Nomura Real Estate Holdings, Inc. (NMEHF) Q1 2027 Earnings Call Prepared Remarks Transcript

For the first quarter, operating revenue was JPY 191 billion. Business profit was JPY 27.1 billion, and net profit attributable to owners of parent was JPY 14.7 billion. Compared to the same period last year, revenue and each profit line figure decreased. However, progress toward achieving the full year forecast is on the right track.

The development area saw a decrease in revenue and profit due to a decrease in the number of housing units sold in the Residential Development business unit and the decrease in the property sale in the Commercial Real Estate business unit. The property brokerage and CRE business unit saw increased revenue due to an increase in brokerage transaction volume and the Property and Facility Management business unit also saw increased revenue as property and facility management and construction order increased. However, as mentioned since the beginning of the fiscal year, profits of these 2 business units decreased due to increased expenses.

As mentioned earlier, revenue and profits decreased in the first quarter year-on-year. However, this is mainly due to the timing of recording housing sales and property sales on a full year basis. Both housing sales and property sales are making steady progress in line with the full year plan. So our full year performance forecast remains unchanged.