaction

Unchanged Modest shortfall Largely unchanged

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Key Takeaways

1Q housing GPM of 26.9% was steady vs. FY plan at the 26% level. Real demand

is firm despite shrinking premiums in the resale market for pre-owned homes.

The bulk of condos to be booked in F3/27 have completed construction; those

that haven't are being coordinated within original project timelines.

NRE is achieving rent hikes for 70-80% of office tenants facing revisions. Avg.

rises are 5-10%, and those of over 10% are increasing too.

Overseas business is steady in Hanoi and Ho Chi Minh City. Haiphong sales delays

have been factored into the company plan.

Results vs. forecast: 1Q EPS was below consensus. Business profit was down 29.8%

YoY, but this related to the timing of sales of income-generating properties and

condo transfers, and we believe earnings are generally tracking in line with plan.