First Brothers : Notice Regarding Revision to Earnings Forecast
December 02, 2021 at 03:11 am EST
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November 26, 2021
For Immediate Release
Company name: First Brothers Co., Ltd.
President:
Tomoki Yoshihara
(TSE First Section, Stock code: 3454)
Inquiries:
Chief Financial Officer
Yoshinobu Hotta
(Tel: +81-3-5219-5370)
Notice Regarding Revision to Earnings Forecast
First Brothers Co., Ltd. has revised its previous earnings forecast for the fiscal year ending November 30, 2021 (FY11/21), announced on January 8, 2021, to reflect recent earnings trends, as shown below.
The First Brothers Group is sustainably expanding its overall portfolio by selling some real estate for lease to crystallize unrealized gains as it rebalances its holdings. It uses the proceeds to fund purchases of new real estate for lease. As a result of such transactions, sales value of significant size is booked as sales.
In FY11/21, the Company replaced properties we had originally planned to sell with properties with a higher gross profit margin on sale. This resulted in lower sales value (net sales) than we initially forecast. Nonetheless, we were able to achieve income from sales (gross profit from sale) largely in line with our original plans. When managing its portfolio, the First Brothers Group prioritizes income from leasing (gross profit from leasing) and income from sale (gross profit from sale) rather than sales value (net sales).
We are steadily building up our leasing real estate portfolio, the balance of which stood at 67.6 billion yen (as of the end of Q3; book value basis). Accompanying this portfolio growth, we have been able to achieve long-term, stable income from leasing (gross profit from leasing) above our
initial expectations.
We have also reduced selling, general and administrative expenses and non-operating expenses further than we initially planned. As a result, we now forecast lower net sales but higher profit at all profit lines than in our previous forecast.
3. Dividend forecast
There is no change to the Company's dividend forecast for FY11/21. We plan to pay a year- end dividend of 27.00 yen per share in early February 2022.
Note: The earnings forecast figures above are based on information currently available to the Group and certain assumptions the Group deems reasonable, but actual earnings may differ from forecast figures for a variety of reasons.
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First Brothers Co. Ltd. published this content on 02 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 December 2021 08:10:04 UTC.
First Brothers Co Ltd. is an independent investment management firm engaged in investment management and investment banking business. The Company had two business segments. The Investment Management Business segment is engaged in providing asset management service to customers about the real estate or real estate trust beneficiary rights in the forms of private placement funds. The Investment Banking Business segment is engaged in the operation of accounting capital of the group, as well as providing various advisory services.