Nomura Real Estate Holdings, Inc. TSE:3231

Nomura Real Estate : Publication of Financial Report 2024

Published

Source: MarketScreener

Financial Report

For the Fiscal Year Ended March 31, 2024

2024

Management's Discussion and Analysis ________________________ 1

Consolidated Balance Sheets _______________________________ 21

Consolidated Statements of Income __________________________ 23

Consolidated Statements of Comprehensive Income _____________ 24

Consolidated Statements of Changes in Net Assets ______________ 25

Consolidated Statements of Cash Flows _______________________ 26

Notes to Consolidated Financial Statements ____________________ 27

Management's Discussion and Analysis

Progress and Results of Business

Regarding the real estate market conditions, the housing sales market saw sales prices rise, as a result of continued strong demand while the number of units supplied per year in the Tokyo metropolitan area fell for the second year in a row. Background factors fueling the strong demand included stable mortgage interest rates and higher household income among buyers due to a rise in dual-income households. In the leasing office market, we saw demand for higher value-added offices in line with the diversification of work styles, and vacancy rates improved mainly in the central areas of Tokyo. In addition, in the retail facilities and hotel market, which had been severely affected by the COVID pandemic, service consumption and inbound demand continued to recover after restrictions on movement and entry into Japan were generally lifted. In the real estate investment market, although long-term interest rates are on a gradual upward trend in Japan, the volume of property transactions remained strong due to the continued good domestic fund procurement environment and strong appetite for investment among investors, and the size of the market continued to grow. The real estate brokerage market for used housing remained robust, with the number of transactions for used condominiums in the Tokyo metropolitan area proceeding at a high level and transaction prices continuing to rise, etc., due to strong demand.

In this business environment, the Nomura Real Estate Group (the "Group") posted the following consolidated performance for the fiscal year ended March 31, 2024: Operating revenue of ¥734,715 million, which represents an increase of 12.2% year on year; operating profit of ¥112,114 million, an increase of 12.6%; business profit*1 of ¥113,665 million, an increase of 8.1%; ordinary profit of ¥98,248 million, an increase of 4.4%; and profit attributable to owners of parent of ¥68,164 million, an increase of 5.6%.

Operating Results by Segment

An overview of segment achievements is given below:

Residential Development Business Unit

Operating revenue in the Residential Development Business Unit totaled ¥351,812 million, which represents an increase of ¥49,332 million or 16.3% year on year, and business profit totaled ¥40,848 million, an increase of ¥7,514 million or 22.5%, resulting in increases in both operating revenue and business profit compared with the previous fiscal year.

In regard to housing sales, 4,298 units were recorded as sales (an increase of 156 units year on year), including condominiums at PROUD TOWER Meguro MARC (Shinagawa-ku, Tokyo), PROUD CITY Toyoda Tamadaira no Mori (Hino-shi, Tokyo), and PROUD CITY Otsukyo (Otsu-shi, Shiga), and detached housing units at PROUD SEASON Hikarigaoka Grace (Nerima-ku, Tokyo).

The number of housing units contracted but not recorded as sales was 3,461 units as of the end of the fiscal year ended March 31,

2024 (a decrease of 358 units year on year) and the contract progress rate against the scheduled housing sales for the next fiscal year was 69.5% at the beginning of the fiscal year ending March 31, 2025.

As an initiative in the fiscal year ended March 31, 2024, we newly opened PROUD SEASON Gallery Komazawa. It offers a place for customers to consider a range of luxury built-for-sale detached housing in the Jonan and Josai areas of the 23 wards of Tokyo. We are actively promoting the sale of luxury built-for-sale detached housing units, for which demand is growing.

As an example of external valuation on our PROUD condominiums, we were honored with the Grand Prize in the Overall Evaluation of the SUUMO AWARD 2023.

Please note that from the fiscal year ending March 31, 2025, the hotel business, which has belonged to the Commercial Real Estate Business Unit, will now belong to the Residential Development Business Unit.

Commercial Real Estate Business Unit

Operating revenue in the Commercial Real Estate Business Unit totaled ¥223,752 million, which represents an increase of ¥24,442 million or 12.3% year on year, and business profit totaled ¥49,976 million, an increase of ¥10,447 million or 26.4%, resulting in increases in both operating revenue and business profit compared with the previous fiscal year.

Construction of 20 facilities including the PMO Ginza II office building and the Landport Toda logistics facility have been completed. The Group has large-scalemixed-use developments scheduled, including the BLUE FRONT SHIBAURA (Shibaura Project) (location:

Minato-ku, Tokyo; major uses: office, commerce, hotel, and housing; scheduled for completion: South Tower in fiscal year ending March 31, 2025 and North Tower in fiscal year ending March 31, 2031), and the Nihonbashi 1-chome Central District Redevelopment (location: Chuo-ku, Tokyo; major uses: office, commerce, hotel, housing, and conference; scheduled for completion: fiscal year ending March 31, 2026).

In the fiscal year ended March 31, 2024, we completed construction of the Nomura Real Estate Tameikesanno Building, a wooden sustainable office building. This building uses wood for construction materials and for the interior, and is designed to be environmentally friendly and conducive to the wellness of people who work in the building while ensuring fire resistance and earthquake resistance. The Nomura Real Estate Tameikesanno Building was selected by the Ministry of Land, Infrastructure, Transport and Tourism for the 2021 Leading Project for Sustainable Buildings (Wooden Construction Leading Type)*2.

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

*2 This initiative by the Ministry of Land, Infrastructure, Transport and Tourism highlights leading examples of construction of large-scale wooden buildings that make extensive use of wood, a renewable recyclable resource. Its aim is to contribute to the advancement of construction techniques using wood while promoting and raising public awareness about wooden buildings.

Nomura Real Estate Holdings, Inc. 1 Financial Report 2024

Overseas Business Unit

Operating revenue in the Overseas Business Unit totaled ¥4,616 million, which represents a decrease of ¥2,153 million or 31.8% year on year, and business loss totaled ¥(357) million, a decrease of ¥7,645 million, resulting in decreases in both operating revenue and business profit compared with the previous fiscal year. Share of profit (loss) of entities accounted for using equity method included in business profit in this Business Unit was ¥851 million.

In the housing sales business, sales continued to be recorded for delivery of residential condominiums of GrandPark Phase 3 in Ho Chi Minh City, Vietnam and other projects from the previous fiscal year.

In the fiscal year ended March 31, 2024, we decided to participate in The Fitzrovia, an office building development project, and to acquire 55 St James's Street, an existing office building, in London, U.K. To meet growing demand throughout Europe for environmental performance, both projects have obtained high environmental indicators.

In addition, in Manila, the Philippines, the retail facility MITSUKOSHI BGC, in a large-scalemixed-use development of housing and commercial facilities, had its grand opening. With a carefully designed exterior and interior aesthetic that conveys the uniqueness of Japan, it represents the idea of a bridge between the Philippines and Japan, and has attracted Japanese companies among its tenants.

In the mid- to long-term business plan, the Group has positioned its overseas business as a growth field. We have set a policy of investing approximately ¥550 billion in the overseas business from fiscal year ended March 31, 2023 to fiscal year ending March 31, 2031 and growing overseas business profit to a 15% or more share of our total profit.

Investment Management Business Unit

Operating revenue in the Investment Management Business Unit totaled ¥14,356 million, which represents an increase of ¥724 million or 5.3% year on year, and business profit totaled ¥8,571 million, an increase of ¥481 million or 6.0%, resulting in increases in both operating revenue and business profit compared with the previous fiscal year.

Assets under management steadily increased in the domestic REIT business with Nomura Real Estate Master Fund, Inc. (NMF) and Nomura Real Estate Private REIT, Inc. (NPR) having acquired a total of 19 properties (total transaction amount of ¥80,225 million) including MEFULL Chayamachi and PROUD FLAT Shibuya Sasazuka from Nomura Real Estate Development Co., Ltd., in addition to progress in the formation of private equity funds meeting the needs of investors.

As an initiative in the fiscal year ended March 31, 2024, Nomura Real Asset Investment Co., Ltd., a joint venture with Nomura Holdings, Inc., launched a fund management business. From the beginning, this business has various assets worth about ¥90 billion under management, including offices, housing, hotels, healthcare facilities and land. Through it, we aim to provide high-quality management services.

Furthermore, NMF received a four-star rating in the Global Real Estate Sustainability Benchmark (GRESB)*1 Real Estate Assessment and the highest A-level rating in the GRESB Public Disclosure Assessment, and NPR received the highest five-star rating in the GRESB Real Estate Assessment. The ESG initiatives and disclosures of these companies received high evaluations.

Property Brokerage & CRE*2 Business Unit

Operating revenue in the Property Brokerage & CRE Business Unit totaled ¥49,588 million, which represents an increase of ¥1,888 million or 4.0% year on year, and business profit totaled ¥13,447 million, a decrease of ¥375 million or 2.7%, resulting in an increase in operating revenue and a decrease in business profit compared with the previous fiscal year.

In the retail business of this Business Unit, the Tsudanuma Center opened in January 2024, bringing the total number of branches for individual customers to 88 as of the end of the fiscal year ended March 31, 2024.

As initiatives in the fiscal year ended March 31, 2024, we have introduced a "hashtag-based floor plan search" function on our nomu.com real estate information website as a way of identifying floor plans with the features customers want. We have also started offering AI ANSWER Plus (beta version)*3, a chat communication consultation AI service, which we co-developed with LIFULL Co., Ltd. We are using AI to offer new services and experiences in our provision of real estate information.

Furthermore, we have started operating an official nomu.com LINE account. Through LINE, which is used by around 80% of the population in Japan, we share regular content such as recommended properties and mortgage loans, and customers can also book property tours.

We offer customers greater convenience in their search for a home.

Property & Facility Management Business Unit

Operating revenue in the Property & Facility Management Business Unit totaled ¥108,190 million, which represents an increase of ¥2,716 million or 2.6% year on year, and business profit totaled ¥10,088 million, an increase of ¥209 million or 2.1%, resulting in increases in both operating revenue and business profit compared with the previous fiscal year.

As of the end of the fiscal year ended March 31, 2024, the number of buildings under management was 794 buildings (up 12 from the end of the previous fiscal year), and the number of condominiums under management was 193,959 units (up 4,385).

As initiatives in the fiscal year ended March 31, 2024, our approach for Urbanity Oji, which this Business Unit manages under contract, was selected as a pioneering regeneration model type (repair work support) in the 2023 model project for extending the life of condominium stock, which is supported by the Ministry of Land, Infrastructure, Transport and Tourism. We also received the highest award in the construction and maintenance category of the Condominium Value Up Award 2023 sponsored by the Condominium Management Companies Association. These initiatives improve the soundness of repair reserve funds needed to properly maintain and manage aging condominiums, whose numbers are set to rise sharply in Japan in the near future. The pioneering approach and ingenuity of the initiatives for prolonging the lifespan of condominiums have earned strong praise.

Furthermore, we received the Grand Prize in the overall evaluation in the customer satisfaction ranking of the SUUMO AWARD 2023 (Condominium Management Company category of Kansai Area). In addition, we also received the Grand Prize / Excellence award in three other categories, including the Hospitality category.

Other

Operating revenue totaled ¥280 million, which represents a decrease of ¥1 million year on year, and business profit totaled ¥161 million, an increase of ¥13 million year on year.

*1 GRESB is an annual benchmark assessment that measures ESG considerations for property companies and funds.

*2 Corporate Real Estate. Real estate strategy support services for enterprises (such as consulting on the effective utilization and trading of real estate).

*3 Notes on the beta version: The beta version may differ from the official version. We do not guarantee that the same features, services, design, performance, etc. that are provided in the official version will be provided in the beta version.

Nomura Real Estate Holdings, Inc. 2 Financial Report 2024

Analysis of Financial Position

Assets

Total assets were ¥2,251,456 million, which represents an increase of ¥140,762 million compared with the end of the previous fiscal year. This was mainly because investment securities increased by ¥36,918 million, construction in progress increased by ¥28,246 million, advance payments to suppliers increased by ¥28,111 million, and cash and deposits increased by ¥25,879 million.

Liabilities

Total liabilities were ¥1,559,015 million, which represents an increase of ¥104,059 million compared with the end of the previous fiscal year. This was mainly because interest-bearing debt increased by ¥71,179 million, notes and accounts payable - trade increased by ¥12,845 million, and deposits received increased by ¥10,296 million.

Net Assets

Net assets were ¥692,440 million, which represents an increase of ¥36,702 million compared with the end of the previous fiscal year. This was mainly because retained earnings increased by ¥45,088 million, while the Company acquired treasury shares (decreased by ¥6,447 million).

The shareholders' equity ratio was 30.7%, a decrease of 0.3 percentage point from the end of the previous fiscal year.

Cash Flows

Cash Flows From Operating Activities

Net cash provided by (used in) operating activities increased by ¥70,878 million (a year-on-year increase of ¥113,687 million). This was mainly because profit before income taxes of ¥96,653 million was recorded, while income taxes were paid.

Cash Flows From Investing Activities

Net cash provided by (used in) investing activities decreased by ¥83,638 million (a year-on-year decrease of ¥20,741 million). This was mainly due to the purchases of property, plant and equipment and intangible assets, and investment securities, despite the sales and liquidation of property, plant and equipment and intangible assets, and investment securities.

Cash Flows From Financing Activities

Net cash provided by (used in) financing activities increased by ¥39,921 million (a year-on-year decrease of ¥25,753 million). This was mainly due to the fund procurement by long-term borrowings, despite the payment of dividends and the redemption of bonds.

Nomura Real Estate Holdings, Inc. 3 Financial Report 2024

Facilities Situation

In the fiscal year ended March 31, 2024, the Group's total capital investments amounted to ¥66,059 million, including 55 St James's Street (London, UK) and BLUE FRONT SHIBAURA (Shibaura Project, Minato-ku, Tokyo).

The breakdown of capital investment by Business Unit is as follows.

Previous fiscal year

Current fiscal year

(April 1, 2022 to

(April 1, 2023 to

Business Unit (Millions of yen)

March 31, 2023)

March 31, 2024)

Change

Residential Development

¥ 2,103

¥ 1,930

¥ (172)

Commercial Real Estate

28,806

45,356

16,550

Overseas

948

14,987

14,038

Investment Management

25

4

(20)

Property Brokerage and CRE

947

1,575

628

Property and Facility Management

251

961

710

Other

0

2

2

Subtotal

33,082

64,818

31,736

Adjustments

2,058

1,241

(816)

Total

¥35,140

¥66,059

¥30,919

The following facilities, for which construction was still in progress at the end of the previous fiscal year, were completed in the fiscal year ended March 31, 2024.

Book Value

Property Name

Business

(Millions of

Company Name

(Location)

Unit

Major Use

Size of Construction or Details of Facility, etc.

Area (m2)

yen)

Nomura Real

Nomura Fudosan

Estate

Tameikesanno

Commercial

Office

Steel-framed construction, 1 floor below

Building: 5,402

¥7,787

Development Co.,

Building

Real Estate

ground, 9 floors above ground

Land: 690

Ltd.

(Minato-ku, Tokyo)

The following facilities were acquired in the fiscal year ended March 31, 2024.

Book Value

Property Name

Business

(Millions of

Company Name

(Location)

Unit

Major Use Size of Construction or Details of Facility, etc.

Area (m2)

yen)

Land

Nomura Real

NOHGA HOTEL

slated

Estate

SHINJUKU GYOEN

Commercial

for

-

Land: 619

¥9,879

Development Co.,

(tentative name)

Real Estate

building

Ltd.

(Shinjuku-ku, Tokyo)

construc

-tion

NREA 55 St James's Street 1 Limited and 1 other company

55 St James's

Overseas

Office

Steel-framed construction, 1 floor below

Building: 2,472

¥12,161

Street (London, UK)

ground, 7 floors above ground

Land: 436

The following facility was sold during the fiscal year ended March 31, 2024.

Book Value

Property Name

Business

(Millions of

Company Name

(Location)

Unit

Major Use

Size of Construction or Details of Facility, etc.

Area (m2)

yen)

Nomura Real

Creare Toshiba

Reinforced concrete construction

Estate

Commercial

Residen-

(partially steel-framed reinforced

Building: 26,352

Fuchu (Fuchu-shi,

¥4,756

Development Co.,

Real Estate

tial

concrete construction), 10 floors above

Land: 20,590

Tokyo)

Ltd.

ground

Nomura Real Estate Holdings, Inc. 4 Financial Report 2024

Major Facilities and Equipment

Major facilities and equipment in the Nomura Real Estate Group (Nomura Real Estate Holdings, Inc. and its consolidated subsidiaries) are as follows.

  1. Commercial Real Estate Business Unit
  1. Office and retail facilities, etc.

Completion

Book Value (Millions of yen)

Company

Property Name

Size of Construction or

Total Floor

or [Time of

Land

Name

(Location)

Major Use

Details of Facility, etc.

Area (m2)

Acquisition]

Area (m2)

Building

Land

Other

Total

Steel-framed

Hamamatsucho

reinforced concrete

Nomura Real

construction (partially

Building /

Estate

steel-framed and

Toshiba Building

Office

158,732

March 1984

33,921

¥7,546

¥129,809

¥315

¥137,671

Development

reinforced concrete

(Minato-ku,

Co., Ltd.

construction), 3 floors

Tokyo)

below ground, 39

floors above ground

Steel-framed

Yokohama

construction (partially

Nomura Real

steel-framed

Business Park *2

Mainly

Estate

(Hodogaya-ku,

Office

reinforced concrete

245,200

February

70,693

24,065

14,557

654

39,277

Development

construction), 2 floors

Yokohama-shi,

1990

Co., Ltd.

below ground, 21

Kanagawa)

floors above ground,

11 other buildings

Steel-framed

construction (partially

Nomura Real

KAMEIDO

reinforced concrete

Estate

and steel-framed

CLOCK *2 *3

Retail facility

55,491

March 2022

8,622

13,567

21,391

810

35,769

Development

reinforced concrete

(Koto-ku, Tokyo)

Co., Ltd.

construction), 1 floor

below ground, 6 floors

above ground

TOKYO

Steel-framed

construction (partially

Nomura Real

TORANOMON

steel-framed

Estate

GLOBAL

Office

reinforced concrete

20,860

June 2020

1,183

10,841

22,187

248

33,277

Development

SQUARE *4

construction), 4 floors

Co., Ltd.

(Minato-ku,

below ground, 24

Tokyo)

floors above ground

LAZONA

Nomura Real

Kawasaki

Steel-framed

Estate

Toshiba Building

Office

construction, 15 floors

98,428

March 2013

9,764

10,225

22,245

482

32,953

Development

(Saiwai-ku,

above ground

Co., Ltd.

Kawasaki-shi,

Kanagawa)

Steel-framed

construction (partially

Nomura Real

Nihonbashi

reinforced concrete

Estate

Muromachi

Office

and steel-framed

44,989

September

2,737

10,170

19,227

289

29,688

Development

Nomura Building

reinforced concrete

2010

Co., Ltd.

(Chuo-ku, Tokyo)

construction), 5 floors

below ground, 21

floors above ground

Nomura Real

Former Nomura

Fudosan

Land slated

Estate

Nihonbashi-

for building

-

-

-

3,196

-

23,436

-

23,436

Development

honcho Building

construction

Co., Ltd.

(Chuo-ku, Tokyo)

Steel-framed

reinforced concrete

Nomura Real

Shinjuku Nomura

construction (partially

Estate

Building *2 *4

Office

reinforced concrete

58,512

May 1978

4,639

5,114

16,303

197

21,615

Development

(Shinjuku-ku,

and steel-framed

Co., Ltd.

Tokyo)

construction), 5 floors

below ground, 50

floors above ground

Steel-framed

Nomura Real

HOTEL NIWA

construction (partially

steel-framed

Estate

TOKYO

Hotel

reinforced concrete

9,280

March 2009

1,710

2,905

16,515

118

19,539

Development

(Chiyoda-ku,

construction), 16 floors

Co., Ltd.

Tokyo)

above ground, 2 other

buildings

Midosuji Nomura

Steel-framed

construction (partially

Midosuji Mirai

Building *2

reinforced concrete

February

Development,

(Chuo-ku,

Office

20,420

1,939

3,080

15,707

10

18,798

construction), 2 floors

2009

LLC

Osaka-shi,

below ground, 14

Osaka)

floors above ground

Nomura Real Estate Holdings, Inc. 5 Financial Report 2024

Completion

Book Value (Millions of yen)

Company

Property Name

Size of Construction or

Total Floor

or [Time of

Land

Name

(Location)

Major Use

Details of Facility, etc.

Area (m2)

Acquisition]

Area (m2)

Building

Land

Other

Total

Steel-framed

reinforced concrete

Nomura Real

Morisia

construction (partially

Estate

Tsudanuma *2

Retail facility

reinforced concrete

105,491

Mainly

19,194

¥364

¥16,885

¥24

¥17,273

Development

(Narashino-shi,

construction), 3 floors

October 1978

Co., Ltd.

Chiba)

below ground, 12

floors above ground, 1

other building

Steel-framed

reinforced concrete

Nomura Real

Nomura Fudosan

construction (partially

Estate

reinforced concrete

Ginza Building *4

Office

13,641

March 1982

1,624

1,693

11,565

19

13,278

Development

and steel-framed

(Chuo-ku, Tokyo)

Co., Ltd.

construction), 5 floors

below ground, 17

floors above ground

Steel-framed

Nomura Real

Nomura Fudosan

construction (partially

steel-framed

Estate

Shibadaimon

Office

reinforced concrete

15,700

April 2010

2,447

2,391

10,650

45

13,087

Development

Building (Minato-

construction), 2 floors

Co., Ltd.

ku, Tokyo)

below ground, 11

floors above ground

Nomura Real

Toshiba

Steel-framed

Estate

Hamamatsucho

Office

reinforced concrete

13,482

July 1974

2,907

341

10,956

1

11,299

Development

Building (Minato-

construction, 8 floors

Co., Ltd.

ku, Tokyo)

above ground

NOHGA HOTEL

Steel-framed

Nomura Real

KIYOMIZU

construction (partially

Estate

KYOTO

Hotel

reinforced concrete

8,906

January 2022

2,514

3,542

6,885

431

10,858

Development

(Higashiyama-

construction), 1 floor

Co., Ltd.

ku, Kyoto-shi,

below ground, 6 floors

Kyoto)

above ground

Steel-framed

Nomura Real

SOCOLA

construction (partially

Estate

Minamigyotoku *2

Retail facility

reinforced concrete

35,612

April 2000

16,503

5,741

4,942

146

10,830

Development

(Ichikawa-shi,

construction), 2 floors

Co., Ltd.

Chiba)

below ground, 2 floors

above ground

Nomura Fudosan

Steel-framed

Nomura Real

construction (partially

Otemachi North

Estate

reinforced concrete

Building

Office

7,768

June 2021

886

3,269

7,472

58

10,799

Development

construction), 1 floor

(Chiyoda-ku,

Co., Ltd.

below ground, 10

Tokyo)

floors above ground

NOHGA HOTEL

Nomura Real

SHINJUKU

Land slated

Estate

GYOEN

[January

for building

-

-

619

-

9,879

-

9,879

Development

(tentative name)

2024]

construction

Co., Ltd.

(Shinjuku-ku,

Tokyo)

bono Sagamiono

Reinforced concrete

Nomura Real

construction (partially

Shopping Center

Estate

steel-framed

*4 (Minami-ku,

Retail facility

43,059

January 2013

5,797

4,120

4,649

67

8,837

Development

Sagamihara-shi,

construction), 1 floor

Co., Ltd.

below ground, 11

Kanagawa)

floors above ground

Steel-framed

construction (partially

Nomura Real

steel-framed

Fuchu Toshiba

reinforced concrete

Estate

Building (Fuchu-

Office

and reinforced

32,299

April 1993

8,290

2,719

5,247

28

7,995

Development

shi, Tokyo)

concrete construction),

Co., Ltd.

1 floor below ground, 8

floors above ground, 1

other building

Nomura Real

Nomura Fudosan

Steel-framed

Tameikesanno

Estate

construction, 1 floor

Building

Office

5,402

October 2023

690

2,408

5,311

67

7,787

Development

below ground, 9 floors

(Minato-ku,

Co., Ltd.

above ground

Tokyo)

Nomura Fudosan

Nomura Real

Midosujihoncho

Steel-framed

Building /

reinforced concrete

Estate

Toshiba Osaka

Office

construction, 4 floors

15,220

October 1965

1,307

878

5,989

5

6,873

Development

Building (Chuo-

below ground, 10

Co., Ltd.

ku, Osaka-shi,

floors above ground

Osaka)

Nomura Real Estate Holdings, Inc. 6 Financial Report 2024

Completion

Book Value (Millions of yen)

Company

Property Name

Size of Construction or

Total Floor

or [Time of

Land

Name

(Location)

Major Use

Details of Facility, etc.

Area (m2)

Acquisition]

Area (m2)

Building

Land

Other

Total

Nomura Fudosan

Steel-framed

Nomura Real

Midosuji Building

reinforced concrete

Estate

/ NREG Midosuji

Office

construction, 2 floors

21,007

April 1974

2,366

¥1,038

¥5,768

¥11

¥6,817

Development

Building (Chuo-

below ground, 10

Co., Ltd.

ku, Osaka-shi,

floors above ground

Osaka)

Nihonbashi 1-

Nomura Real

chome Central

District Urban

Land slated

Estate

Area

for building

-

-

[March 2008]

18,996

-

6,161

-

6,161

Development

Redevelopment

construction

Co., Ltd.

Project *6 (Chuo-

ku, Tokyo)

Nomura Real

NREG Kawasaki

Reinforced concrete

Logistics Center

construction (partially

Estate

Logistics

(Kawasaki-ku,

steel-framed

49,046

March 2014

27,866

2,798

3,109

246

6,154

Development

facility

Kawasaki-shi,

construction), 5 floors

Co., Ltd.

Kanagawa)

above ground

Nomura Real

NOHGA HOTEL

AKIHABARA

Steel-framed

Estate

TOKYO

Hotel

construction, 10 floors

4,016

June 2020

663

1,508

4,169

222

5,900

Development

(Chiyoda-ku,

above ground

Co., Ltd.

Tokyo)

Nomura Real

Nomura Fudosan

Steel-framed

reinforced concrete

Estate

Ichigaya Building

Office

construction, 2 floors

6,753

January 1982

1,220

2,390

3,182

5

5,579

Development

(Chiyoda-ku,

below ground, 9 floors

Co., Ltd.

Tokyo)

above ground

Nomura Real

SOCOLA

Reinforced concrete

Musashikoganei

construction (partially

Estate

Cross *7 *8

Retail facility

steel-framed

10,040

March 2020

1,643

3,812

1,301

142

5,256

Development

(Koganei-shi,

construction), 4 floors

Co., Ltd.

Tokyo)

above ground

Nomura Real

Tsurumi Toshiba

Steel-framed

Building

reinforced concrete

Estate

(Tsurumi-ku,

Office

construction, 1 floor

20,648

March 1991

3,501

2,078

3,073

23

5,175

Development

Yokohama-shi,

below ground, 10

Co., Ltd.

Kanagawa)

floors above ground

Steel-framed

LAZONA

reinforced concrete

Nomura Real

construction (partially

Kawasaki Plaza

Estate

reinforced concrete

September

*4 *5 (Saiwai-ku,

Retail facility

98,254

72,013

4,717

-

299

5,017

Development

Kawasaki-shi,

and steel-framed

2006

Co., Ltd.

construction), 1 floor

Kanagawa)

below ground, 6 floors

above ground

Nomura Real

Nomura Fudosan

Steel-framed

Estate

Kaigan Building

February

Office

construction, 8 floors

5,262

1,307

1,317

3,465

2

4,784

Development

(Minato-ku,

1992

above ground

Co., Ltd.

Tokyo)

Steel-framed

Nomura Real

construction (partially

PMO Nihonbashi

steel-framed

Estate

Muromachi *4

Office

reinforced concrete

5,333

January 2013

701

880

3,716

45

4,642

Development

(Chuo-ku, Tokyo)

construction), 1 floor

Co., Ltd.

below ground, 9 floors

above ground

Former Fukuoka

Nomura Real

Tenjin Center

Land slated

Estate

Building *2 *3

-

-

-

2,256

0

4,624

0

4,624

Development

(Chuo-ku,

for building

construction

Co., Ltd.

Fukuoka-shi,

Fukuoka)

Nomura Real

Toshiba

Reinforced concrete

Manseibashi

Estate

construction, 1 floor

September

Building *5

Office

5,319

681

148

3,551

0

3,700

Development

(Chiyoda-ku,

below ground, 9 floors

1961

Co., Ltd.

above ground

Tokyo)

Steel-framed

construction (partially

Nomura Real

steel-framed

GICROS GINZA

reinforced concrete

Estate

GEMS (Chuo-ku,

Retail facility

and reinforced

2,683

July 2019

312

1,606

2,015

15

3,636

Development

Tokyo)

concrete construction),

Co., Ltd.

3 floors below ground,

11 floors above ground

Nomura Real Estate Holdings, Inc. 7 Financial Report 2024

Completion

Book Value (Millions of yen)

Company

Property Name

Size of Construction or

Total Floor

or [Time of

Land

Name

(Location)

Major Use

Details of Facility, etc.

Area (m2)

Acquisition]

Area (m2)

Building

Land

Other

Total

Toshiba Sendai

Steel-framed

Nomura Real

construction (partially

Building *4 *5

Estate

(Aoba-ku,

Hotel

reinforced concrete

16,179

April 1975

1,731

¥628

¥2,817

¥9

¥3,455

Development

construction), 2 floors

Sendai-shi,

Co., Ltd.

below ground, 11

Miyagi)

floors above ground

Steel-framed

Nomura Fudosan

construction (partially

Nomura Real

steel-framed

Nishi-Shinjuku

Estate

reinforced concrete

Kyodo Building *4

Office

6,716

October 1993

1,249

729

2,700

1

3,432

Development

and reinforced

(Shinjuku-ku,

Co., Ltd.

concrete construction),

Tokyo)

1 floor below ground, 8

floors above ground

Notes: 1. "Building" represents building accounts, "Land" represents land and leasehold interests in land accounts and "Other" represents structures; machinery and equipment; tools, furniture and fixtures; vehicles; and leased asset accounts. "Total" represents the sum of leasehold interests in land accounts and property, plant and equipment excluding construction in progress accounts.

    1. Includes the trust beneficial right.
    2. Land area is the equity conversion areas.
    3. Both the total floor area and land area are the equity conversion areas.
    4. Land area includes leased land.
    5. Land area is the site area for the entire redevelopment project.
    6. Total floor area represents the exclusive element of a unit ownership building. Also, land area is multiplied by our ownership ratio.
    7. Size of Construction or Details of Facility, etc. represents the retail facilities portion of unit ownership building.
  1. Fitness club, etc.

Completion

Book Value (Millions of yen)

Company

Property Name

Size of Construction or

Total Floor

or [Time of

Land

Name

(Location)

Major Use

Details of Facility, etc.

Area (m2)

Acquisition]

Area (m2)

Building

Land

Other

Total

MEGALOS

Nomura Real

Kashiwa and

Reinforced concrete

Estate Life &

other 36 facilities

Fitness club

construction, 3 floors,

15,321

June 2002

15,430

¥6,987

¥-

¥675

¥7,663

Sports Co.,

(Kashiwa-shi,

1 other building and

Ltd.

Chiba and

fitness club

others)

Notes: 1. "Building" represents building accounts, "Land" represents land and leasehold interests in land accounts and "Other" represents structures; machinery and equipment; tools, furniture and fixtures; vehicles; and leased asset accounts. "Total" represents the sum of leasehold interests in land accounts and property, plant and equipment excluding construction in progress accounts.

2. "Total Floor Area" represents the total area of MEGALOS Kashiwa, MEGALOS Chikusa and MEGALOS Saginuma, which own the buildings, etc. "Land Area" represents the leased land area of these facilities. Excluding these three facilities, 34 facilities are operated through building leases, etc. "Size of Construction or Details of Facility, etc." and "Completion or [Time of Acquisition]" are in reference to MEGALOS Kashiwa.

In addition to the table above, the main subleased buildings leased by the Group in the Commercial Real Estate Business Unit are as follows.

Company Name

Property Name (Location)

Rentable Area (m2)

Nomura Real Estate Development Co., Ltd.

Across Shin Osaka (Yodogawa-ku,Osaka-shi, Osaka)

17,298

(2) Overseas Business Unit

Completion

Book Value (Millions of yen)

Company

Property Name

Size of Construction or

Total Floor

or [Time of

Land

Name

(Location)

Major Use

Details of Facility, etc.

Area (m2)

Acquisition]

Area (m2)

Building

Land

Other

Total

127 Charing

127-133 Charing

Reinforced concrete

Cross Road

construction, 1 floor

[February

Cross Road

Office

4,672

1,244

¥2,177

¥8,244

¥-

¥10,422

Project (London,

below ground, 4 floors

2021]

Limited

UK)

above ground

NREA 55 St

James's

55 St James's

Steel-framed

Street 1

construction, 1 floor

Street (London,

Office

2,472

[March 2024]

436

¥5,423

¥6,737

¥-

¥12,161

Limited and

below ground, 7 floors

UK)

other 1

above ground

company

Facilities Establishment, Removal and Others

As of March 31, 2024, the following facilities are scheduled to be established or renovated. There was no major expansion or removal of facilities.

Nomura Real Estate Holdings, Inc. 8 Financial Report 2024

  1. Establishment of major facilities

Planned Aggregate

Investment

(Millions of yen)

Schedule

Company

Property Name

Business

Major

Size of Construction or

Amount

Sources of

Name

(Location)

Unit

Use

Details of Facility, etc.

Total

Paid

funding

Start

Completion

BLUE FRONT

Steel-framed construction

(partially steel-framed

Nomura Real

SHIBAURA

reinforced concrete and

Borrowings

Fiscal year

Fiscal year

Estate

(Shibaura Project

Commercial

Office

reinforced concrete

¥228,104

¥107,436

and own

ended March

ending March

Development

South Tower) S

Real Estate

construction), 3 floors

funds

31, 2022

31, 2025

Co., Ltd.

tower

below ground, 43 floors

(Minato-ku, Tokyo)

above ground

Steel-framed construction

Nihonbashi 1-

(partially reinforced

Nomura Real

chome Central

concrete and steel-framed

Borrowings

Fiscal year

Fiscal year

Estate

District Urban Area

Commercial

reinforced concrete

Office

73,417

23,605

and own

ended March

ending March

Development

Redevelopment

Real Estate

construction), 2 floors

funds

31, 2022

31, 2026

Co., Ltd.

Project

below ground, 51 floors

(Chuo-ku, Tokyo)

above ground, 2 other

buildings

  1. Renovation of major facility

Planned Aggregate Investment

(Millions of yen)

Company Name

Property Name (Location)

Business Unit

Total

Amount Paid

Construction Period

Note

Nomura Real Estate

Construction

-

Commercial Real Estate

¥3,754

¥-

April 2024 - March 2025

for facility

Development Co., Ltd.

renovation

Note: Refers to renovation of major facilities of several existing properties owned by Nomura Real Estate Co., Ltd.

Nomura Real Estate Holdings, Inc. 9 Financial Report 2024