First Brothers Q1 profit up despite investment banking downturn

First Brothers (TSE:3454) reported an increase in profit attributable to owners of parent by 7.1% YoY to JPY68 million for Q1 FY11/25, despite a decline in ordinary profit stemming from one-time expenses associated with property acquisitions. While no property sales occurred in the Investment Banking segment, lease income grew, and the Facility Operation business posted robust gains benefiting from tourism demand and operational efficiencies. Gross profit increased 15.5% YoY to JPY960 million while Facility Operations’ gross profit rose 29% YoY to JPY105 million. The Investment Banking segment saw unrealized gains in real estate of JPY21,347 million. The company reaffirmed its focus on long-term value creation through stable shareholder equity growth and intends to pay year-end dividends based on a 2.0% dividend on equity ratio, with potential for interim dividends depending on future performance. Looking ahead, First Brothers remains cautious regarding property acquisitions and sales, given ongoing economic uncertainties.