Nomura Real Estate's Q1 profit fell to 14.7bn yen, with residential sales slowing. The company reaffirmed its full-year guidance. Property brokerage revenue rose, though costs weighed.
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Nomura Real Estate Holdings (NMEHF) reported a drop in first-quarter profit, with housing sales slowing during the period. Operating revenue fell to ¥191 billion and business profit to ¥27.1 billion. Net profit attributable to owners of parent came in at ¥14.7 billion, President Satoshi Arai said in prepared remarks. He described the declines as in line with the company's full-year plan.
The development segment drove the year-on-year slide. Revenue and profit fell in the Residential Development unit on fewer housing units sold and in the Commercial Real Estate unit on lower property sales, Arai said. Property brokerage and CRE revenue rose on higher transaction volumes, and the Property and Facility Management unit also posted higher revenue as construction orders increased. Profits in both of those units fell because of higher expenses, Arai said.
Nomura Real Estate left its full-year forecast unchanged. The first-quarter drop was mainly a timing issue – housing and property sales are on track for the full year, Arai said. "Progress toward achieving the full year forecast is on the right track," he said.
The company did not provide an updated outlook for specific segments or a dividend forecast. Nomura Real Estate reports next on its fiscal second-quarter results.
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