Business Plan
Nomura Real Estate Group: Announcement of Formulation of a Business Plan (Comprising a three-year business plan (FY26/3–FY28/3) and a long-term management policy)
Business Plan (Comprising a three-year business plan (FY26/3–FY28/3) and a long-term management policy)
Nomura Real Estate Group: Announcement of Formulation of a Business Plan
The Nomura Real Estate Group (the “Group”) hereby announces that it has formulated a new business plan (the “Plan”) covering the period from the fiscal year ending March 31, 2026 to around 2030.
1．Background and Purpose of the formulation of the Plan
In April 2022, the Group formulated the Mid- to Long-term Business Plan (from FY23/3 to FY31/3, the “previous plan”) and the Nomura Real Estate Group 2030 Vision, “Be a ‘Life & Time Developer,’ as Never Seen Before,” targeting business profit* of ¥115.0 billion, ROA of 4.5% level, ROE of 9% level, and a total return ratio of 40% to 50% in FY25/3. As a result of our efforts, we achieved the targets, with business profit of ¥125.1 billion, ROA of 5.1 %, ROE of 10.4%, and a total return ratio of 45.9% in FY25/3.
Based on the above vision, we recently rebuilt our growth strategies with an eye to becoming a group that maximizes happiness and abundance through across-the-board collaboration focused on meeting the needs of each customer. In addition, the Plan (ending around 2030) comprises a long-term management policy that lays out our long-term policy to realize our vision for 2030 and a three-year plan that outlines specific business strategies spanning FY26/3 to FY28/3.
* Business profit = operating profit + share of profit (loss) of entities accounted for using equity method + amortization of intangible assets associated with corporate acquisitions + gain or loss on sale of equity interest in project companies in the Overseas Business Unit
2．Overview of the Long-term Management Policy
(1) Enhancing the Nomura Real Estate Group Vision for 2030
We will continue aiming to realize our vision for 2030, “Be a ‘Life & Time Developer,’ as never seen before.” Under this vision, we will evolve and transform our value creation methods while striving to become a Group That Maximizes Happiness and Abundance. Specifically, we have defined the following three points in terms of how we evolve and transform our value creation methods.
How we evolve and transform our value creation methods
- Pursue a customer-centered approach in both asset and service aspects
- Facilitate Group-wide collaboration focused on meeting customer needs
- Engage with customers in sustainable co-creation and joint innovation
(2) Financial Policy
| Items | Policy |
|---|---|
| ROA | 5% or higher |
| ROE | 10% or higher |
| Average annual business profit growth rate | 8% |
| Shareholders’ equity ratio | 30% |
| Total return ratio | 40%–50% |
| Annual dividends | Minimum DOE of 4% |
3. Overview of the Three-Year Plan
(1) Profit Plan
We will continue to realize high profit growth at the 8% level.
Business profit (unit: billions of yen)
| FY25/3 Results | FY28/3 Targets | |
|---|---|---|
| Residential Development | 48.7 | 63.0 |
| Commercial Real Estate | 41.6 | 52.0 |
| Overseas | 6.6 | 11.0 |
| Investment Management | 9.8 | 13.0 |
| Property Brokerage & CRE | 16.5 | 20.0 |
| Property & Facility Management | 11.9 | 11.0 |
| Other and Adjustment | (10.2) | (10.0) |
| Total | 125.1 | 160.0 |
(2) Management Policy
- Facilitate even closer collaboration among the Development sector and the Service & Management sector while enhancing their product planning and service capabilities, with the aim of securing a solid position in our mainstay housing sales and office businesses
- At the same time, focus on implementing the following five policies in order to expand the volume of business handled by the entire Group and realize sustainable growth
- Maintain the proper management of our balance sheet even as we expand the volume of business so that we can achieve higher asset and capital efficiency as well as robust profit growth
- 1.Focus investment in growth businesses (rental housing, hotels, senior residences, logistics facilities)
- 2.Introduce investor funding in the development and leasing businesses
- 3.Strengthen collaboration within the Group and with the Nomura Group
- 4.Take measures aimed at expanding the future profit of the overseas business
- 5.Accelerate growth through strategic investment (M&A)
Nomura Real Estate Group 2030 Vision
Be a "Life & Time Developer," as never seen before
Becoming a Group That Maximizes Happiness and Abundance
Nomura Real Estate Group has always connected closely
with customers’ lives and times through real estate development
and real estate-related services.
Now, as we confront various social issues,
as well as diversified lifestyles and values,
we must change ourselves.
To enrich people’s respective lives and every moment of their time
we will transform ourselves into a “Life & Time Developer”
that creates new, significant values on a global scale.
And, through that transformation, we will continue to strive to maximize happiness among people
and abundance for society.
Reference
Mid-to Long-term Business Plan
from FY23/3 through FY31/3
Announcement of the formulation of Nomura Real Estate Group Mid- to Long-term Business Plan
Presentation Material of the Mid- to Long-term Business Plan