Financial Report
For the Fiscal Year Ended March 31, 2024

2024Management’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 thestrong 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, andvacancy 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 andentry 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 environmentand strong appetite for investment among investors, and the size of the market continued to grow. The real estate brokerage market forused housing remained robust, with the number of transactions for used condominiums in the Tokyo metropolitan area proceeding at ahigh 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 forcustomers 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 Evaluationof 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 EstateBusiness 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-scale mixed-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 environmentallyfriendly 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 useof 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 businessprofit 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 toacquire 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-scale mixed-use development of housing andcommercial facilities, had its grand opening. With a carefully designed exterior and interior aesthetic that conveys the uniqueness ofJapan, 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 ofinvesting 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 toprogress 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 undermanagement, 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 GRESBReal 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 forindividual 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 bookproperty 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 theend 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 undercontract, was selected as a pioneering regeneration model type (repair work support) in the 2023 model project for extending the life ofcondominium 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 threeother 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 areprovided in the official version will be provided in the beta version.

Nomura Real Estate Holdings, Inc. 2 Financial Report 2024

Analysis of Financial Position
AssetsTotal 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. Thiswas 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 andliquidation 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 toMarch 31, 2023)
March 31, 2024)

Business Unit (Millions of yen)

Residential Development¥

Commercial Real Estate
Overseas

2,103

¥

1,930

Change¥(172)

28,80645,356

16,550948

14,987

14,038Investment Management

25

4

(20)

Property Brokerage and CRE

947

1,575

628

Property and Facility Management

251

961

710

0

2

2

Subtotal

33,08264,81831,736

2,058

1,241

(816)

Total

¥35,140¥66,059¥30,919

Other

Adjustments

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.
Company Name

Property Name
(Location)

Business
Unit

Nomura Real
EstateDevelopment Co.,
Ltd.

Nomura Fudosan
Tameikesanno
Building(Minato-ku, Tokyo)

Commercial
Real Estate

Major Use

Size of Construction or Details of Facility, etc.

OfficeSteel-framed construction, 1 floor below
ground, 9 floors above ground2

Area (m )Building: 5,402
Land: 690

Book Value(Millions ofyen)¥7,787

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

Property Name
(Location)

Business
Unit

2

Major Use

Size of Construction or Details of Facility, etc.

—

Land: 619

¥9,879Steel-framed construction, 1 floor below
ground, 7 floors above ground

Building: 2,472
Land: 436

¥12,161

Nomura Real
EstateDevelopment Co.,Ltd.

NOHGA HOTELSHINJUKU GYOEN(tentative name)(Shinjuku-ku, Tokyo)

Commercial
Real EstateLandslatedforbuilding
construc-tion

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

55 St James’s
Street (London, UK)

Overseas

OfficeArea (m )Book Value(Millions ofyen)

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

Nomura Real
EstateDevelopment Co.,Ltd.

Property Name
(Location)

Creare Toshiba
Fuchu (Fuchu-shi,
Tokyo)

Business
Unit

Commercial
Real Estate

2

Major Use

Size of Construction or Details of Facility, etc.

Area (m )Residential

Reinforced concrete construction(partially steel-framed reinforced
concrete construction), 10 floors above
groundBuilding: 26,352
Land: 20,590

Nomura Real Estate Holdings, Inc. 4 Financial Report 2024

Book Value(Millions ofyen)¥4,756

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)1)

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

Property Name
(Location)

Nomura Real
EstateDevelopment
Co., Ltd.

Hamamatsucho
Building /Toshiba Building(Minato-ku,
Tokyo)

Nomura Real
EstateDevelopment
Co., Ltd.

Yokohama
Business Park *2(Hodogaya-ku,
Yokohama-shi,
Kanagawa)

Size of Construction or
Details of Facility, etc.

Total Floor
Area (m2)Completion
or [Time of
Acquisition]

Land
Area (m2)

OfficeSteel-framed
reinforced concrete
construction (partiallysteel-framed andreinforced concrete
construction), 3 floors
below ground, 39
floors above ground

158,732

March 1984

33,921¥7,546 ¥129,809¥315 ¥137,671

OfficeSteel-framed
construction (partiallysteel-framed
reinforced concrete
construction), 2 floors
below ground, 21
floors above ground,
11 other buildings

245,200

MainlyFebruary
1990

70,69324,065

14,557654

39,277Retail facility

Steel-framed
construction (partiallyreinforced concreteand steel-framed
reinforced concrete
construction), 1 floor
below ground, 6 floors
above ground

55,491March 2022

8,622

13,567

21,391810

35,76920,860June 2020

1,183

10,841

22,187248

33,277

Major UseBook Value (Millions of yen)
Building

Land

Other

Total

Nomura Real
EstateDevelopment
Co., Ltd.

KAMEIDO
CLOCK *2 *3(Koto-ku, Tokyo)

Nomura Real
EstateDevelopment
Co., Ltd.

TOKYOTORANOMONGLOBALSQUARE *4(Minato-ku,
Tokyo)

OfficeSteel-framed
construction (partiallysteel-framed
reinforced concrete
construction), 4 floors
below ground, 24
floors above ground

Nomura Real
EstateDevelopment
Co., Ltd.

LAZONA
KawasakiToshiba Building(Saiwai-ku,
Kawasaki-shi,
Kanagawa)

OfficeSteel-framed
construction, 15 floors
above ground

98,428March 2013

9,764

10,22522,245482

32,95344,989September
2010

2,737

10,17019,227289

29,688

—

—

3,196

—

23,436—23,436

Nomura Real
EstateDevelopment
Co., Ltd.

Nihonbashi
Muromachi
Nomura Building(Chuo-ku, Tokyo)

OfficeSteel-framed
construction (partiallyreinforced concreteand steel-framed
reinforced concrete
construction), 5 floors
below ground, 21
floors above ground

Nomura Real
EstateDevelopment
Co., Ltd.

Former Nomura
FudosanNihonbashihoncho Building(Chuo-ku, Tokyo)

Land slated
for building
construction—

OfficeSteel-framed
reinforced concrete
construction (partiallyreinforced concreteand steel-framed
construction), 5 floors
below ground, 50
floors above ground

58,512

May 1978

4,639

5,114

16,303

197

21,615Hotel

Steel-framed
construction (partiallysteel-framed
reinforced concrete
construction), 16 floors
above ground, 2 otherbuildings

9,280

March 2009

1,710

2,905

16,515

118

19,539

OfficeSteel-framed
construction (partiallyreinforced concrete
construction), 2 floors
below ground, 14
floors above ground

20,420February
2009

1,939

3,080

15,707

10

18,798

Nomura Real
EstateDevelopment
Co., Ltd.

Shinjuku Nomura
Building *2 *4(Shinjuku-ku,
Tokyo)

Nomura Real
EstateDevelopment
Co., Ltd.

HOTEL NIWA
TOKYO
(Chiyoda-ku,
Tokyo)

Midosuji Mirai
Development,
LLC

Midosuji Nomura
Building *2(Chuo-ku,
Osaka-shi,
Osaka)

Nomura Real Estate Holdings, Inc. 5 Financial Report 2024

Company
Name

Nomura Real
EstateDevelopment
Co., Ltd.

Property Name
(Location)

Morisia
Tsudanuma *2(Narashino-shi,
Chiba)

Size of Construction or
Details of Facility, etc.

Total Floor
Area (m2)

Retail facility

Steel-framed
reinforced concrete
construction (partiallyreinforced concrete
construction), 3 floors
below ground, 12
floors above ground, 1
other building

105,491

OfficeSteel-framed
reinforced concrete
construction (partiallyreinforced concreteand steel-framed
construction), 5 floors
below ground, 17
floors above ground

Major Use

Completion
or [Time of
Acquisition]

Book Value (Millions of yen)

Land
Area (m2)

Building

MainlyOctober 1978

19,194¥364¥16,885¥24¥17,273

13,641March 1982

1,624

1,693

11,56519

13,27815,700April 2010

2,447

2,391

10,65045

13,087

Land

Other

Total

Nomura Real
EstateDevelopment
Co., Ltd.

Nomura Fudosan
Ginza Building *4(Chuo-ku, Tokyo)

Nomura Real
EstateDevelopment
Co., Ltd.

Nomura Fudosan
Shibadaimon
Building (Minatoku, Tokyo)

OfficeSteel-framed
construction (partiallysteel-framed
reinforced concrete
construction), 2 floors
below ground, 11
floors above ground

Nomura Real
EstateDevelopment
Co., Ltd.

ToshibaHamamatsucho
Building (Minatoku, Tokyo)

OfficeSteel-framed
reinforced concrete
construction, 8 floors
above ground

13,482

July 1974

2,907

341

10,956

1

11,299Nomura Real
EstateDevelopment
Co., Ltd.

NOHGA HOTELKIYOMIZUKYOTO(Higashiyamaku, Kyoto-shi,
Kyoto)

Hotel

Steel-framed
construction (partiallyreinforced concrete
construction), 1 floor
below ground, 6 floors
above ground

8,906

January 2022

2,514

3,542

6,885

431

10,858

Nomura Real
EstateDevelopment
Co., Ltd.

SOCOLA
Minamigyotoku *2(Ichikawa-shi,
Chiba)

Retail facility

Steel-framed
construction (partiallyreinforced concrete
construction), 2 floors
below ground, 2 floors
above ground

35,612

April 2000

16,503

5,741

4,942

146

10,830Nomura Real
EstateDevelopment
Co., Ltd.

Nomura Fudosan
Otemachi North
Building(Chiyoda-ku,
Tokyo)

OfficeSteel-framed
construction (partiallyreinforced concrete
construction), 1 floor
below ground, 10
floors above ground

7,768

June 2021

886

3,269

7,472

58

10,799Nomura Real
EstateDevelopment
Co., Ltd.

NOHGA HOTELSHINJUKU
GYOEN(tentative name)(Shinjuku-ku,
Tokyo)

Land slated
for building
construction——[January
2024]

619

—

9,879

—

9,879

Nomura Real
EstateDevelopment
Co., Ltd.

bono Sagamiono
Shopping Center*4(Minami-ku,
Sagamihara-shi,
Kanagawa)

Retail facility

Reinforced concrete
construction (partiallysteel-framed
construction), 1 floor
below ground, 11
floors above ground

43,059January 2013

5,797

4,120

4,649

67

8,837

32,299April 1993

8,290

2,719

5,247

28

7,995

Nomura Real
EstateDevelopment
Co., Ltd.

Fuchu Toshiba
Building (Fuchushi, Tokyo)

OfficeSteel-framed
construction (partiallysteel-framed
reinforced concrete
and reinforced
concrete construction),
1 floor below ground, 8
floors above ground, 1
other building

Nomura Real
EstateDevelopment
Co., Ltd.

Nomura Fudosan
Tameikesanno
Building(Minato-ku,
Tokyo)

OfficeSteel-framed
construction, 1 floor
below ground, 9 floors
above ground

5,402

October 2023

690

2,408

5,311

67

7,787

Nomura Real
EstateDevelopment
Co., Ltd.

Nomura Fudosan
Midosujihoncho
Building /Toshiba Osaka
Building (Chuoku, Osaka-shi,
Osaka)

OfficeSteel-framed
reinforced concrete
construction, 4 floors
below ground, 10
floors above ground

15,220

October 1965

1,307

878

5,989

5

6,873

Nomura Real Estate Holdings, Inc. 6 Financial Report 2024

Size of Construction or
Details of Facility, etc.

Total Floor
Area (m2)Completion
or [Time of
Acquisition]

Land
Area (m2)

OfficeSteel-framed
reinforced concrete
construction, 2 floors
below ground, 10
floors above ground

21,007

April 1974

2,366

¥1,038¥5,768¥11¥6,817

Nihonbashi 1chome Central
District Urban
Area
Redevelopment
Project *6 (Chuoku, Tokyo)

Land slated
for building
construction——[March 2008]

18,996

—

6,161

—

6,161

Nomura Real
EstateDevelopment
Co., Ltd.

NREG Kawasaki
Logistics Center(Kawasaki-ku,
Kawasaki-shi,
Kanagawa)

Logistics
facility

Reinforced concrete
construction (partiallysteel-framed
construction), 5 floors
above ground49,046

March 2014

27,866

2,798

3,109

246

6,154

Nomura Real
EstateDevelopment
Co., Ltd.

NOHGA HOTELAKIHABARATOKYO(Chiyoda-ku,
Tokyo)

Hotel

Steel-framed
construction, 10 floors
above ground

4,016

June 2020

663

1,508

4,169

222

5,900

Nomura Real
EstateDevelopment
Co., Ltd.

Nomura Fudosan
Ichigaya Building(Chiyoda-ku,
Tokyo)

OfficeSteel-framed
reinforced concrete
construction, 2 floors
below ground, 9 floors
above ground

6,753

January 1982

1,220

2,390

3,182

5

5,579

Nomura Real
EstateDevelopment
Co., Ltd.

SOCOLA
Musashikoganei
Cross *7 *8(Koganei-shi,
Tokyo)

Retail facility

Reinforced concrete
construction (partiallysteel-framed
construction), 4 floors
above ground

10,040March 2020

1,643

3,812

1,301

142

5,256

Nomura Real
EstateDevelopment
Co., Ltd.

Tsurumi Toshiba
Building(Tsurumi-ku,
Yokohama-shi,
Kanagawa)

OfficeSteel-framed
reinforced concrete
construction, 1 floor
below ground, 10
floors above ground

20,648March 1991

3,501

2,078

3,073

23

5,175

Nomura Real
EstateDevelopment
Co., Ltd.

LAZONA
Kawasaki Plaza*4 *5(Saiwai-ku,
Kawasaki-shi,
Kanagawa)

Retail facility

Steel-framed
reinforced concrete
construction (partiallyreinforced concreteand steel-framed
construction), 1 floor
below ground, 6 floors
above ground

98,254September
2006

72,013

4,717

—

299

5,017

Nomura Real
EstateDevelopment
Co., Ltd.

Nomura Fudosan
Kaigan Building(Minato-ku,
Tokyo)

OfficeSteel-framed
construction, 8 floors
above ground

5,262

February
1992

1,307

1,317

3,465

2

4,784

5,333

January 2013

701

880

3,716

45

4,642

—

—

2,256

0

4,624

0

4,624

Company
Name

Property Name
(Location)

Nomura Real
EstateDevelopment
Co., Ltd.

Nomura Fudosan
Midosuji Building/ NREG Midosuji
Building (Chuoku, Osaka-shi,
Osaka)

Nomura Real
EstateDevelopment
Co., Ltd.

Major UseBook Value (Millions of yen)
Building

Land

Other

Total

Nomura Real
EstateDevelopment
Co., Ltd.

PMO Nihonbashi
Muromachi *4(Chuo-ku, Tokyo)

OfficeSteel-framed
construction (partiallysteel-framed
reinforced concrete
construction), 1 floor
below ground, 9 floors
above ground

Nomura Real
EstateDevelopment
Co., Ltd.

Former Fukuoka
Tenjin Center
Building *2 *3(Chuo-ku,
Fukuoka-shi,
Fukuoka)Land slated
for building
construction—

Nomura Real
EstateDevelopment
Co., Ltd.

Toshiba
Manseibashi
Building *5(Chiyoda-ku,
Tokyo)

OfficeReinforced concrete
construction, 1 floor
below ground, 9 floors
above ground

5,319

September
1961

681

148

3,551

0

3,700

Retail facility

Steel-framed
construction (partiallysteel-framed
reinforced concrete
and reinforced
concrete construction),
3 floors below ground,
11 floors above
ground2,683

July 2019

312

1,606

2,015

15

3,636

Nomura Real
EstateDevelopment
Co., Ltd.

GICROS GINZAGEMS (Chuo-ku,
Tokyo)

Nomura Real Estate Holdings, Inc. 7 Financial Report 2024

Company
Name

Property Name
(Location)

Nomura Real
EstateDevelopment
Co., Ltd.

Toshiba Sendai
Building *4 *5(Aoba-ku,
Sendai-shi,
Miyagi)

Nomura Real
EstateDevelopment
Co., Ltd.

Nomura Fudosan
Nishi-Shinjuku
Kyodo Building *4(Shinjuku-ku,
Tokyo)

Size of Construction or
Details of Facility, etc.

Total Floor
Area (m2)Completion
or [Time of
Acquisition]

Land
Area (m2)

Hotel

Steel-framed
construction (partiallyreinforced concrete
construction), 2 floors
below ground, 11
floors above ground

16,179April 1975

1,731

¥628

¥2,817¥9¥3,455

OfficeSteel-framed
construction (partiallysteel-framed
reinforced concrete
and reinforced
concrete construction),
1 floor below ground, 8
floors above ground

6,716

October 1993

1,249

729

2,700

1

3,432

Major UseBook Value (Millions of yen)
Building

Land

Other

Total

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

2)

Fitness club, etc.
Company
Name

Property Name
(Location)

Nomura Real
Estate Life &Sports Co.,Ltd.

MEGALOSKashiwa andother 36 facilities(Kashiwa-shi,
Chiba andothers)Major Use

Fitness clubSize of Construction or
Details of Facility, etc.

Total Floor
Area (m2)Completion
or [Time of
Acquisition]

Land
Area (m2)

Building

Reinforced concrete
construction, 3 floors,
1 other building andfitness club

15,321

June 2002

15,430¥6,987

Book Value (Millions of yen)
Land

¥—

Other

¥675

Total

¥7,663

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
Company
Name

Property Name
(Location)

127 Charing
Cross Road
Limited127-133 Charing
Cross Road
Project (London,UK)

NREA 55 St
James’sStreet 1
Limited andother 1company

55 St James’s
Street (London,UK)

Completion
or [Time of
Acquisition]

Total Floor
Area (m2)

OfficeReinforced concrete
construction, 1 floor
below ground, 4 floors
above ground

4,672[February
2021]

1,244

¥2,177¥8,244¥—¥10,422

OfficeSteel-framed
construction, 1 floor
below ground, 7 floors
above ground2,472[March 2024]

436¥5,423¥6,737¥—¥12,161

Major Use

Land
Area (m2)Book Value (Millions of yen)Size of Construction or
Details of Facility, etc.

Building

Land

Other

Total

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)Company
Name

Property Name
(Location)

Nomura Real
EstateDevelopment
Co., Ltd.

BLUE FRONTSHIBAURA(Shibaura ProjectSouth Tower) S
tower(Minato-ku, Tokyo)

Nomura Real
EstateDevelopment
Co., Ltd.

Nihonbashi 1chome Central
District Urban Area
Redevelopment
Project(Chuo-ku, Tokyo)(2)

Business
Unit

Commercial
Real Estate

Commercial
Real Estate

Major
Use

Size of Construction or
Details of Facility, etc.

OfficeSteel-framed construction(partially steel-framed
reinforced concrete andreinforced concrete
construction), 3 floors
below ground, 43 floors
above ground

OfficeSteel-framed construction(partially reinforced
concrete and steel-framed
reinforced concrete
construction), 2 floors
below ground, 51 floors
above ground, 2 otherbuildings

Schedule

Total

AmountPaid

Sources offunding

Start

Completion¥228,104¥107,436

Borrowings
and own
funds

Fiscal year
ended March
31, 2022

Fiscal year
ending March
31, 2025

73,417

23,605

Borrowings
and own
funds

Fiscal year
ended March
31, 2022

Fiscal year
ending March
31, 2026

Renovation of major facility
Planned Aggregate Investment(Millions of yen)Company Name

Nomura Real Estate
Development Co., Ltd.

Property Name (Location)—

Business Unit
Commercial Real Estate

Total

Amount Paid

¥3,754¥—

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

Construction Period

Note

April 2024 – March 2025

Construction
for facility
renovation

Basic Policy Concerning Profit Distribution and Dividends
As for dividends, the Company set the year-end dividend for the fiscal year ended March 31, 2024 at ¥75.0 per share, which is an increaseof ¥10.0 from forecasted. Combined with the second quarter-end dividend, the annual dividend per share is ¥140.0. As a result, total return
ratio during this fiscal year, which included the acquisition of treasury shares, is 46.0%.
Under the Mid- to Long-term Business Plan, which was formulated in April 2022, the Company set a policy of the total return ratio tobe 40-50% in Phase 1 (from fiscal year ended March 31, 2023 to fiscal year ending March 31, 2025). In addition, from the fiscal year
ending March 31, 2025, the Company has set a policy of setting a level that meets DOE of 4% as the lower limit for annual dividend withthe aim of increasing stability of dividends. Based on these policies, in regard to the dividend for the next fiscal year, the Company intends
to set both the second quarter-end and the year-end dividend for the fiscal year ending March 31, 2025 at ¥82.5 per share, therefore theannual dividend per share is expected to be ¥165.0.
(Note) DOE = annual dividend / average shareholders’ equity during the period

Risks Affecting the Business of Nomura Real Estate Group(1) Basic policy for risk management
The Group regards risk management as a “business management methodology that aims to improve corporate value by managing all risks
related to the attainment of corporate group organizational and business objectives in an integrated and unified manner while controllingrisk within the company’s risk tolerance limits.” With the aim of ensuring the soundness of business management through proper
management and operation of risks, the Group has formulated the Risk Management Regulations.
As its basic policy, the Group assures business continuity and stable development by implementing risk management and classifies
its main risks into four categories, namely “A: Investment risk,” “B: External risk,” “C: Disaster risk,” “D: Internal risk.” Among them, risks
listed below are regarded as important risks that should be managed, and performing effective and efficient risk management is provided
according to the scale and characteristics of each risk.
<Important risks needing to be managed among main risks>
O Risks that could have a major impact on Group management
O Risks that could have a major impact on society
O Risk of litigation or other serious problems
O Other major risks that should be managed by the Group(2) Risk management structure
To discuss various risks related to group management, the Company has prescribed the Management Committee as the integrated risk
management body and operates a system to regularly monitor, evaluate and analyze the state of main risks, provide necessary guidance
and advice to each business unit and Group company while regularly reporting details to the Board of Directors. The Management
Committee, which is the integrated management body, directly monitors “A: Investment risk” and “B: External risk,” while the Risk
Management Committee, established as a subordinate organization of the Management Committee, conducts regular monitoring,evaluation and analysis of “C: Disaster risk” and “D: Internal risk” and these committees discuss basic response policies regarding risk
prevention, response when risk occurs, and prevention of recurrence after risk occurs. Moreover, we established the Group Risk Meeting
consisting of directors and executive officers of each Group company appointed by the Chair of the Risk Management Committee to sharerisk information and response policies within the Group.
With regard to risk management, each business unit manager will supervise the risk management of their affiliated business unit andreport on the situation to the Management Committee or Risk Management Committee as necessary. Concurrently, the president of eachgroup company (the head of each division at Nomura Real Estate Development Co., Ltd.) are responsible for reporting risk management
matters to the business unit manager in a timely and appropriate manner.
In addition, we have defined the organization in charge of business in each group company as the “first line” of risk management, theorganization in charge of corporate operations at the Company and each group company as the “second line” of risk management, and theorganization in charge of internal audits at the Company and each group company as the “third line” of risk management. With each “line”
playing its role in risk management, for example, the “second line” and “third line” of the Company providing support, guidance andcooperation to the “second line” and “third line” of the group companies, respectively, we have established efficient organizations andprocesses that support governance and risk management.
In the event of a major problem requiring urgency, the chair of the Risk Management Committee decides the basic policies such ascountermeasures upon consulting with the executives responsible for relevant departments in accordance with the Risk Management
Regulations and reports to the President and Executive Officer (Group CEO) and provides instructions such as response in accordancewith the basic policy.

Nomura Real Estate Holdings, Inc. 10 Financial Report 2024

Risk Management System (conceptual diagram)

Board of Directors
Management Committee*3*2

Risk Management
Committee*2*3

X business unit
general manager*1

X business
unit
Company a*3

Y business unit
general manager*1*1

X business
unit
Company b*1

Y business
unit
Company c

Y business
unit
Company d*1. Each company reports on risks to the business unit manager of the affiliated business unit and the business unit manager provides guidance and monitors the risk management ofeach company.
*2. The head of each business unit reports to the Management Committee on “A: Investment risk” and “B: External risk” that pertains to their own department and the Management
Committee provides guidance and monitors the risk management associated with “A: Investment risk” and “B: External risk” of each department.
*3. The head of each business unit reports to the Risk Management Committee on “C: Disaster risk” and “D: Internal risk” that pertains to their own department and the Risk
Management Committee provides guidance and monitors the risk management associated with “C: Disaster risk” and “D: Internal risk” of each business unit. Furthermore, theRisk Management Committee reports to the Management Committee on the details of its own deliberations and on the status of each business unit’s risk management associatedwith “C: Disaster risk” and “D: Internal risk.”

Three Lines Model (conceptual diagram)
The Company

Line 2*2*1Each Group company

Line 3

*2

*2

*3
*4
Line 1*5Line 2

Line 3*1. The Company’s second defense line provides appropriate support and guidance for each group company’s second defense line with respect to overall risk management based on
the Group’s management policy and strategic objectives and monitors each group company’s second-line activities.
*2. The Company’s third line monitors activities of Group companies by providing appropriate guidance to and cooperating with the third lines of each Group company. Concurrently,
it audits matters relating to risk management of the second line of the Company, or of the first and second lines of each Group company when necessary, and verifies theireffectiveness and efficiency and provides necessary advice.
*3. The first line of each Group company recognizes, evaluates, and controls risks associated with each business, establishes and operates a system that responds to risks, andcarries out appropriate risk-taking.
*4. The second line of each group company supports the risk management of the first line of its own company while monitoring to verify whether the risk management of the first line
is being properly undertaken.
*5. The third line of each Group company audits matters related to risk management of each department of the first line and second line of its own company, verifies the effectivenessand efficiency, and provides necessary advice.

Nomura Real Estate Holdings, Inc. 11 Financial Report 2024

(3) Details of main risks
The following are the main risks that the management recognizes that have the potential to significantly influence the financial position,business performance and cash flows of the Company and the consolidated subsidiaries. From these main risks the Company has
selected risks requiring particular attention during the fiscal year ending March 31, 2025 taking into consideration factors such as themagnitude of the potential impact on the Group’s businesses and the external environment.
Matters concerning the future and the recognition of risks in the text are as determined by the Group as of the end of this fiscal year.
The following, however, does not include all risks. Risks that are unpredictable or deemed insignificant at this point in time may impact on
businesses in the future.

(Major risks)
Risk category(A) Investment risk(B) External risk

Definition

Main risk items

Risks related to individual investments(real estate investments, strategic
investments (M&A), etc.)
Risks related to external factors
influencing business

1) Risks associated with real estate investment
2) Risks associated with strategic investment (M&A) and new
businesses
3) Risks associated with market changes
4) Risks generated by changes in economic conditions5) Risks generated by changes in political/social conditions/systems(law, tax systems, accounting, others)6) Risks due to lagging behind in innovation and changes in the
structure of society related to the business7) Risks related to disasters (earthquakes, typhoons, floods, tsunamis,
volcanic eruptions, major fires, epidemics of infectious disease
epidemics, etc.) that have a major impact on customers andbusiness continuity8) Risks related to the violation of laws and ordinances
9) Risks related to quality defects
10) Risks related to occurrence of information system crisis
11) Risks from inadequate responses to matters related to humanresources
12) Risks related to occurrence of fraud and negligence(C) Disaster risk

Risks generated by disasters that havea large impact on customers andbusiness continuity(D) Internal risk

Operational risks occurring at theCompany and each group company(Risks requiring particular attention)(A) Investment risk(B) External risk(C) Disaster risk
(D) Internal risk

• Risk of inability to secure the expected business volume and making it difficult to secure the expected businessvolume and achieve the profit growth projected in the Mid- to Long-term Business Plan due to intensifying
competition for land acquisition, etc.
• Risks related to new construction, such as costs rising above the expected expenses budgeted for in thebusiness plan, extension of the construction period, constraints on acceptance of project orders by generalcontractors and other risks that could detrimentally affect project revenue• Risk of profitability deterioration and delays in anticipated project schedule due to changes in economic
conditions regarding projects with long-term project timeframes and large investment budgets, such asredevelopment projects• Risks arising from the impacts on housing, property, as well as sale prices of asset replacement properties, due
to changes in Japan’s real estate market and financial conditions• Risk arising from deterioration in profitability and delay in profit recovery timing in overseas business due todeterioration in economies and real estate markets, deterioration in the financial condition of general contractors
and JV partners, and other factors in countries overseas• Risk of a reduced competitive advantage of the Company’s businesses due to delays in response to changes inlifestyles and values, response to accelerating advances in digital technology, and response to sustainability
and human resources, etc.
• Risk of inability to continue business due to increasingly intense natural disasters such as earthquakes,
typhoons, and torrential rains• Risk due to inadequate design and construction in the real estate development business• Risk due to delay in the development and penetration of personnel systems to secure diverse human resourcesand enable human resources to continue playing an active role
• Risk due to information leak by cyberattack and system failures, impact on business continuity, and incurrence
and expansion of damage, etc.
• Risk of violating laws and regulations and hindering the realization of smooth transactions with counterparties
due to delays in strengthening the transaction system to realize the passing of appropriate price on tocustomers in light of rising material prices, energy costs, among other costs

Nomura Real Estate Holdings, Inc. 12 Financial Report 2024

(The details of each major risk item and main initiatives)
Risk item

Risk category

1. Risk associatedwith real estate
investment(A)• Risk that the Group’s business
Investment
performance, etc. may be affected as arisk
result of delays in the timing of sales
recording and deterioration of profitability
due to unexpected discovery of soil
pollution, delays in obtaining permits andlicenses, occurrence of additional
construction work, constraints on
acceptance of construction project orders
by general contractors, extensions ofproject construction periods, and increases
in construction and energy costs.

2. Risk associatedwith strategic
investment(M&A) and new
businesses

3. Risk associatedwith market
changes

Risk details

Main initiatives

Decisions on the real estate investment/development
business are made at the meetings such as theManagement Committee or the Board of Directors of
the Company or of group companies upon identifying,
analyzing and evaluating risk in advance andconsidering risk taking or risk avoidance policies. In
particular, regarding risks of increases in construction
costs, the Company takes certain measures when
acquiring land for development such as allowing foradditional costs, and at the Board of Directors
meetings or Management Committee meetings, we
conduct regular monitoring of the trend of construction
costs and the impact of that on construction cost
increases.
Following the acquisition of the land fordevelopment, the department in charge of the businessascertains the risk of any schedule delay and the stateof construction costs. Should an especially important
event occur, after deliberation by the Management
Committee or the Board of Directors of the Company
or group companies when necessary, the department
shall respond to the issues.
In addition, for businesses that are in progressand completed, the progress of each business ismonitored, and the results are reviewed so that issues
and trends, etc., for each business type are grasped
and analyzed.
(A)• Risk that the Group’s financial position and In executing strategic investment (M&A), factors such
Investment
business performance, etc. may beas the synergies with the Group’s existing businesses,
risk
affected if the Group fails to achieve profit
and business plans, financial details and contractgrowth or synergy expected by the target
related matters of targeted companies shall becompanies in which it invests in strategic
carefully examined and considered and strategic
investments (M&A).
investment (M&A) shall be implemented when it is• Risk that the Group’s financial position and determined that this will contribute to the Group’sbusiness performance may be affected due business results in the future. In addition, after theto the inability to execute business
M&A is executed, the Board of Directors or theaccording to original plans or achieve
Management Committee shall regularly monitor thesynergies with group companies in new
status of the integration process between the target
businesses and investments in new asset
company and the Group, management issues, andtypes.
response policies.
In considering new businesses, the Company
carefully investigates and examines the synergies with
the Group’s existing businesses as well as businessplans. A new business is commenced when judgement
is made that it will contribute to the businessperformance of the Group in the future. After entering a
new business, its performance is regularly monitored,
and if deemed necessary to make modifications or are-start, it will put to deliberation by Management
Committee or the Board of Directors of the Company
or group companies.
(B)• Risk that the Group’s financial position and The Group regularly updates its awareness of theExternalbusiness performance, etc. may be
external environment of each business and works torisk
affected by trends of competitors, theascertain impacts on business results, monitor the
emergence of innovative new entrants,
progress of business and improve precision.
changes in economic, political, and social
When making investment decisions in the realconditions, and the emergence of
estate investment/development business, our basic
geopolitical risks, and the occurrence ofpolicy is to understand and forecast the current anddisasters, etc., which may lead to changes future market conditions and confirm past market
in the business environment and market
trends and curb to a certain extent the impact fromconditions.
changes in market conditions.
Moreover, we formulate an investment budget
upon undertaking risk assessment to ensure a certain
level of soundness regarding our financial positioneven if market conditions change rapidly.

Nomura Real Estate Holdings, Inc. 13 Financial Report 2024

Risk item

Risk category

4. Risk caused bychanges in
economic
conditions(B)
Externalrisk

Risk details

Main initiatives• Risk that the Group’s financial position andbusiness performance, etc. may beaffected by a decline in customers’purchase appetite in the housing sales
business, a decline in the rent level ofoffice buildings, etc., and an increase in thevacancy rate due to domestic andoverseas economic recessions.
• Risk that the Group’s financial position andbusiness performance, etc. may beaffected by an increase in the Group’s
financing costs, a decline in customer
desire to purchase in the housing sales
business due to higher housing loaninterest rates, resulting from a rise inmarket interest rates, and a decline inasset prices owing to a rise in cap rates.
• Risk that the Group’s financial position andbusiness performance, etc. may beaffected by fluctuations in the amounts ofinvestment and collection translated into
yen and fluctuations in assets and liabilities
denominated in foreign currencies on the
consolidated financial statements, due tofluctuations in exchange rates.
• Risk that the Group’s financial position andbusiness performance, etc. may beaffected by deterioration in the profitabilityof overseas businesses and delays in thetiming of collecting profits due todeterioration in the financial condition ofgeneral contractors and JV partners inoverseas countries, etc.

Regarding changes in economic conditions, the Groupregularly updates its awareness of the external
environment and works to ascertain impacts on
business results.
In our funding through borrowings, we respond to
the risk of rises in short-term interest rates by using
mainly long-term and fixed-rate borrowings.
In the real estate investment and development
business, we make investment decisions that limit the
impact to a certain extent even in the event of a decline
in asset prices due to a decline in rents and a rise incap rates.
For foreign exchange fluctuation risk, we haveestablished a foreign exchange hedging policy thatconsiders the types of businesses we undertake
overseas and we operate in accordance with thispolicy.
In addition, with regard to the status of generalcontractors and JV partners in overseas business, inaddition to regular monitoring by Line 1, we regularly
confirm and deliberate on events that affect ourbusiness and their responses through the Overseas
Business Risk Committee, etc., and deliberate at theManagement Committee or the Board of Directors of
the Company or group companies as necessary.

Nomura Real Estate Holdings, Inc. 14 Financial Report 2024

Risk item

Risk category

5. Risk caused bychanges inpolitical/ social
conditions/systems (law,tax system,
accounting,others)(B)
Externalrisk

Risk details

Main initiatives• Risk that the Group’s financial position andbusiness performance, etc. may beaffected by rising construction and energy
expenses, the occurrence of delays inbusiness schedule, etc., due to disruptionsin the foreign exchange market, energy
market, and supply chain in the event ofchanges to the political and social
situations, such as the emergence ofgeopolitical risks.
• In overseas business, risk that the Group’s
financial position and businessperformance, etc. may be affected due toobstacles to promote business in casethere are changes in political and social
situations that have been unexpected at
the beginning of conducting business ineach country, as there are risks specific toeach country’s political and social
situations.
• Risk that the Group’s financial position andbusiness performance, etc. may beaffected as a result of the occurrence of
new obligations and expenses in casethere are changes in various types of laws
and regulations in Japan and overseas
applicable to each of the Group’sbusinesses or other laws and regulations
become applicable due to an expansion in
the business scope in the future.
• Risk that the Group’s financial position andbusiness performance, etc. may beaffected as a result of increased costs foracquiring, holding, and selling assets, adecline in customer desire to purchase, ashift in corporate facility strategy, andrevision of investment plans in the case ofchanges to various tax systems andaccounting systems in Japan and overseasthat have an impact on the real estatebusiness.
• Risk that failure to take appropriate
response to human rights issues within thevalue chain could result in restriction ofbusiness activities due to cessation oftransactions with clients or other limitations,or damage to brand value of the Group.

We collect and analyze information on trends inpolitical and social situations, various laws andregulations, tax systems and accounting systems inJapan and overseas from industry groups, external
experts, business partners, and consider responses at
each of the Company’s respective organizations on the“second line” and discuss those matters expected tohave a significant impact at the Board of Directors or
the Management Committee depending on the details.
In overseas business in particular, we seek theknowledge of external experts regarding the forecast of
the future political and social situations as well as
applicable laws, regulations and tax laws when startinga business overseas, and after starting a business weregularly confirm the state of changes to the politicaland social situations as well as important related laws
and regulations that have an impact on businessstrategy, revenue and expenditures, and progress incountries where we do business through the Overseas
Business Risk Committee, etc. In the case that there
are any changes, discussions are carried out at theBoard of Directors or the Management Committee
upon evaluating the impact and discussing response
policies.
Concerning human rights, the Sustainability
Committee, which is chaired by the President andExecutive Officer (Group CEO), develops policiesaligned with the “Nomura Real Estate Group Human
Rights Policy,” monitors progress towards various
goals, and deliberates on action plans. Furthermore,the “Human Rights Subcommittee,” an organizational
body beneath the aforementioned committee, focuses
its efforts on building and operating a human rights due
diligence process based on the United Nations“Guiding Principles on Business and Human Rights.”

Nomura Real Estate Holdings, Inc. 15 Financial Report 2024

Risk item

Risk category

6. Risk fromlagging behindinnovation andchanges in thesocial structure
related to thebusiness(B)
Externalrisk

Risk details

Main initiatives• Risk that the Group’s financial position andbusiness performance, etc. may beaffected by a decline in the competitive
advantage of the Company’s products andservices if there are delays in responding tochanges in the social structure andchanges in the industrial structure resulting
from rapid technological innovation and theemergence of innovative new participants.
• Risk that difficulties in securing humanresources due to the declining birthrate andaging population will limit the Company’s
ability to develop products and services.
• Risk that the Group’s financial position andbusiness performance, etc., may beaffected by a decline in the competitive
advantage of the Company’s products andservices if there are delays in responding tochanges in demands related to thecustomer environment, energy
conservation and disaster prevention
resulting from the implementation andstrengthening of greenhouse gas reduction
regulations, etc., and technologies related
to high environmental performance andenergy performance.

In the midst of a changing business environment, theGroup has been creating new and highly unique value
for society and customers by leveraging its strengths,
such as real estate development capabilities based on
the “market-in” concept and a commitment to quality inurban development and real estate-related services.
Drawing on these strengths, in order to respondto changes in social and industrial structure and thegrowing awareness of society and customers towardsustainability, we have established the DX &Innovation Planning Dept. and the Sustainability
Management Dept., which are responsible for the
research and development of new business fields,
planning, and promotion of innovation creation, digitalstrategies, as well as initiatives for sustainability, etc.
We have also established the “Innovation
Promotion System” with the “DX & Innovation Planning
Dept.” serving as the secretariat. This system allows
employees of each Group company to conduct
initiatives beyond the boundaries of their daily workwith the objective of nurturing innovative talent andadvancing exploration activities in new areas.
Additionally, through corporate venture capitalwhich we invest in, we continue to collaborate withventure companies that possess innovativetechnologies and services, while providing services
utilizing digital technology.
To help foster a corporate culture of embracing
challenges for creating value and to strengthen
collaboration within the Group, we have establishedthe Nomura Real Estate Group Awards, an internalaward system with the Corporate Communications
Dept. serving as the secretariat.
Furthermore, in response to the difficulty of
securing human resources, we are working to improve
operational efficiency and conserve labor by utilizing
digital technology, while also assigning, promoting,developing and securing human resources, which willlead to the “right people in the right positions,” andtaking various measures for D&I and wellness, which
will lead to the “creation of the work environment.
Please refer to P.29 to P.30 of Annual Securities
Report issued on June 21, 2024 (Japanese only) for
the Group’s initiatives on the human capitalmanagement.
In addition, please refer to P.22 to P.30 of Annual
Securities Report issued on June 21, 2024 (Japaneseonly) for the Group’s sustainability initiatives, including
reducing greenhouse gases and improving theenvironmental and energy performance of theCompany’s products and services.

Nomura Real Estate Holdings, Inc. 16 Financial Report 2024

Risk item

Risk category

Risk details

Main initiatives

7. Risk caused bydisasters(earthquakes,
typhoons,
floods,tsunamis,
volcanic
eruptions, major
fires, epidemics
of infectious
diseases, etc.)that have amajor impact on
customers andbusiness
continuity(C)
Disasterrisk• Risk of difficulty in continuing business of
the Group due to delays in securing thehuman resources necessary for business
continuity due to disasters, including large
earthquakes, storms and flood damage,and infectious disease epidemics, thatthreaten the lives and physical safety of theGroup’s executives and employees.
• Risk of damage to properties, etc. sold,leased or managed by the Group due todisasters, including large earthquakes,
storms and flood damage, and of threats tothe safety and security of customers, etc.
related to those properties, etc.

The Group recognizes that the frequency of various
disasters has increased, and this is an important social
issue. Based on discussions with government anddisaster preparedness experts, we are working toensure the safety and security in the event a disasteroccurs. We engage in disaster preparedness activities
to ensure that, if a disaster occurs, its impact isminimized and the Group and its employees are able
to continue business and their normal lives. We haveformulated a business continuity action plan (BCP) in
the event of a disaster.
In preparing for an earthquake, and storm andflood damage, under the BCP we have determined an
emergency chain of command, assigned duties toensure business continuity, and established a system
to minimize the impact of disasters. Once per year wehold Disaster Task Force Establishment Drills toensure the prescribed details are effective, ensuring
the safety of executives and employees andestablishing a chain of command system, so that weare prepared for restoring business after an
emergency. Concerning infectious diseases, based on
the Group’s response results to novel coronavirus
infections (COVID-19), we have formulated a BCP for
infectious diseases that summarizes responses
according to the infection situation (establishment of achain of command system, selection of corebusinesses for business continuity, formulation ofcommon rules for infection prevention, etc.) from thetime of infection confirmation to the spread of new
infectious diseases in preparation for the emergence of
new infectious diseases in the future. We have also
formulated a BCP for not only in Japan but also
overseas, stipulating initial responses, standards forevacuation from countries and other measures
regarding various geopolitical risks, terrorism, natural
disasters, and so forth.
Regarding earthquakes, fires, storms, floods, andother sudden accidents, we have set up regulations forresponses to torrential rains and flooding, formulated adisaster response manual, and created a disaster
preparedness guidebook for distribution to residents,
management associations, tenants, and facility users
in the properties we own to ensure their safety andbring them peace of mind when a disaster occurs.

8. Risk ofviolations oflaws andordinances(D)Internalrisk• Risk that the business performance may beaffected by violation of the Real Estate
Brokerage Act, the Building Standards Act,
the Financial Instruments and ExchangeAct, Companies Act, Act on the Protectionof Personal Information, Antimonopoly Act,
Subcontract Act, and other related laws
and regulations, resulting in loss ofcredibility and the imposition ofadministrative penalties and fines, etc.

The Group has formulated the Nomura Real EstateGroup Code of Action for executives and employees tocomply with laws and regulations and internal rules,
and act with higher ethical standards, and it also has
provided education on an ongoing basis.
For primary laws such as the Real Estate
Brokerage Act, we formulate a business work flow
specific to each law to ensure legal compliance, ensure
a thorough awareness through training and on-the-job
training (OJT), and implement regular voluntary
inspections for the status of compliance. Concerning
the Antimonopoly Act, etc., in order to realize an
appropriate passing of price increases on to customers
that takes into account increases in material prices,energy costs, etc., we are working to strengthen ourlegal compliance system by formulating business rules
according to the business characteristics and the scaleof each Group company’s business, creating manuals,
and conducting training. In addition, regarding theinappropriate entertainment of foreign public officials
and other civil servants, the Company has establishedregulations, etc. The Company is implementing regulartraining for executives, employees and overseas local
hires related to overseas businesses.

Nomura Real Estate Holdings, Inc. 17 Financial Report 2024

Risk item

Risk category

9. Risk of quality
defect(D)
Internalrisk

10. Risk ofoccurrence of
information
system crisis(D)Internalrisk

Risk details• Risk that the business performance may beaffected by the loss of trust, unexpected
costs and delays in development plans andoperation plans due to management
deficiencies such as design andconstruction defects, etc. in the real estatedevelopment business or in the case of amanagement deficiency in the properties
for leasing or under management.

Main initiatives

In the real estate development business, to secure
quality in design and construction upon placing anorder for the design and construction work of a building
with a third party who has a certain level of creditability
and technical capabilities, the Group prescribed the
Design and Construction Standards (structure,
construction, equipment, and electrical), the Quality
Manuals, etc. and ensure thorough compliance fromthe parties while also checking the state of construction
and carrying out quality inspections as the ordering
party (However, in joint ventures with other companies
and redevelopment projects led by redevelopment
associations, different methods may be adopted
depending on the business form.) Regarding leased
and managed properties, we will prepare businessstandard documents related to property management
and safety and temporary construction guidelines forrepair work as we undertake business. We will also
provide property insurance for damages in the unlikely
event of a deficiency or accident.
• Risk that the Group’s businessIn a situation where we are actively promoting DX
performance, etc. may be affected as ainitiatives to realize business transformation andresult of the delays in the Group’s sales
sustainable growth using the Internet and cloud
activities and business processing and the services, ensuring information security is becoming
loss of credibility, and the resulting
more critical than ever. We have installed security
decrease in sales and damage
systems that block unauthorized access from thecompensation costs in the unlikely case the Internet, scan information terminals for viruses, andCompany’s information system cannot be
detect the behavior of malware, bots, and otherused normally or in case personal
intruders to prevent unauthorized transmission if they
information is leaked to the outside due toenter. In addition, alerts from these systems are
unexpected circumstances such as
monitored to ensure that the ICT environment iscyberattacks, system failures andprepared for cyber-attacks and information leaks. Also,
unauthorized access.
security checks are conducted prior to the use of cloudservices to ensure that they are used safely.
As a response to system failures impacting
business continuity, we monitor the operation of
networks and systems, and are actively working on
expanding and improving rapid recovery measures andalternative business operations in readiness for such
failures.
The Company is also striving to comply with
relevant laws and regulations for personal informationand to ensure proper handling of this information.
Moreover, with the aim of realizing organizedmanagement of information and maintaining andimproving security levels within the Group, we haveprescribed the Information Security Regulations andthe Information Handling Guidelines, regularly provide
information security enlightenment to our officers andemployees, protect the rights and interests of ourcustomers and ensure the stable operation of an ICT
environment within the Group.
In addition, the Company has cyber insurance inpreparation for an unlikely accident such as an
information leakage.

Nomura Real Estate Holdings, Inc. 18 Financial Report 2024

Risk item

Risk category

11. Risk of(D)inadequate
Internal
response toriskmatters related
to human
resources

Risk details

Main initiatives• Risk that long working hours damage thehealth of employees in the event that theworking hours of Group employees are notproperly ascertained.
• Risk that the Group’s businessperformance, etc. may be affected as aresult of the outflow of the Group’s humanresources, the loss of trust, and theimposition of fines in case we receive
administrative sanctions from government
authorities because our personnel system
and its operation do not comply with labor
standards and related laws andregulations.
• Risk that delays in the establishment of alabor environment that takes in a diverse
range of human resources (employees thatwork short hours mainly due to childcare
and nursing, sexual minorities, people withdisabilities, seniors, foreign nationals andothers) may result in the Group being
unable to secure the necessary personnel,
or the inability of secured personnel tocontinue working, leading to a decline incorporate competitiveness.
• In terms of personnel and labor
management at overseas bases, risk ofadministrative sanctions by government
authorities for introducing or operating asystem that violates local labor laws andcustoms, risk of losing know-how due tothe retirement of local employees, and riskthat the health of employees will bedamaged due to the lack of systems toprovide appropriate support for living in aforeign country.

The Group prescribes working with vigor and achieving
wellness as its action guideline. The Group aims toprovide wellness management so that all its executives
and employees can carry out their work energeticallyand in good physical and mental health, which leads tosustainable corporate growth.
Along with introducing various systems, including
recommendations to take paid leave, the promotion of
teleworking, and a program for taking time off orworking shorter hours for childcare and nursing and tobuild a labor environment conducive for a diverse
workforce, we are working to improve the level ofunderstanding related to diversity among executives
and employees through regular training sessions. In
addition, some group companies, such as Nomura
Real Estate Development, have partially implemented
paid leave for male employees’ birth childcare leave
and introduced an accumulated paid leave system.
In order to properly grasp working hours, we haveintroduced an attendance management system tomanage it, and especially for long working hours, weregularly monitor the situation. Furthermore, thecompliance of our personnel system and its operationis regularly verified by outside experts to prevent the
emergence of risks.
Moreover, overseas there are local laws, cultures,and customs. Therefore, we utilize the knowledge ofexternal experts to build personnel/labor systems,
establish consultation desks for staff stationed
overseas, and provide services to help the staffs find,and provide support for visits to, medical institutions.
The Group established the Human Resource,
Wellness, D&I Committee (name changed from
Wellness and D&I Management Committee), which ischaired by the President and Executive Officer (GroupCEO), in order to integrally promote wellness, workstyle reforms and the ensuring of diverse humanresources, and the Wellness and D&I Management
Sect. in the Group Human Resources Development
Dept. as the dedicated organization for the promotionof diversity & inclusion. In the previous fiscal year, weformulated and announced our Group’s D&I promotion
policy and medium- and short-term promotion
roadmap. We have engaged in fostering D&I
awareness as Step 1 until this fiscal year. From thefollowing fiscal year, as Step II, we will continue ourefforts, this time framing them as “D&I awarenesscultivation.” During this step, we aim to “create aculture where D&I is integrated into business activities”
and have set the key goals of “(1) promoting D&I in
preparation for the new work styles at our Group’s newhead office” and “(2) continuing to raise awareness andconduct participatory workshops relating to inclusive
design.”In addition, in this fiscal year, we haveestablished a “Human Capital Task Force” withparticipation from all companies within the Nomura
Real Estate Group, to promote “human capitalmanagement” aligned with our management and talentstrategies. We are discussing policies related to humancapital management. Please refer to P.29 to P.30 ofAnnual Securities Report issued on June 21, 2024
(Japanese only) for the Group’s policy on the humancapital management.

Nomura Real Estate Holdings, Inc. 19 Financial Report 2024

Risk item

Risk category

12. Risk ofoccurrence offraud andnegligence(D)Internalrisk

Risk details

Main initiatives• Risk that the business performance may beaffected as a result of the loss of credibility
and the resulting decrease in sales anddamage compensation costs due to fraud
perpetuated by executives and employees,
information leakage due to improper
management, and operational negligence.

Group executives and employees comply with laws
and regulations as well as with the internal rules, etc.
established by each company of the Group.
Furthermore, we have established the Nomura Real
Estate Group Code of Ethics with the aim of acting inaccordance with even higher ethical standards, and wecontinuously provide education and training sessions
to executives and employees.
In addition, the Company has established asystem to enhance the effectiveness of complianceactivities in each workplace by assigning a compliancepromotion officer to each department, office andbranch of the Company and Group companies.
Furthermore, with the “Nomura Real Estate Group Risk
Helpline,” an internal whistleblowing system shared by
all Group companies, the Company has set up internaland external contact points for reporting wrongdoing
and seeking advice on how to proceed, and has
developed and implemented systems based on the
Whistleblower Protection Act.

Nomura Real Estate Holdings, Inc. 20 Financial Report 2024

Consolidated Balance Sheets
Nomura Real Estate Holdings, Inc. and its subsidiaries
March 31, 2023 and 2024
(Millions of yen)

Assets

As of March 31, 2023

Current Assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets
Real estate for sale (Note 5)
Real estate for sale in process
Land held for development
Equity investments (Notes 5,12)
Other
Allowance for doubtful accounts
Total current assets
Non-Current Assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land (Note 5)
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities (Notes 5,12,13)
Leasehold and guarantee deposits (Note 11)
Deferred tax assets (Note 17)
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total Assets¥

29,06340,890447,194368,384
182,71432,32081,751(14)

As of March 31, 2024¥

54,942
27,534
499,137
340,601
171,401
48,014
115,155(10)

1,182,306

1,256,777

388,798(206,164)

392,111(217,310)

182,634

174,801

477,01363,586(16,761)

490,547
93,927(18,974)

46,82474,953

706,472

740,301

20,384

17,336142,031
31,76318,7568,979(0)178,949
32,467
19,3676,255(0)201,529

237,039928,387994,678¥2,110,693¥2,251,456

See notes to consolidated financial statements.

Nomura Real Estate Holdings, Inc. 21 Financial Report 2024

(Millions of yen)

Liabilities

As of March 31, 2023

Current Liabilities
Notes and accounts payable - trade
Short-term borrowings (Note 25)
Current portion of bonds payable
Income taxes payable (Note 17)
Deposits received
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for loss on business liquidation
Other
Total current liabilities¥

65,805
117,864
20,00013,278
19,686
11,204600
479,385

As of March 31, 2024¥

78,651
97,68810,00017,46729,983
12,667564
184,040327,829

331,064

130,000
853,684
58,44445,8293,903
4,300
15,115
15,849140,000
945,040
60,05742,2403,906
5,016
12,79818,892

1,127,127

1,227,951

1,454,956

1,559,015

Shareholders’ Equity (Note 9)
Share capital
Capital surplus
Retained earnings
Treasury shares

119,054
115,444427,064(25,456)

119,479
115,653472,152(31,903)

Total shareholders’ equity

Non-Current Liabilities
Bonds payable (Notes 12,25)
Long-term borrowings (Notes 12,25)
Leasehold and guarantee deposits received
Deferred tax liabilities (Note 17)
Deferred tax liabilities for land revaluation (Note 5)
Provision for share awards
Retirement benefit liability (Note 15)
Other
Total non-current liabilities
Total Liabilities
Net Assets

636,107675,381

Accumulated Other Comprehensive Income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land (Note 5)
Foreign currency translation adjustment
Remeasurements of defined benefit plans (Note 15)

5,755
40
7,868
3,348
186

5,309
(4,293)
7,876
4,576
2,079

Total accumulated other comprehensive income

17,19915,548

658
1,772

355
1,154

Share acquisition rights
Non-controlling interests
Total Net Assets
Total Liabilities and Net Assets

655,737

692,440¥2,110,693¥2,251,456

See notes to consolidated financial statements.

Nomura Real Estate Holdings, Inc. 22 Financial Report 2024

Consolidated Statements of Income
Nomura Real Estate Holdings, Inc. and its subsidiaries
Years ended March 31, 2023 and 2024
(Millions of yen)
Fiscal year ended
March 31, 2023

Operating Revenue
Operating Costs¥

654,735
432,073

Fiscal year ended
March 31, 2024¥

734,715490,250

Operating Gross Profit

222,662

244,464

Selling, General and Administrative Expenses

123,064

132,349

Operating Profit

99,598112,114

Non-Operating Income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Other

111
54
4,872
1,011

136
78
1,035
661

6,050

1,911

10,221
1,306

14,093
1,684

Total non-operating income
Non-Operating Expenses
Interest expenses
Other

11,527

15,777

Ordinary Profit

Total non-operating expenses

94,121

98,248Extraordinary Income
Gain on sale of non-current assets (Note 6)

6,873

5,983

Total extraordinary income

6,873

5,983

Extraordinary Losses
Impairment losses (Notes 1,6)
Loss on building reconstruction

7,911
4,993

6,537
1,041

Total extraordinary losses

12,905

7,578

Profit before Income Taxes

88,08896,653

Income Taxes-Current
Income Taxes-Deferred

27,737(4,349)31,280(2,811)

Total Income Taxes (Note 17)

23,38728,469Profit64,701

68,184

Profit Attributable to Non-Controlling Interests
Profit Attributable to Owners of Parent

180

19

¥64,520¥68,164

See notes to consolidated financial statements.

Nomura Real Estate Holdings, Inc. 23 Financial Report 2024

Consolidated Statements of Comprehensive Income
Nomura Real Estate Holdings, Inc. and its subsidiaries
Years ended March 31, 2023 and 2024
(Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

¥64,701¥68,184(1,589)
373
(0)
1,328
1,667
813

(446)
(4,333)
(0)
393
1,892
858

2,593

(1,635)Comprehensive Income¥67,294¥66,548

Comprehensive income attributable to(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests¥67,073
221¥66,505
43

ProfitOther Comprehensive Income (Note 7)
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income

See notes to consolidated financial statements.

Nomura Real Estate Holdings, Inc. 24 Financial Report 2024

Consolidated Statements of Changes in Net Assets
Nomura Real Estate Holdings, Inc. and its subsidiaries
Years ended March 31, 2023 and 2024
(Millions of yen)
Shareholders’ Equity

Share capital

Balance at March 31, 2022

CapitalsurplusRetainedearnings¥118,604 ¥114,993 ¥382,382

Accumulated other comprehensive income

TreasurysharesValuation
Total
difference onshareholders’ available-forequity
sale
securities¥(11,864) ¥604,115

Total
Foreign
RemeasureaccumulatedSharecurrency
ments ofotheracquisitiontranslation
definedcomprehensive
rightsadjustment benefit plansincomeDeferred
gains orlosses onhedges

Revaluation
reserve forland¥7,337¥(332)¥7,868¥1,254¥(1,481)¥14,646

Noncontrollinginterests

Total net
assets¥927¥1,708¥621,398

Changes during period
Issuance of new shares

450

450

—

—

901

—

—

—

—

—

—

—

—

901

Dividends of surplus——(19,838)—(19,838)

—

—

—

—

—

—

—

—

(19,838)

Profit attributable toowners of parent——

64,520—64,520

—

—

—

—

—

—

—

—

64,520Purchase of treasury
shares———(14,325)(14,325)

—

—

—

—

—

—

—

—

(14,325)

Disposal of treasury shares

—

—

—

734

734

—

—

—

—

—

—

—

—

734

Change in ownershipinterest of parent due totransactions with noncontrolling interests

—

—

—

—

—

—

—

—

—

—

—

—

—

—

Reversal of revaluation
reserve for land

—

—

—

—

—

—

—

—

—

—

—

—

—

—

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at March 31, 2023

—

—

—

—

—

(1,582)

373

(0)

2,093

1,667

2,552

(269)

63

2,346

450

450

44,681(13,591)

31,992(1,582)

373

(0)

2,093

1,667

2,552

(269)

63

34,338¥(25,456) ¥636,107¥5,755¥40¥7,868¥3,348¥186¥17,199¥658¥1,772¥655,737¥119,054 ¥115,444 ¥427,064

Changes during period
Issuance of new shares

424

424

—

—

849

—

—

—

—

—

—

—

—

849

Dividends of surplus——(23,068)—(23,068)

—

—

—

—

—

—

—

—

(23,068)

Profit attributable toowners of parent——

68,164—

68,164

—

—

—

—

—

—

—

—

68,164Purchase of treasury
shares———(7,822)(7,822)

—

—

—

—

—

—

—

—

(7,822)

Disposal of treasury shares

—

—

—

1,374

1,374

—

—

—

—

—

—

—

—

1,374

Change in ownershipinterest of parent due totransactions with noncontrolling interests

—

(216)

—

—

(216)

—

—

—

—

—

—

—

—

(216)

Reversal of revaluation
reserve for land

—

—

(8)

—

(8)

—

—

—

—

—

—

—

—

(8)

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at March 31, 2024

—

—

—

—

—

(446)

(4,333)

8

1,227

1,892

(1,650)

(302)

(617)

(2,570)424

208

45,088(6,447)39,273(446)(4,333)

8

1,227

1,892

(1,650)

(302)

(617)

36,702¥(31,903) ¥675,381¥5,309¥(4,293)¥7,876¥4,576¥2,079¥15,548¥355¥1,154¥692,440¥119,479 ¥115,653 ¥472,152

See notes to consolidated financial statements.

Nomura Real Estate Holdings, Inc. 25 Financial Report 2024

Consolidated Statements of Cash Flows
Nomura Real Estate Holdings, Inc. and its subsidiaries
Years ended March 31, 2023 and 2024
(Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

¥88,088
20,593
7,911(6,873)(4,872)(6)(3)(1,530)(165)
10,221(18,824)(85,968)
2,135(15,208)(24,176)(11,378)¥96,653
20,445
6,537(5,983)(1,035)(3)(2)(2,318)(214)
14,093
13,434(10,901)(14,658)
12,765
10,268(30,977)

Subtotal(40,058)

108,103

Interest and dividends received
Interest paid
Income taxes paid

385
(9,484)
6,348

3,627
(11,992)(28,860)

Net cash provided by (used in) operating activities(42,809)70,878(34,486)—(44,064)
16,749(1,516)
1,601(5,779)4,646(46)(43,273)
10,662(66,013)
13,888(2,838)3,325(3,856)
4,563(96)(62,896)(83,638)

(756)
(234)
178,204(69,000)
639—(10,000)
388(14,379)(19,838)
(158)
810
—

(8,374)(178)
157,148(78,159)573
19,892(20,000)
757(7,860)(23,068)
(38)
210
(979)

65,67539,921

Cash Flows from Operating Activities
Profit before income taxes
Depreciation
Impairment losses
Gain on sale of non-current assets
Share of loss (profit) of entities accounted for using equity method
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on business liquidation
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in equity investments
Increase (decrease) in trade payables
Increase (decrease) in deposits received
Other, net

Cash Flows from Investing Activities
Purchase of investment securities
Proceeds from sales and liquidation of investment securities
Purchase of property, plant and equipment and intangible assets
Proceeds from sale of property, plant and equipment and intangible assets
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Repayments of lease and guarantee deposits received
Proceeds from lease and guarantee deposits received
Other, net
Net cash provided by (used in) investing activities
Cash Flows from Financing Activities
Net increase (decrease) in short-term borrowings
Repayments of finance lease liabilities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from sale of treasury shares
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Proceeds from investments in silent partnerships
Purchase of shares of subsidiaries not resulting in change in scope of consolidation
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

6(1,119)(40,023)

26,041

Cash and cash equivalents at beginning of period

67,793

27,770Cash and cash equivalents at end of period¥27,770¥53,811

See notes to consolidated financial statements.

Nomura Real Estate Holdings, Inc. 26 Financial Report 2024

Notes to Consolidated Financial Statements
Nomura Real Estate Holdings, Inc. and its subsidiaries
March 31, 2023 and 2024

1.

Basis of Presentation of Consolidated Financial Statements
The accompanying consolidated financial statements of the Company and its subsidiaries (collectively, the “Group”) have been
prepared in accordance with the provisions set forth in the Financial Instruments and Exchange Act of Japan and its related
accounting regulations, and accounting principles generally accepted in Japan (“Japanese GAAP”), which are different in certain
respects as to the application and disclosure requirements of International Financial Reporting Standards.
The accompanying consolidated financial statements have been compiled from the consolidated financial statements of theCompany prepared in accordance with Japanese GAAP, and translated into English for the benefit of readers outside Japan. In
addition, the notes to the consolidated financial statements include information which may not be required under Japanese GAAP
but is presented herein as additional information.
(Significant Accounting Policies)
1. Matters related to the scope of consolidation(1) Number of consolidated subsidiaries
45 companies
247 TOTTENHAM COURT ROAD LIMITED, Nomura Real Estate US, PJ II, LLC, NREA 55 ST JAMES’S STREET 1 LIMITED,NREA 55 ST JAMES’S STREET 2 LIMITED, and Shibaura Hotel Management LLC, which were all newly established in thefiscal year, have been included in the scope of consolidation.
Meanwhile, MUSASHI Co., Ltd. was absorbed and merged into Prime X Co., Ltd., a consolidated subsidiary of theCompany, in the fiscal year, and has been excluded from the scope of consolidation.
(2)

Names of major unconsolidated subsidiaries, etc.
Main non-consolidated subsidiaries
Minami-Azabu Development Co., Ltd.
(Reason for exclusion from the scope of consolidation)
Non-consolidated subsidiaries are excluded from the scope of consolidation because they are small and their combined total
assets, revenues, net profit (amount corresponding to the Company’s equity interest), retained earnings (amount corresponding
to the Company’s equity interest), etc., do not have a material impact on the consolidated financial statements.
2. Application of the equity method(1) Number of non-consolidated subsidiaries accounted for using the equity method
2 companies
Main company’s name: Minami-Azabu Development Co., Ltd.
(2)

Number of affiliated companies accounted for using the equity method
50 companies
Main company’s name: Ginza Parking Center Co., Ltd.
ORIGIN PLAY BANGSAEN COMPANY LIMITED, ORIGIN PLACE BANGSAEN COMPANY LIMITED, ORIGIN TAOPOONCOMPANY LIMITED, M&G Fitzrovia GP Limited, M&G Fitzrovia Limited Partnership, and ORIGIN BANG WA COMPANY
LIMITED are included under affiliated companies accounted for using the equity method because the Company newly acquired
equity interests in these companies in the fiscal year.
3. Matters related to the fiscal years of consolidated subsidiaries
Of the consolidated subsidiaries, the fiscal years of the following companies end on December 31: NOMURA REAL ESTATEASIA PTE. LTD., NOMURA REAL ESTATE HONG KONG LIMITED, HCMC office investment Limited, LIM HOLDINGS LTD,
Lothbury Investment Management Group Limited and 12 other companies, Zen Plaza Investment Limited, ZEN PLAZA CO., LTD.,
NOMURA REAL ESTATE VIETNAM CO, LTD., NOMURA REAL ESTATE (THAILAND) CO., LTD., NOMURA REAL ESTATE UK
LIMITED, 127 Charing Cross Road Limited, Nomura Real Estate Consulting (Shanghai), Nomura Real Estate US, LLC., 247
TOTTENHAM COURT ROAD LIMITED, Nomura Real Estate US, PJ II, LLC, NREA 55 ST JAMES’S STREET 1 LIMITED, and
NREA 55 ST JAMES’S STREET 2 LIMITED. In addition, the fiscal years of Midosuji Mirai Development LLC and HNO, LLC end
on February 28.
In preparing the consolidated financial statements, the financial statements of these companies as of their respective closing
dates are used.
However, necessary adjustments have been made in consolidation for significant transactions that occurred between theirrespective closing dates and the consolidated closing date.
4. Matters related to accounting policies(1) Valuation standards and methods for significant assets
1) Securities
Held-to-maturity debt securities
Held-to-maturity debt securities are stated at amortized cost by the straight-line method.
Available-for-sale securities
Securities, other than shares, etc. without market value
Securities, other than shares, etc. without market value, are stated at fair market value. (All valuation differences areprocessed by the direct net assets method, and the selling cost is calculated by the moving average method)
Shares, etc. without market value
Shares, etc. without market value are stated at cost by the moving-average method.
Nomura Real Estate Holdings, Inc. 27 Financial Report 2024

2) Derivatives
The market value method is adopted.
3) Inventories
Inventories are mainly stated at cost, determined by the specific identification cost method (the amounts of inventories in theaccompanying Consolidated Balance Sheet are computed based on the write-down method reflecting decreased profitability).
(2) Depreciation method for significant depreciable assets
1) Property, plant and equipment (except for leased assets)
Depreciation of property, plant and equipment is computed mainly by the straight-line method.
Estimated useful lives used in the computation of depreciation are generally as follows:
Buildings and structures: 2 to 65 years
2) Intangible assets (except for leased assets)
Amortization of intangible assets is computed by the straight-line method.
Estimated useful life for costs of software is 5 years, which can be useful in the company.
3) Leased assets
Leased assets are depreciated using the straight-line method, assuming the lease period to be the useful life and the residual
value to be zero.
Finance leases, other than those that transfer ownership that started on or before March 31, 2008, are accounted for as
operating leases.
(3) Standards for recognition of material allowances
1) Allowance for doubtful accounts
In order to prepare for possible bad debt losses on notes and accounts receivable and loans, allowance for doubtful accounts
is provided at an amount calculated on the basis of a historical bad debt ratio for a certain reference period for normal claims,
plus an estimated uncollectible amount determined on the basis of individual assessments for specific claims with potential
losses.
2) Provision for bonuses
The estimated amount of payments attributable to the current fiscal year is recorded to allocate expenditures for bonuses paid
to employees.
3) Provision for bonuses for directors (and other officers)
The estimated amount of payments attributable to the current fiscal year is recorded to allocate expenditures for bonuses paid
to directors.
4) Provision for losses on business liquidation
The estimated amounts of losses occurring due to withdrawal from businesses are recorded.
5) Provision for share awards
The amount to be incurred estimated at the end of the current fiscal year is recorded to prepare for the issuance of shares of
the Company’s stock to directors and employees based on stock delivery regulations.
(4) Provision for retirement benefits
1) Period attribution method for expected retirement benefits
To calculate retirement benefit obligations, the estimated amount of retirement benefits attributable to the fiscal year isdetermined based on the benefit formula method.
2) Method for recording actuarial gains and losses and expenses for prior service costs
Prior service costs are amortized as incurred by the straight-line method over 10 years, which is within the average number ofremaining service years of the eligible employees.
Actuarial gains and losses are amortized in the following fiscal year in which the gain or loss is recognized by thestraight-line method mainly 10 years, which is within the average number of remaining service years of the eligible employees.
(5) Recognition of significant revenues and related costs
1) Accounting standard for revenue recognition
Details of the main performance obligations in the principal businesses related to the Group’s revenues from contracts withcustomers and the usual timing at which point the performance obligations are satisfied (the usual time at which revenues arerecognized) are as follows. In addition, the amount of consideration does not include any significant financing component.
i. Residential development business
The residential development business is mainly engaged in the development and sale of condominiums and detachedhousing (housing sales business) and the development and sale of rental housings (sales of property development). For the
housing sales business and sales of property development, the Company is obligated to transfer the subject property basedon the real estate sales contract with the customer, and recognizes revenue at the time the customer obtains control of theproperty upon transfer. In the housing sales business, the Company generally receives a deposit when the contract isconcluded and receives payment of the balance at the time of transfer, and in the sales of property development, theCompany generally receives payment of the purchase price at the time of transfer.
ii. Commercial real estate business
The commercial real estate business is mainly engaged in the development, lease and sale of office buildings, retail facilities,
logistics facilities and other properties (sales of property development). For the sales of property development, the Company
is obligated to transfer the subject property based on the real estate sales contract with the customer, recognizes revenue atthe time the customer obtains control of the property upon transfer and generally receives payment of the purchase price atthe time of transfer. Real estate lease revenue is accounted for in accordance with Accounting Standard for Lease
Nomura Real Estate Holdings, Inc. 28 Financial Report 2024

Transactions (ASBJ Statement No. 13), and revenue is recognized over the lease term.
iii. Overseas business
The overseas business is mainly engaged in providing advice in real estate development. For this business, the Company isobligated to carry out quality improvement, etc. based on the service agreement, etc. with the customer, and revenue isrecognized over a certain period of time because control is conveyed to the customer as the service is provided. Payment isgenerally received within approximately three months from the time when the performance obligations are satisfied.
iv. Investment management business
The investment management business is mainly engaged in providing investment management services including REITs,
private funds and real estate securitization products. For this business, the Company is obligated to carry out fundmanagement, etc. based on the asset management agreement, etc. with the customer, and revenue is recognized over acertain period of time because control is conveyed to the customer as the service is provided. The revenue is calculated bymultiplying the total assets, etc. of the managed fund by the commission rate stipulated in the agreement, and payment isreceived within approximately three months from the time when the performance obligations are satisfied.
v. Property brokerage & CRE business
The property brokerage & CRE business is mainly engaged in the real estate brokerage business. For this business, theCompany is obligated to carry out a series of operations based on the brokerage agreement with the customer, such as theperformance procedures from the work for concluding the real estate sales contract to the transfer of the subject property, andrecognizes revenue at the time of transfer of the property in the real estate sales contract concluded through brokerage. The
Company generally receives payment of half of the remuneration amount at the conclusion of the real estate sales contractconcluded through brokerage, and receives payment of the balance at the transfer of the subject property.
vi. Property & facility management business
The property & facility management business is mainly engaged in the operation and management of condominiums andoffice buildings, as well as contracting for repair and tenant works associated with management. For this business, theCompany is obligated to carry out facility management and cleaning, building maintenance and repairs, etc. based on the realestate property management agreement, construction contract, etc. with the customer, and revenue is recognized over acertain period of time because control is conveyed to the customer as the service is provided.
However, for construction contracts for which the period from the commencement date of the transaction in the contract
to the date the performance obligation is expected to be fully satisfied is very short, revenue is not recognized over a certain
period of time. Instead, the Company judges that its performance obligation is satisfied at the time of transfer and recognizes
revenue at that time. For operation and management, payment is generally received within approximately one month from thetime when the performance obligations are satisfied, and for contracting, payment is generally received within approximately
three months from the time of transfer.
2) Accounting standards for advertising expenses
In the housing sales business, to appropriately match expenses and revenues, advertising expenses of selling expenses
incurred prior to delivery to customers are recorded as prepaid expenses and they are expensed in one lump at the time ofdelivery.
(6) Standard for translation of significant foreign-currency-denominated assets or liabilities into Japanese yen
All current and non-current accounts denominated in foreign currencies are translated into Japanese yen at the spot exchange
rates in effect on the consolidated balance sheet date. Differences arising from this translation are recognized as gain or loss.
The asset and liability accounts of the overseas subsidiaries and affiliates are translated into Japanese yen at theexchange rates prevailing on the respective balance sheet dates of the subsidiaries and affiliates and the revenue and expense
accounts are translated into Japanese yen at the average rates of exchange for the year.
(7) Significant hedge accounting method
1) Hedge accounting method
Deferred hedge accounting is adopted. In addition, exceptional treatment is applied when interest rate swaps meet theconditions for exceptional treatment, and allocation treatment is applied when currency swaps meet the requirements forallocation treatment.
2)

Hedging instruments and hedged items<Hedging instruments>
Interest rate swap contracts
Currency swaps and foreign exchange forward contracts<Hedged items>
Borrowings
Securities denominated in foreign currencies

3) Hedging policy
Hedging is used for interest rate fluctuation risk and foreign exchange fluctuation risk as prescribed by internal rules.
4) Evaluation of effectiveness
The Group evaluates hedge effectiveness by comparing changes in market fluctuations or in the cumulative cash flows of thehedged items with the corresponding changes in the hedging derivative instruments and using the ratio of the fluctuations.
However, the evaluation of effectiveness is omitted for the interest rate swaps for which exceptional treatment is applied.
(8) Amortization of goodwill
Goodwill is amortized using the straight-line method over a period of 5 to 20 years.
(9) Scope of funds in the Consolidated Statements of Cash Flows
In preparing the Consolidated Statements of Cash Flows, cash on hand, readily-available deposits and short-term, highly liquid
investments with a maturity of three months or less at the time of purchase and with an insignificant risk of market value
fluctuation are considered to be cash and cash equivalents.

Nomura Real Estate Holdings, Inc. 29 Financial Report 2024

(10) Other significant matters for preparing the consolidated financial statements
Accounting for non-deductible consumption taxes
Non-deductible consumption taxes related to assets are included in the acquisition cost and other consumption taxes are
expensed in the fiscal year as incurred.

2.

Significant Accounting Estimates
1. Valuation of inventories
Inventories held by the Group consist mainly of housing held for sale and commercial property held for sale.
(1)

Amounts recorded in the consolidated financial statements for the fiscal years ended March 31, 2023 and 2024
(Millions of yen)
2023

Loss on valuation of inventories

2024

¥176

¥715

(2) Other information that contributes to the understanding of users of consolidated financial statements
1) Housing held for salei. Calculation method
The Company calculates this by comparing the net realizable value of the housing held for sale with the book value thereof.
The net realizable value is based on the sale price, product cost, etc. determined in the business plan formulated at the timeof site acquisition, construction order, and start of sale. In addition to the above, the net realizable value is subject to change
depending on the progress of the business and sales.
ii. Key assumptions
The key assumptions used in the calculation of the net realizable value are the estimated sale price and the product cost, andthese are estimated based on the location, size, product marketability, actual transactions in the surrounding area, market
forecasts, and rents, occupancy rates, and cap rates based on past experience.
iii. Impact on consolidated financial statements of the following fiscal year
Estimated sale prices and product costs, which are key assumptions, are subject to uncertainty. The estimated sale prices
may differ from future results due to changes in the housing market and other factors, and estimates of product costs may
differ from future results due to the changes in the construction market, the occurrence of additional construction, schedule
delays, and other factors.
2) Commercial property held for salei. Calculation method
The Company performs calculations by comparing the net realizable value of commercial property held for sale with the bookvalue thereof. The net realizable value is based on the estimated sale price, product cost, etc. determined at the time of siteacquisition, construction order, start of leasing (tenant recruitment), and decision to sell. For commercial property held for sale
where there is concern about a decline in profitability due to the progress of tenant recruitment, etc., the estimated sale priceis based on the appraisal value of a real estate appraiser, etc.
ii. Key assumptions
The key assumptions used in the calculation of the net realizable value are the estimated sale price and the product cost, andthese are estimated based on the location, size, product marketability, actual transactions in the surrounding area, market
forecasts, and rents, occupancy rates, and cap rates based on past experience.
iii. Impact on consolidated financial statements of the following fiscal year
Estimated sale prices and product costs, which are key assumptions, are subject to uncertainty. The estimated sale prices
may differ from future results due to changes in real estate leasing and real estate investment markets, and estimated productcosts may differ from future results due to the changes in the construction market, the occurrence of additional construction,schedule delays, and other factors.
2. Impairment of non-current assets
Non-current assets held by the Group mainly consist of office buildings, retail facilities, logistics facilities, hotels and other realestate (hereinafter “leasable real estate, etc.”) in Japan.
(1) Amounts recorded in the consolidated financial statements for the fiscal years ended March 31, 2023 and 2024
(Millions of yen)
2023

Impairment losses(Note)¥7,9112024¥6,537For the fiscal year, amounts that arose from intangible assets and goodwill, etc. recorded on the date of a businesscombination of subsidiaries that are not included in leasable real estate, etc. are included.

(2) Other information that contributes to the understanding of users of consolidated financial statements
i. Calculation method
When an indication arises that the carrying amount of leasable real estate, etc. may not be recoverable, the Company
assesses and calculates the impairment losses on the relevant real estate.
(Indications of Impairment)
The Group considers the following events as indications of an impairment of leasable real estate, etc.
• Property that reports or is expected to report an operating loss for two consecutive terms• Property in which any change that decreases its recoverable amount materially has occurred or is expected to occur• Property whose business environment has deteriorated or is expected to deteriorate significantly• Property whose market price has significantly declined (around 50% or more)(Recognition and Measurement of Impairment)
For properties that are judged to have signs of impairment, they are compared the book value with the total amount of
undiscounted future cash flows, and recognized that it is necessary to carry out impairment if the book value is larger.
For properties that are considered to be impaired, impairment losses are measured by reducing the book value to the
Nomura Real Estate Holdings, Inc. 30 Financial Report 2024

recoverable amount.
The recoverable amount is calculated based on the net realizable value or the value in use. Net realizable value is basedon the appraisal value of a real estate appraiser, etc. The value in use is calculated by discounting the future cash flows.
ii. Key assumptions
The key assumptions used in the calculation of undiscounted future cash flows and value in use are leasing revenues, leasing
costs, etc., and discount rates. These are estimated based on the property’s location, size, actual leasing transactions in thesurrounding area, market forecasts, historical rents, guest room rates, occupancy rates, and cap rates.
iii. Impact on consolidated financial statements of the following fiscal year
Estimates of leasing revenues, leasing costs, etc., which are key assumptions, are subject to uncertainty, and future results
may differ from these estimates due to changes in the market conditions related to leasable real estate, etc. and other factors.

3.

Accounting Standards Published But Not Yet Applied- On October 28, 2022, the ASBJ issued “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27)- On October 28, 2022, the ASBJ issued “Accounting Standard for Presentation of Comprehensive Income” (ASBJ Statement No.
25)- On October 28, 2022, the ASBJ issued “Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28)(1)

Overview

The ASBJ Statement No.28 “Partial Amendments to Accounting Standard for Tax Effect Accounting”, etc. (hereinafter “ASBJ
Statement No. 28, etc.”) was issued on February 2018, and completed the transfer of practical guidelines on tax effectaccounting at the Japanese Institute of Certified Public Accountants (JICPA) to the ASBJ. In the process of the deliberations,the following two issues, which were to be considered again after the release of ASBJ Statement No. 28, etc., were discussed
and released.
- Classification of income taxes when taxes are imposed on other comprehensive income- Treatment of tax effect related to the sale of shares of subsidiaries and other securities (shares of subsidiaries or associates)when group tax system is applied(2)

Scheduled date of adoption

The Company expects to adopt the accounting standards and related implementation guidance from the beginning of the fiscal
year ending March 31, 2025.
(3)

Impact of the adoption of accounting standard and implementation guidance

The Company is currently evaluating the effect of the adoption of the accounting standards and related implementation
guidance on its consolidated financial statements.

4.

Additional Information
Performance-based share-based compensation plan, etc. for Directors and Executive Officers
The Company and certain consolidated subsidiaries have introduced a performance-based share-based compensation plan (the“Plan”) as an incentive plan for Directors, Executive Officers or any other persons equivalent to these (excluding Directors serving
as Audit & Supervisory Committee Members and non-residents of Japan etc.; “the Directors, etc.”). The Plan is a compensation
scheme that functions as an incentive for improving medium- to long-term corporate value of the Company and enables interests
to be shared with the Company’s shareholders by linking the compensation paid to the Directors, etc. to the Company’s shareprice. Specifically, it utilizes the mechanism of an executive compensation Board Incentive Plan trust (“BIP trust”). The Company’s
shares are acquired in advance by an executive compensation BIP trust, and the Company’s shares and an amount equivalent to
the proceeds of converting the Company’s shares into cash are delivered and paid to the Directors, etc. according to theirposition, etc.
The shares of the Company remaining in the trust are recorded as treasury shares under net assets at the book value within
the trust. The book value and number of such treasury shares were ¥6,982 million and 2,552,143 shares, respectively, as ofMarch 31, 2024.
Furthermore, the estimated amount of the above executive compensation at the end of the fiscal year ended March 31, 2024
is recorded as provision for share awards.
ESOP Trust for Granting Stock
The Company and certain consolidated subsidiaries have introduced an “Employee Stock Ownership Plan trust (“ESOP trust”) for
Granting Stock” (the “Plan”) as an incentive plan for employees. The Plan is a compensation scheme that encourages employees
to execute their duties with an awareness of the Company’s share price because employees can enjoy economic benefits from anincrease in the price of the Company’s shares, and is expected to have the effect of increasing the motivation of employees andenable them to share interests with the Company’s shareholders. Specifically, it utilizes the mechanism of ESOP trust for granting
stock. The ESOP trust acquires the Company’s shares in advance and grants them to employees who satisfy certain
requirements.
The shares of the Company remaining in the trust are recorded as treasury shares under net assets at the book value within
the trust. The book value and number of such treasury shares were ¥1,420 million and 501,108 shares, respectively, as of March
31, 2024.
Furthermore, the estimated amount of the above compensation scheme at the end of the fiscal year ended March 31, 2024
is recorded as provision for share awards.

Nomura Real Estate Holdings, Inc. 31 Financial Report 2024

5.

Notes to Consolidated Balance Sheet
1. Amounts of receivables from contracts with customers and contract assets
Among notes and accounts receivable - trade, and contract assets, the amounts of receivables from contracts with customers andcontract assets are shown in 3. (1) Balances, etc. of contract assets and contract liabilities under 20. Revenue Recognition in theNotes to Consolidated Financial Statements.
2.

Matters related to non-consolidated subsidiaries and affiliates are as follows:(Millions of yen)
FY2023/3(as of March 31, 2023)

FY2024/3(as of March 31, 2024)¥32,181
101,670¥211¥47,283
118,603¥211

Equity investments (shares, etc.)
Investment securities (shares, etc.)
Other (capital contribution) under investments and other assets

3. Pledged assets and secured liabilities
Investment securities of ¥232 million are pledged as collateral for the debt of the investee.
4.

Non-recourse liabilities are as follows:(Millions of yen)
FY2023/3(as of March 31, 2023)

FY2024/3(as of March 31, 2024)¥3,000¥3,200Non-recourse long-term borrowings

Assets corresponding to non-recourse liabilities are as follows:(Millions of yen)
FY2023/3(as of March 31, 2023)

FY2024/3(as of March 31, 2024)¥—¥5,799Real estate for sale in process
Land held for development

5,327

—

Total

¥5,327¥5,799

5. Guaranteed liabilities
The Company has guaranteed borrowings from financial institutions, etc. by the following customers. The Company is obligated,along with the joint venture partner, to guarantee the debt of Origin One Phromphong Co., Ltd. in proportion to the percentage
equity stake. The amounts of the Company’s guarantee obligations, which are based on its percentage equity stakes in the twocompanies, are indicated in parentheses.
(Millions of yen)
FY2023/3(as of March 31, 2023)

FY2024/3(as of March 31, 2024)

Customers using housing loans
EBS Building Co-operators
Haneda Mirai Specific Purpose Company
Origin One Phromphong Co., Ltd.

¥ 55,375
87
65
2,033
(996)

Customers using housing loans
EBS Building Co-operators
Haneda Mirai Specific Purpose Company
Origin One Phromphong Co., Ltd.

¥ 64,492
6
65
—
(—)

Total

57,561¥ (56,524)

Total

64,564¥ (64,564)

Nomura Real Estate Holdings, Inc. 32 Financial Report 2024

6. Additional investment obligations, etc.
The Company, along with the joint venture partners, has additional investment obligations, etc. toward the following affiliatedcompanies in connection with their borrowings from financial institutions, and these obligations are based on the percentage
equity stake. The outstanding balances of borrowings by the affiliates are as follows, and the amounts of the Company’s
obligations, which are based on its percentage equity stakes, are indicated in parentheses.
(Millions of yen)
FY2023/3(as of March 31, 2023)

ORIGIN PARK T1 COMPANY LIMITED
Origin One Thonglor Co., Ltd.
PARK ORIGIN PRARAM 4 COMPANY
LIMITEDORIGIN SUKHUMVIT SAILUATCOMPANY LIMITEDORIGIN RAMINTRA COMPANY LIMITEDPARK RATCHADA COMPANY LIMITEDORIGIN RAMKHAMHAENGINTERCHANGE COMPANY LIMITEDKNIGHTSBRIDGE KASET INTERCHANGE
COMPANY LIMITEDSO ORIGIN PHAHOL 69 STATIONCOMPANY LIMITEDORIGIN PLUG&PLAY SAMUTPRAKANCOMPANY LIMITEDBRITANIA BANGNA KM.17 COMPANY
LIMITEDSTABLE TOWN COMPANY LIMITEDORIGIN PLAY SRI UDOM STATIONCOMPANY LIMITED
Origin One Sukhumvit 24 Co.,Ltd.
ORIGIN PLAY BANGKHUNNONCOMPANY LIMITEDSO ORIGIN SIRIRAJ COMPANY LIMITED

Total

FY2024/3(as of March 31, 2024)

¥ 495
(242)
2,130
(1,044)
5,454(2,672)
1,723
(844)
1,308
(641)
1,938
(950)
570
(279)
1,047
(513)
989
(484)
300
(147)
967
(474)
828
(405)
974
(477)
1,970
(965)
656
(321)
566
(277)
—

—
Origin One Thonglor Co., Ltd.

¥ 2,009(984)——

ORIGIN RAMINTRA COMPANY LIMITED

1,679
(822)
—

ORIGIN RAMKHAMHAENG INTERCHANGE
COMPANY LIMITED

297
(145)
1,646
(806)
1,612
(790)
998
(489)
777
(381)
678
(332)
1,059
(519)
2,464
(1,207)
713
(349)
615
(301)
2,822
(1,383)
533
(261)
341
(167)
505
(247)

KNIGHTSBRIDGE KASET INTERCHANGE
COMPANY LIMITEDSO ORIGIN PHAHOL 69 STATIONCOMPANY LIMITEDORIGIN PLUG&PLAY SAMUTPRAKANCOMPANY LIMITEDBRITANIA BANGNA KM.17 COMPANY
LIMITEDSTABLE TOWN COMPANY LIMITEDORIGIN PLAY SRI UDOM STATIONCOMPANY LIMITED
Origin One Sukhumvit 24 Co.,Ltd.
ORIGIN PLAY BANGKHUNNON COMPANY
LIMITED
SO ORIGIN SIRIRAJ COMPANY LIMITED

Origin One Phromphong Co.,Ltd.

—

ORIGIN PLUG&PLAY PHETKASEMCOMPANY LIMITED—ORIGIN PLAY BANGSAEN COMPANY
LIMITED—ORIGIN PLACE BANGSAEN COMPANY
LIMITED21,921¥ (10,741)

Total

18,756¥ (9,190)

7.

In accordance with the Act on Revaluation of Land (Act No. 34 enacted on March 31, 1998), land used for businesspurposes was revalued.
The amount equivalent to the tax on the difference is recorded in the liabilities section as “Deferred tax liabilities related to land
revaluation,” and the amount deducted is recorded in the net assets section as “Revaluation reserve for land.”
Method of revaluation: Calculated using a method that makes reasonable adjustments to the assessed value of non-cur- rent
asset for property tax, as stipulated in Article 2, Item 3 of the Order for Enforcement of the Act on Revaluation of Land (Cabinet
Order No. 119 enacted on March 31, 1998)
Date of revaluation: March 31, 20028.

As a result of a review of the purposes of holding assets, the following amounts have been reclassified.
(Millions of yen)
FY2023/3(as of March 31, 2023)

FY2024/3(as of March 31, 2024)¥18,927¥1,878From non-current assets to real estate for sale
Nomura Real Estate Holdings, Inc. 33 Financial Report 2024

6.

Notes to Consolidated Statements of Income
1. Amounts of revenue from contracts with customers
Operating revenue does not differentiate revenue from contracts with customers and revenue from other sources. The amounts ofrevenue from contracts with customers are shown in 1. Information on disaggregation of revenue from contracts with customers
under 20. Revenue Recognition in the Notes to Consolidated Financial Statements.
2.

Figures for end-of-term inventory reflect reductions in carrying value due to declines in profitability, and thefollowing losses on valuation of inventories are included in the cost of sales:(Millions of yen)

3.

2023

2024

¥176

¥715

Major components and amounts of selling, general and administrative expenses are as follows:(Millions of yen)
2023

Advertising expenses
Employee salaries and allowances
Transfer of provision for bonuses
Transfer of provision for bonuses for directors (and other officers)
Retirement benefit expenses
Transfer of provision for allowance for doubtful accounts
Commissioned advisor fees

4.

2024

¥17,345
41,379
9,690
611
3,159
3
¥10,776¥16,789
44,542
11,310604
2,826
2¥13,492

Research and development expenses included in selling, general and administrative expenses and operating costs
are as follows:(Millions of yen)
2023

¥18

5.

2024

¥19

The details of gain on sale of non-current assets are as follows:(Millions of yen)
2023

2024

Land
Buildings and other¥1,0005,872¥8,392(2,409)Total¥6,873¥5,983

6. Impairment loss
The Group recorded an impairment loss on the following asset group:
FY2023/3 (From April 1, 2022 to March 31, 2023)
Main purpose of use

Stores and leased assets
Other(Total: 3 locations)Type

Buildings
Land

Location

Chiyoda-ku, Tokyo, etc.

The Group has grouped its assets into the smallest units that generate cash flows that are largely independent of the cash flowsof other assets or asset groups. The head office building and other buildings are considered to be common assets.
As a result, in the fiscal year ended March 31, 2023, the carrying values of 3 asset groups that are scheduled to be used forother purposes or be sold or for which income from operating activities has been continuously negative were reduced to theirrecoverable amounts. The amount of the reduction was recorded as an impairment loss (¥7,911 million) under extraordinary
losses, and comprised ¥3,394 million on buildings and ¥4,516 million on land.
The recoverable amounts of these asset groups are measured based on the net selling price, and the net selling price is theappraisal value of a real estate appraiser, etc.
FY2024/3 (From April 1, 2023 to March 31, 2024)
Main purpose of use

Customer-related assets
Other
Stores and leased assets

Type

Intangible assets
Goodwill
Buildings
Other tangible non-current assets

Location

United Kingdom etc.
Naka-ku, Hiroshima, etc.

(Total: 14 locations)Intangible assets and goodwill
The Group has grouped its assets into the smallest units that generate cash flows that are largely independent of the cash flowsof other assets or asset groups.
As a result, in the fiscal year ended March 31, 2024, impairment losses of ¥5,762 million were recorded as extraordinary
losses for intangible assets and goodwill associated with an asset group to which a UK subsidiary of the Company belongs. Thiswas because requests for cancellation from investors of real estate funds managed by that subsidiary were confirmed and the
Nomura Real Estate Holdings, Inc. 34 Financial Report 2024

book values of the intangible assets and goodwill, which were recorded on the date of the business combination of thatsubsidiary, were written down to their recoverable amounts. This consists of intangible assets of ¥4,477 million, goodwill of ¥1,262
million, etc.
The recoverable amounts of these asset groups are measured based on the value in use, and the recoverable amounts are
considered to be zero.
Buildings and other tangible non-current assets
The Group has grouped its assets into the smallest units that generate cash flows that are largely independent of the cash flowsof other assets or asset groups. The head office building and other buildings are considered to be common assets.
As a result, in the fiscal year ended March 31, 2024, the carrying values of 13 asset groups that were used for otherpurposes or for which income from operating activities has been continuously negative were reduced to their recoverable
amounts. The amount of the reduction was recorded as an impairment loss (¥775 million) under extraordinary losses, andcomprised ¥772 million on buildings and ¥2 million on other tangible non-current assets.
The recoverable amounts of these asset groups are measured based on the value in use, and the recoverable amounts are
considered to be zero.

7.

Consolidated Statements of Comprehensive Income
1.

The amount of recycling and amount of income tax effects associated with other comprehensive income(Millions of yen)
2023

Valuation difference on available-for-sale securities:
Amount recognized during the year
Amount of recycling
Before income tax effect
Income tax effect
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges:
Amount recognized during the year
Amount of recycling
Before income tax effect
Income tax effect
Deferred gains or losses on hedges
Revaluation reserve for land:
Income tax effectForeign currency translation adjustment:
Amount recognized during the year
Amount of recycling
Before income tax effect
Income tax effectForeign currency translation adjustment
Remeasurements of defined benefit plans:
Amount recognized during the year
Amount of recycling
Before income tax effect
Income tax effectRemeasurements of defined benefit plans
Share of other comprehensive income of affiliates accounted for using the equity method:Amount recognized during the year
Amount of recycling
Before income tax effect
Income tax effect
Share of other comprehensive income of affiliates accounted for using the equity method
Total other comprehensive income

Nomura Real Estate Holdings, Inc. 35 Financial Report 20242024¥(2,281)(6)¥(704)
66(2,288)
698

(638)
191

(1,589)(446)(1,356)
1,896(6,643)
401

539
(165)

(6,242)
1,908

373(4,333)

(0)

(0)

1,328
0

393
—

1,328
—

393
—

1,328

393

1,639
763

2,399
328

2,402
(735)

2,727
(834)

1,667

1,892

3,634
(2,462)

1,236
—

1,172
(358)

1,236
(378)

813

858

¥2,593¥(1,635)

8.

Consolidated Statements of Changes in Net Assets
FY2023/3 (From April 1, 2022 to March 31, 2023)
1.

Shares outstanding and treasury shares
Number of shares
as of April 1, 2022
(Thousands of shares)

Increase(Thousands of shares)

Number of shares
as of March 31, 2023
(Thousands of shares)

Decrease(Thousands of shares)

Shares issued
Common stock ¹

182,604

333—

182,938

Total

182,604

333—

182,938

Treasury shares
Common stock 2, 3, 4

4,704

4,619

308

9,015

Total

4,704

4,619

308

9,015

Notes: 1. The increase of 333,000 outstanding shares of common stock was due to the exercise of stock options.
2. The number of treasury shares in common stock includes the shares held by the BIP Trust and the ESOP Trust (3,553,000 shares as of March 31, 2023).
3. The increase of 4,619,000 treasury shares in common stock was due to the increase of 3,280,000 shares acquired upon a resolution by the Board of Directors,
the purchase of 1,339,000 treasury shares by the BIP Trust and the ESOP Trust, and the purchase of 0 thousand shares related to the purchase of shares ofless than one share unit.
4. The decrease of 308,000 treasury shares in common stock was due to the delivery and sale of 308,000 shares of treasury shares for the BIP Trust and the
ESOP Trust.

2.

Share acquisition rights and treasury share acquisition rights
Number of shares to be issued (in thousands)

Company

Description

Type of shares to beissuedAs of April 1, 2022——

Acquisition
Parent company rights as stock
options

Increase

Decrease—

Balance as of March
31, 2023
As of March 31, 2023
(Millions of yen)

—

—

658

3. Dividends(1) Dividends paid
Type of shares

Total dividends(Millions of yen)

Dividends per share(Yen)

Record date

Effective dateMeeting of the Board of
Directors on April 26, 2022

Common stock

9,923

55.00

March 31, 2022

June 6, 2022

Meeting of the Board of
Directors on October 27, 2022

Common stock

9,915

55.00

Resolution

September 30, 2022 December 1, 2022

Notes: 1. The total amount of dividends resolved at the meeting of the Board of Directors held on April 26, 2022 includes dividends distributed of ¥138 million pertaining toshares of the Company stock held by the BIP Trust and the ESOP Trust.
2. The total amount of dividends resolved at the meeting of the Board of Directors held on October 27, 2022 includes dividends distributed of ¥172 million
pertaining to shares of the Company stock held by the BIP Trust and the ESOP Trust.

(2)

Dividends for which the record date was in the year ended March 31, 2023 and the effective date is in the year
ended March 31, 2024

Resolution
Meeting of the Board of
Directors on April 26, 2023

Type of shares

Common stock

Total dividends(Millions of yen)

11,535

Source of dividends

Retainedearnings

Dividends per share(Yen)

Record date

Effective date

65.00

March 31, 2023

June 5, 2023

Note: The total amount of dividends resolved at the meeting of the Board of Directors held on April 26, 2023 includes dividends distributed of ¥230 million pertaining toshares of the Company stock held by the BIP Trust and the ESOP Trust.

Nomura Real Estate Holdings, Inc. 36 Financial Report 2024

FY2024/3 (From April 1, 2023 to March 31, 2024)
1.

Shares outstanding and treasury shares
Number of shares
as of April 1, 2023
(Thousands of shares)

Increase(Thousands of shares)

Number of shares
as of March 31, 2024
(Thousands of shares)

Decrease(Thousands of shares)

Shares issued
Common stock ¹

182,938329—

183,268

Total

182,938329—

183,268

Treasury shares
Common stock 2, 3, 4

9,015

2,140

499

10,656

Total

9,015

2,140

499

10,656

Notes: 1. The increase of 329,000 outstanding shares of common stock was due to the exercise of stock options.
2. The number of treasury shares in common stock includes the shares held by the BIP Trust and the ESOP Trust (3,053,000 shares as of March 31, 2024).
3. The increase of 2,140,000 treasury shares in common stock was due to the increase of 2,140,000 shares acquired upon a resolution by the Board of Directors,
and the increase of 0 thousand shares related to the purchase of shares of less than one share unit.
4. The decrease of 499,000 treasury shares in common stock was due to the delivery and sale of 499,000 shares of treasury shares by the BIP Trust and the
ESOP Trust.

2.

Share acquisition rights and treasury share acquisition rights
Number of shares to be issued (in thousands)

Company

Description

Type of shares to beissuedAs of April 1, 2023——

Acquisition
Parent company rights as stock
options

Increase

Decrease—

Balance as of March
31, 2024
As of March 31, 2024
(Millions of yen)

—

—

355

3. Dividends(1) Dividends paid
Type of shares

Total dividends(Millions of yen)

Dividends per share(Yen)

Record date

Effective dateMeeting of the Board of
Directors on April 26, 2023

Common stock

11,53565.00

March 31, 2023

June 5, 2023

Meeting of the Board of
Directors on October 26, 2023

Common stock

11,532

65.00

Resolution

September 30, 2023 December 1, 2023

Notes: 1. The total amount of dividends resolved at the meeting of the Board of Directors held on April 26, 2023 includes dividends distributed of ¥230 million pertaining toshares of the Company stock held by the BIP Trust and the ESOP Trust.
2. The total amount of dividends resolved at the meeting of the Board of Directors held on October 26, 2023 includes dividends distributed of ¥199 million
pertaining to shares of the Company stock held by the BIP Trust and the ESOP Trust.

(2)

Dividends for which the record date was in the year ended March 31, 2024 and the effective date is in the year
ending March 31, 2025

Resolution
Meeting of the Board of
Directors on April 25, 2024

Type of shares

Common stock

Total dividends(Millions of yen)

13,174

Source of dividends

Retainedearnings

Dividends per share(Yen)

Record date

Effective date

75.00

March 31, 2024

June 3, 2024

Note: The total amount of dividends resolved at the meeting of the Board of Directors held on April 25, 2024 includes dividends distributed of ¥228 million pertaining toshares of the Company stock held by the BIP Trust and the ESOP Trust.

9.

Shareholders’ Equity
Under the Companies Act of Japan (the “Act”), all funds obtained through the issuance of common stock must be treated ascommon stock and, by resolution of the board of directors, an amount equivalent to less than half of those funds may beappropriated to the capital reserve (a component of capital surplus).
The Act provides that an amount equal to 10% of the amount to be distributed as distributions of capital surplus (other thanthe capital reserve) and retained earnings (other than the legal reserve) be transferred to the capital reserve and the legal
reserve, respectively, until the sum of the capital reserve and the legal reserve equals 25% of the share capital account.
As of March 31, 2024, the Group’s capital reserve amounted to ¥115,653 million, and no legal reserve was recorded.

10. Supplementary Cash Flow Information
A reconciliation of cash and deposits in the Consolidated Balance Sheet and cash and cash equivalents in the Consolidated
Statements of Cash Flows is as follows:(Millions of yen)
2023

2024

Cash and deposits
Time deposits with maturities of more than three months¥29,063(1,293)¥54,942(1,131)

Cash and cash equivalents¥27,770¥53,811

Nomura Real Estate Holdings, Inc. 37 Financial Report 2024

11. Leases
Lessees
1. Finance leases
The note has been omitted due to the lack of materiality.
2.

Operating leases
Future lease payments under non-cancellable leases of operating lease transactions(Millions of yen)
FY2023/3(as of March 31, 2023)

FY2024/3(as of March 31, 2024)

Due within 1 year
Due after 1 year

¥4,763
14,719¥4,342
27,980

Total¥19,482¥32,322

Lessors
1. Finance leases
The note has been omitted due to the lack of materiality.
2.

Operating leases
Future lease receipts under non-cancellable leases of operating lease transactions(Millions of yen)
FY2023/3(as of March 31, 2023)

FY2024/3(as of March 31, 2024)

Due within 1 year
Due after 1 year

¥27,534
75,391¥26,928
60,329Total¥102,925¥87,257

12. Financial Instruments
1. Matters concerning financial instruments(1) Policies on financial instruments
It is the policy of the Group to limit its fund management to safe and highly liquid deposits while raising funds primarily throughborrowings from financial institutions and the issuance of corporate bonds. Derivatives are utilized for hedging against the risks
described below not for speculative purposes.
(2) Details of financial instruments and risks
Equity investments and investment securities primarily consist of shares, investment units and others held for the purpose ofbusiness promotion, all of which are exposed to market price fluctuations and issuer credit risk. In some derivative instruments,
including currency swaps, forward exchange contracts are used to hedge risks from exchange rate fluctuations on securities inforeign currencies.
Interest rate swaps are used to hedge risks arising from fluctuations in interest rates on long-term borrowings.
Derivative transactions are interest rate swap transactions for the purpose of hedging against the risk of fluctuations ininterest payments related to borrowings, currency swap transactions for the purpose of hedging against the risk of fluctuations inforeign currencies related to foreign currency-denominated securities, and foreign exchange contract transactions. In addition,
regarding hedging instruments, hedged items, hedging policy and evaluation of hedge effectiveness, see Note 1. “Basis of
Presentation of Consolidated Financial Statements” “4. Matters related to accounting policies (7) Significant hedge accounting
method.”(3) Policies and systems for risk management
The Company regularly checks the fair value of equity investments and investment securities, as well as the financial positionsof their issuers.
The Finance Department conducts execution of derivative transactions and risk management based on the risk
management policies and operational plan determined by the Director in charge of Finance. The Finance Department also
reports the status of transactions and risk information to the Director on a regular basis. The consolidated subsidiaries conduct
execution of derivative transactions and risk management in accordance with internal policies. The Company considers credit
risk associated with these transactions is limited because of the transactions being conducted only with highly credit-worthy
financial institutions.
Based on the reports from consolidated subsidiaries and all departments within the Group, the Finance Department of theCompany creates and updates cash flow plans in a timely manner, managing liquidity risk through such methods as ensuringthat a specific amount of on-hand liquidity is always available.
(4) Supplemental information on fair values
As various factors are incorporated into the fair value measurement of financial instruments, the resulting values may vary if
different assumptions are provided. The contract amount shown in Note 14. Derivative Financial Instruments does not represent
the market risk regarding the derivative transactions.

Nomura Real Estate Holdings, Inc. 38 Financial Report 2024

2. Fair values of financial instruments
The book values, fair values and differences of financial instruments are as follows.
Book value
FY2023/3 (as of March 31, 2023)

Fair value

Difference(Millions of yen)

(1) Investment securities3¥37,691¥37,697¥5

Total assets(1) Bonds payable4(2) Long-term borrowings5

37,691150,000
932,798

37,697
147,730
931,2865(2,269)(1,511)

1,082,798

1,079,016(3,781)¥1,000¥1,000¥—Total liabilities
Derivative transactions6Book value
FY2024/3 (as of March 31, 2024)

Fair value

Difference(Millions of yen)

(1) Investment securities3¥57,154¥57,141¥(12)

Total assets(1) Bonds payable4(2) Long-term borrowings5

57,154150,000
1,012,244

57,141
147,377
1,003,659(12)(2,622)(8,584)

Total liabilities

1,162,244

1,151,036(11,207)¥(7,639)¥(7,639)¥—

Derivative transactions6

Notes: 1. The figures for “Cash and deposits” and “Short-term borrowings” are omitted as the fair values approximate their book values because they are cash and settled
in a short period of time.
2. The book values in the Consolidated Balance Sheet for shares, etc. without market value and investments in partnerships are as follows, and are not included in(1) Investment securities. Shares, etc. without market value are unlisted shares, etc. and are not subject to disclosure of their fair values. Investments inpartnerships are investments for business entities that are recorded in the Consolidated Balance Sheet as the net amount equivalent to equity, and are notsubject to disclosure of their fair values.
(Millions of yen)Classification

FY2023/3(as of March 31, 2023)

Shares, etc. without market value
Investments in partnerships¥104,545¥33,565

FY2024/3(as of March 31, 2024)¥121,889¥49,259

3. Includes government bonds presented as lease and guarantee deposits and preferred equity securities presented as equity investments, etc. on theConsolidated Balance Sheet. Investment securities include investment trusts whose investment trust assets are real estate, to which the net asset value isdeemed to be the fair value.
4. Current portion of bonds payable is included in (1) Bonds payable.
5. Current portion of long-term borrowings is included in (2) Long-term borrowings.
6. For derivative transactions, stated values are the net amounts of receivables and payables arising from the transactions. Figures in parentheses are liability
amounts.

Nomura Real Estate Holdings, Inc. 39 Financial Report 2024

Notes: 1. Redemption schedule for financial assets with maturities(Millions of yen)Over 1 year but
within 5 years

Within 1 year

FY2023/3 (as of March 31, 2023)

Over 5 years but
within 10 years

Over 10 years

Cash and deposits
Securities and investment securities
Held-to-maturity debt securities(1) Government and municipal bonds, etc.
(2) Corporate bonds
Available-for-sale securities with maturities(1) Debt securities(2) Others¥29,063

¥—

¥—

¥—

110
—

727
—

648
—

—
—

—
—

—
—

—
—

—
—

Total

¥29,174

¥727

¥648

¥—

(Millions of yen)Over 1 year but
within 5 years

Within 1 year

FY2024/3 (as of March 31, 2024)

Over 5 years but
within 10 years

Over 10 years

Cash and deposits
Securities and investment securities
Held-to-maturity debt securities(1) Government and municipal bonds, etc.
(2) Corporate bonds
Available-for-sale securities with maturities(1) Debt securities(2) Others¥54,942

¥—

¥—

¥—

280
—

525
—

570
—

—
—

—
—

—
—

—
—

—
—

Total

¥55,223

¥525

¥570

¥—

2. Repayment schedule for bonds payable and long-term borrowings at March 31, 2023 and 2024
Within 1 year

1-2 years

FY2023/3 (as of March 31, 2023)

2-3 years

3-4 years

4-5 years

Over 5 years(Millions of yen)

Short-term borrowings
Bonds payable
Long-term borrowings¥38,750
20,00079,113¥—
10,00066,849¥—30,000
121,411¥——75,422¥——87,500¥—90,000502,500

Total¥137,864¥76,849¥151,411¥75,422¥87,500¥592,500

Within 1 year

1-2 years

FY2024/3 (as of March 31, 2024)

2-3 years

3-4 years

4-5 years

Over 5 years(Millions of yen)

Short-term borrowings
Bonds payable
Long-term borrowings¥30,483
10,00067,204¥—30,000122,529¥——
76,719¥——87,790¥—14,00072,000¥—96,000586,000

Total¥107,688¥152,529¥76,719¥87,790¥86,000¥682,000

Nomura Real Estate Holdings, Inc. 40 Financial Report 2024

3. Breakdown by level of fair values of financial instruments
The fair values of financial instruments are classified into the following three levels depending on the observability andsignificance of inputs used in the fair value measurement.
Level 1 fair value:
Of the observable inputs in the fair value measurement, the fair value is measured based on quoted
prices in an active market for the subject asset or liability.
Level 2 fair value:

Of the observable inputs in the fair value measurement, the fair value is measured using inputs otherthan those used for Level 1.

Level 3 fair value:

The fair value is measured using inputs that cannot be observed.

When multiple inputs that have a significant effect on the fair value measurement are used and the inputs are within different
levels of the fair value hierarchy, the fair value is classified as the lowest level of those inputs in the fair value hierarchy.
(1)

Financial instruments with fair values whose book values are recorded on the Consolidated Balance SheetFY2023/3 (as of March 31, 2023)
Classification
Investment securities
Derivative transactions
Currency-related derivatives
Interest rate-related
derivatives
Total assets(Millions of yen)
Fair value
Level 1
¥32,746

Level 2
¥1,455

Level 3¥355

Total
¥34,557

—

978

—

978

—

21

—

21

¥32,746¥2,456¥355¥35,557

Investment trusts whose investment trust assets are real estate are not included in the above table. The amount of suchinvestment trusts in the consolidated balance sheet is ¥3,139 million.
FY2024/3 (as of March 31, 2024)
Classification
Investment securities
Derivative transactions
Interest rate-related
derivatives
Total assets
Derivative transactions
Currency-related derivatives
Total liabilities(Millions of yen)
Fair value
Level 1¥52,089

Level 2
¥1,326

Level 3¥472

Total
¥53,888

—

32

—

32

52,0891,359

472

53,921—¥—

7,672¥7,672—¥—

7,672¥7,672

Investment trusts whose investment trust assets are real estate are not included in the above table. The amount of suchinvestment trusts in the consolidated balance sheet is ¥3,253 million.
(2)

Financial instruments with fair values whose book values are not recorded on the Consolidated Balance SheetFY2023/3 (as of March 31, 2023)
Classification(Millions of yen)
Fair value
Level 1

Bonds payable
Long-term borrowings
Total liabilities

¥—
—
¥—

Level 2
¥147,730
931,286¥1,079,016

Level 3¥——¥—

FY2024/3 (as of March 31, 2024)
Classification
Bonds payable
Long-term borrowings
Total liabilities

Total¥147,730
931,286¥1,079,016(Millions of yen)

Fair value
Level 1¥——¥—

Level 2
¥147,377
1,003,659¥1,151,036

Level 3
¥—
—
¥—

Total
¥147,377
1,003,659¥1,151,036

Notes:
1. Explanation of the valuation techniques and inputs used in the fair value measurement
Investment securities
For shares and investment units, fair values are determined mainly at the price quoted on an exchange. If transactions are
conducted in an active market, the fair value is classified as Level 1 fair value, and if transactions are not conducted in an active
market, the fair value is classified as Level 2 fair value.
The fair value of preferred equity securities is classified as Level 3 fair value because the fair value measurement uses
some inputs that cannot be observed.
Bonds payable
These items are issued mainly by the Company and the fair values are calculated based on the market prices. However,
because bonds issued by the Company are not traded on an active market, the fair value is classified as Level 2 fair value.
Long-term borrowings
For long-term borrowings, the fair value is calculated by discounting the total amount of principal and interest at an interest ratethat would be charged for similar new loans, and the fair value is classified as Level 2 fair value.
For floating-rate long-term borrowings that are subject to exceptional treatment of interest rate swaps, the fair value iscalculated by discounting the total amount of principal and interest that were treated as a part of the interest rate swaps at aninterest rate that would be charged for similar loans, and the fair value is classified as Level 2 fair value.
Nomura Real Estate Holdings, Inc. 41 Financial Report 2024

Derivatives
Because the fair value is determined based on the prices obtained from counterparty financial institutions, etc., the fair value isclassified as Level 2 fair value.
2. Information on Level 3 fair value financial assets and financial liabilities with fair values whose book values arerecorded on the Consolidated Balance Sheet
Information on Level 3 fair value financial instruments is omitted because they are immaterial.

3. Reconciliation of investment trusts whose investment trust assets are real estate
Reconciliation of beginning balance to ending balance is omitted, because the book value recorded in the consolidatedbalance sheet for investment trusts whose investment trust assets are real estate is immaterial.

Nomura Real Estate Holdings, Inc. 42 Financial Report 2024

13. Securities
1.

Held-to-maturity debt securities with fair value(Millions of yen)

FY2023/3 (as of March 31, 2023)

Book value

Fair value

Difference

Securities whose fair value exceeds book value:(1) Government and municipal bonds, etc.
(2) Bonds payable(3) Other¥1,060——¥1,067——¥6——

Subtotal

1,060

1,067

6

423
—
—

422
—
—

(0)
—
—

Securities whose fair value does not exceed book value:(1) Government and municipal bonds, etc.
(2) Bonds payable(3) Other
Subtotal
Total

423

422

(0)

¥1,483¥1,489¥5(Millions of yen)
FY2024/3 (as of March 31, 2024)

Book value

Fair value

Difference

Securities whose fair value exceed book value:(1) Government and municipal bonds, etc.
(2) Bonds payable(3) Other

¥480
—
—

¥482
—
—

¥1
—
—

Subtotal

480

482

1

Securities whose fair value does not exceeds book value:(1) Government and municipal bonds, etc.
(2) Bonds payable(3) Other

892
—
—

878
—
—

(14)
—
—

Subtotal
Total

2.

892

878

(14)

¥1,372¥1,360¥(12)

Available-for-sale securities with fair value(Millions of yen)

FY2023/3 (as of March 31, 2023)

Book value

Securities whose book value exceeds acquisition cost:(1) Shares(2) Bonds
1) Government and municipal bonds, etc.
2) Bonds payable3) Other(3) Other
Subtotal
Securities whose book value does not exceed acquisition cost:(1) Shares(2) Bonds
1) Government and municipal bonds, etc.
2) Bonds payable3) Other(3) Other
Subtotal
Total

Acquisition cost

Difference¥1,427

¥746

¥681

—
—
—
34,640———27,049

—
—
—
7,591

36,06827,795

8,272

—

—

—

—
—
—
138

—
—
—
138

—
—
—
—

138

138

—

¥36,207¥27,934¥8,272

Nomura Real Estate Holdings, Inc. 43 Financial Report 2024

(Millions of yen)
FY2024/3 (as of March 31, 2024)

Book value

Securities whose book value exceeds acquisition cost:(1) Shares(2) Bonds
1) Government and municipal bonds, etc.
2) Bonds payable3) Other(3) Other
Subtotal
Securities whose book value does not exceed acquisition cost:(1) Shares(2) Bonds
1) Government and municipal bonds, etc.
2) Bonds payable3) Other(3) Other
Subtotal
Total

Acquisition cost

Difference¥2,356¥746¥1,609———53,174———47,297

—
—
—
5,876

55,53048,044

7,486

—

—

—

—
—
—
251

—
—
—
251

—
—
—
—

251

251

—

¥55,781¥48,295¥7,486

Nomura Real Estate Holdings, Inc. 44 Financial Report 2024

14. Derivative Financial Instruments
1.

Derivatives to which hedge accounting is not applied(1) Currency-related derivatives
FY2023/3 (as of March 31, 2023)
Contract amountContract amount due
after one year

Fair value

Valuation gain or loss

Category

Type of derivatives(Millions of yen)Transactions
other thanmarkettransactions

Forward exchange contract
Sell Australian dollars / Buy yen

¥225

¥—

¥3

¥3

Transactions
other thanmarkettransactions

Currency swaps
Receipts in yen /Payments in British pounds

¥477

¥—

¥(22)

¥(22)

Contract amountContract amount due
after one year

FY2024/3 (as of March 31, 2024)

Category

Type of derivatives

Transactions
other thanmarkettransactions

Forward exchange contract
Sell Australian dollars / Buy yen

2.

Fair value

Valuation gain or loss

(Millions of yen)

¥338

¥—

¥(26)

¥(26)

Derivatives to which hedge accounting is applied(1) Currency-related derivatives
FY2023/3 (as of March 31, 2023)
Contract amount

Hedge accounting
methodType of derivatives

Major hedged items

Contract amount due
after one year

Fair value(Millions of yen)

Deferral hedge Currency swaps
accounting
Receipts in yen /Payments in U.S. dollars

Securities denominatedin foreign currencies¥35,946¥9,394¥(738)

Deferral hedge Currency swaps
accounting
Receipts in yen /Payments in Chinese Yuan

Securities denominatedin foreign currencies

3,010

—

(104)

Deferral hedge Currency swaps
accounting
Receipts in yen /Payments in Philippine peso

Securities denominatedin foreign currencies

1,829

—

(348)

Deferral hedge Currency swaps
accounting
Receipts in yen /Payments in British pounds

Securities denominatedin foreign currencies

14,558

1,802

(411)

Deferral hedge Forward exchange contract
accounting
Sell U.S. dollars / Buy yen

Securities denominatedin foreign currencies

17,322—

496

Deferral hedge Forward exchange contract
accounting
Sell Thai baht / Buy yen

Securities denominatedin foreign currencies

10,323—(15)

Deferral hedge Forward exchange contract
Securities denominatedaccounting
Buy Philippine peso / Sell yen in foreign currencies

14,605—

2,079

Deferral hedge Forward exchange contract
accounting
Sell Chinese Yuan / Buy yen

3,436

—

40

¥101,032¥11,196

¥997

Total

Securities denominatedin foreign currencies

Nomura Real Estate Holdings, Inc. 45 Financial Report 2024

FY2024/3 (as of March 31, 2024)
Contract amount
Hedge accounting
methodType of derivatives

Major hedged items

Contract amount due
after one year

Fair value(Millions of yen)

Deferral hedge Currency swaps
accounting
Receipts in yen /Payments in U.S. dollars

Securities denominatedin foreign currencies¥41,124¥—¥(4,453)

Deferral hedge Currency swaps
accounting
Receipts in yen /Payments in Philippine peso

Securities denominatedin foreign currencies

2,244

2,244

(255)

Deferral hedge Currency swaps
accounting
Receipts in yen /Payments in British pounds

Securities denominatedin foreign currencies

20,441—(1,076)

Deferral hedge Forward exchange contract
accounting
Sell U.S. dollars / Buy yen

Securities denominatedin foreign currencies

31,193—(1,255)

Deferral hedge Forward exchange contract
accounting
Sell Thai baht / Buy yen

Securities denominatedin foreign currencies

9,850

—

(58)

Deferral hedge Forward exchange contract
Securities denominatedaccounting
Buy Philippine peso / Sell yen in foreign currencies

1,658

—

20

Deferral hedge Forward exchange contract
accounting
Sell Chinese Yuan / Buy yen

Securities denominatedin foreign currencies

6,007

—

(29)

Deferral hedge Forward exchange contract
accounting
Sell British pounds / Buy yen

Securities denominatedin foreign currencies

13,192—(537)¥125,712¥2,244¥(7,646)

Total

(2)

Interest rate-related derivatives
FY2023/3 (as of March 31, 2023)(Millions of yen)

Hedge accounting method

Type of derivatives

Major hedged items

Contract amountContract amount due
after one year

Deferral hedge
accounting

Interest rate swaps
Receive floating rate /Pay fixed rateLong-term debt

¥1,500¥1,500¥21

Exceptional treatment Interest rate swaps
for interest rate swaps Receive floating rate /Pay fixed rateLong-term debt

161,674

126,160(Note)¥163,174¥127,660

¥21

Total

Fair value

Note: The fair value of the interest rate swaps which qualify for exceptional treatment for interest rate swaps is considered to be included in the fair value of the long-term
debt.
FY2024/3 (as of March 31, 2024)(Millions of yen)
Hedge accounting method

Type of derivatives

Major hedged items

Contract amountContract amount due
after one year

Deferral hedge
accounting

Interest rate swaps
Receive floating rate /Pay fixed rateLong-term debt

¥1,500¥1,500¥32

Exceptional treatment Interest rate swaps
for interest rate swaps Receive floating rate /Pay fixed rateLong-term debt

128,329

101,617(Note)¥ 129,829¥103,117

¥32

Total

Fair value

Note: The fair value of the interest rate swaps which qualify for exceptional treatment for interest rate swaps is considered to be included in the fair value of the long-term
debt.

Nomura Real Estate Holdings, Inc. 46 Financial Report 2024

15. Retirement Benefits
1. Outline of retirement benefit plans
The Company does not have a retirement benefit plan. As defined benefit plans, certain subsidiaries have the lump-sum
pension plan and the defined benefit corporate pension plan, and defined contribution pension plans. In certain cases, additional
retirement benefit payments may be made. For the lump-sum pension plan and the defined benefit corporate pension plan usedby certain subsidiaries, retirement benefit liability and retirement benefit expenses are calculated by the simplified method.
2. Defined benefit plan
(1) A reconciliation of the changes in retirement benefit obligations for the fiscal years ended March 31, 2023 and2024 (excluding plans applying a simplified method stated in (3))(Millions of yen)
2023

2024

Retirement benefit obligations at the beginning of the year
Service cost
Interest cost
Actuarial gain or loss
Retirement benefit payments¥42,332
2,070
198(2,321)(1,215)¥41,064
1,936
370
(129)
(1,084)Retirement benefit obligations at the end of the year

¥41,064¥42,156(2)

A reconciliation of the changes in balance of plan assets for the fiscal years ended March 31, 2023 and 2024
(excluding plans applying a simplified method stated in (3))(Millions of yen)
2023

2024

Fair value of plan assets at the beginning of the year
Expected return on plan assets
Actuarial gain or loss
Employer contributions
Retirement benefit payments¥27,444
466
(670)
893
(556)

¥27,576
468
2,302
926
(540)

Fair value of plan assets at the end of the year

¥27,576¥30,734(3)

A reconciliation of the changes in balance of retirement benefit liability applying a simplified method for the
fiscal years ended March 31, 2023 and 2024
(Millions of yen)
2023

2024

Retirement benefit liability at the beginning of the year
Retirement benefit expenses
Retirement benefit payments
Contributions to planOther

¥1,755
122
(224)
(25)
0

¥1,627
109
(335)
(26)
0

Retirement benefit liability at the end of the year

¥1,627¥1,375(4)

A reconciliation of retirement benefit obligations as well as plan assets at March 31, 2023 and 2024, andretirement benefit liability on the Consolidated Balance Sheet(Millions of yen)
FY2023/3(as of March 31, 2023)

FY2024/3(as of March 31, 2024)

Funded retirement benefit obligations
Fair value of plan assets¥33,787(27,814)¥34,703(30,967)

Subtotal
Unfunded retirement benefit obligations

5,972
9,142

3,736
9,061

Net liabilities on the Consolidated Balance Sheet
Retirement benefit liability

15,115
15,115

12,798
12,798Net liabilities on the Consolidated Balance Sheet¥15,115¥12,798

Note: It includes the plans applying a simplified method.

(5)

Breakdown of retirement benefit expenses(Millions of yen)
2023

2024

Service cost
Interest cost
Expected return on plan assets
Amortization of actuarial gain or loss
Retirement benefit expenses calculated by the simplified method
Other¥2,070
198
(466)
751
122
50

¥1,936
370
(468)
295
109
19

Retirement benefit expenses for defined benefit plan

¥2,726¥2,262

Nomura Real Estate Holdings, Inc. 47 Financial Report 2024

(6) Remeasurements of defined benefit plans
Breakdown of items recorded in the Consolidated Statements of Comprehensive Income as remeasurements of defined
benefit plans, before tax is as follows.
(Millions of yen)
2023

2024

Actuarial gain or loss

¥2,402¥2,727

Total¥2,402¥2,727(7) Remeasurements of defined benefit plans
Breakdown of items recorded in the Consolidated Balance Sheet as remeasurements of defined benefit plans, before tax is asfollows.
(Millions of yen)
FY2023/3(as of March 31, 2023)

FY2024/3(as of March 31, 2024)

Unrecognized actuarial gain or loss

¥268

¥2,995

Total

¥268

¥2,995(8) Composition of plan assets by major classifications
1) Major components of plan assets
The ratio of each major category to total plan assets is as follows.
FY2023/3(as of March 31, 2023)

FY2024/3(as of March 31, 2024)

ClaimsEquityGeneral account
Other

22%
23%
21%
34%

22%
27%
19%
32%

Total

100%

100%

2) Method for setting the expected long-term rate of return on plan assets
The expected long-term rate of return on plan assets has been estimated based on the current and projected allocation ofplan assets and the current and expected long-term rate of return on diverse assets which comprise plan assets.
(9) Calculation basis for actuarial calculations
Calculation basis for major actuarial calculations
Discount rate
Expected rate of return on plan assets
Expected salary increase rate

FY2023/3(as of March 31, 2023)

FY2024/3(as of March 31, 2024)

0.2-1.0%
1.7%
2.0-7.5%

0.2-1.0%
1.7%
1.7-7.5%

3. Defined contribution plan
The required contributions to the defined contribution plans of consolidated subsidiaries for the fiscal years ended March 31,
2023 and 2024 are ¥607 million and 713 million, respectively.

16. Stock Options
1.

Amount recorded as profit due to expiration due to non-exercise of rights(Millions of yen)
2023

2024

¥6

¥26

Nomura Real Estate Holdings, Inc. 48 Financial Report 2024

2. Description, scale and fluctuation of stock options(1) Description
Nomura Real Estate Holdings, Inc.
FY2016/3

1st issue of stock options

2nd issue of stock options

3rd issue of stock options

5th issue of stock options

Settlement dateJune 26, 2015

June 26, 2015

June 26, 2015

September 17, 2015

Recipients

Directors of theCompany(6 persons)

Directors and executive
officers of theCompany’s subsidiaries(76 persons)

Directors of theCompany(6 persons)

Directors of theCompany’s subsidiaries(3 persons)

Directors and executive
officers of theCompany’s subsidiaries(76 persons)

Employees of theCompany’s subsidiaries(20 persons)

Employees of theCompany’s subsidiaries(199 persons)Type/number of shares
reserved (Note 1)

Common stock:35,700 shares

Common stock:
157,500 shares

Common stock:
380,900 shares

Common stock:
24,000 shares

Grant dateJuly 23, 2015

July 23, 2015

July 23, 2015

October 14, 2015

Vesting conditions

No conditions
attached

No conditions attached

No conditions attached

No conditions attached

No period specified

No period specified

No period specified

No period specified

July 23, 2018 –July 22, 2023

July 23, 2018 –July 22, 2023

July 23, 2018 –July 22, 2023

October 14, 2018 –October 13, 2023

Number of shareacquisition rights (units)(Note 2)

-

-

-

-

Type, content and numberof shares subject to theshare acquisition rights(Note 2)

-

-

-

-

Amount paid-in (¥) upon
exercise of the shareacquisition rights (Note 2)

1 per share

1 per share

2,741 per share
However, the said paidin amount (hereinafter“exercise price”) may be
adjusted based onprovisions in (Note 5).

2,355 per share
However, the said paidin amount (hereinafter“exercise price”) may be
adjusted based onprovisions in (Note 5)

Stock issuance price andcapitalization amount (¥) inthe event of issuance ofshares upon exercise of
the share acquisition rights(Note 2)Issuance price: 2,261
Capitalization amount:
1,130.5

Issuance price: 2,261
Capitalization amount:
1,130.5

Issuance price: 3,257
Capitalization amount:
1,628.5

Issuance price: 2,891
Capitalization amount:
1,445.5

Terms and conditions forexercising the shareacquisition rights (Note 2)

As indicated in (Note3)

As indicated in (Note 3)

As indicated in (Note 6)

As indicated in (Note 6)

Matters related to thetransfer of shareacquisition rights (Note 2)

Acquisition of share acquisition rights by transfer requires the approval of the Board of Directors of thisCompany.

Matters related to the grantof share acquisition rights
in connection withcorporate restructuring
actions (Note 2)

As indicated in (Note4)

Service period
Exercisable period

As indicated in (Note 4)

As indicated in (Note 7)

Nomura Real Estate Holdings, Inc. 49 Financial Report 2024

As indicated in (Note 7)

Nomura Real Estate Holdings, Inc.
FY2017/3

Settlement date
Recipients

1st issue of stock options

2nd issue of stock options

3rd issue of stock options

June 29, 2016

June 29, 2016

June 29, 2016

Directors of the Company(6 persons)

Directors and executive
officers of the Company’s
subsidiaries(83 persons)

Directors of the Company(6 persons)
Directors and executive
officers of the Company’s
subsidiaries(83 persons)
Employees of the Company’s
subsidiaries(226 persons)Type/number of shares reserved(Note 1)
Grant dateCommon stock:
56,700 shares

Common stock:250,300 shares

Common stock:421,800 shares

July 22, 2016

July 22, 2016

July 22, 2016

No conditions attached

No conditions attached

No conditions attached

No period specified

No period specified

No period specified

July 22, 2019 –July 21, 2024

July 22, 2019 –July 21, 2024

July 22, 2019 –July 21, 2024

76 [–]

429 [283]

725 [563]

Common stock:7,600 shares[–]

Common stock:42,900 shares[28,300]

Common stock:72,500 shares[56,300]

Amount paid-in (¥) upon exerciseof the share acquisition rights(Note 2)

1 per share

1 per share

1,927 per share
However, the said paid-in
amount (hereinafter “exercise
price”) may be adjusted basedon provisions in (Note 5).

Stock issuance price andcapitalization amount (¥) in theevent of issuance of shares upon
exercise of the share acquisitionrights (Note 2)

Issuance price: 1,594
Capitalization amount: 797

Issuance price: 1,594
Capitalization amount: 797

Issuance price: 2,304
Capitalization amount: 1,152

Terms and conditions forexercising the share acquisitionrights (Note 2)

As indicated in (Note 3)

As indicated in (Note 3)

As indicated in (Note 6)

Vesting conditions
Service period
Exercisable period
Number of share acquisition rights(units) (Note 2)
Type, content and number ofshares subject to the shareacquisition rights (Note 2)

Matters related to the transfer ofshare acquisition rights (Note 2)
Matters related to the grant ofshare acquisition rights inconnection with corporate
restructuring actions (Note 2)

Acquisition of share acquisition rights by transfer requires the approval of the Board of Directors of
this Company.
As indicated in (Note 4)

As indicated in (Note 4)

Nomura Real Estate Holdings, Inc. 50 Financial Report 2024

As indicated in (Note 7)

Nomura Real Estate Holdings, Inc.
FY2018/3

Settlement date
Recipients

1st issue of stock options

2nd issue of stock options

3rd issue of stock options

June 29, 2017

June 29, 2017

June 29, 2017

Directors of the Company(6 persons)

Directors and executive
officers of the Company’s
subsidiaries(90 persons)

Directors of the Company(6 persons)
Directors and executive
officers of the Company’s
subsidiaries(90 persons)
Employees of the Company’s
subsidiaries(241 persons)Type/number of shares reserved(Note 1)

Common stock:39,800 shares

Common stock:
228,300 shares

Common stock:456,400 shares

Grant dateJuly 21, 2017

July 21, 2017

July 21, 2017

No conditions attached

No conditions attached

No conditions attached

No period specified

No period specified

No period specified

July 21, 2020 –July 20, 2025

July 21, 2020 –July 20, 2025

July 21, 2020 –July 20, 2025

237 [147]

547 [463]

1,489 [1,411]

Common stock:
23,700 shares[14,700]

Common stock:
54,700 shares[46,300]

Common stock:
148,900 shares[141,100]

Amount paid-in (¥) upon exerciseof the share acquisition rights(Note 2)

1 per share

1 per share

2,400 per share
However, the said paid-in
amount (hereinafter “exercise
price”) may be adjusted basedon provisions in (Note 5).

Stock issuance price andcapitalization amount (¥) in theevent of issuance of shares upon
exercise of the share acquisitionrights (Note 2)

Issuance price: 1,840
Capitalization amount: 920

Issuance price: 1,840
Capitalization amount: 920

Issuance price: 2,799
Capitalization amount: 1,399.5

Terms and conditions forexercising the share acquisitionrights (Note 2)

As indicated in (Note 3)

As indicated in (Note 3)

As indicated in (Note 6)

Vesting conditions
Service period
Exercisable period
Number of share acquisition rights(units) (Note 2)
Type, content and number ofshares subject to the shareacquisition rights (Note 2)

Matters related to the transfer ofshare acquisition rights (Note 2)
Matters related to the grant ofshare acquisition rights inconnection with corporate
restructuring actions (Note 2)

Acquisition of share acquisition rights by transfer requires the approval of the Board of Directors of
this Company.
As indicated in (Note 4)

As indicated in (Note 4)

Nomura Real Estate Holdings, Inc. 51 Financial Report 2024

As indicated in (Note 7)

Nomura Real Estate Holdings, Inc.
FY2019/3

Settlement date
Recipients

Type/number of shares reserved(Note 1)
Grant date

1st issue of stock options

2nd issue of stock options

June 26, 2018

June 26, 2018

Directors of the Company(5 persons)

Directors and executive
officers of the Company’s
subsidiaries(36 persons)Common stock:
10,700 shares

Common stock:
49,400 shares

July 19, 2018

July 19, 2018

No conditions attached

No conditions attached

No period specified

No period specified

July 19, 2021 –July 18, 2026

July 19, 2021 –July 18, 2026

74

143 [125]

Common stock:
7,400 shares

Common stock:
14,300 shares[12,500]

Amount paid-in (¥) upon exerciseof the share acquisition rights(Note 2)

1 per share

1 per share

Stock issuance price andcapitalization amount (¥) in theevent of issuance of shares upon
exercise of the share acquisitionrights (Note 2)

Issuance price: 2,030
Capitalization amount: 1,015

Issuance price: 2,030
Capitalization amount: 1,015

Terms and conditions forexercising the share acquisitionrights (Note 2)

As indicated in (Note 3)

As indicated in (Note 3)

Vesting conditions
Service period
Exercisable period
Number of share acquisition rights(units) (Note 2)
Type, content and number ofshares subject to the shareacquisition rights (Note 2)

Matters related to the transfer ofshare acquisition rights (Note 2)
Matters related to the grant ofshare acquisition rights inconnection with corporate
restructuring actions (Note 2)

Acquisition of share acquisition rights by transfer requires theapproval of the Board of Directors of this Company.
As indicated in (Note 4)

As indicated in (Note 4)

Notes: 1. Described in terms of the number of shares.
2. Information as of the end of the fiscal year ended March 31, 2024 is indicated. Any part of the information which was changed during the period from the endof the current fiscal year to the end of the month previous to the filing date (May 31, 2024) is indicated inside brackets [ ] as of the end of the month previous
to the filing date, and no change has been made in any other parts since the end of the current fiscal year.
3. i) A person who has received the allotment of the share acquisition rights (the “Eligible Person”) must be in a position of Director, Audit & Supervisory Board
Member, Executive Officer, Counselor, Advisor, Special Officer, Special Advisor, or in an equivalent position thereto, or employee of the Company or anyof its subsidiaries (collectively, the “Required Position”) until the time of exercise of the share acquisition rights on a continuing basis.
ii) Notwithstanding i) above, in the case the Eligible Person has lost the Required Position, the Eligible Person may exercise share acquisition rights only
from and including whichever is later of the date of loss of the Required Position or the commencement date of “Exercisable period” in the above table (the“Exercise Period”), to and including the date on which one year has elapsed from the aforesaid date on the condition that the last day is on or before theexpiration date of the Exercise Period.
iii) When the Eligible Person has passed away, his/her heir is deemed to be able to succeed and exercise the share acquisition rights if the Eligible Person
has met the conditions of i) above immediately before the death, or the Eligible Person had been able to exercise share acquisition rights in accordancewith the provision of ii) above immediately before the death (such heir who succeeded the share acquisition rights is hereinafter referred to as the“Successor of Rights”); provided, however, that in the case of i) above, the Successor of Rights may exercise share acquisition rights only from andincluding whichever is later of the date of death of the Eligible Person or the commencement date of the Exercise Period, to and including the date on
which one year has elapsed from the aforesaid date on the condition that the last day is on or before the expiration date of the Exercise Period, and in thecase of ii) above, the Successor of Rights may exercise share acquisition rights during the same period as the period allowed for the Eligible Person to
exercise those in accordance with ii) above.
iv) When the Successor of Rights has passed away, his/her heir may not exercise the share acquisition rights.
v) The Eligible Person or the Successor of Rights may not exercise the allotted share acquisition rights in more than two times.
vi) A fraction of one share acquisition right may not be exercised.
vii) Other terms and conditions shall be as per specifications in the “Share Acquisition Rights Allotment Agreement” to be entered into between the Company
and the Eligible Person.
4. The Company, in the case of merger (limited only to cases in which the Company is dissolved by merger), absorption-type company split, incorporation-typecompany split, share exchange or share transfer (collectively, “Reorganization”), may issue the share acquisition rights of the company that survives themerger, the company incorporated as a result of the merger, the company which succeeds, in whole or in part, to any rights and obligations that a company
effecting an absorption-type company split holds in connection with its business, the company that is incorporated in the incorporation-type company split, thecompany that acquires all of the issued shares of the company effecting the share exchange, or the company incorporated as a result of the share transfer(collectively, “Reorganized Company”) to each person holding share acquisition rights that remain outstanding at the time directly before when the effects of
the Reorganization arises (collectively, “Remaining Share Acquisition Rights”), based on the conditions set forth below. In this case, the Remaining Share
Acquisition Rights shall be extinguished and the Reorganized Company shall issue new share acquisition rights. However, this shall be limited to the casewhere the issuance of share acquisition rights of the Reorganized Company is stipulated in an absorption-type merger agreement, an incorporation-typemerger agreement, an absorption-type company split agreement, an incorporation-type company split plan, a stock exchange agreement, or a share transfer
plan in accordance with following conditions.
i) Number of share acquisition rights of the Reorganized Company to be delivered
A number equal to the number of the Remaining Share Acquisition Rights shall be delivered to each such Eligible Person.
ii) Class of shares of the Reorganized Company to be delivered upon exercise of share acquisition rights
To be Ordinary shares of the Reorganized Companyiii) Number of shares of the Reorganized Company to be delivered upon exercise of share acquisition rights
To be determined in accordance with the “Number of shares underlying share acquisition rights” in the above table, taking into consideration the

Nomura Real Estate Holdings, Inc. 52 Financial Report 2024

conditions, etc. of the Reorganization.
iv) Value of property to be contributed upon exercise of share acquisition rights and calculation methods thereof
The subject of contribution upon exercise of share acquisition rights shall be cash and the amount shall be obtained by multiplying ¥1, which is the price tobe paid per share, by the number of shares of the Reorganized Company underlying the share acquisition rights determined in accordance with iii) above.
v) Period during which share acquisition rights may be exercised
Period during which share acquisition rights may be exercised shall begin on the date of commencement of the Exercise Period or the effective date of theReorganization, whichever is later, and end on the expiration date of the Exercise Period.
vi) Matters concerning share capital and legal capital surplus increases in event of issuance of shares upon exercise of share acquisition rights(1) The amount of share capital increase in the event of an issuance of shares upon exercise of the share acquisition rights shall be half the maximum
amount of increase in share capital, etc., calculated in accordance with the provision in Paragraph 1, Article 17 of the Regulation on Accounting ofCompanies. Any fraction of less than ¥1 resulting from the calculation shall be rounded up to the nearest yen.
(2) The amount of legal capital surplus increase in the event of an issuance of shares upon exercise of the share acquisition rights shall be the amountobtained by subtracting the share capital increase stipulated in (1) above from the maximum amount of increase in share capital, etc., described in (1)above.
vii) Restriction on acquisition of the share acquisition rights by transfer
Any acquisition of the share acquisition rights by transfer is subject to the approval of the Reorganized Company.
viii) Terms and conditions for exercise of share acquisition rights
To be determined in accordance with the aforementioned Note 3.
ix) Matters concerning acquisition of share acquisition rights
In cases where the Board of Directors of the Company resolves to call a General Meeting of Shareholders to approve any of the following agenda items(or if a resolution by the General Meeting of Shareholders is not necessary, in cases where a resolution of the Board of Directors of the Company is madeconcerning any of the following agenda items), or in cases where there is a call from shareholders to hold such General Meeting of Shareholders, andwhen the acquisition date has been determined by the Board of Directors, the Company may acquire all or part of share acquisition rights without
contribution upon arrival of the date.
(1) Agenda item for approval of a merger agreement under which the Company shall become a disappearing company(2) Agenda item for approval of absorption-type company split agreement or incorporation-type company split plan under which the Company shallbecome a split company(3) Agenda item for approval of a share exchange agreement or share transfer plan under which the Company shall become a wholly-owned subsidiary(4) Agenda item for an amendment to the Articles of Incorporation in order to establish the provision that an acquisition by way of transfer of all shares tobe issued by the Company shall require the approval of the Company(5) Agenda item for an amendment to the Articles of Incorporation in order to establish the provision that an acquisition by way of transfer of shares to bedelivered upon exercise of the share acquisition rights shall require the approval of the Company or that the Company may acquire all of such class ofshares by resolution at a General Meeting of Shareholdersx) Treatment of any fractional shares arising upon exercise of share acquisition rights
Any fraction of less than one share included in the number of shares to be delivered to a share acquisition rights holder shall be discarded.
5. If the Company conducts a share split or share consolidation of its common stock, the Exercise Price shall be adjusted using the following formula, andfractional yen amounts due to the adjustment shall be rounded up.
Exercise Price after adjustment = Exercise Price after adjustment ×

1
Ratio of share split or consolidation

In addition, in cases where the Company issues a call for subscribers for the shares of common stock that the Company thereby issued or the shares ofcommon stock of the Company held by the Company thereby disposed of, and the amount to be paid in is particularly advantageous to the subscribers, theExercise Price shall be adjusted in accordance with the following formula, and resulting fractions of less than ¥1 shall be rounded up.
Number of+
Exercise Price after
Exercise Price before=
× outstanding sharesadjustment
adjustment

Number of newly
issued shares×

Paid-in amount
per share

Fair value per share

Number of outstanding shares + Number of newly issued shares“Number of outstanding shares” in the aforementioned formula is the total number of issued shares of the Company’s common stock minus the number oftreasury shares of the Company’s common stock. For the disposal of treasury shares of the Company’s common stock, “Number of newly issued shares” isreplaced by “Number of treasury shares to be disposed” and “Paid-in amount per share” by “Disposal price per share.”
Other than the above, in cases where the Company carries out an allotment without contribution of shares or share acquisition rights, or in other cases where
it is necessary for the Company to adjust the Exercise Price, the Company shall adjust the Exercise Price as deemed necessary.
6. i) A person who has received the allotment of the share acquisition rights (the “Eligible Person”) must be in a position of Director, Audit & Supervisory Board
Member, Executive Officer, Counselor, Advisor, Special Officer, Special Advisor, or in an equivalent position thereto, or employee of the Company or anyof its subsidiaries (collectively, the “Required Position”) until the time of exercise of the share acquisition rights on a continuing basis.
ii) With regard to the Eligible Person, there must not be a situation where retirement under instruction or punitive dismissal has been decided pursuant to therules of employment of the Company or its subsidiaries, or a similar situation, as of the time of exercise of the share acquisition rights.
iii) Notwithstanding i) above, share acquisition rights may be exercised even when the Eligible Person has lost the Required Position, if the reason for theloss of the Required Position is mandatory retirement at the age limit, retirement because of reaching contractual age-limit, retirement assigned bycompany, retirement mainly because of physical disability resulting from occupational injury or illness, dismissal because of unavoidable operational
reason (layoff) or resignation or retirement similar to these. In this case, the Eligible Person may exercise share acquisition rights only from and includingwhichever is later of the date of loss of the Required Position or the commencement date of the Exercise Period, to and including the date on which one
year has elapsed from the aforesaid date on the condition that the last day is on or before the expiration date of the Exercise Period.
iv) When the Eligible Person has passed away, his/her heir is deemed to be able to succeed and exercise the share acquisition rights if the Eligible Person
has met the conditions of i) and ii) above immediately before the death, or the Eligible Person had been able to exercise share acquisition rights inaccordance with the provision of iii) above immediately before the death; provided, however, that in the case of i) above, the Successor of Rights may
exercise share acquisition rights only from and including whichever is later of the date of death of the Eligible Person or the commencement date of the
Exercise Period, to and including the date on which one year has elapsed from the aforesaid date on the condition that the last day is on or before theexpiration date of the Exercise Period, and in the case of iii) above, the Successor of Rights may exercise share acquisition rights during the same period
as the period allowed for the Eligible Person to exercise those in accordance with iii) above.
v) When the Successor of Rights passed away, his/her heir may not exercise the share acquisition rights.
vi) The Eligible Person or Successor of Rights may not exercise the share acquisition rights in multiple installments exceeding two installments.
vii) A fraction of one share acquisition right may not be exercised.
viii) Other terms and conditions shall be as per specifications in the “Share Acquisition Rights Allotment Agreement” to be entered into between the Company
and the Eligible Person.
7. The Company, in the case of merger (limited only to cases in which the Company is dissolved by merger), absorption-type company split, incorporation-typecompany split, share exchange or share transfer (collectively, “Reorganization”), may issue the share acquisition rights of the company that survives themerger, the company incorporated as a result of the merger, the company which succeeds, in whole or in part, to any rights and obligations that a company
effecting an absorption-type company split holds in connection with its business, the company that is incorporated in the incorporation-type company split, thecompany that acquires all of the issued shares of the company effecting the share exchange, or the company incorporated as a result of the share transfer(collectively, “Reorganized Company”) to each person holding share acquisition rights that remain outstanding at the time directly before when the effects of
the Reorganization arises (collectively, “Remaining Share Acquisition Rights”), based on the conditions set forth below. In this case, the Remaining Share
Acquisition Rights shall be extinguished and the Reorganized Company shall issue new share acquisition rights. However, this shall be limited to the casewhere the issuance of share acquisition rights of the Reorganized Company is stipulated in an absorption-type merger agreement, an incorporation-typemerger agreement, an absorption-type company split agreement, an incorporation-type company split plan, a stock exchange agreement or a share transfer
plan in accordance with following conditions.
i) Number of share acquisition rights of the Reorganized Company to be delivered
A number equal to the number of the Remaining Share Acquisition Rights shall be delivered to each such Eligible Person.
ii) Class of shares of the Reorganized Company to be delivered upon exercise of share acquisition rights
Ordinary shares of the Reorganized Companyiii) Number of shares of the Reorganized Company to be delivered upon exercise of share acquisition rights
To be determined in accordance with the “Number of shares underlying share acquisition rights” in the above table, taking into consideration theconditions, etc. of the Reorganization.
iv) Value of property to be contributed upon exercise of share acquisition rights and calculation methods thereof

Nomura Real Estate Holdings, Inc. 53 Financial Report 2024

The subject of contribution upon exercise of share acquisition rights shall be cash, and the amount shall be obtained by multiplying the price determined inaccordance with the Exercise Price of “Paid-in amount on exercise of share acquisition rights” stated in the table by taking into consideration theconditions and other factors of the Reorganization, by the number of shares of the Reorganized Company underlying share acquisition rights in iii) above.
v) Period during which share acquisition rights may be exercised
Period during which share acquisition rights may be exercised shall begin on the date of commencement of the Exercise Period or the effective date of theReorganization, whichever is later, and end on the expiration date of the Exercise Period.
vi) Matters concerning share capital and legal capital surplus increases in event of issuance of shares upon exercise of share acquisition rights(1) The amount of share capital increase in the event of an issuance of shares upon exercise of the share acquisition rights shall be half the maximum
amount of increase in share capital, etc., calculated in accordance with the provision in Paragraph 1, Article 17 of the Regulation on Accounting ofCompanies. Any fraction of less than ¥1 resulting from the calculation shall be rounded up to the nearest yen.
(2) The amount of legal capital surplus increase in the event of an issuance of shares upon exercise of the share acquisition rights shall be the amountobtained by subtracting the share capital increase stipulated in (1) above from the maximum amount of increase in share capital, etc., described in (1)above.
vii) Restriction on acquisition of the share acquisition rights by transfer
Any acquisition of the share acquisition rights by transfer is subject to the approval of the Reorganized Company.
viii) Terms and conditions for exercise of share acquisition rights
To be determined in accordance with the aforementioned Note 6.
ix) Matters concerning acquisition of share acquisition rights
In cases where the Board of Directors of the Company resolves to call a General Meeting of Shareholders to approve any of the following agenda items(or if a resolution by the General Meeting of Shareholders is not necessary, in cases where a resolution of the Board of Directors of the Company is madeconcerning any of the following agenda items), or in cases where there is a call from shareholders to hold such General Meeting of Shareholders, andwhen the acquisition date has been determined by the Board of Directors, the Company may acquire all or part of share acquisition rights without
contribution upon arrival of the date.
(1) Agenda item for approval of a merger agreement under which the Company shall become a disappearing company(2) Agenda item for approval of absorption-type company split agreement or incorporation-type company split plan under which the Company shallbecome a split company(3) Agenda item for approval of a share exchange agreement or share transfer plan under which the Company shall become a wholly-owned subsidiary(4) Agenda item for an amendment to the Articles of Incorporation in order to establish the provision that an acquisition by way of transfer of all shares tobe issued by the Company shall require the approval of the Company(5) Agenda item for an amendment to the Articles of Incorporation in order to establish the provision that an acquisition by way of transfer of shares to bedelivered upon exercise of the share acquisition rights shall require the approval of the Company or that the Company may acquire all of such class ofshares by resolution at a General Meeting of Shareholdersx) Treatment of any fractional shares arising upon exercise of share acquisition rights
Any fraction of less than one share included in the number of shares to be delivered to a share acquisition rights holder shall be discarded.

(2)

Outline of and changes in stock options
The number of stock options outstanding during the fiscal year ended March 31, 2024 is converted and presented as thenumber of shares.
1) Number of stock options
Nomura Real Estate Holdings, Inc.
FY2016/3

1st issue of stock options

Non-vested: (shares)
Previous fiscal year end
GrantedForfeited
Vested:End of the year
Vested: (shares)
Previous fiscal year end
Vested:Exercised
Forfeited
End of the year

2nd issue of stock options

3rd issue of stock options

5th issue of stock options

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

4,900
—
4,900
—
—

25,800—25,800——137,400—
87,10050,300—12,200—
11,2001,000—

Nomura Real Estate Holdings, Inc.
FY2017/3

Non-vested: (shares)
Previous fiscal year end
GrantedForfeited
Vested:End of the year
Vested: (shares)
Previous fiscal year end
Vested:Exercised
Forfeited
End of the year

1st issue of stock options

2nd issue of stock options

3rd issue of stock options

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

25,200—17,600—7,600

64,500—21,600—42,900137,000—
64,500—72,500Nomura Real Estate Holdings, Inc. 54 Financial Report 2024

Nomura Real Estate Holdings, Inc.
FY2018/3

1st issue of stock options

Non-vested: (shares)
Previous fiscal year end
GrantedForfeited
Vested:End of the year
Vested: (shares)
Previous fiscal year end
Vested:Exercised
Forfeited
End of the year

2nd issue of stock options

3rd issue of stock options

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

28,800—5,100—
23,70065,600—10,900—54,700225,400—
76,500—148,900

1st issue of stock options

2nd issue of stock options

Nomura Real Estate Holdings, Inc.
FY2019/3

Non-vested: (shares)
Previous fiscal year end
GrantedForfeited
Vested:End of the year
Vested: (shares)
Previous fiscal year end
Vested:Exercised
Forfeited
End of the year

—
—
—
—
—

—
—
—
—
—

7,400
—
—
—
7,400

18,900—4,600—
14,3002) Unit price data
Nomura Real Estate Holdings, Inc.
FY2016/3

1st issue of stock options

Exercise price (¥)
Average price upon exercise (¥)
Fair value on grant date (¥)

1
3,454
2,260

2nd issue of stock options

3rd issue of stock options

1
3,469
2,260

5th issue of stock options

2,741
3,418
516

2,355
3,705
536

Nomura Real Estate Holdings, Inc.
FY2017/3

Exercise price (¥)
Average price upon exercise (¥)
Fair value on grant date (¥)

1st issue of stock options

2nd issue of stock options

3rd issue of stock options

1
3,473
1,593

1
3,807
1,593

1,927
3,683
377

1st issue of stock options

2nd issue of stock options

3rd issue of stock options

1
3,709
1,839

1
3,544
1,839

2,400
3,685
399

1st issue of stock options

2nd issue of stock options

1
—
2,029

1
3,574
2,029

Nomura Real Estate Holdings, Inc.
FY2018/3

Exercise price (¥)
Average price upon exercise (¥)
Fair value on grant date (¥)

Nomura Real Estate Holdings, Inc.
FY2019/3

Exercise price (¥)
Average price upon exercise (¥)
Fair value on grant date (¥)

3. Estimation of the number of vested options
The estimation of the number of vested options is made based on the actual number of forfeited options due to difficulty inreasonably estimating future forfeitures.

Nomura Real Estate Holdings, Inc. 55 Financial Report 2024

17. Income Taxes
1.

Breakdown of major causes of deferred tax assets and liabilities(Millions of yen)
FY2023/3
FY2024/3(as of March 31, 2023)(as of March 31, 2024)

Deferred tax assets:
Unrealized profits
Deferred losses on hedges
Excess of depreciation
Impairment losses
Retirement benefit liability
Provision for bonuses
Inventory write-downs
Revaluation of assets on consolidation
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Revaluation of assets on consolidation
Reserve for deferred income taxes
Other
Total deferred tax liabilities
Net deferred tax liabilities

2.

¥12,567
5,599
5,541
5,550
4,628
3,182
498
298
15,81453,682(5,885)47,797¥12,458
10,153
6,318
4,021
3,919
3,606
694
300
16,22457,695(5,280)52,415(41,511)(17,639)(15,719)(74,870)¥(27,072)(38,399)(19,383)(17,504)(75,288)¥(22,873)

Breakdown of major causes of the difference between the effective statutory tax rate and the effective income tax
rate after the application of tax effect accounting
FY2023/3(as of March 31, 2023)

Statutory tax rate
(Adjustment)
Entertainment and other expenses that are permanently non-deductible
Tax effect related to investments in subsidiaries
Share of profit (loss) of entities accounted for using equity method
Tax credit
Others
Effective income tax rate after application of tax effect accounting

18. Schedule of Asset Retirement Obligations
The note has been omitted due to the lack of materiality.

Nomura Real Estate Holdings, Inc. 56 Financial Report 2024

30.6%(0.2)%
0.5%(1.7)%(1.0)%(1.7)%
26.5%

FY2024/3(as of March 31, 2024)

The note has been omitted
because the difference
between the statutory tax
rate and the effective tax
rate is less than 5% of thestatutory tax rate.

19. Real Estate for Rent
Some of the Company’s consolidated subsidiaries own rental office buildings and rental retail facilities (including land) in Tokyoand other regions. Some rental office buildings are regarded as properties including the portion used as rental properties since
they are used by the Company and certain consolidated subsidiaries.
The book values in the Consolidated Balance Sheet, changes during the fiscal year and fair values of these rental properties
and properties including the portion used as rental properties are as follows.
(Millions of yen)

Real estate for rentBook value in the Consolidated Balance Sheet
Balance at the beginning of the fiscal year
Changes during the fiscal year
Balance at the end of the fiscal year
Fair value at the end of the fiscal year
Properties including the portion used as real estate for rentBook value in the Consolidated Balance Sheet
Balance at the beginning of the fiscal year
Changes during the fiscal year
Balance at the end of the fiscal year
Fair value at the end of the fiscal year

2023

2024

¥639,024(20,901)
618,122¥836,951¥618,122
26,240644,362¥878,097¥25,758(418)
25,340¥59,040¥25,340(387)
24,953¥58,010Notes: 1. Book values in the Consolidated Balance Sheet are the amounts determined by deducting accumulated depreciation from the acquisition cost.
2. Fair values as of March 31, 2023 and 2024 are determined based primarily on values according to Real Estate Appraisal Standards (including adjustments
based on certain indexes). However, if no significant fluctuations in certain appraisal values or indexes considered to appropriately reflect market values haveoccurred since the time of acquisition from third party or the time of the most recent appraisal, the Group bases the fair value on an amount that has beenadjusted using the aforesaid values or indexes.

Income and loss on rental properties and other properties used as rental properties are as follows.
(Millions of yen)

Rental properties
Operating profit
Others (gains (losses) on sale of property, etc.)
Other properties used as rental properties
Operating profit
Others (gains (losses) on sale of property, etc.)

2023

2024

¥18,335(1,065)¥20,031
4,715

865
¥—

753
¥—

Notes: 1. As real estate of which some portions are used as rental property includes portions used by the Company and certain consolidated subsidiaries for providing
services as well as management and administration, operating profit for this type of real estate is not recorded.
2. Others include gain on sale of non-current assets (¥5,983 million) and loss on building reconstruction (¥1,041 million) in the fiscal year ended March 31, 2024.

20. Revenue Recognition
1.

Information on disaggregation of revenue from contracts with customers

2023(Millions of yen)

Reportable segments

Residential Development
Housing sales
Property development(sales)Other
Commercial Real Estate
Property development(sales)
Other
Overseas business
Investment Management
Property Brokerage & CRE
Property & Facility
Management
Subtotal
Other (Note 2)
Total
Adjustments
Amount recorded in Consolidated
Financial Statements
Notes:

1.
2.

Operating revenue from external customers
Revenue from
Revenue from othercontracts with
Subtotalsources (Note 1)
customers¥296,091¥5,405¥301,496
273,662—
273,662Internal sales andtransfer amountamong segments
¥983
—

Total
¥302,480
273,662

4,800

1,500

6,300

—

6,300

17,629100,334

3,905
96,50921,534
196,844983
2,465

22,518199,30970,762

26,70897,471—

97,471

29,572
235
12,18545,41969,800
6,534
1,258
—

99,373
6,769
13,44445,419

2,465
0
187
2,280

101,838
6,770
13,63247,70090,43844

90,482

14,991

105,474

544,7058
544,713—

109,752
269
110,022—654,457277
654,735—

20,908
4
20,913(20,913)675,366282
675,649(20,913)¥544,713¥110,022¥654,735¥—¥654,735“Revenue from other sources” includes revenue from sales of property development based on Practical Guidelines on Accounting by Transferors for Derecognition ofReal Estate Securitized by means of Special-Purpose Companies (JICPA Accounting Practice Committee Statement No. 15, November 4, 2014) and lease revenue
based on Accounting Standard for Lease Transactions (ASBJ Statement No. 13, March 30, 2007).
The “Other” category represents operating segments that are not included in reportable segments.

Nomura Real Estate Holdings, Inc. 57 Financial Report 2024

2024(Millions of yen)

Reportable segments

Residential Development
Housing sales
Property development(sales)Other
Commercial Real Estate
Property development(sales)
Other
Overseas business
Investment Management
Property Brokerage & CRE
Property & Facility
Management
Subtotal
Other (Note 2)
Total
Adjustments
Amount recorded in Consolidated
Financial Statements
Notes:

1.

Operating revenue from external customers
Revenue from
Revenue from othercontracts with
Subtotalsources (Note 1)
customers¥335,207¥15,415¥350,622
282,988—282,988

Internal sales andtransfer amountamong segments

Total¥1,189—¥351,812
282,988

26,7806,138

32,918—32,91825,439107,832

9,277
113,403

34,716221,236

1,189
2,515

35,906
223,752

69,72245,795

115,517—

115,517

38,109720
12,631
48,252

67,608
3,896
1,525
—

105,718
4,616
14,15748,252

2,515
—
199
1,336

108,234
4,616
14,35649,58895,512

42

95,554

12,636108,190

600,1578
600,165—

134,282266
134,549—

734,439275
734,715—

17,877
5
17,882(17,882)

752,317280
752,598(17,882)¥600,165¥134,549¥734,715¥—¥734,715“Revenue from other sources” includes revenue from sales of property development based on Practical Guidelines on Accounting by Transferors for Derecognition ofReal Estate Securitized by means of Special-Purpose Companies (JICPA Accounting Practice Committee Statement No. 15, November 4, 2014) and lease revenue
based on Accounting Standard for Lease Transactions (ASBJ Statement No. 13, March 30, 2007).
The “Other” category represents operating segments that are not included in reportable segments.

2.

2.

Information that provides the basis for understanding revenue from contracts with customers

Information that provides the basis for understanding revenue is stated in “1. Basis of Presentation of Consolidated Financial Statements,
4. Matters related to accounting policies, (5) Recognition of significant revenues and related costs.”

3.

Information on the relationship between the satisfaction of performance obligations under contracts withcustomers and cash flows from those contracts, and the amount and timing of revenue expected to be recognized
for the next and subsequent fiscal years from contracts with customers existing as of the end of the fiscal year
(1) Balances, etc. of contract assets and contract liabilities(Millions of yen)
2023

2024

Receivables arising from contracts with customers (Beginning balance)¥15,418¥31,936

Receivables arising from contracts with customers (Ending balance)

31,936

19,747

Contract assets (Beginning balance)

2,157

2,929

Contract assets (Ending balance)

2,929

2,374

Contract liabilities (Beginning balance)

34,483

41,334Contract liabilities (Ending balance)¥41,334¥42,347
Note: Contract liabilities are mainly advances received as deposits for contracts related to the housing sales business, and the performanceobligation is satisfied and revenue is recognized at the time of transfer of the residence to the customer. The contract liability balance
related to the housing sales business was ¥28,179 million as of the beginning of the fiscal year ended March 31, 2023, and of thisamount, ¥23,306 million was recognized as revenue during the fiscal year ended March 31, 2023. Regarding the contract liability
balance as of the beginning of the fiscal year ended March 31, 2023 for contracts other than those for housing sales, the amount thatwas not recognized as revenue during the fiscal year ended March 31, 2023 was immaterial.
The contract liability balance related to the housing sales business was ¥34,797 million as of the beginning of the fiscal year ended
March 31, 2024, and of this amount, ¥24,646 million was recognized as revenue during the fiscal year ended March 31, 2024.
Regarding the contract liability balance as of the beginning of the fiscal year ended March 31, 2024 for contracts other than those forhousing sales, the amount that was not recognized as revenue during the fiscal year ended March 31, 2024 was immaterial.

(2)

Transaction price allocated to the remaining performance obligations

The total amount at the end of the fiscal year ended March 31, 2023 of the transaction price allocated to performance obligations thatwere not satisfied as of March 31, 2023 was ¥194,582 million, mainly in the housing sales business of the Residential Development
business segment and in the sales of property development of the Residential Development business segment and Commercial Real
Estate business segment, and the Company plans to recognize the revenue within approximately three years. In addition, in theconsideration from contracts with customers, there are no significant amounts that were not included in the transaction price.
The total amount at the end of the fiscal year ended March 31, 2024 of the transaction price allocated to performance obligations
that were not satisfied as of March 31, 2024 was ¥205,658 million, mainly in the housing sales business of the Residential Development
business segment and in the sales of property development of the Residential Development business segment and Commercial Real
Estate business segment, and the Company plans to recognize the revenue within approximately three years. In addition, in theconsideration from contracts with customers, there are no significant amounts that were not included in the transaction price.
For these notes, the Company has applied paragraph 80-22 of the Accounting Standard for Revenue Recognition.

Nomura Real Estate Holdings, Inc. 58 Financial Report 2024

21. Segment Information, etc.
Segment information
1. Segment summary
The reportable segments of the Group comprise those business units for which separate financial information is available, andwhich are subject to a regular review conducted by the Company’s Board of Directors in order to determine the allocation ofmanagement resources and evaluate their performance.
With the Company as a pure holding company, the Group consists of business companies and divisions, such as Nomura
Real Estate Development Co., Ltd. The business companies (or business divisions within Nomura Real Estate Development)
formulate comprehensive strategies on respective products and services handled by them and conduct business activities basedon such strategies.
Therefore, business segments of the Group are distinguished by products and services, primarily by business companies (orby business divisions within Nomura Real Estate Development).
2. Methods for calculating net sales, income (loss), assets, liabilities and other items by reportable segment
The accounting method for reportable segments is almost equivalent to that specified in “Significant Accounting Policies.”
Reportable segment income is presented based on business profit. Intersegment sales and transfer amounts are presented
based on market prices.
3. Information regarding sales, gains or losses, assets, liabilities and other items by reportable segment
Results by segment for the fiscal year ended March 31, 2023
(Millions of yen)
Reportable segments

Residential Commercial
Development Real Estate

Property
Property &Investment Brokerage &Facility
Overseas Management
CRE
Management

Subtotal

Other(Note 1)

Total

AmountRecorded in
Consolidated
Financial
Adjustments Statements(Note 2)
(Note 3)Operating revenue
External customers
Inter-segment
Subtotal
Operating profit or loss (Note 3)
Share of profit (loss) of entities
accounted for using equity method(Note 3)
Amortization of intangible assets
associated with corporate
acquisitions (Note 3)
Segment profit or loss
(Business profit or loss) (Note 3)
Segment assets

301,496

196,844

6,769

13,44445,41990,482

654,457277

654,735—

654,735

983

2,465

0

187

2,280

14,991

20,908

4

20,913(20,913)—

302,480

199,309

6,770

13,63247,700105,474

675,366282

675,649(20,913)654,735

33,32339,231

2,414

7,796

13,785

9,816

106,368

147

106,516(6,917)

99,598

(6)

23

4,836

(51)

37

32

4,872

—

4,872

—

4,872

15

273

37

344

—

29

700

—

700

—

700

33,33339,529

7,288

8,089

13,8229,878

111,942147

112,089(6,917)105,172

607,382

1,225,125

160,94244,06429,08851,3682,117,972

1,324

2,119,296(8,602)

2,110,693

1,131

16,313

149

354

569

749

19,269919,2781,314

20,593550

1,025

130,400

559

142

355

133,034—

133,034

817

133,852

2,103

28,806

948

25

947

251

33,082—

33,082

2,058

35,140

Other items
Depreciation
Investment in affiliates
accounted for using equity
methodIncrease in property, plant andequipment and intangible assets

Notes: 1. The “Other” category represents operating segments that are not included in reportable segments.
2. (1) The deduction of ¥6,917 million shown in the adjustments column for segment profit or loss (business profit or loss) includes elimination of intersegment
transactions of ¥3,187 million and a deduction of ¥10,105 million for corporate expenses not allocated to each reportable segment. These corporate
expenses mainly consist of general and administrative expenses not attributable to reportable segments.
(2) The deduction of ¥8,602 million shown in the adjustments column for segment assets includes a deduction of ¥59,013 million for the elimination of intersegment transactions and an addition of ¥50,410 million for corporate assets not allocated to each reportable segment.
3. Segment profit or loss (Business profit or loss) = operating profit + share of profit (loss) of entities accounted for using equity method + amortization of intangible
assets associated with corporate acquisitions.

Nomura Real Estate Holdings, Inc. 59 Financial Report 2024

Results by segment for the fiscal year ended March 31, 2024
(Millions of yen)
Reportable segments

Residential Commercial
Development Real Estate

Property
Property &Investment Brokerage &Facility
Overseas Management
CRE
Management

Subtotal

Other(Note 1)

Total

AmountRecorded in
Consolidated
Financial
Adjustments Statements(Note 2)
(Note 3)Operating revenue
External customers
Inter-segment
Subtotal
Operating profit or loss (Note 3)
Share of profit (loss) of entities
accounted for using equity method(Note 3)
Amortization of intangible assets
associated with corporate
acquisitions (Note 3)
Segment profit or loss
(Business profit or loss) (Note 3)
Segment assets

350,622

221,236

4,616

14,15748,252

95,554734,439275

734,715—734,715

1,189

2,515

—

199

1,336

12,636

17,877

5

17,882(17,882)—

351,812

223,752

4,616

14,35649,588108,190752,317280

752,598(17,882)

734,71540,80349,668(1,248)8,303

13,444

10,050121,023

161

121,184(9,070)112,114

28

34

851

81

2

37

1,035

—

1,035

—

1,035

15

273

39

186

—

—

515

—

515

—

515

40,84849,976

(357)

8,571

13,447

10,088

122,574

161

122,735(9,070)113,665

596,016

1,287,099

216,896

58,86529,091

49,9202,237,889

1,310

2,239,199

12,2562,251,456

842

16,132

142

226

635

742

18,721918,7301,714

20,445578

1,046

162,488

530

144

393

165,183—

165,183703

165,886

1,930

45,356

14,987

4

1,575

961

64,8162

64,8181,241

66,059Other items
Depreciation
Investment in affiliates
accounted for using equity
methodIncrease in property, plant andequipment and intangible assets

Notes: 1. The “Other” category represents operating segments that are not included in reportable segments.
2. (1) The deduction of ¥9,070 million shown in the adjustments column for segment profit or loss (business profit or loss) includes elimination of intersegment
transactions of ¥2,979 million and a deduction of ¥12,049 million for corporate expenses not allocated to each reportable segment. These corporate
expenses mainly consist of general and administrative expenses not attributable to reportable segments.
(2) The deduction of ¥12,256 million shown in the adjustments column for segment assets includes a deduction of ¥55,070 million for the elimination of intersegment transactions and an addition of ¥67,327 million for corporate assets not allocated to each reportable segment.
3. Segment profit or loss (Business profit or loss) = operating profit + share of profit (loss) of entities accounted for using equity method + amortization of intangible
assets associated with corporate acquisitions.

Related Information
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
1. Information by product and service
Information by product and service is omitted because this same information is disclosed in, “3. Information regarding sales, gains
or losses, assets, liabilities and other items by reportable segment.”
2. Information by region
Information by region is omitted because sales to external customers in Japan and the amount of property, plant and equipment
located in Japan exceeded 90% of sales in the Consolidated Statements of Income and the amount of property and equipment in
the Consolidated Balance Sheet.
3. Information by major customer
Information by major customer is omitted because there is no specific external customer that accounts for 10% or more ofoperating revenue in the Consolidated Statements of Income.
Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)
1. Information by product and service
Information by product and service is omitted because this same information is disclosed in, “3. Information regarding sales, gains
or losses, assets, liabilities and other items by reportable segment.”
2. Information by region
Information by region is omitted because sales to external customers in Japan and the amount of property, plant and equipment
located in Japan exceeded 90% of sales in the Consolidated Statements of Income and the amount of property and equipment in
the Consolidated Balance Sheet.
3. Information by major customer
Information by major customer is omitted because there is no specific external customer that accounts for 10% or more ofoperating revenue in the Consolidated Statements of Income.

Nomura Real Estate Holdings, Inc. 60 Financial Report 2024

Impairment loss on noncurrent assets by reportable segment
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)

2023

Impairment loss

Residential
Development

Commercial
Real Estate

Overseas

Investment
Management¥—¥7,911¥—¥—(Millions of yen)
Property
Property &Brokerage &Facility
CRE
Management

¥—

¥—

Other

¥—

Adjustment
amount¥—Total¥7,911

Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)

2024

Impairment loss

Residential
Development

Commercial
Real Estate

Overseas

¥—

¥775

¥—

(Millions of yen)
Property
Property &Investment
Brokerage &Facility
Management
CRE
Management¥5,762

¥—

¥—

Other

¥—

Adjustment
amount¥—Total¥6,537

Information on amortization of goodwill and the unamortized balance by reportable segment
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)

2023

Amortization
Balance at March 31, 2023

Residential
Development

Commercial
Real Estate

Overseas

¥15
¥59

¥273
¥1,960¥37¥452(Millions of yen)
Property
Property &Investment
Brokerage &Facility
Management
CRE
Management¥75¥1,189

¥—
¥—

¥29
¥—

Other

¥—
¥—

Adjustment
amount

¥—
¥—

Total

¥431
¥3,663Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)

2024

Amortization
Balance at March 31, 2024

Residential
Development

Commercial
Real Estate

Overseas

Investment
Management

¥15
¥43

¥273
¥1,687

¥39
¥442

¥40
¥—

(Millions of yen)
Property
Property &Brokerage &Facility
CRE
Management¥—¥—

Information concerning gain on negative goodwill by reportable segment
Not applicable.

Nomura Real Estate Holdings, Inc. 61 Financial Report 2024

¥—
¥—

Other

¥—
¥—

Adjustment
amount

¥—
¥—

Total

¥370
¥2,173

22. Information on Related Parties
1. Transactions between the Company and related parties(1) Officers and major shareholders of companies submitting consolidated financial statements (limited to individuals), etc.
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)

Type

Stated capitalor capital
Voting rights
contribution Description of businessholding Relationship with
(Millions of yen)or profession
or held (%) the Company

Name

Location

Officer

Eiji Kutsukake——

Officer ofmajor
subsidiarySeiichi Miyajima——

Officer ofmajor
subsidiary

Kouichiro Suzuki——

Officer

Hiroshi
Kurokawa——

Officer ofmajor
subsidiary

Eiji Enomoto——

Officer ofmajor
subsidiarySeiichiro Wada——

Officer ofmajor
subsidiary

Masatsugu
Matsuzaki——

Officer

Makoto Haga——

Officer ofmajor
subsidiary

Noriyuki Jinbo——

Officer

Toshihide
Tsukasaki——

Officer

Takashi Kaku——

Officer ofmajor
subsidiary

Kyosuke Segawa——

Officer ofmajor
subsidiary

Shingo Iwakiri——

Officer ofmajor
subsidiary

Tetsuji
Kobayashi——

Officer ofmajor
subsidiary

Noriaki Ido——

Juntaro Kimura——

Minoru Hatada——

Officer

Shigeyuki
Yamamoto——

Officer

Hiroyuki Kimura——

Officer

Tokuji Nakamura——

Officer ofmajor
subsidiary
Officer ofmajor
subsidiary

President andExecutive Officer of
the Company
Senior President of
Nomura Real Estate
Development Co.,Ltd.
Managing Executive
Officer of Nomura
Real Estate
Development Co.,
Ltd.
Executive Officer of
the Company
Executive Vice
President of Nomura
Real Estate
Solutions Co., Ltd.
Audit & Supervisory
Board Member of
Nomura Real Estate
Asset Management
Co., Ltd.
Managing Executive
Officer of Nomura
Real Estate
Development Co.,
Ltd.
Executive Officer of
the Company
Managing Executive
Officer of Nomura
Real Estate
Development Co.,
Ltd.
Executive Officer of
the Company
Executive Officer of
the Company
Managing Executive
Officer of Nomura
Real Estate
Development Co.,Ltd.
Audit & Supervisory
Board Member of
Nomura Real Estate
Partners Co., Ltd.
Managing Executive
Officer of Nomura
Real Estate Partners
Co., Ltd.
Executive Officer of
Nomura Real Estate
Development Co.,
Ltd.
Advisor of Nomura
Real Estate
Solutions Co., Ltd.
Chair and Director of
Nomura Real Estate
Solutions Co., Ltd.
Executive Officer of
the Company
Director of theCompany
Executive Officer of
the Company

Transaction
details

Amount oftransaction(Millions of yen)

Items

Fiscal year-end
balance(Millions of yen)

Held
0.0%

Exercise of
Exercise ofstock options stock options

¥22

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

21

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

21

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

17

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

16

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

14

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

14

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

13

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

12

—

—

Held
0.0%
Held
0.0%

Exercise ofstock options
Exercise ofstock options

12

—

—

11

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

11

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

11

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

11

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

11

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

10

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

10

—

—

Held
0.0%
Held
0.0%
Held
0.0%

Exercise ofstock options
Exercise ofstock options
Exercise ofstock options

10

—

—

10

—

—

¥10

—

—

Exercise ofstock options
Exercise ofstock options

Exercise ofstock options
Exercise ofstock options
Exercise ofstock options

Notes: 1. Amount of transaction does not include consumption taxes.
2. Stock options were exercised by the Company pursuant to the Companies Act.

Nomura Real Estate Holdings, Inc. 62 Financial Report 2024

Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)

Type

Stated capitalor capital
Voting rights
contribution Description of businessholding Relationship with
(Millions of yen)or profession
or held (%) the Company

Name

Location

Officer ofmajor
subsidiary

Takashi Kaku——

Officer

Daisaku Matsuo——

Officer

Makoto Haga——

Officer

Eiji Kutsukake——

Chair and Director
Executive Officer of
the Company
Director of theCompany
Advisor of Nomura
Real Estate Partners
Co., Ltd.
Executive Officer of
the Company
Executive Officer of
the Company
Managing Executive
Officer of Nomura
Real Estate
Development Co.,Ltd.
Full-Time Advisor of
Nomura Real Estate
Development Co.,
Ltd.
Executive Officer of
Nomura Real Estate
Development Co.,Ltd.
Managing Executive
Officer of Nomura
Real Estate
Development Co.,
Ltd.
Executive Officer of
the Company
Executive Fellow of
Nomura Real Estate
Development Co.,Ltd.

Officer

Kazuhiro Toida——

Officer

Hiroyuki Kimura——

Officer ofmajor
subsidiary

Akihiro Fukuda
Shigeyuki
Yamamoto
Haruhiko
Nakamura

—

—

—

—

Officer ofmajor
subsidiary

Kouichiro Suzuki——

Officer ofmajor
subsidiarySeiichi Miyajima——

Officer ofmajor
subsidiary

Eidai Yokoyama——

Officer ofmajor
subsidiary

Masao Hirose——

Officer

Naoko Usami——

Hiroshi
Morishima——

Officer
Officer

Officer ofmajor
subsidiary

Advisor of Nomura
Real Estate
Development Co.,
Ltd.
Executive Vice
President,
Representative
Director of theCompany
Executive Vice
President,
Representative
Director of theCompany

Transaction
details

Amount oftransaction(Millions of yen)

Items

Fiscal year-end
balance(Millions of yen)

Held
0.0%

Exercise of
Exercise ofstock options stock options

¥54

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

34

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

33

—

—

Held
0.0%
Held
0.0%
Held
0.0%

Exercise ofstock options
Exercise ofstock options
Exercise ofstock options

31

—

—

23

—

—

20

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

18

—

—

Held
0.0%
Held
0.0%

Exercise ofstock options
Exercise ofstock options

18

—

—

18

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

17

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

17

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

15

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

12

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

10

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

¥10

—

—

Amount oftransaction(Millions of yen)

Items

Fiscal year-end
balance(Millions of yen)

¥10

—

—

Exercise ofstock options
Exercise ofstock options
Exercise ofstock options

Exercise ofstock options
Exercise ofstock options

Notes: 1. Amount of transaction does not include consumption taxes.
2. Stock options were exercised by the Company pursuant to the Companies Act.

(2) Transactions between consolidated subsidiaries of the Company and related parties
Officers, major individual shareholders and others of the Company
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)

Type

Name

Stated capitalor capital
Description of Voting rights
contribution
business or
holding
Relationship with
Location (Millions of yen) profession
or held (%)
the Company

Officer

Yoshio Mogi——

Officer of major
subsidiarySeiichi Miyajima——

Officer of major
subsidiary

Noriaki Ido——

Director of theCompany
Director of
Nomura Real
EstateDevelopment
Co., Ltd.
Executive
Officer of
Nomura Real
EstateDevelopment
Co., Ltd.

Transaction
details

Held
0.0%

Remodelingworks

Remodeling
works

Held
0.0%

Condominium Condominium
sales
sales

70

—

—

Held
0.0%

Remodeling
works

¥14

—

—

Remodelingworks

Notes: 1. Amount of transaction does not include consumption taxes.
2. Terms of transactions are determined in the same way as for generally accepted practices and with reference to market prices.

Nomura Real Estate Holdings, Inc. 63 Financial Report 2024

Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)

Type

Name

Close relatives of
Officer and his/her
Tetsumiclose relatives
YoshimuraStated capitalor capital
Description of Voting rights
contribution
business or
holding
Relationship with
Location (Millions of yen) profession
or held (%)
the Company

—

—

—

—

Transaction
details

Condominium Condominium
sales
sales

Amount oftransaction(Millions of yen)

Items

Fiscal year-end
balance(Millions of yen)

¥64

—

—

Notes: 1. Amount of transaction does not include consumption taxes.
2. Terms of transactions are determined in the same way as for generally accepted practices and with reference to market prices.

Nomura Real Estate Holdings, Inc. 64 Financial Report 2024

23. Per Share Information(Yen)

Net assets per share
Basic earnings per share
Diluted earnings per share

2023

2024

¥3,756.30
365.26¥364.35¥4,002.79
392.29¥391.57

The basis for the calculation of basic earnings per share and diluted earnings per share is as follows.
Basic earnings per share
Profit attributable to owners of parent(Millions of yen)
Profit not attributed to common shareholders(Millions of yen)
Profit attributable to owners of parent available to common stock(Millions of yen)
Average number of shares of common stock outstanding during the period(Thousand shares)
Diluted earnings per share
Adjustment for profit attributable to owners of parent(Millions of yen)
Increase in number of shares of common stock(Thousand shares)
Of which, share acquisition rights(Thousand shares)
Description of potentially dilutive common shares not included in the computationof diluted earnings per share because of their anti-dilutive effect

2023

2024

¥64,520¥68,164——

64,52068,164

176,640

173,759

—

—

443

321

(443)
—

(321)
—

Note: For the purposes of calculating net assets per share, the Company’s shares owned by the executive compensation BIP (Board Incentive Plan) trust and ESOP
(Employee Stock Ownership Plan) are included in the treasury shares deducted from the total number of shares issued at end of period. In calculating the basic
earnings per share and diluted earnings per share, the said shares are included in the treasury shares deducted in the calculation of the average number of shares
outstanding during the period. For the fiscal year ended March 31, 2023, the number of the treasury shares at the end of period deducted in calculating net assets
per share was 3,553 thousand shares and 3,053 thousand shares for the fiscal year ended March 31, 2024, and the average number of treasury shares during theperiod deducted in calculating the basic earnings per share and diluted earnings per share was 3,018 thousand shares for the fiscal year ended March 31, 2023
and 3,191 thousand shares for the fiscal year ended March 31, 2024.

24. Significant Subsequent Events(Business combination through acquisition)
1 Outline of business combination
At a meeting of the Board of Directors held on December 21, 2023, the Company resolved to acquire all the shares of UDS
Ltd. and make it a consolidated subsidiary. On the same day, the Company concluded a share transfer agreement. The Company
acquired all the shares of UDS Ltd. on April 1, 2024.
(1) Name of the acquired company and description of businessCompany name:
UDS Ltd. and three other companies
Description of business:
Planning, design and construction business
Operation of hotels
Operation of other facilities (shared houses, coworking offices, restaurants, cafeterias, etc.)(2) Main reason for the business combination
In the Group’s hotel operations, which show promise as a future growth pillar of the Group, customer needs are on the risedue to the increasing inbound needs and other factors. In response to such demand, the Group intends to establish a solid
business foundation at the earliest opportunity and accelerate growth. Additionally, the Group aims to enhance and evolve theproduct appeal and further expand business opportunities in the development of various asset types.
(3) Date of the business combination
April 1, 2024
(4) Legal form of the business combination
Acquisition of equity in consideration for cash(5) Name of the acquired company after the business combination
Unchanged.
(6) Ratio of voting rights acquired
100%(7) Main grounds for determining the acquiring company
The Company acquired equity interest in exchange for cash payment.

Nomura Real Estate Holdings, Inc. 65 Financial Report 2024

2. Breakdown of acquisition cost of the acquired company, and consideration by type
Consideration forCash
22,759 million yen
the acquisition
Acquisition cost
22,759 million yen
3

Details and amount of major acquisition-related expenses
Not finalized at this time.

4. Amount of goodwill that occurred, cause for the occurrence, amortization method, and amortization period
Not finalized at this time.
5

Amount of assets acquired and liabilities assumed on the date of the business combination, and major breakdown
thereofNot finalized at this time.

Nomura Real Estate Holdings, Inc. 66 Financial Report 2024

25. Consolidated Supplemental Schedules
Schedule of Bonds Payable

Name

Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.

Nomura Real Estate
Holdings, Inc.

Description

Balance at theBalance at the
beginning of
end of current
current fiscal year
fiscal year
(Millions of yen) (Millions of yen) Interest rate (%) Collateral

Date of issuance

4th unsecured bonds

October 28,
2014

5th unsecured bonds

Maturity¥10,000¥10,000(10,000)

0.8

None

June 1, 2015

10,00010,0000.9

None

7th unsecured bonds

January 28,
2016

10,00010,0000.8

None

9th unsecured bonds

June 2, 2016

10,00010,000

1.0

None

11th unsecured bonds

September 12,
2017

10,00010,000

1.0

None

12th unsecured bonds

June 2, 2020

20,000

—

0.1

None

13th unsecured bonds

June 2, 2020

10,00010,0000.2

None

14th unsecured bonds

June 2, 2020

10,00010,0000.5

None

15th unsecured bonds(Sustainability bonds)

February 26,
2021
October 19,
2023
October 19,
2023

10,00010,000

0.4

None

—

6,000

1.3

None

—

14,0000.7

None30,00030,0001.3

None

March 13,2058

20,00020,0001.5

None

March 12,2060

¥150,000¥150,000(10,000)———

16th unsecured bonds
17th unsecured bonds

Unsecured bonds with 1st deferredinterest payment clause/early
March 13,redemption clause
2018(with subordination agreement)
Unsecured bonds with 2nd deferredinterest payment clause/early
March 13,redemption clause
2018(with subordination agreement)
—

Total

—

October
28, 2024
May 30,2025
January
28, 2026
June 2,2036
September11, 2037
June 9,2023
June 9,2025
June 7,2030
February
26, 2031
October
18, 2033
October
18, 2028

Notes: 1. The figures in parentheses are the scheduled redemption amounts within one year.
2. The scheduled redemption amounts for the five years subsequent to the end of the fiscal year ended March 31, 2024 are as follows.

Bonds

Due within one year

Due after one year but
within two years¥10,000¥30,000

Due after two years but
within three years(Millions of yen)—

Due after three years but
within four years—

Due after four years but
within five years¥14,000

Schedule of Borrowings
Category

Short-term borrowings
Current portion of long-term borrowings
Current portion of lease liabilities
Long-term borrowings (excluding current portion)
Non-recourse long-term borrowings (excluding
current portion)
Lease liabilities (excluding current portion)
Total

Balance at the beginningof current fiscal year
(Millions of yen)

Balance at the end ofcurrent fiscal year
(Millions of yen)

Average interest rate (%)

Maturity¥38,750
79,113321
850,684¥30,483
67,204328
941,840

0.4
0.7
—
0.8

—
—
—
2025 to 2042

3,000

3,200

1.3

2027

1,635
¥973,505

1,728¥1,044,785——

2025 to 2036—

Notes: 1. For the average interest rate, the weighted average interest rate for the balance of borrowings at year-end borrowings is stated.
2. The average interest rate on lease liabilities is not stated because some consolidated subsidiaries record lease liabilities on the consolidated balance sheet at an amount
before deducting the interest equivalent amount included in the total lease fees.
3. The scheduled redemption amounts of long-term borrowings payable, non-recourse long-term borrowings, and lease liabilities (excluding current portion) for the five years
subsequent to the end of the fiscal year ended March 31, 2024 are as follows.
Due after one year but
Due after two years but
Due after three years but
Due after four years but
within two years
within three years
within four years
within five years(Millions of yen)

Long-term borrowings
Non-recourse long-term borrowings
Lease liabilities¥122,529—
365¥76,719—272¥84,590
3,200
231¥72,000—
215

Schedule of Asset Retirement Obligations
The schedule of asset retirement obligations at the beginning and end of the fiscal year is omitted in accordance with paragraph92-2 of the Regulations for Consolidated Financial Statements because the amounts of asset retirement obligations were notlarger than 1% of total liabilities and net assets at the beginning and end of the fiscal year.

Nomura Real Estate Holdings, Inc. 67 Financial Report 2024

OtherQuarterly financial information for the fiscal year ended March 31, 2024
Cumulative period

1st Quarter(Three months ended
June 30, 2023)

2nd Quarter(Six months ended
September 30, 2023)

3rd Quarter(Nine months ended
December 31, 2023)

4th Quarter(Fiscal year ended
March 31, 2024)

Operating revenue (Millions of yen)
Profit before income taxes (Millions of yen)
Profit attributable to owners of parent (Millions of yen)
Basic earnings per share (Yen)¥209,366
35,25624,318139.91¥368,318
48,28632,956189.36¥518,345
62,97943,225248.41¥734,715
96,653
68,164392.29Each quarter

1st Quarter(Three months ended
June 30, 2023)

2nd Quarter(Three months ended
September 30, 2023)

3rd Quarter(Three months ended
December 31, 2023)

4th Quarter(Three months ended
March 31, 2024)

Basic earnings per share (Yen)¥139.91¥49.57

Nomura Real Estate Holdings, Inc. 68 Financial Report 2024

¥59.00¥144.09

Independent Auditor’s Report

The Board of Directors
Nomura Real Estate Holdings, Inc.

The Audit of the Consolidated Financial Statements
OpinionWe have audited the accompanying consolidated financial statements of Nomura Real Estate
Holdings, Inc. (the Company) and its consolidated subsidiaries (the Group), which comprise theconsolidated balance sheet as at March 31, 2024, and the consolidated statements of income,comprehensive income, changes in net assets, and cash flows for the year then ended, and notes
to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as at March 31, 2024, and its
consolidated financial performance and its consolidated cash flows for the year then ended inaccordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Consolidated Financial Statements section of our report. We are independent of theGroup in accordance with the ethical requirements that are relevant to our audit of the consolidated
financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordancewith these requirements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significancein our audit of the consolidated financial statements of the current period. These matters wereaddressed in the context of the audit of the consolidated financial statements as a whole, and informing the auditor’s opinion thereon, and we do not provide a separate opinion on these matters.
Valuation of commercial property held for sale
Description of Key Audit Matter

Auditor’s Response

The Company recorded real estate for saleof ¥499,137 million, real estate for sale inprocess of ¥340,601 million and land held fordevelopment of ¥171,401 million underinventory on the consolidated balance sheet ofwhich the primary components are housing

We performed the following procedures inrelation to the assessment of write-downs ofcommercial property held for sale, among
others.
In order to understand factors affecting
the valuation such as difficulties in

Ernst & Young ShinNihon LLC

held for sale, mainly the development andsales of condominiums in Japan, and domestic
commercial properties held for sale to realestate funds, such as REITs, and otherbusinesses (hereinafter, “commercial property
for sale”).
Commercial property for sale is subject torisks such as trends in the commercial property market as well as development delays,difficulties in making leasing arrangements
and changes in buyer preferences or thefinancing environment, which may result in
declines in selling prices and therefore writedowns.
As described in (2) 2) of 1. Valuation of 
inventories under (Significant Accounting
Estimates) in Notes to Consolidated Financial
Statements, the amount of write-downs of 
commercial property for sale is measured bycomparing net realizable value with the bookvalue. Net realizable value is calculated bydeducting sales costs from the selling price ofproperties, and in cases of property underdevelopment, also deducting estimatedconstruction costs to be incurred in the future.
The Company’s selling price is based on theplanned sales price included in the businessplan for each property. The Company uses a
valuation report prepared by an independent
third-party real estate appraiser (hereinafter,“external evaluation”) for each of theproperties that the Company recognizes as
subject to relatively higher risks based on its
own risk criteria in determining which
properties require an external evaluation due
to factors such as delays in leasing theproperty.
The significant assumptions in thecalculation of net realizable value are the rents,
occupancy rates, and discount rates as factors
in calculating the selling price. Theseassumptions should reflect the individual
circumstances and risks for each property. In
particular, for property under development thatis not yet available for lease and property forwhich specifications and uses are less common
and limited to certain particular users, theErnst & Young ShinNihon LLC

making leasing arrangements, we
reviewed the minutes of the board of
directors’ meetings and other meetingsand made inquiries of management andthe relevant departments and evaluatedwhether those factors were considered in
the valuation.
We evaluated the risk criteria
established by the Company to determine
which property requires an external
evaluation, and examined whether theCompany then obtained external
evaluations following the determinationin accordance with such criteria.
We evaluated the expertise, capabilities,
and objectivity of the external real estateappraisers engaged by the Company.
We reviewed all external evaluations
used by the Company. Furthermore, we
selected certain properties using our own
specific criteria and compared the rents,
occupancy rates, and discount rates,
which are significant assumptions used
for the external valuation, to past
performance and publicly available
external data such as information
disclosed by listed REITs.

subjectivity of these assumptions becomes
relatively higher.
In addition, the Company holds numerous
commercial properties for sale, and must
extensively consider various factors andspecific circumstances for each property in its
evaluation, which is complex. Moreover, thebook value of each commercial property forsale is significant, and the potential impact on
the consolidated financial statements in casesof write-downs is also significant. Therefore,
we have determined valuation of commercial
property for sale to be a key audit matter.
Impairment of commercial property mainly held for leasing business
Description of Key Audit Matter

Auditor’s Response

The Company recorded property, plant andequipment of ¥740,301 million and intangible
assets of ¥17,336 million on the consolidatedbalance sheet. The main components are realestate used for domestic office space,commercial facilities, logistics facilities, andhotels (hereinafter, “rental property”).
Rental property is exposed to risks such aschanges in market conditions for rental
properties, and furthermore, decreases inrents, average daily rates (ADR), occupancy
rates and/or market prices may bring its bookvalue to be irrecoverable. Those risks varydepending on the characteristics of each
property such as type, use, location, andbuilding specifications.
As described in (2) of 2. Impairment of
non-current assets under (Significant
Accounting Estimates) in Notes toConsolidated Financial Statements, in
impairment testing of rental property, theCompany must determine whether or not any
indications of impairment exist, and if so, theCompany
must
determinewhetherrecognizing an impairment loss is necessary.
In assessing whether there is any decline inmarket prices, which is one indicator of
impairment, the Company uses a valuation
report prepared by an independent third-party
real estate appraiser (hereinafter, “external

We performed the following procedures on
the estimation of market prices and future
cash flows in the determination of indicationsof impairment and of impairment loss
recognition of the rental property, among
others.
(1) In order to understand factors affecting
the valuation such as major tenants
vacating the properties and/or building
reconstructions as well as the occupancy
of properties, we reviewed the minutesof the board of directors’ meetings andother meetings, made inquiries ofmanagement
andtherelevant
departments, and for certain properties,
conducted onsite visits, and evaluatedwhether those factors were considered in
the impairment assessment.
evaluatedtheexpertise,(2) Wecapabilities, and objectivity of external
real estate appraisers engaged by theCompany.
(3) With regard to a decline in market
price, which is one indicator of
impairment, we examined whether there
were any properties whose market pricehad declined to a certain level and whosebook value was relatively significant
among those properties that theCompany determined not to be subject toErnst & Young ShinNihon LLC

a significant decline in market price.
evaluation”) in determining the market price.
In addition, the Company mainly uses (4) For properties of which indications of
impairment were identified, we
external evaluations to calculate theundiscounted future cash flows that areconsidered the followings for thecompared against the book value in assessing
undiscounted future cash flows.
whether recognizing any impairment loss is ・ We considered the rents, ADR,
necessary; for certain properties, internal
occupancy rates, and discount rates for
estimates are made without using the external
the estimated periods, which areevaluations.
significant assumptions, by comparing
Rents, ADR, occupancy rates, and discountthem to past performance and publicly
rates, which are significant assumptions usedavailable external data such as
in both the external evaluations and theinformation disclosed by listed REITs.
internal estimates to calculate the market price ・For
properties
undergoingand future cash flows, should reflect theredevelopment and other such large
individual circumstances and risks for eachprojects and for which estimation of theproperty. In particular, for properties withvaluation involves a relatively high levelvariable rents and property of whichofuncertainty,
complexity,
andspecifications and uses are not common andsubjectivity, we involved valuation
limited to certain particular users, thespecialists from our network firm tosubjectivity of such assumptions becomesconsider significant assumptions such asrents, occupancy rates, and discountrelatively higher.
In addition, the Company has numerous
rates.
rental properties, and is required tocomprehensively consider the uniquecharacteristics of each property in thevaluation, which is complex. Moreover, thebook value of each rental property issignificant and the potential impact on the
consolidated financial statements in cases of
impairment is also significant. Therefore, wehave determined impairment of rental
property to be a key audit matter.
Other Information
The other information comprises the information included in Financial Report that contains
audited consolidated financial statements, but does not include the consolidated financial
statements and our auditor’s report thereon. Management is responsible for preparation anddisclosure of the other information. The Audit and Supervisory Committee is responsible foroverseeing the Group’s reporting process of the other information.
Our opinion on the consolidated financial statements does not cover the other information and
we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is toread the other information and, in doing so, consider whether the other information is materiallyinconsistent with the consolidated financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated.

Ernst & Young ShinNihon LLC

If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and the Audit and Supervisory Committee for theConsolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with accounting principles generally accepted in Japan, and for suchinternal control as management determines is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing theGroup’s ability to continue as a going concern and disclosing, as required by accounting principles
generally accepted in Japan, matters related to going concern.
The Audit and Supervisory Committee is responsible for overseeing the Group’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’sreport that includes our opinion. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:・ Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks,and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
・ Consider internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances for our risk assessments, while the purpose of the audit of
the consolidated financial statements is not expressing an opinion on the effectiveness of theGroup’s internal control.
・ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
・ Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the consolidated financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.

Ernst & Young ShinNihon LLC

・ Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent theunderlying transactions and events in a manner that achieves fair presentation in accordancewith accounting principles generally accepted in Japan.
・ Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the groupaudit. We remain solely responsible for our audit opinion.
We communicate with the Audit and Supervisory Committee regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide the Audit and Supervisory Committee with a statement that we have compliedwith the ethical requirements regarding independence that are relevant to our audit of theconsolidated financial statements in Japan, and to communicate with them all relationships andother matters that may reasonably be thought to bear on our independence, and whereapplicable, actions taken to eliminate threats or safeguards applied to reduce threats to an
acceptable level.
From the matters communicated with the Audit and Supervisory Committee, we determine thosematters that were of most significance in the audit of the consolidated financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in our auditor’sreport unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected to outweighthe public interest benefits of such communication.

Fee-related Information
The fees for the audits of the financial statements of Nomura Real Estate Holdings, Inc. and its
subsidiaries and other services provided by us and other EY member firms for the year ended
March 31, 2024 are 264 million yen and 5 million yen, respectively.

Ernst & Young ShinNihon LLC

Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is
required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.
Ernst & Young ShinNihon LLC
Tokyo, Japan
June 21, 2024

Toshihiro Morishige
Toshihiro Morishige
Designated Engagement Partner
Certified Public Accountant

Kenji Sato
Kenji Sato
Designated Engagement Partner
Certified Public Accountant

Masahiro Yawata
Masahiro Yawata
Designated Engagement Partner
Certified Public Accountant

Ernst & Young ShinNihon LLC