And Do Holdings <3457> announced on the 13th its consolidated financial results for the first quarter of the fiscal year ending June 2025 (July-September 2024). Revenue decreased by 5.5% year-on-year to 14.545 billion yen, operating profit decreased by 60.4% to 0.384 billion yen, ordinary profit decreased by 65.4% to 0.292 billion yen, and net income attributable to the parent company's shareholders decreased by 74.3% to 0.143 billion yen.

Anticipating the sale of large projects, the transfer of house leaseback funds was postponed in the first quarter, resulting in figures that fell short of the previous year due to timing issues. Compared to plans, performance has been steady, generally aligned with initial expectations, aiming for the achievement of the full-year plans.

Revenue from the franchise business decreased by 0.3% year-on-year to 0.775 billion yen, while segment profit increased by 1.5% to 0.497 billion yen. To expand the store network, development efforts were focused on urban areas in the Tokyo metropolitan area, Kinki, and Kyushu with high development potential, emphasizing new franchise development activities. Along with the increase in the number of stores, brand awareness improved, and efforts to acquire new franchise stores were made through proactive publicity and investment in human resources, resulting in 26 new franchise agreements in the first quarter, raising the total number of franchise stores to 708. Additionally, the support system for franchise stores by supervisors was strengthened, various new services were developed, and partnerships were expanded, resulting in 17 new store openings in the first quarter, bringing the total number of opened stores to 636.

Revenue from the house leaseback business decreased by 50.4% to 3.1 billion yen, and segment profit decreased by 52.1% to 0.371 billion yen. There is a high demand from customers for real estate as a financing method that can be utilized for various funding purposes such as retirement living expenses and business funding, with the number of inquiries and procurement contracts proceeding smoothly. In the first quarter, 231 new acquisitions were made, bringing the total holdings to 729 rental properties as of the end of September. Furthermore, through the sale, resale, and disposal of 90 properties to real estate purchasing companies, capital gains were sought.

Revenue from the financial business increased by 18.7% to 0.132 billion yen, while segment profit surged by 148.0% to 0.04 billion yen. Leveraging the group’s strengths in national network valuation and sales capabilities, it has responded to customers' funding needs through the utilization of real estate. In the reverse mortgage guarantee business, new partnerships were sought to expand recognition and promote the use of reverse mortgages, strengthening collaboration with partner financial institutions. In the first quarter, 130 new guarantees were issued, bringing the total guarantee count to 1,741, with a guarantee balance of 22.976 billion yen.

Revenue from the real estate sales business increased by 33.1% to 9.776 billion yen, while segment profit decreased by 25.6% to 0.568 billion yen. By collaborating with directly owned real estate brokerage stores, efforts were made to strengthen procurement and promote sales through product commercialization suited to market needs. Housing demand remained robust due to the continued low level of housing loans, resulting in 283 transactions in the first quarter, a 64.5% increase compared to the previous year.

Revenue from the real estate distribution business decreased by 17.1% to 0.246 billion yen, with segment profit down 32.3% to 0.102 billion yen. This business engages in real estate sales brokerage. Efforts were made to generate revenue, leveraging synergies with various businesses as a starting point for one-stop services. Although actual demand remained steady due to the continuation of low mortgage rates, the number of brokerage transactions in the first quarter was 373, a 13.9% decrease year-on-year, due to the shift of personnel to focus areas.

Revenue from the renovation business decreased by 15.4% to 0.514 billion yen, and segment profit decreased by 7.3% to 0.048 billion yen. Customers were attracted by actively hosting renovation events in collaboration with housing equipment manufacturers, as well as through orders for used homes and renovations in collaboration with the real estate sales brokerage business. In the first quarter, the number of contracts was 346, down 11.5% from the previous year, while the number of completed projects was 344, down 12.5%.

The consolidated financial estimates for the period ending June 2025 are maintained at revenue of 70 billion yen, which is an increase of 3.6% compared to the previous period, operating profit of 4 billion yen, which is an increase of 11.5%, ordinary profit of 4 billion yen, which is an increase of 15.7%, and net income attributable to shareholders of the parent company of 2.64 billion yen, which is an increase of 6.6% by the initial plan.