• Thu. Feb 29th, 2024

    Nomura Real Estate Holdings Reports Strong Profit Growth for Nine Months to December

    ByNuala Hafner

    Feb 3, 2024
    Nomura Real Estate Holdings Reports Strong Profit Growth for Nine Months to December

    Nomura Real Estate Holdings, a leading Japanese developer, has reported a significant year-on-year profit rise of 5.6 percent to JPY 43.2 billion ($290 million) for the nine months ending December. The company’s operating revenue also saw a substantial increase of 22.7 percent to JPY 518.3 billion.

    One of the key contributors to Nomura’s growth was its residential development sector, which experienced a remarkable 45 percent increase in operating revenue to JPY 238 billion. This growth can be attributed to the higher number of housing sales and improved gross margins during the period. Nomura sold a total of 2,659 homes from April to December, with the Tokyo metropolitan area accounting for the majority of units sold.

    In the commercial real estate segment, Nomura reported operating revenue of JPY 165.7 billion, marking an 11.6 percent year-on-year increase. The property management and property brokerage divisions also performed well, with revenues of JPY 76.5 billion and JPY 35.3 billion respectively.

    Nomura’s investment management sector experienced a 6.3 percent increase in operating revenue to JPY 11.1 billion. The company’s assets under management reached JPY 92 billion by the end of the fiscal third quarter.

    The overall balance sheet showed positive growth, with total assets rising by 2.9 percent to JPY 2.17 trillion. Total liabilities also saw a modest increase of 2.6 percent to JPY 1.49 trillion.

    Looking ahead, Nomura forecasts an attributable profit of JPY 65 billion for the full fiscal year, representing a 0.7 percent increase, along with an operating revenue of JPY 750 billion, reflecting a 14.5 percent growth.

    In December, Nomura made significant deals, including the acquisition of hotel operator Urban Design System from Odakyu Electric Railway for an expected JPY 18 billion. The company also acquired the Mimaru Suites Tokyo Asakusa hotel for JPY 2.3 billion, demonstrating its confidence in the demand for accommodation from international visitors to Tokyo.

    Furthermore, Nomura announced plans to invest in two condo projects in eastern Thailand, marking its entry into the nation’s Eastern Economic Corridor special zone through a joint venture with local developer Origin Nationwide.

    Overall, Nomura Real Estate Holdings has shown impressive growth in various sectors, positioning itself for continued success in the real estate market.

    Nomura Real Estate Holdings Reports 5.6% Rise in Profit for Nine Months Ending December

    Nomura Real Estate Holdings, a leading Japanese developer, has reported a significant year-on-year profit rise of 5.6 percent to JPY 43.2 billion ($290 million) for the nine months ending December. The company’s operating revenue also saw a substantial increase of 22.7 percent to JPY 518.3 billion.

    Residential Development Sector

    One of the key contributors to Nomura’s growth was its residential development sector, which experienced a remarkable 45 percent increase in operating revenue to JPY 238 billion. This growth can be attributed to the higher number of housing sales and improved gross margins during the period. Nomura sold a total of 2,659 homes from April to December, with the Tokyo metropolitan area accounting for the majority of units sold.

    Commercial Real Estate Segment

    In the commercial real estate segment, Nomura reported operating revenue of JPY 165.7 billion, marking an 11.6 percent year-on-year increase. The property management and property brokerage divisions also performed well, with revenues of JPY 76.5 billion and JPY 35.3 billion respectively.

    Investment Management Sector

    Nomura’s investment management sector experienced a 6.3 percent increase in operating revenue to JPY 11.1 billion. The company’s assets under management reached JPY 92 billion by the end of the fiscal third quarter.

    Balance Sheet

    The overall balance sheet showed positive growth, with total assets rising by 2.9 percent to JPY 2.17 trillion. Total liabilities also saw a modest increase of 2.6 percent to JPY 1.49 trillion.

    Future Outlook

    Looking ahead, Nomura forecasts an attributable profit of JPY 65 billion for the full fiscal year, representing a 0.7 percent increase, along with an operating revenue of JPY 750 billion, reflecting a 14.5 percent growth.

    Recent Deals

    In December, Nomura made significant deals, including the acquisition of hotel operator Urban Design System from Odakyu Electric Railway for an expected JPY 18 billion. The company also acquired the Mimaru Suites Tokyo Asakusa hotel for JPY 2.3 billion, demonstrating its confidence in the demand for accommodation from international visitors to Tokyo.

    Expansion in Thailand

    Furthermore, Nomura announced plans to invest in two condo projects in eastern Thailand, marking its entry into the nation’s Eastern Economic Corridor special zone through a joint venture with local developer Origin Nationwide.

    Conclusion

    Overall, Nomura Real Estate Holdings has shown impressive growth in various sectors, positioning itself for continued success in the real estate market.

    Definitions:
    – Gross Margins: The percentage of revenue that exceeds the costs associated with producing or providing a product or service.
    – Assets under Management: The total market value of all the assets that a financial institution manages for its clients.

    Suggested related links:
    Nomura Real Estate Holdings Official Website
    Nikkei Asian Review
    Bloomberg