27/3 Q1 results: Profits down but in line with expectations, we retain full-year forecasts: Stepping up efforts to counter risk of rising interest rates

Research evidence excerpt

27/3 Q1 results: Profits down but in line with expectations, we retain full-year forecasts: Stepping up efforts to counter risk of rising interest rates

Global Markets Research

30 July 2026Nomura Real Estate Holdings

3231.T 3231 JP / EQUITY: JAPAN HOUSING & REAL ESTATE

Rating27/3 Q1 results: Profits down but in line with

Remains Buyexpectations, we retain full-year forecasts

Target price JPY 1,190 RemainsStepping up efforts to counter risk of rising interest rates

Closing price JPY 972.7We retain full-year forecasts and target price, reiterate Buy rating 30 July 2026

Nomura Real Estate Holdings released 27/3 Q1 results on 30 July, posting business

Implied upside +22.3%profits of ¥27.2bn (down 30% y-y), mainly because of timing issues with the sale of

condos and income-generating real estate scheduled for 27/3. We estimate that many of

these sales will take place in Q4. As of end-June, the company had signed contracts for

72% of the condos it plans to sell, on which basis we estimate steady performance versus

Relative performance chartfull-year 27/3 guidance. Business profits undershot our forecast of ¥28.5bn (down 26%) by

¥1.3bn, but were broadly in line, on which basis we retain our full-year 27/3 forecasts and

only adjust the balance of quarterly profits. We retain our target price and reiterate our Buy

rating.

Stepping up efforts to counter rising interest rates

The company has been stepping up its efforts to counter rising interest rates, which

potentially increase interest payments and make it difficult to sell real estate by shrinking

real estate investment money. It is looking to offset this via hikes in rents and real estate

prices and growth in non-asset businesses such as real estate brokerage, property

management, and asset management.