First Brothers Co.,Ltd.
3454・Standard Market・Real Estate
Investment Management Business
Private fund management business for institutional investors targeting urban and large-scale real estate
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (2Q cumulative, FY2026 (ending November 2026)) | ¥61 million | ¥75 million (2Q cumulative, FY2025 (ended November 2025)) | ↓ |
| Operating income (2Q cumulative, FY2026 (ending November 2026)) | ¥37 million | ¥47 million (2Q cumulative, FY2025 (ended November 2025)) | ↓ |
| Revenue (full year, FY2025 (ended November 2025)) | ¥144 million | — | — |
| Operating income (full year, FY2025 (ended November 2025)) | ¥96 million | — | — |
| Revenue (1Q, FY2026 (ending November 2026)) | ¥31 million | — | — |
| Operating income (1Q, FY2026 (ending November 2026)) | ¥19 million | — | — |
Business Details
An asset management business that entrusts investor funds to form and manage private funds investing primarily in urban and large-scale real estate. The company handles the full range of operations from investment strategy planning through acquisition, interim asset management (Asset Management Outsourcing Services), and disposition. Revenue is centered on asset management fees (AM fees), and the company's policy prioritizes maximizing client returns over maximizing assets under management.
Recent Overview
Both revenue and operating income declined year-on-year due to the drop-off of one-time fees recorded in the prior-year period
In the second quarter (interim period) of FY2026 (ending November 2026), the Investment Management Business recorded revenue of ¥61 million (down 18.5% year-on-year) and operating income of ¥37 million (down 19.8% year-on-year). The main cause was the drop-off of one-time fees associated with a property sale recorded in the same period of the prior year. The urban and large-scale real estate transaction market continued to see a cautious trading environment due to trends in overseas real estate markets and rising interest rate tendencies, and there were no new acquisitions in funds independently formed by the company. On the other hand, fee income from providing AM services to properties under interim management outsourcing continued.
Key Products
Growth Drivers
- Securing stable AM fee income from the balance of properties under interim management outsourcing, supported by investors' sustained high level of interest in real estate investment
- Expansion of the outsourced asset balance through new fund formation (currently no new acquisitions)
- Resumption of one-time fees associated with property sales due to recovery in the real estate market, supported by factors such as expanding inbound demand
Risks
- Increasingly cautious urban and large-scale real estate transaction market due to trends in overseas real estate markets and rising long-term interest rate tendencies
- Risk of shrinking AM fee income due to a decline in the outsourced balance
- Earnings volatility due to the drop-off of one-time fees associated with property sales
- Continued low levels of revenue and profit if new fund formation does not progress
Last updated: February 25, 2026