First Brothers reports strong Q3 profit growth, boosted by property sales

First Brothers reported a 30.4% increase in net sales to JPY 10,314 million and a 31.4% rise in net income attributable to shareholders to JPY 659 million for Q3 2025. Operating profit grew 37.3% to JPY 1,577 million, while ordinary profit increased 25.8% to JPY 925 million. This growth was primarily fueled by strong property sales and an increase in rental income within its investment banking business.

The company's asset portfolio also performed well, with real estate assets showing a fair value of JPY 86,408 million, resulting in an unrealized gain of JPY 19,370 million. First Brothers aims to continue this growth by strategically selling properties to realize these gains and reinvesting. The dividend policy, based on a 2.0% dividend on equity ratio, also includes an interim dividend for the portion of profit exceeding JPY 2,000 million.

Despite some slowdown in inbound demand for the facility management business due to earthquake rumors, the segment still saw a 28.5% increase in gross profit. First Brothers expects full-year net sales of JPY 17,950 million and net income of JPY 1,370 million, reflecting a cautious but optimistic outlook for the remainder of the fiscal year.