Decline in investment management fees due to lower AUM
First written in FY2016. 11 of 25 entries say "Materialised", first in FY2017-Q2. Latest entry: 2026-04-10.
First Brothers moved to the "Worse" side of this theme in 2024.
0 other companies' latest entry also says "Materialised".
- FY2025MaterialisedAnnual report
「During the current consolidated fiscal year, the Company received fees for asset management services. However, due mainly to the absence of service fees from SPCs formed within the Group compared with the previous year, revenue was ¥144 million, down 25.8% year on year, and operating profit was ¥96 million, down 15.7%.」
In the investment management business, revenue and operating profit fell below the previous year despite the receipt of asset management fees, due mainly to lower service fees, with the impact of lower management-related fees evident for the full fiscal year. - FY2025-H1MaterialisedAnnual report
「During the current interim consolidated accounting period, the Company received disposition fees related to the sale of entrusted properties in addition to asset management fees. However, due mainly to a decline in the balance of entrusted assets compared with the previous year, revenue was ¥75 million, down 25.4% year on year, and operating profit was ¥47 million, down 16.0%.」
Despite receiving disposition fees, revenue and operating profit in the investment management business fell below the previous year due to the decline in the balance of entrusted assets. - FY2024-Q2MaterialisedAnnual report
「During the first six months of the current consolidated fiscal year, revenue was ¥100 million, down 85.9% year on year, and operating profit was ¥56 million, down 90.9%, mainly because no additional fees were received for asset management services compared with the previous year.」
The absence of additional fees from asset management services led to a significant decline in revenue and operating profit in the investment management business, with the risk of lower management-related fees reflected in results. - FY2024-Q1MaterialisedAnnual report
「During the first quarter of the current consolidated fiscal year, revenue was ¥46 million, down 63.8% year on year, and operating profit was ¥19 million, down 65.3%, mainly because no additional fees were received for asset management services compared with the previous year.」
The absence of additional fees from asset management services led to a significant decline in revenue and operating profit in the investment management business, with the risk of lower management-related fees reflected in results. - FY2023-Q3MitigatedAnnual report
「Due mainly to higher fees from asset management services and service fees received from group SPCs, revenue was ¥875 million, up 8.6% year on year, while operating profit was ¥751 million, up 366.6%.」
Revenue and operating profit in the investment management business exceeded the previous year due to higher management-related fees, reducing the impact of earnings contraction caused by lower assets under management and fees. - FY2023-Q2MitigatedAnnual report
「In the investment management business, fees related to real estate management and operations declined following the transfer of the CRE business, but fees from asset management services and service fees received from group SPCs increased, among other factors. Revenue was ¥714 million, up 47.4% year on year, while operating profit was ¥616 million, up 994.0%.」
Although management and operating fees declined following the transfer of the CRE business, the investment management business recorded higher revenue and operating profit due to increased asset management fees and other factors, reducing the impact of lower management-related fees. - FY2023-Q1MitigatedAnnual report
「In the investment management business, revenue from the CRE business declined following the business transfer, but fees from asset management services increased, among other factors. Revenue was ¥127 million, down 46.8% year on year, while operating profit was ¥55 million, up 120.1%.」
Although revenue declined following the transfer of the CRE business, operating profit in the investment management business increased 120.1% year on year due to higher fees from asset management services, partially mitigating the impact of lower fees. - FY2022-Q3MaterialisedAnnual report
「In the investment management business, although fees related to real estate management and operations decreased from the prior-year quarter, revenue was ¥805 million, down 4.3% year on year, while operating income was ¥161 million, up 3.9%, partly because expenses related to real estate management and operations decreased.」
Revenue from the investment management business fell 4.3% year on year due to lower fees related to real estate management and operations, with the risk of lower management-related fees continuing to weigh on results. Meanwhile, operating profit increased due to lower expenses. - FY2022-Q2MaterialisedAnnual report
「In the investment management business, revenue was ¥484 million, down 18.0% year on year, and operating income was ¥56 million, down 55.1% year on year, mainly because fees related to real estate management and operations decreased from the prior-year quarter.」
Lower real estate management and operating fees caused revenue and operating income in the investment management business to fall below the prior-year period, and the risk associated with lower management-related fees materialised in actual results. - FY2022-Q1Higher profit from lower management and operating fees and cost reductionsAnnual report
「Although fees related to real estate management and operations decreased from the prior-year quarter, revenue was ¥238 million, down 5.6% year on year, while operating income was ¥25 million, up 57.3%, partly due to lower outsourcing costs.」
In the investment management business, management and operating fees declined, resulting in a 5.6% year-on-year decrease in revenue, while operating income increased 57.3% due to lower outsourcing costs and other factors. - FY2021-Q2MitigatedAnnual report
「In the investment management business, revenue was ¥590 million, up 303.9% year on year, and operating income was ¥125 million, up 55.1% year on year, mainly because fees related to real estate management and operations increased from the prior-year quarter.」
Higher fees related to real estate management and operations drove increases in revenue and profit in the investment management business, reducing the risk of business contraction due to lower management-related fees during the period under review. - FY2020MitigatedAnnual report
「In the investment management business, revenue was ¥657 million, up 261.6% year on year, and operating income was ¥328 million, up 430.6% year on year, mainly because asset management fees increased significantly following the commencement of new asset management mandates.」
New asset management mandates increased fee income and profit in the investment management business, reducing the risk of contraction in returns associated with lower AUM in the full-year results as well. - FY2020-Q3AdvancedAnnual report
「In the investment management business, revenue was ¥291 million, up 98.7% year on year, and operating income was ¥187 million, up 259.3% year on year, mainly because asset management fees increased following the continued commencement of new asset management mandates.」
The continued commencement of new asset management mandates led to revenue of ¥291 million and operating income of ¥187 million in the investment management business, resulting in higher revenue and profit. - FY2020-Q2MitigatedAnnual report
「In the investment management business, revenue was ¥146.325 million, up 32.0% year on year, and operating income was ¥80.972 million, up 66.2% year on year, mainly because asset management fees increased following the commencement of new asset management mandates.」
Higher fees from new asset management mandates drove increases in revenue and profit in the investment management business, reducing the risk of contracting fee income due to lower AUM in the quarter under review. - FY2019MitigatedAnnual report
「In the investment management business, revenue was ¥181.840 million, up 52.2% year on year, and operating income was ¥61.914 million, up 67.7% year on year, mainly because asset management fees increased following the commencement of new asset management mandates.」
New asset management mandates increased fee income and profit in the investment management business, reducing the risk of contraction in returns due to lower AUM for the full fiscal year as well. - FY2019-Q3MitigatedAnnual report
「In the investment management business, revenue was ¥146.648 million, up 63.0% year on year, and operating income was ¥52.146 million, up 109.0% year on year, mainly because upfront fees increased following the commencement of new asset management mandates.」
New asset management mandates and higher upfront fees drove revenue and operating income in the investment management business above the prior-year period. The risk of contracting fee income due to lower AUM continued to decline. - FY2018-Q3MitigatedAnnual report
「In the investment management business, revenue was ¥89.986 million, up 95.4% year on year, and operating income was ¥24.945 million, up 3,127.9% year on year, mainly because asset management fees increased following the commencement of new asset management mandates.」
Fee income increased following the commencement of new asset management mandates, and revenue and operating income in the investment management business exceeded the prior-year period, continuing to reduce the risk of contracting fee income due to lower AUM. - FY2018-Q2MitigatedAnnual report
「In the investment management business, revenue was ¥62.286 million, up 87.6% year on year, and operating income was ¥22.467 million, up 3,678.9% year on year, mainly because asset management fees increased following the commencement of new asset management mandates.」
New asset management mandates led to significant year-on-year increases in revenue and operating income in the investment management business, continuing to reduce the risk of contracting fee income due to lower AUM. - FY2018-Q1MitigatedAnnual report
「Revenue was ¥31.957 million, up 62.8% year on year, and operating income was ¥15.876 million, up 1,218.2% year on year, mainly because asset management fees increased following the commencement of new asset management mandates.」
New asset management mandates increased fee income and profit in the investment management business, reducing the risk of contracting fee income due to lower AUM in the quarter under review. - FY2017MaterialisedAnnual report
「Assets under management decreased and temporarily fell to zero following the termination of an asset management agreement for an existing project. In addition, because disposition fees and other fees related to the sale of investment projects recognised in the previous fiscal year were not recorded in the consolidated fiscal year under review, revenue was ¥59.683 million, down 95.1% year on year, and operating income was ¥7.545 million, down 99.2% year on year.」
The temporary decline in assets under management to zero, together with a 95.1% decrease in revenue and a 99.2% decrease in operating income in the investment management business, showed that the contraction in fees and performance caused by lower AUM materialised for the full fiscal year. - FY2017-Q3MaterialisedAnnual report
「Assets under management decreased and temporarily fell to zero following the termination of an asset management agreement for an existing project. In addition, because disposition fees and other fees related to the sale of investment projects recognised in the previous fiscal year were not recorded in the nine-month period under review, revenue was ¥46.045 million, down 92.4% year on year, and operating income was ¥772 thousand, down 99.8% year on year.」
Assets under management temporarily fell to zero following the termination of an asset management agreement, while revenue from the investment management business fell 92.4% year on year and operating income fell 99.8%. The contraction in fees and performance caused by lower AUM became more pronounced in actual results. - FY2017-Q2MaterialisedAnnual report
「Assets under management decreased following the termination of an asset management agreement. In addition, because disposition fees and other fees related to the sale of investment projects recognised in the same quarter of the previous year were not recorded in the second quarter under review, revenue was ¥33.208 million, down 78.0% year on year.」
The decline in assets under management was explicitly reported, and revenue from the investment management business fell 78.0% year on year. The revenue decline reflected both the termination of an asset management agreement and the absence of disposition fees and other fees. - FY2016First statedAnnual report
「During periods when assets under management decline in response to changes in real estate transaction market conditions and other factors, the various fees received as consideration for asset management services decrease, causing the performance of the investment management business to contract.」
The mechanism by which a decline in AUM leads to lower fees and contraction of the investment management business was described. AUM declined over the most recent 5 fiscal years, from ¥72,725 million in the fiscal year ended November 2015 to ¥57,292 million in the fiscal year ended November 2016.