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Financial results presentation3454First Brothers Co.,Ltd.Real Estate

Financial Results Presentation for the First Quarter of the Fiscal Year Ending November 2026

In the first quarter of the fiscal year ending November 2026, gross profit, operating income, ordinary income and net income significantly exceeded the year-earlier period due to gains on property sales. Some property sales, however, will be recognized in the second quarter, and an agreement has been signed with a new operating partner for a hotel in Kamakura City.

Worth reading
55In focus
Scored from 5 of 6 sections
Direction
Improvement
Direction inferred from the company’s description.
Scale
491
¥ million (net income attributable to owners of the parent)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending November 20267 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,789 million+61.6%
Operating profit¥506 million+63.6%
Ordinary income¥319 million+272.1%
Net income¥491 million+622.3%
Selling, general and administrative expenses¥680 million
Gross Profit Margin31.3%; year-on-year change: Not disclosed
Operating profit margin13.4%; year-on-year change: Not disclosed
Full-year earnings forecast
Net Sales
¥17,730 million
Gross profit
¥6,500 million
Operating profit
¥4,150 million
Ordinary income
¥2,920 million
Net income
¥2,620 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales21.4%
Gross profit18.2%
Investment management business11.1%
Investment Banking Business17.2%
Facility operations business38.6%
Other Businesses25.0%
Operating profit12.2%
Ordinary income10.9%
Net income18.7%
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Gross profit from property sales¥234 million
  • Gross profit from real estate leasing¥813 million
    Year on year against the same period last year-3.9%
  • Decrease in income taxes and other taxes from recognition of deferred tax assets
  • Increase in interest expense
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • 0.75 pt vs. previous fiscal year-end
    AssumptionsIncrease in interest expense during the fiscal year ending November 2026
  • AssumptionsSize of properties sold
New initiatives
  • For a hotel in Koshigoe, Kamakura City, TAKE AND GIVE. NEEDS Co.,Ltd. was selected as the operating partner, and an agreement on the outsourcing of operations was signed
  • Scheduled to operate as the first hotel under T&G's new hotel brand
Key KPIsA metric the company considers important as a management benchmark.
  • Unrealized gains on real estate¥18,072 million
    Year on year against the same period last yearDown ¥3,080 million year on year (down 14.4%); up ¥310 million from the previous fiscal year-end
  • Balance of assets under management¥14,562 million
  • Balance of leased real estate¥66,770 million
  • Number of properties92 Engagements
    Year on year against the same period last yearIncreased from 91 properties in the year-earlier period
  • NOI yield7.3 %
    Year on year against the same period last yearDown from 7.6% in the year-earlier period
  • Leverage72 %
    Year on year against the same period last yearDown from 75.8% at the end of the year-earlier period
  • Percentage of interest rates fixed12.5 %
    Year on year against the same period last yearDown from 17.4% at the end of the year-earlier period
  • PBR0.63 times
  • ROE6.9 %
Segment results
  • Investment management business
    Gross profit¥3 million
    Year on year against the same period last year-45.1%
  • Investment Banking Business
    Gross profit¥1,056 million
    Year on year against the same period last year+24.7%
  • Facility operations business
    Gross profit¥114 million
    Year on year against the same period last year+8.6%
  • Other Businesses
    Gross profit¥10 million
    Year on year against the same period last yearN/A
Market Size / Share
Approximately 16 million annual visitors to the Shonan and Kamakura areas. Market share: Not disclosed
Annual Dividend
¥71
Breakdown
Interim Dividend34
Year-end dividend37
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending November 2026
Net Sales¥3,789 million (YoY +61.6%)
Operating profit¥506 million (YoY +63.6%)
Ordinary income¥319 million (YoY +272.1%)
Net income¥491 million (YoY +622.3%)
Gross Profit Margin31.3%; year-on-year change: Not disclosed
Operating profit margin13.4%; year-on-year change: Not disclosed
Selling, general and administrative expenses¥680 million
Full-year earnings forecastNet Sales ¥17,730 million / Gross profit ¥6,500 million / Operating profit ¥4,150 million / Ordinary income ¥2,920 million / Net income ¥2,620 million
Progress against full-year forecastNet Sales 21.4% / Gross profit 18.2% / Investment management business 11.1% / Investment Banking Business 17.2% / Facility operations business 38.6% / Other Businesses 25.0% / Operating profit 12.2% / Ordinary income 10.9% / Net income 18.7%
Segment resultsSegment Investment management business / Gross profit ¥3 million / Year on year against the same period last year -45.1, Segment Investment Banking Business / Gross profit ¥1,056 million / Year on year against the same period last year 24.7, Segment Facility operations business / Gross profit ¥114 million / Year on year against the same period last year 8.6, Segment Other Businesses / Gross profit ¥10 million / Year on year against the same period last year N/A
Breakdown of Factors Affecting the ChangeFactors Gross profit from property sales / Amount ¥234 million, Factors Gross profit from real estate leasing / Amount ¥813 million / Year on year against the same period last year ¥-3.9 million, Factors Decrease in income taxes and other taxes from recognition of deferred tax assets / Amount Not disclosed, Factors Increase in interest expense / Amount Not disclosed
Key KPIsIndicator name Unrealized gains on real estate / Value ¥18,072 million / Year on year against the same period last year Down ¥3,080 million year on year (down 14.4%); up ¥310 million from the previous fiscal year-end, Indicator name Balance of assets under management / Value ¥14,562 million / Year on year against the same period last year Not disclosed, Indicator name Balance of leased real estate / Value ¥66,770 million / Year on year against the same period last year Not disclosed, Indicator name Number of properties / Value 92 Engagements / Year on year against the same period last year Increased from 91 properties in the year-earlier period, Indicator name NOI yield / Value 7.3 % / Year on year against the same period last year Down from 7.6% in the year-earlier period, Indicator name Leverage / Value 72 % / Year on year against the same period last year Down from 75.8% at the end of the year-earlier period, Indicator name Percentage of interest rates fixed / Value 12.5 % / Year on year against the same period last year Down from 17.4% at the end of the year-earlier period, Indicator name PBR / Value 0.63 times / Year on year against the same period last year Not disclosed, Indicator name ROE / Value 6.9 % / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookAssumptions Increase in interest expense during the fiscal year ending November 2026 / Value 0.75 pt (vs. previous fiscal year-end), Assumptions Size of properties sold / Value Not disclosed
Annual Dividend¥71
Market Size / ShareApproximately 16 million annual visitors to the Shonan and Kamakura areas. Market share: Not disclosed
New initiativesFor a hotel in Koshigoe, Kamakura City, TAKE AND GIVE. NEEDS Co.,Ltd. was selected as the operating partner, and an agreement on the outsourcing of operations was signed, Scheduled to operate as the first hotel under T&G's new hotel brand
Items this document does not state (13)
Results for the three months of the current quarterSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

As there were no property sales in the year-earlier period, multiple property sales were recognized from the first quarter of the current fiscal year, driving increases in gross profit and ordinary income. In addition to higher profit from property sales, net income benefited from a decrease in income taxes and other taxes after a subsidiary recognized deferred tax assets.

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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Presentation for the First Quarter of the Fiscal Year Ending November 2026 | First Brothers Co.,Ltd. (3454) timely disclosure | Komori