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Nomura Real Estate Group at a Glance

Nomura Real Estate Group at a Glance

To provide an easy-to-understand overview of the Nomura Real Estate Group, we will introduce our financial results, business, Mid- to Long-term Business Plan, sustainability, and more.

Overview of the Nomura Real Estate Group
History of the Nomura Real Estate Group
- History
Our Vision
- The Mid- to Long-term Business Plan
- BLUE FRONT SHIBAURA (Shibaura Project）

Overview of the Nomura Real Estate Group

Fast Facts

Operating revenue

734.7billion yen^*
Operating profit

112.1billion yen^*
Business profit

113.6billion yen^*
Profit attributable to owners of parent

68.1billion yen^*
History

Established In 1957,

Over60years since establishment
Number of employees

7,929

*As of the end of March 31, 2024, consolidated
Total assets

2,251.4billion yen^*
Shareholder’s equity ratio

30.7%^*
ROA

5.2%^*
ROE

10.1%^*

*FY2024/3

Shareholder returns

13consecutive fiscal year of dividend increase
payout ratio is expected to be40.7%

*Forecast for FY2025/3

For more information on
Dividends and Shareholder Returns,
please see here.

Overview of Businesses

Our Group mainly operates in the Development Sector, in which it creates value through real estate development, and the Service & Management Sector, in which it creates value through the provision of real estate-related services, with a total of six business units supporting these two sectors.

Residential Development Business Unit
Commercial Real Estate Business Unit
Overseas Business Unit
Investment Management Business Unit
Property Brokerage & CRE Business Unit
Property & Facility Management Business Unit

Residential Development Business Unit

From the fiscal year ending March 31, 2025, the classification of hotel business has been changed from Commercial Real Estate Business Unit to Residential Development Business Unit. Due to this change, the figures listed for the fiscal year ended March 31, 2024 are changed. The figures before the change were operating revenue of 351.8 billion yen and business profit of 40.8 billion yen.

Main Businesses

Housing sales

Development and sale of condominiums and detached housing

Rental housing

Development, leasing and sale of rental housing

Hotel, senior housing and other

Development, leasing, and management of hotels
Development and management of senior housing
Internet advertising
Services aimed at providing assistance to customers concerning their homes arrangements

For more information on the
Residential Development Business Unit,
please see here.

Commercial Real Estate Business Unit

From the fiscal year ending March 31, 2025, the classification of hotel business has been changed from Commercial Real Estate Business Unit to Residential Development Business Unit. Due to this change, the figures listed for the fiscal year ended March 31, 2024 are changed. The figures before the change were operating revenue of 223.7 billion yen and business profit of 49.9 billion yen.

Main Businesses

Property sales / Leasing

Office buildings

Development, leasing and sales of office buildings

Nomura Real Estate Tameike Sanno building

Retail facilities

Development, leasing and sales of retail facilities

Logistics facilities

Development, leasing and sales of logistics facilities

Others

Satellite-type shared offices operations under the H1T brand
Fitness club operations
Kids business operations (sports school, after-school program, bilingual kindergarten, etc.)
Planning and management of construction work

For more information on the
Commercial Real Estate Business Unit,
please see here.

Overseas Business Unit

Main Businesses

Housing sales

Vietnam: Grand Park 2nd and 3rd period project (Ho Chi Minh City), Vu Yen (Hai Phong), Ecopark (Hanoi), etc.
Thailand: Park Origin Thonglor and Park Origin Ratchathewi (both in Bangkok), etc.
The Philippines: The Seasons Residences, the Observatory and Metro Park (all in Manila), etc.

Park Origin Thonglor (Thailand)） — Park Origin Thonglor (Thailand)

The Seasons Residences (The Philippines)

Leasing

Offices: Sun Wah Tower, Zen Plaza (all in Vietnam), Beijing Fortune Building (China), 127 Charing Cross Road (U.K.)
Retail facilities: Manila BGC Sunshine Fort Retail Building (the Philippines)
Service apartments: Staybridge Thonglor, Staybridge Sukhumvit 24 (Thailand)
Mixed-use facilities: The Observatory and Metro Park, etc., (the Philippines), Press Block Project (U.S.)

Manila BGC Sunshine Fort Retail Building (the Philippines)

For more information on the
Overseas Business Unit,
please see here.

Investment Management Business Unit

Main Businesses

REIT

Nomura Real Estate Master Fund, Inc.

A comprehensive listed REIT, the largest of its kind in Japan
Managing a portfolio consisting mainly of office buildings, retail facilities, logistics facilities, and rental housing, the total value of which exceeds ¥1 trillion

Nomura Real Estate Private REIT, Inc.

Japan’s first comprehensive private REIT
Managing a portfolio consisting mainly of office buildings, retail facilities, logistics facilities, and rental housing, with the total value of which exceeds ¥400.0 billion

Private funds

Taking full advantage of our experience in various fund schemes and sectors to formulate and manage private real estate funds tailored to accommodate needs among institutional investors
Nomura Real Asset Investment Co., Ltd., which was jointly established with Nomura Holdings, Inc. launched fund management business in April 2023.

Overseas

We are building a global network by handling private placements of various overseas real estate funds managed by local asset management companies in the United States, Europe, etc. to meet investor needs for overseas real estate investment

For more information on the
Investment Management Business Unit,
please see here.

Property Brokerage & CRE Business Unit

Main Businesses

Retail

We operate 88 stores under the “Nomura no chukai + (PLUS)” and REALIA brands in the Tokyo metropolitan area, Kansai, and Chubu regions.
We provide the best solutions, mainly to individual customers, through high-quality services closely attuned to local conditions.

Middle

We precisely identify the real estate sales needs of small and midsize companies, business owners, individual investors, and others and provide solutions that exceed expectations.
We provide support through a specialized team for real estate cases involving financial institutions, lawyers, tax accountants, judicial scriveners, etc., and offer consulting services to maximize the profits of our clients.

Wholesale

We serve as a comprehensive help desk for Nomura Real Estate and Group companies and create new value for customers’ real estate.
In cooperation with the Nomura Group's overseas offices, we provide inbound, outbound and cross-border support services.

For more information on the
Property Brokerage & CRE Business Unit,
please see here.

Property & Facility Management Business Unit

Main Businesses

Property & facility management

Condominium management business handling around 193,000 residences
Building management business handling 794 office buildings and other properties
Property management proposing and implementing optimal operation strategies for properties on behalf of the owners
Public-private partnership (PPP) business mainly managing and operating public facilities
Data center management business based on over 45 years of management experience

Construction ordered

In our renewal construction business, we propose optimal construction and repair plans suited to each building by leveraging data collected from many different sources and our accumulated know-how.
In our remodeling business, we remodel condominiums, remodel detached houses, and renovate properties.

For more information on the
Property & Facility Management Business Unit,
please see here.

Consolidated Results

Financial results (Millions of yen)

	FY2020/3	FY2021/3	FY2022/3	FY2023/3	FY2024/3
Operating revenue	676,495	580,660	645,049	654,735	734,715
Operating profit	81,905	76,333	91,210	99,598	112,114
Business profit^*	82,833	76,448	92,765	105,172	113,665
Profit attributable to owners of parent	48,886	42,198	55,312	64,520	68,164

Business profit = operating profit + share of profit (loss) of entities accounted for using equity method + amortization of intangible assets associated with corporate acquisitions

For more information on the
Financial Highlights,
please see here.

FY2024/3 Financial results by Business Unit

Residential Development
Commercial Real Estate
Overseas(*3)
Investment Management
Property Brokerage & CRE
Property & Facility Management
Other

Business profit = Operating profit + Share of profit and loss of entities accounted for using equity method + Amortization expneses of intangible assets associated with corporate acquisition

Total figures for the consolidated operating revenue and business profit of each business are different from the total amount shown in the center of each pie chart because the monetary amount for "Adjustments" in the unit information is not included.
The composition ratio of consolidated operating revenue and business profit by each unit are calculated based on a simple total amount.

For more information on the
Performance highlights by Business Unit,
please see here.

Sustainability

Our Group recognizes climate change, natural resource depletion, and ecosystem destruction as important social issues. We are therefore contributing to the realization of a sustainable society through environmentally friendly buildings and urban development, including initiatives for an energy-efficient and low-carbon society.
We also continue to comply with environmental laws and regulations and promote appropriate environmental management, while stepping up our initiatives in collaboration with our stakeholders, including tenant companies and suppliers.

Mori wo Tsunagu TOKYO project (Integrated Forest Management Project in Tokyo)

As part of the Integrated Forest Management Project in Tokyo, the Group owns approximately 130 hectares of forest in Okutama Town, Tokyo and is working with a variety of co-creation partners to promote growing sustainable forests for local production and local consumption as a field for biodiversity initiatives, which the Group has identified as one of its “Priority issues (materiality) for 2030.” This project began in 2022, and has received domestic and international certifications in recognition of its biodiversity protection and sustainable forest management.

In June 2023, Tsunagu Mori was certified by the “SGEC (Sustainable Green Ecosystem Council)” and the international mutual certification organization “PEFC (Programme for the Endorsement of Forest Certification)” as a forest where biodiversity protection and sustainable forest management are being practiced.

Tsunagu Mori was certified as a “site coexisting with nature” under the initiative of the Ministry of the Environment, toward the achievement of “30 by 30” (a goal to protect at least 30% of land and sea areas by 2030), which was adopted as a global target at COP15 in December 2022.

For more information on the
Mori wo Tsunagu TOKYO project,
please see here.

History of the Nomura Real Estate Group

Entered into the residential development business to solve the housing shortage during the postwar reconstruction period.

In 1957, the Company was established as an asset management company for Nomura Securities when the latter constructed its new head office building. In 1961, the Company entered the residential development business with the aim of tackling the housing shortage, which was a key social issue during the postwar reconstruction period. In 1963, the Company advanced into the condominium development business and firmly established its position as a major private real estate developer. While steadily expanding our office building business, in 1978, we developed Shinjuku Nomura Building, a skyscraper that still serves as our head office to this day.

Spun off from Nomura Securities and launched real estate business focused on the leasing and management of office buildings

Launched real estate development business with development of the Kajiwarayama residential area in Kanagawa

Launched condominium development business with the construction of Co-op Takenomaru in Kanagawa

Completed construction of Shinjuku Nomura Building, moved the Company’s Head Office from Nihonbashi to Shinjuku

For more information on
corporate History,
please see here.

Overcoming financial crisis by concentrating business resources on the residential business.

When the bubble burst, the economy and the real estate market conditions rapidly deteriorated.
The Group overcame the crisis by grasping the resurgence of residential needs in urban centers due to falling land prices and concentrated its business resources on the condominium business.
In 1999, the Company was an early adopter of IT, launching the real estate information website “nomu.com.” In 2002, we announced “PROUD,” an integrated brand of housing and related services under which we have continued to create products and services, leading to a strength for the Company.

Yokohama Business Park (YBP), one of the largest business developments undertaken by the Company alone as a private company, completed

Launched the real estate information website “nomu.com”

Launched “PROUD” as an integrated brand of housing and related services Completed construction of PROUD Kugayama (2003)

For more information on
corporate History,
please see here.

Accelerating growth through M&A, and development of characteristic brands.

In October 2006, the Company was listed on the First Section of the Tokyo Stock Exchange (now the TSE Prime Market). We increased our financing capabilities from capital markets and significantly expanded the Leasing business through the M&A of NREG Toshiba Building (merged into Nomura Real Estate in April 2022). We also developed a string of characteristic asset brands, including PMO (with which we created a new market of medium-sized high-grade offices), and Landport (logistics facilities with advanced and high functionality, created through early-stage market entry and development based on investor needs).

Nomura Real Estate Holdings was listed on the First Section of the Tokyo Stock Exchange

Completed construction of Landport Atsugi

Completed construction of PMO Nihonbashi Honcho

For more information on
corporate History,
please see here.

Initiatives to build cities that connect today with tomorrow’s possibilities in Japan and overseas.

We are working on several projects through which we are demonstrating the Group’s expertise.
One is BLUE FRONT SHIBAURA (Shibaura Project), a large-scale, mixed-use development (South Tower: completion scheduled for February 2025; North Tower: completion scheduled for FY2031/3). Under this project, we will develop a total floor space of approximately 550,000 m2, the largest in the Group’s history.
Moreover, the overseas expansion of our expertise cultivated in Japan has accelerated, especially in the cities of rapidly growing ASEAN countries. Meanwhile, in OKUTAMA TOWN, Tokyo, we own approximately 130 ha of forest. With this forest as a basis, we have launched new initiatives aimed at realizing low-carbon buildings via the use of wood materials even as we strive to maintain and restore forest functions. Looking ahead, we will strive to build cities—dynamic stages that connect today with tomorrow’s possibilities—at home and abroad in a way that accurately meets people’s needs.

Established “Nomura Real Estate Master Fund” through the merger of 3 REITs

Established Federal Land NRE Global (FNG), a joint venture company in the Philippines

Launched the Mori wo Tsunagu TOKYO project (Integrated Forest Management Project in Tokyo)

Nomura Real Asset Investment Corporation launched a fund management business

Scheduled completion of BLUE FRONT SHIBAURA (Shibaura Project) (South Tower)

For more information on
corporate History,
please see here.

Our Vision

Mid- to Long-term Business Plan：Financial targets

Business profit

Realize an average annual business profit growth rate around the 8% level.

ROA/ROE

Pursue higher asset and capital efficiency

	Phase I FY23/3 - FY25/3	Phase II FY26/3 - FY28/3	Phase III FY29/3 – FY31/3
ROA^*	4.5% level	5% level	5% or more
ROE^*	9% level	10% level	10% or more

ROA = business profit / (average) total assets during the period

ROE = profit attributable to owners of parent / (average) shareholders’ equity during the period

Shareholder Returns Policy

Ensure high shareholder returns

	Phase I FY23/3 - FY25/3	Phase II FY26/3 - FY28/3	Phase III FY29/3 – FY31/3
Shareholder returns policy	Total return ratio: 40-50%	Dividend payout ratio: 40% level

We newly added a policy of a DOE of 4% as the lower limit for the annual dividend from FY2025/3.

Investment and recovery strategy

Figures are rounded down to the nearest ¥50.0 billion.

For more information on the
Mid- to Long-term Business Plan,
please see here.

BLUE FRONT SHIBAURA（Shibaura Project）

Under the Project, the construction of two towers with a height of approximately 230 meters (Scheduled for completion: South Tower; February 2025, North Tower; FY2031/3) is planned as a rebuilding project of the Hamamatsucho Building (Toshiba Building). With a district area of approximately 4.7 ha and a gross floor area of approximately 550,000 ㎡, this nearly ten-year-long project is a large-scale, mixed-use development that includes offices, a hotel, retail facilities, and residences.

Location:

Minato-ku, Tokyo
District area:

approx. 47,000㎡
Gross floor area:

approx. 550,000㎡
Major uses:

Office, retail, hotel, residence, parking lot, etc.
Number of floors:

South Tower, 43F above ground, 3F below ground North Tower, 45F above ground, 3F below ground
Scheduled for completion:

South Tower Feb. 2025, North Tower FY31/3
Business entities:

Nomura Real Estate Development, East Japan Railway Company

For more information on
BLUE FRONT SHIBAURA (Shibaura Project),
please see here.