Sun Frontier Fudousan Co., Ltd

Financial Results for the Third Quarter of
Fiscal Year Ending March 31, 2024
We are aiming to be the most appreciatedvisionary company in the world.

1） Overview of the Results of FY2024/3 3Q

P. 1 -102） Revision of Operating Results and Dividend Forecast

P.11 - 19

3） Business Environment Awareness and Performance Progress

P.20 - 36

4） Medium-term Management Plan

P.37 - 40

5） Philosophy and Sustainability

P.41 - 46

6） Business Model

P.47 - 53

7） Reference Materials

P.54 - 61

February 8, 2024
Securities Code : 8934

Overview of the Results of FY2024/3 3Q
The third quarter saw a reactionary decrease from the same period of the previous year due to the impact
of concentrated property sales. For the full year, our profit forecast has been revised upward and the yearend dividend is expected to increase.
(Unit: million yen)
Results

ProfitmarginYear-on-year

Growth rate

Net sales

62,258－-13,069-17.4%

Operating profit

14,163

22.7%

-533

-3.6%

Ordinary profit

13,902

22.3%

-499

-3.5%

Profit*

9,744

15.7%

-609

*The profit attributing to owners of parent.

Performance Highlights

Full year forecast
before revision

Full year
Achievement
forecast after
rate
revision on Feb. 8-5.9%

83,00016,50016,00011,00079,00016,70016,50011,600

Dividends

Dividend forecast
before revision

Full year forecast
after revision on Feb. 8

Growth2Q end

26.0 yen

26.0 yen※doneYear end

26.0 yen30.0 yen+4.0 yen

total

52.0 yen

56.0 yen+4.0 yen

78.8%

84.8%
84.3%
84.0%

• Net sales and profit decreased from the same period of the previous year due to the sales of 2 hotels and the bulk sales for 5 propertiesof RP last year.
• In Real Estate Revitalization Business, a total of 20 units were sold in the current fiscal year. Profit margin grew exceeded the plan. Keepfocusing on purchase properties for the next year.
• In Real Estate Service Business, Rental Conference Room Business, which expanded new sites and floor space, continued to perform
well, and all businesses grew steadily.
• In Hotel and Tourism Business, both occupancy rate and average daily rate improved due to continued expansion of travel demands
and recovery in inbound tourism, resulting in significant increases in both net sales and profit.
Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

1

Sun Frontier Fudousan Co., Ltd

Forecast for ordinary profit and Trends
in result
Forecast for ordinary profit revised upward. Expected to record the highest profit.
(million yen)

1Q

20,000

2Q

3Q

4Q
Revised forecast

16,50016,127
15,00012,813

Initialforecast
11,80010,000Initialforecast
14,00014,722
2,830

12,215

1,067

2,255

3,002

1,284

7,524

321

2,598

1,958

232
2,698

Initialforecast
6,500

3,997

5,000

Initialforecast
11,500Initialforecast
12,800Initialforecast
16,000

6,366

2,008

1,345

962
1,178

7,760

9,758
3,432

7,277

6,690

4,747

4,184
1,952

0
FY2019/3
19/3期

FY2020/3
20/3期

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

FY2021/3
21/3期

2

FY2022/3
22/3期

FY2023/3
23/3期

FY2024/3
24/3期
3Q
3Q
Sun Frontier Fudousan Co., Ltd

Consolidated Income Statement(Unit: million yen)
FY2023/3
Apr. - Dec.

FY2024/3
Apr. - Dec.

YoY increase/decrease

YoY change rate

62,25839,037
37,1181,919
7,766
14,352
5,270
9,082
1,786
-683
20,620-13,069-17.4%-8,513-17.9%-8,908-19.4%+395+25.9%+1,260+19.4%-6,327-30.6%-8,229-61.0%+1,902+26.5%+557+45.4%-46+7.3%

Gross Profit (Loss)

75,32847,55046,027
1,523
6,505
20,68013,500
7,180
1,228
-636
20,483

+136

+0.7%

Real Estate Revitalization Business

15,286

12,421-2,864-18.7%

11,954
467
4,290
4,095
2,200
1,895
238
-425

-3,049-20.3%+184+65.4%

Adjustments

15,003
282
3,653
1,622
1,506
115
219
-297

Selling, General and
Administrative Expenses

5,787

Operating Profit (Loss)

14,696196
490
14,401
10,354

Net Sales
Real Estate Revitalization Business
Replanning Business
Rental Buildings Business

Real Estate Service Business
Hotel and Tourism Business
Hotel Development Business
Hotel Operation, etc

Other Business
Adjustments

Replanning Business
Rental Buildings Business

Real Estate Service Business
Hotel and Tourism Business
Hotel Development Business
Hotel Operation, etc

Other Business

Non-operating Income
Non-operating Expenses

Ordinary Profit (Loss)
Profit+637+17.5%+2,473+152.5%+693+46.0%+1,780+1,546.5%

+18

+8.6%

-128

+43.1%

6,457

+670

+11.6%

14,163154
414
13,902
9,744

-533

-3.6%

-42

-21.5%-76-15.6%

-499

-3.5%

-609

-5.9%

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

3

Keynotes of Income Statement＜Real Estate Revitalization Business＞
There were 20 sales in the first three quarters. Bothnet sales and profit decreased from the same periodof the previous year when large-scale properties were
sold, but progress is as planned and the full-year is
expected to be at the same level as the previous year.

＜Real Estate Service Business＞
Steady growth in Rental Conference Room Businessand Property Management Business, as well as leasing
brokerage and Rent Guarantee Business.

＜Hotel and Tourism Business＞
Net sales in Hotel Development decreased inreaction to the sale of two buildings in the same
period of the previous year, but profit increased due tothe sale of one building in 1Q. Net sales and profit inHotel Operation increased significantly due to demand
recovery.

＜Selling, General and Administrative Expenses＞
Increase from the same period of the previous year
due to human capital investment (including training)and system investment as planned.
Sun Frontier Fudousan Co., Ltd

Consolidated Balance Sheet- Assets -＜Cash and deposits＞

Procured approximately 10 billion yen through the issuance of convertible bonds with share acquisition rights.
Increased by 7.7 billion yen from the end of the previous fiscal year, despite progress in property purchase andpayment of interim dividends.

＜Inventories＞

An increase of 10.3 billion yen due to the purchase and construction of RP properties and the acquisition of land in
Vietnam.

(Unit: million yen)

As of End of
March 2022

As of End of
March 2023

As of End of
December 2023

Increase/decrease(compared to the End of
March 2023)

Current assets

110,920

125,886

145,160+19,273

Cash and deposits

30,05342,01649,743+7,727

Inventories

77,34080,182

90,484+10,302

Breakdown) RP

63,424
13,516400

70,3279,750
105

79,9489,231
1,304+9,621-519+1,199Other current assets

3,527

3,688

4,931

+1,243

Non-current assets

25,591

26,63327,333+700

Property, plant and equipment

18,796

20,41020,943

+532

572

815

1,147

+331

6,222

5,406

5,241

-164

136,512

152,519

172,493+19,973

Hotel
Overseas, etc.

Intangible assets
Investments and other assets
Total assets

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4

Sun Frontier Fudousan Co., Ltd

Consolidated Balance Sheet- Liabilities/Equity ＜Interest-bearing debt＞

Increased by 2.7 billion yen due to borrowings for purchase of properties, and58.3 billion yen in total for interest-bearing debt.

Changes of Equity Ratio

Approximately 10.0 billion yen increase due to issuance of convertible bonds with shareacquisition rights (CB)As of End of
March 2022

As of End of
March 2023

As of End of
December
2023＜Shareholders' equity＞ Increased by 7.3 billion yen due to the profit (9.7 billion yen), etc., despite thepayment of dividends (-1.2 billion yen).

52.2%

52.9%

51.4%

＜Bonds＞(Unit: million yen)

As of End of March2022

As of End of March
2023

16,2106,904
9,306
45,84944,1690
1,680
62,06071,2603,191
74,452
136,512

16,363
5,492
10,871
52,19050,1700
2,019
68,55380,4303,535
83,965
152,519

Current liabilities
Short-term borrowings, etc.
Other current liabilities
Non-current liabilities
Long-term borrowings
Bonds payable
Other non-current liabilities
Total liabilities

Shareholders' equity
Other
Total net assets
Total liabilities and net assets
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5

Increase/decrease

As of End of
December 2023

(compared to End of
March 2023

21,524
11,9489,576
58,43046,4139,999
2,016
79,95487,744
4,795
92,539172,493+5,160+6,456-1,296+6,240-3,756+9,999-3+11,400+7,313+1,259+8,573+19,973

Sun Frontier Fudousan Co., LtdPerformance for Each Business Segment

Real Estate Revitalization Business (Replanning and Rental Buildings)< Replanning Business >◼ The number of properties sold in 1-3Q was 20 (included 1 in NewYork). Segment profit margin maintained a high level of 30%. Bothnet sales and profit decreased in reaction to the sale of large
properties in the same period of the previous year.
◼ Average business period was 608 days (down 46 days YoY).

(million yen)

50,000Net sales
売上高
Segment profit
セグメント利益
Profit margin
利益率

60%

47,55039,03740,00040%
FY2023/3
Apr. – Dec.

FY2024/3
Apr. – Dec.

Increase/decrease

Net sales

47,55039,037-17.9%

Replanning Business

46,027

37,118-19.4%

Rental Building Business

1,523

1,919

+25.9%

Segment profit (Note 1)

14,638

11,620-20.6%

Replanning Business

14,355

11,152-22.3%

282

467+65.4%

30.8%

29.8%

-1.0%pt

Replanning Business

31.2%

30.1%

-1.1%pt

Rental Building Business

18.6%

24.4%

+5.8%pt

Number of properties sold22 cases48 cases

20 cases
61 cases-2 cases(Note 2)

(Note 2)

(Unit: million yen)

Rental Building BusinessProfit margin

Number of stocks at theend of 3Q

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30,000
30.8%

29.8%

20,00014,63820%
11,62010,0000

0%
FY2023/3
2023/3期
Apr.-Dec.
4-12月期

FY2024/3
2024/3期
Apr.-Dec.
4-12月期+13 cases(Note 1) “Segment profit” is calculated by deducting specific costs of each segment, includinginterest expenses, sales commission and amortization of goodwill from gross profit.
(Note 2) Land purchase and development projects are included.

6

Sun Frontier Fudousan Co., LtdPerformance for Each Business Segment

Real Estate Revitalization Business<Replanning Business※>

FY2023/3
Apr. –Dec.

FY2024/3
Apr. – Dec.

Increase/decrease

Number of properties purchased

21 cases

33 cases+12 cases(of which, contracted and unsettled)

4 cases

4 cases

0 cases

Purchase amount

30,69043,118+12,428

4,520

6,920

+2,400(Unit: million yen)

Purchase value reached a record high of 43.1
billion yen (including properties contracted andwill be settled in this year), up 12.4 billion yen
from the same period of the previous year.
In initiatives for the purchase amount of 50
billion yen this period.

(of which, contracted and unsettled)(million yen)

50,00043,11840,00036,82230,00020,00036,281FY2019/3
3Q
30,376FY2018/3
3Q
22,051

38,28632,860

FY2024/3
3Q(33 cases)

27,600
FY2023/3
3Q
30,690(21 cases)

FY2020/3
3Q
29,35915,036

10,000Contracted
andunsettled
2 cases

FY2022/3
3Q
18,060

FY2021/3
3Q
9,634

18/3期
FY2018/3

19/3期
FY2019/3

20/3期
FY2020/3

21/3期
FY2021/3

1,400
22/3期
FY2022/3

23/3期
FY2023/3

24/3期
FY2024/3

25/3期
FY2025/3

Note : Includes properties in non-current assets, small-lot real estate properties and New York properties.

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7

Sun Frontier Fudousan Co., LtdPerformance for Each Business Segment(Property Management, Building Maintenance,
Sales Brokerage, Leasing Brokerage,
Rental Conference Room, Rent Guarantee, etc.)

Real Estate Services Business<Property Management and Building Maintenance>

Net
sales
売上高

◼ Net sales and profit increased in PM Business due to an increase in number(million yen)of entrusted buildings.
9,000◼ In BM business, net sales and profit decreased due to a decrease in
disinfection work and cancellation of unprofitable sites.
8,000<Brokerage>

Segment
profitセグメント利益◼ Both net sales and profit increased in leasing brokerage due to an increasein the number of leasing tenants at entrusted properties.
◼ Sales brokerage remained steady, although sales decreased in reaction tolarge contracts in the previous year.

<Rental Conference Room>

7,000

100%
7,766

56.0%
5,000

<Rent Guarantee>◼ The performance of the core business, Trust Guarantee Business, grewstrongly.

60%

4,272
3,646

40%

2,000

FY2024/3
Apr. – Dec.

Increase/decrease

1,000

Net sales

6,505

7,766

+19.4%

0

Segment profit(Note 1)

3,646

4,272

+17.2%

Profit margin

56.0%

55.0%

-1.0%pt

8

55.0%

3,000

FY2023/3
Apr. – Dec.

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80%

6,505

6,000

◼ Along with the recovery in demand, the increase in the number ofoperating areas through expanding new sites and floor space contributed to
4,000
the increase in both net sales and profits.

(Unit: million yen)

Profitmargin利益率

20%

0%
FY2023/3
2023/3期
Apr.-Dec.
4-12月期

FY2024/3
2024/3期
Apr.-Dec.
4-12月期(Note 1) “Segment profit” is calculated by deducting specific costsof each segment, including interest expenses, sales commission andamortization of goodwill from gross profit.
Sun Frontier Fudousan Co., LtdPerformance for Each Business Segment

Hotel and Tourism Business (Hotel Development, Hotel Operation, etc.)<Hotel Development Business>◼ Net sales decreased compared to the sale of two hotels in thesame period of the previous year but profit increased due to thesale of one hotel in 1Q.
◼ Acquisition of land in Hakone-machi and Kawaguchi-ko is inprogress, and many development projects are in progress inother regions.

<Hotel Operation Business>◼ As travel demand continues growing, as well as inboundrecovery, both net sales and profit increased significantly due tothe increase in occupancy rate and average daily rate.

Net
sales
売上高

(million yen)Segment
profitセグメント利益
Profitmargin
利益率

25,00070%

60%

20,68020,00050%
14,352
15,000

FY2023/3
Apr. – Dec.

FY2024/3
Apr. – Dec.

Increase/decrease

20,68014,352-30.6%

Hotel Development Business

13,5005,270-61.0%

Hotel Operation Business, etc.

7,180

9,082

+26.5%

1,459

4,018

+175.4%(Unit: million yen)

Net sales

Segment profit
Hotel Development Business

1,416

2,123

+49.9%

Hotel Operation Business, etc.

42

1,895

+4,342.5%

Profit margin

7.1%

28.0%

+20.9%pt

Hotel Development Business

10.5%

40.3%

+29.8%pt

Hotel Operation Business, etc.

0.6%

20.9%

+20.3%pt

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9

28.0%
10,000

40%
30%
20%

7.1%
5,000

4,018

10%
0%

1,459
0

-10%
2023/3期
FY2023/3
Apr.-Dec.
4-12月期

FY2024/3
2024/3期
Apr.-Dec.
4-12月期(Note 1) “Segment profit” is calculated by deducting specific costsof each segment, including interest expenses, sales commission andamortization of goodwill from gross profit.
Sun Frontier Fudousan Co., LtdPerformance for Each Business Segment

Other Business (Construction Business, Overseas Development Business, etc.)
Net
sales
売上高

<Construction Business>(million yen)

◼ Net sales and profit increased due to the increase of orders
and smooth construction .

2,000

Segment
profitセグメント利益
Profitmargin
利益率

30%
1,786

<Overseas Development Business>◼ Acquired land for a new project in Vietnam(HIYORI Aqua Tower
which is the second project for condominium apartment
project). The construction is planned to start in Spring.

1,500
20%

1,228

1,000
14.6%
11.4%
FY2023/3
Apr. – Dec.

FY2024/3
Apr. – Dec.

Increase/decrease

1,228

1,786

+45.4%

Segment profit

179

203

+13.1%

Profit margin

14.6%

11.4%

-3.2%pt(Unit: million yen)

Net sales

10%

500
179

203

0

0%

FY2023/3
2023/3期
Apr.-Dec.
4-12月期

FY2024/3
2024/3期
Apr.-Dec.
4-12月期(Note 1) “Segment profit” is calculated by deducting specific costsof each segment, including interest expenses, sales commission andamortization of goodwill from gross profit.
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10

Sun Frontier Fudousan Co., Ltd

Revision of Operating Results andDividend Forecast

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11

Sun Frontier Fudousan Co., Ltd

Revision of Financial Results Forecast
and cash dividend
OperatingprofitNet sales¥ million

Previous forecast (A)¥ million

83,00016,500¥ million

Revised forecast (B)79,000Ordinary
profit¥ million

16,000¥ million

16,700¥ million

16,500

Profitattributableto owners ofparentCashdividends
per share¥ million

11,000

yen

52.0
yen

¥ million

11,60056.0※2Q end 26.0 yen
year end 30.0 yen¥ million

Increase/decrease(B-A)(Reference)
Results of FY2023/3

Rate of change (%)-4,000¥ million¥ million¥ million

200

500

¥ million¥ million¥ million

600

14,905

14,722

11,612-4.6%+12.0%+12.1%

-0.1%

12

4.0

・dividend +2.0 yen
・commemorative
dividend 2.0 yen¥ million

82,777

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yen

yen

48.0
+16.7%Sun Frontier Fudousan Co., Ltd

Revised forecast and progress rate
Results for FY2023/3

Revised Forecast for
FY2024/3

Net sales

82,77779,00062,25878.8%(1) Real Estate Revitalization Business

50,06651,00039,03776.5%

47,9952,070

48,5002,500

37,118
1,919

76.5%
76.8%

8,843
22,967

10,00017,0007,766
14,352

77.7%

13,5009,467

5,300
11,700

5,270
9,082

99.4%
77.6%

1,788

2,100

1,786

85.0%

-887

-1,100-683

Gross profit

22,80525,50020,62080.9%(1) Real Estate Revitalization Business

16,122

16,20012,421

76.7%

15,722399

15,600600

11,954
467

76.6%
77.8%

5,400
4,300

4,290
4,095

79.4%

(3) Hotel and Tourism Business

4,898
1,907

Hotel Development Business
Hotel Operation Business, etc.

1,506
400

2,200
2,100

2,200
1,895

100.0%
90.2%

337

300

238

79.3%

-461

-700

-425

Selling, general and administrative expenses

7,900

8,800

6,457

73.4%

Ordinary profit

14,722

16,50013,902

84.3%

Profit11,612

11,600

9,744

84.0%

(Unit: million yen)

Replanning
Rental building(2) Real Estate Service Business(3) Hotel and Tourism Business
Hotel Development Business
Hotel Operation Business, etc.

(4) Other
Adjustments

Replanning
Rental building(2) Real Estate Service Business(4) Other
Adjustments

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13

3Q Results for
FY2024/3

Progress Rate

84.4%

95.2%

Sun Frontier Fudousan Co., Ltd

Shareholder Return
Basic Policy for Shareholder Return①Strive to provide long-term and stable shareholder return②Secure investment funds for future growth③Maintain the stability of financial base(forecast)(yen)

56.0 yen

60
60円※include commemorative
dividend of 25th anniversary

Trends in Dividends per Share
１株当たり配当金の推移
With the exception of keeping dividend in FY2021/3,
we have continued to increase dividend for 11 years

60
50
50円

40
40円

25.0円
25.0
yen

配当性向
Dividend payout ratio

44.0
yen
計 44.0円

Year end
Dividends

60%

30.0
Year end
Dividends
23.0 yen

30.0
yen
30.0円

1株当たり配当金
Cash dividends per share

42.0
yen
42.0円
47.9%

33.5円
33.5
yen
30
30円

70%

48.0
yen
計 48.0円

42.042.0円
yen
38.5円
38.5
yen

80%

Year end
Dividends
25.0 yenyen(forecast)

50%
40%

28.9%

30%

20
20円

23.5%

16.5
yen
16.5円
14.0%

8.5
yen
8.5円

10円
10

3.5
yen
3.5円

12.8%

20.1%

13.5
yen
13.5円

20%
20.0%

14.4%

14.0%

21.3%

21.1%

19.2%

Interim
Dividends
21.0 yen

13.1%

Interim
Dividends
23.0 yenInterim
Dividends
26.0 yen

0
0円

10%
0%

FY2012/3
12/3期 FY2013/3
13/3期 FY2014/3
14/3期 FY2015/3
15/3期 FY2016/3
16/3期 FY2017/3
17/3期 FY2018/3
18/3期 FY2019/3
19/3期 FY2020/3
20/3期 FY2021/3
21/3期 FY2022/3
22/3期 FY2023/3
23/3期 FY2024/3
24/3期※Interim dividend started from FY2022/3

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14

Sun Frontier Fudousan Co., LtdTrends in Flow and Stock Performance
To emphasize rate of profit for flow business. To pursue high rate of growth for stock business(million yen)
70,00060,000※1）事業の業績推移
Performance Trendof Flow Business
フロー型（物件売却※1(Property Sales )61,70656,980

60.0%

50.0%

53,80040.0%
40,00030,00050.0%

Rate of growth of net sales

47.7%

20.4%

19.6%

25,20025,0000.0%

21,07220,00033.1%

20,00035,000Rate of Ordinary profit

50,00030,000

Performance※2Trendof
ストック型事業の業績推移※2
Stock Business(million yen)

30.3%

17,26430.0%
15,00027.9%

17,22817,8000

10,000

0.0%
売上
売上
売上
Net売上
sales Ordinary
Net売上
sales Ordinary
Net売上
sales Ordinary
profitprofitprofit
総利益
総利益
総利益
22/3期
FY2022/3

23/3期
FY2023/3

5,578
5,000

7,700

-100.

2,199

0

-150.
売上 Net売上
売上
売上
sales Ordinary
Net売上
sales Ordinary
Net売上
sales Ordinary
profitprofitprofit総利益
総利益
総利益
FY2024/3
FY2022/3
FY2023/3
22/3期
23/3期
24/3期(予)(forecast)

FY2024/3
24/3期(予)(forecast)※2 Include Real Estate Service Business, Hotel Operation Business and except for properties sale

※1 Includes the sale of properties in RP Business, Hotel Development Business and Overseas Business.

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

14,271

20.0%

10.0%

10,000-50.0

15Sun Frontier Fudousan Co., LtdTrends in Performance of Replanning
Business and Properties Purchase●Trends in net sales, Segment profit and Segment margin(million yen)
70,000

32.4%

31.2%

Net
sales 60,000
売上高

29.2%

31.1%

30.1%

35.0%
30.0%

24.3%

50,00025.0%

Segment
セグメント
40,000profit利益

20.0%

30,00015.0%

20,00010.0%

10,000

5.0%

Profitセグメント
margin
利益率

0

0.0%

FY2019/3
19/3期

FY2020/3
20/3期

FY2021/3
21/3期

FY2022/3
22/3期

FY2023/3
23/3期

FY2024/3
3Q
24/3期3Q●Trends in properties purchases(million yen)

50,00040,00043,11836,281

38,28632,86027,60030,00020,00015,036

10,000FY2019/3
19/3期

FY2020/3
20/3期

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

FY2021/3
21/3期

16

FY2022/3
22/3期

FY2023/3
23/3期

FY2024/3
24/3期3Q3Q
Sun Frontier Fudousan Co., LtdTrends in Inventories and Gross Profit
of Property Sales
To generate future profit, we improve to invest aggressively. Inventory increased as planned.

Sales of properties

FY2024/3(Forecast)

56.1

45.1 billion yen

57.0 billion yen

61.7 billion yen

53.8 billion yen

33.1 billion yen

40.3 billion yen

44.9 billion yen

36.5 billion yen

billion yen

37.3
billion yen

Keepholding

Affected by COVID-19, both net
sales and purchase decreased,
and causing the decrease of
the balance of inventories .

31.6 billion yen
77.3 billion yen

Keepholding

Although COVID-19 prolonged,
sales were good. Started refocusingon purchases, but the balanceof inventories declined.

RP 15.3 billion yen
Hotel 1.5 billion yen

27.2%
47.7 billion yen
80.1 billion yen

Sales remained strong.
The results of strengthening
purchase emerged, leading to
the increase of the balanceof inventories .

Keepholding17.3 billion yen
RP 15.1 billion yen
Hotel 2.2 billion yen

32.1%
51.4~56.4 billion yen

Carryover86 billion yen

29.2%

16.8 billion yen

Sale in the following fiscal year

Keepholding

RP 16.0 billion yen
Hotel 0.7 billion yen

Carryover

91.7
billion yen

27.4 billion yen

16.7 billion yen

CarryoverEnding balance of theinventory

54.7
billion yen

26.6%

CarryoverPurchases during the
fiscal year, construction
work, etc.

33.5%

RP 9.2 billion yen
Hotel 2.8 billion yen

Sale in the following fiscal year

Gross profit margin

12 billion yen

Sale in the following fiscal year

billion yen

Sale in the following fiscal year

18.8

Gross profit※

Sale during the year

FY2023/3(Results)

Sale during the year

FY2022/3(Results)

Sale during the year

FY2021/3(Results)

Sale during the year

Cost of property sales

FY2020/3(Results)

95~100 billion yen

The profit on sale is expected to be higher
than the previous year.
Through the aggressive investment,balance of inventories is expected toincrease.

Ending balance for FY2024/3(Forecast)Gross profit margin(Assumed)

Net sales (Assumed)

Unrealized gains on inventories(Assumed)

95~100 billion yen

25~30%

125~140 billion yen

30~40 billion yen※ Gross profit ＝ ordinary profit － sales commission

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

17

Sun Frontier Fudousan Co., Ltd

Steady Growth in Real Estate Service Business
Aiming to consecutive record high profits, performance in 3Q keep progressing steadily.
（million of yen）
Sub-leases,
サブリース
Referal
fee
紹介手数料

8,000

他

60.0%

56.2%

Conference
貸会議室
Room

55.3%

54.7%

55.0%

52.7%

51.1%
6,000

50.0%

Rent
滞納賃料
Guarantee
保証

4,890
4,272

Building
BM

Management

4,000

2,829

Property
PM

Management

Leasing
賃貸仲介
Brokerage

3,206

3,490

3,803

40.0%

2,000

30.0%

Sales
売買仲介
Brokerage
Segment
セグメント
profit margin
利益率

20.0%

FY2019/3
19/3期

FY2020/3
20/3期

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

FY2021/3
21/3期

18

FY2022/3
22/3期

FY2023/3
23/3期

FY2024/3
24/3期3Q
3Q

Sun Frontier Fudousan Co., LtdOccupancy Rates and Average Daily Rates
Developing hotels to make the business grow and expand steadily.
Trends セグメント利益・ホテル軒数の推移
in Segment profit and number of hotel

Trends in occupancy
rate and average daily rate
稼働率・客室単価の推移(yen) (million of yen)
3,000
20,000100.0%
ADR(right axis)
ADR（右軸）(buildings)

25
Segment profit for hotel operation business ※1
ホテル運営事業等セグメント利益(左軸)※1

OCC (left axis)
OCC（左軸）2,500
The number of hotel (right axis) ※2
運営ホテル軒数（右軸）

80.0%

72.1%

71.2%

16,000

60.0%

389

500

40.0%

15,170

309

8,000

10

-500

11,665-1,000

9,440

8,322

15

0

36.8%

20.0%

15

12,000

43.1%

20

17

1,500
1,000

22
1,895

19

2,000

63.7%

21

4,000

6,320

5

-1,500-1,455-2,0000.0%-2,5000

FY2020/3
20/3期

FY2021/3
21/3期

FY2024/3
FY2022/3
22/3期 FY2023/3
23/3期 24/3期3Q
3Q

0-2,313
FY2020/3
20/3期

3Q
FY2021/3
21/3期 FY2022/3
22/3期 FY2023/3
23/3期 FY2024/3
24/3期3Q※1 Include the profit of hotel rent.

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

19

Sun Frontier Fudousan Co., Ltd

Business Environment Awareness andPerformance Progress

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

20

Sun Frontier Fudousan Co., Ltd

Business Environment Awareness１．Concerns about a slowdown in the Chinese economy and geopolitical risks continue, however the global economy isexpected to make a soft landing◆IMF raised its global growth forecast for 2024 to 3.1 percent, raising expectations of a soft landing.

◆U.S. Federal Reserve has refrained from raising its policy interest rate for the fourth consecutive time and attention is focused on thetiming of the rate decrease.

２．Japanese economy continued its large-scale monetary easing amid the gradual recovery from economic
normalization◆Economic recovery is expected to continue due to the resumption of economic activities, slowing inflation and rising wages.
◆As the prospects for stable rises in prices and wages increase, the Bank of Japan's monetary policy is expected to move closer tonormalization.

３．In the central Tokyo office building market, with the completion of many new buildings, demand recovered as thereturn to offices progressed◆Although new buildings continue to be completed, the average vacancy rate of central Tokyo offices was flat, and the average rent rose
for the first time in about three and a half years.
◆Japanese real estate investment remained strong due to the return to offices and the weak yen, but rising interest rates are a concern.

４．The hotel and tourism market continued to be active due to a marked recovery in domestic travel and inbounddemand◆In addition to the recovery of domestic travel demand, inbound demand rose due to the impact of the weak yen and occupancy rates andaverage daily rates improved.
◆In 2023, 25.06 million people visited Japan. The amount of travel spending for inbound recorded as the highest before Covid-19.
Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

21

Sun Frontier Fudousan Co., LtdReplanning Business, An Example of Initiatives (1)Adding value by creating “offices employees want to go to” that capture changes in technology and lifestyles

Calm color tones and calculated placement oflights create an office area where people canconcentrate on work

Building exterior
RP
Purchase
Nishi-Shinjuku,
Shinjuku-ku
Management Leasing
5-story steel-framed
reinforced concrete building
Warranty
Salewith one basement floor

A flexible area with greenery and warm colors,suitable for interactive work and lively discussions

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

22

A lounge area with a cafe-like space that promotes
communication and functional teleconference booths

Sun Frontier Fudousan Co., LtdReplanning Business, An Example of Initiatives (2)Adding value to a highly productive, people-friendly office space by providing light control and sound insulation

Lighting equipment that adjusts lighting intensity
according to circadian rhythm (internal body clock)to improve productivity and motivation to work

Building exterior
PurchaseRP
Nihonbashi Kabutocho,
Chuo-kuManagement Leasing
6-story reinforced concrete
Warranty
Salebuilding with deck roof

Wood-grain ceilings and greenery contribute tostress reduction and working at full potential

Along with the installation of an inner lounge with adjustable partitions, the introduction of soundequipment with a masking effect that blocks the voices from the inner lounge and the sound ofvehicles on the Metropolitan Expressway to the west of the building has increased concentration.

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

23

Sun Frontier Fudousan Co., Ltd

Specified Joint Real Estate Ventures

Promote Sales of Small-lot Real Estate Property
Provide small-lot real estate properties with the theme of education and medical in
the residential area at 23 wards of Tokyo.
Sales network

Now on Sale

(tax accountants and financial
institutions)

189 companies

23 wards of Tokyo

Expanding, aiming to reach over200
companies

NerimaCompass Nerima
A new construction licensed nurseryschool in Nerima-Takanodai, Tokyo

Now on Sale

Number of Investors in Small-Lot
Real Estate Property（people）

Taito

500

5 citiesof central
Setagaya Tokyo

410
400

311
Sold out inMarch 2023.
Licensed
nursery school

300

167

200

Ota
66

100

29

Compass Sakurashinmachi
International Academy in
Sakurashinmachi, Setagaya, Tokyo

Sold out inAugust 2021.
licensed nurseryschoolSale in December 2023
Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

0
Sold out inNovember 2022
medical andeducational mall

24

Sun Frontier Fudousan Co., Ltd

Real Estate Services BusinessOpening of the Shinbashi and Ikebukuro branches
Expansion of branch networks to provide more detailed solutions to clients’ problems

Ikebukuro
branchOpened February 1, 2024

Toshima-ku
Taito-ku

Bunkyo-ku

Koujimachi
branchShinjuku-ku

Shinjuku
branch12th branch

Kanda
branchChiyoda-ku
Shibuya-ku

Koｄenmacho
branchShibuyabranch1-19-12 Minami-Ikebukuro, Toshima-ku,
Tokyo
Yamanote Building, East Wing, 4th Floor,
Room BA new branch to support building owners,
the local community, and society in the
Ikebukuro area, where office needs are
increasing in companies such as animation
content-related companies

Chuo-ku

Nihonbashi
branchMinato-ku

Ginza
branchMeguro-ku

GotandabranchShinagawa-ku※Yamanote Line

Hamamatsucho
branchYokohama
branchCopyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

25

Shinbashibranch11th branch

Opened January 4, 2024
1-18-14 Shinbashi, Minato-ku, Tokyo
Shinbashi MM Building, 7th Floor
A new branch in the Shinbashi area todivide the area under jurisdiction,
aiming to become a store that is loved
by the local clients by being moredeeply rooted in the local communityand solving problems

Sun Frontier Fudousan Co., Ltd

Real Estate Service Business Continues to Expand
Its Customer Base
Expanding as a platform for business growth【Property Management entrusted property distribution】(buildings)（棟）

Trendsof the Number of Entrusted Buildings in
プロパティマネジメント管理受託棟数推移
Property Management Business

600

500
400
300

333

362

372

373

392

397

421

457

494

276

200
District100
P

0

Entrusted properties of the Company

FY2015/3 FY2016/3 FY2017/3 FY2018/3 FY2019/3 FY2020/3 FY2021/3 FY2022/3 FY2023/3 FY2024/3
3Q(cases)4,000

Trendsof the Number of Rent Guarantee Contracts
滞納賃料保証契約件数の推移

3,000

2,370

2,658

3,261
2,989 3,099

3,563

3,814

OthersExcept for 23
7%
wards 1%

2,035
2,000

【Percentage
newcontractsofGuarantee
Rent Guarantee【Percentage ofof
newcontractsof Rent
by area】 by area】

Chiyoda-ku
25%

Other 23 wards

1,642

13%

1,290

Chuo-ku
19%

Shinjuku-ku
9%Shibuya-ku Minato-ku
14%
12%

1,000
0
FY2015/3 FY2016/3 FY2017/3 FY2018/3 FY2019/3 FY2020/3 FY2021/3 FY2022/3 FY2023/3 FY2024/3
3Q

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

■ 5 cities of central
Tokyo 79%

26

■ Other Tokyo 14%
Total of 93% in Tokyo* As of March 31, 2023 : 749 new contracts

Sun Frontier Fudousan Co., LtdConference Room Rental Business

Strong Performance at New Sites
Continuing Opening New Sites Actively
Demands from repeat corporate clients are increasing, occupancy rates of newly
opened buildings are good, and further expansion
Sites of new open and expand
FY2024/3

Vision Center Shinbashi
3-minute walk from
Shimbashi Station

Vision Center Shinjuku Minds
Tower 220 tsubo

Opened on Nov.
16

Vision Center Shinbashi 390
tsubo

Scheduled toopen on Feb. 14,
2024
Vision Center Shinjuku
Minds Tower opened in
November will expand
operating area 500 tsubo
as early as April.

FY2025/3

施設所在地

Scheduled to
expand on April 1,
2024(tsubo)(million of yen)

◆Trends of Net sales for Conference Room and Operating area of Vision Center

3,000

2,219

Operating area(right axis)

2,000

1,842
1,279

1,500
1,000

720

410

1,200

9,000
8,000

Net Sales（left axis）

2,500

500

Vision Center Shinjuku Minds
Tower 500 tsubo

917
3,000

1,500

1,162
3,400

1,289

4,400

8,000

7,000
6,000

6,500

5,000
4,000
3,000

3,400

2,000

600

1,000

0

0
FY2017/3

FY2018/3

FY2019/3

FY2020/3

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

FY2021/3

27

FY2022/3

FY2023/3

FY2024/3/3Q

FY2025/3

Sun Frontier Fudousan Co., Ltd

Hotel Development Business

Investing in Hotel Development actively
Contributing to regional revitalization while
meeting the needs of business and tourism.
Operating3,099 rooms

planning

1,331 rooms

Total

4,430 rooms(on planning)

Onna-son,
Okinawa

HIYORI HOTEL MAIHAMAHIYORI HOTEL OSAKA NAMBA STATION
Tabino Hotel lit Matsumoto
Tabino Hotel lit Miyakojima
Tabino Hotel Villa Miyakojima
Spring Sunny Hotel Nagoya Tokoname Station
Tabino Hotel live Sado
Tabino Hotel lit Sakata
Tabino Hotel lit Kawaguchiko
Tabino Hotel lit Ishigakijima
Kyoto Gojo Hotel ＰＪ

MatsumotoTakayama
Inawashiro（M&A)

Shijo
Gojo（on planning)

Kashima

Kobe

Maihama（M&A）

Kurashiki Mizushima

NaritaShimonoseki

Koiwa
TokonameOzumachi（on planning）

Osaka
Kakogawa（on planning）※on planning

80
224
176
111
4
194
8
174
130
200
40

※on planning※on planning※on planning※on planning

Economy Class

Kyoto

Hakata

102
52
72
110

Upper Middle Class

Sado（on planning）

Sora Niwa Terrace Kyoto Bettei
Hiyori Ocean Resort Okinawa
Atami Hotel Project
Seifutei
Sora Niwa Terrace Kyoto
SADO RESORT HOTEL AZUMASADO NATIONAL PARK OOSADO
Hakone Hotel PJ

Ishikari

Sakata (on planning)

Ishigakijima

Number of rooms
32
203※on planning
150
※M&A
11

Upper Class＜Number of rooms＞

Miyakojima（As of February 2024）
Luxury Class

Namba
Dotonbori(M&A)
Shinsekai(M&A)
Suminoe(M&A)

Kawasaki

Hakone（on planning）
Atami （on planning）
Kawaguchiko（on planning）

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

28

Tabino Hotel Hida Takayama
Tabino Hotel Kashima
Tabino Hotel Kurashiki Mizushima

80
194
155

Tabino Hotel Sado

111

Tabino Hotel EXpress Narita

100

Tabino Hotel Ishikari ※175※on planning

Tabino Hotel Kumamoto Ozu ※180※on planning

Tabino Hotel Kakogawa
Joytel Hotel Namba Dotonbori
Joytel Hotel Shinsekai Sakaisujidori
Osaka Joy Hotel
Kobe Plaza Hotel
Kobe Plaza Hotel WestDONDEN Highland

172
53
103
229
107
120
12

※on planning
※M&A

※M&A
※M&A
※M&A
※M&A

Budget ClassSKY HEART Hotel Koiwa
SKY HEART Hotel Kawasaki
SKY HEART Hotel Hakata
SKY HEART Hotel Shimonoseki

105
200
157
104

Sun Frontier Fudousan Co., LtdM&A 2 Hotel Companies
The number of rooms in Hotel Operation increased by 623 from the M&A of two
companies
Date ofFoundation

1994.2.2

Date of M&A

2023.11.28

100% M&A by Sun Frontier Hotel Management Co., Ltd.

Date ofmerger2024.3.1

To be margered by Sun Frontier Hotel Management Co., Ltd.

Facilities

Seifutei1640-3, Yama Gun Inawashiro Machi, Fukushima Ken

Date ofFoundation

1991.4.19

Date of M&A

2024.1.23

100% M&A by Sun Frontier Hotel Management Co., Ltd.

Joytel Hotel Namba Dotonbori

2-6-10, Nishishinsaibashi, Osaka Shi Chuo Ku, Osaka Fu

53
rooms

Joytel Hotel Shinsekai
Sakaisujidori

2-10-9, Ebisuhigashi, Osaka Shi Naniwa Ku, Osaka Fu

103
rooms

Osaka Joy Hotel

1-2-1, Shinkitajima, Osaka Shi Suminoe Ku, Osaka Fu

229
rooms

Kobe Plaza Hotel

1-13-12, Motomachidori, Kobe Shi Chuo Ku, Hyogo Ken

107
rooms

Kobe Plaza Hotel West3-4-7, Motomachidori, Kobe Shi Chuo Ku, Hyogo Ken

120
rooms

Facilities

Capital Stock

Capital Stock

5,000 thousands of yen

11
rooms

25,000 thousands of yen

We aim to be the one and only hotel in the world for our customers by spreading
the warm and naturally friendly services of our hotel group.
Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

29

Sun Frontier Fudousan Co., Ltd

Overseas Development Business

Vietnam HIYORI Aqua Tower PJ Starting
Second condominium project (202 units), construction scheduled to begin this spring
Project Overview
Location

Lot 3-A2-1, Son Tra-Dien Ngoc Complex Center, Tho Quang Ward
Son Tra District, Da Nang City, Vietnam

Area size

Land area 1,850㎡

Building
structure

Building area 1,062㎡

Reinforced concrete construction

Total floor
24,498㎡
area

25 floors with 2 basement floors

Facilities

202 residences, stores, kindergarten, swimming pool, fitness gym, community
room, car parking lot, motorcycle parking lot

Schedule

Construction start in Spring 2024, completion in Autum 2026

Appearance perspective

HIYORI Garden Tower
Completed in December 2019306 houses sold2 blocks of stores
Interior perspective
Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

30

Sun Frontier Fudousan Co., Ltd

Partnership initiatives
Working on projects with Advantage Advisors
Purchasing
force
Strengthen
Project

Sales force
Strengthen
Project

ＤＸ
Project

Ｍ＆Ａ
ProjectHoteldifferentiation
Project

Strengthen
procurement incentral Tokyo andexpand target
applications

Capture profit
opportunities bystrengthening
cooperation among
business divisions

DX measures toimprove work
efficiency andproductivity

Promote M&A in
Construction, HotelBusiness and Real
Estate divisions

Strengthenmarketing functions
and measures

Human resource
development,
promote datautilization
promote New YorkbusinessDefining
requirements forbuilding CRM

Improve workflow
and promote the useof customers’ data

2 hotel M&As andcurrently selecting
one other M&A
candidate

Redefining hotel
strengths andaccelerating
expansion

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

31

Sun Frontier Fudousan Co., LtdManagement initiatives with an awareness of capital costs andstock prices
Improve profitability and capital efficiency through sustained business growth, andalso improve ROE while maintaining financial soundness, to aim for PBR of 1 or higher.
■Trend in ROE and PBR
25.0%

3.00

ROE =

19.6%
20.0%

Profitability

17.6%

16.8%

17.7%

X
(1) Net profit
margin2.50

Capitalefficiency(2) Total asset
turnoverX

Financialsoundness(3) Financial
leverage

15.3%
13.4%

15.0%

2.00

◆ Initiative policies to improve ROE

1.50(1) Net profit
marginImprove profitability by enhancing added
value in Hotel Business and evolving a highly
profitable Office Building Business.

(2) Total asset
turnoverWe will strengthen the cooperation withdivisions, focus on the business period, andenhance the feasibility of plans to increase
efficiency.

(3) Financial
leverage

We will maintain financial soundness andstrive to maintain an appropriate equity ratio
while pursuing business growth.

10.8%
10.0%

5.0%

1.16

6.5%

1.17
1.03

0.96

0.0%

0.62

0.71

0.72

1.00

0.77

0.50

-5.0%

-10.0%

0.00
FY2017/3 FY2018/3 FY2019/3 FY2020/3 FY2021/3 FY2022/3 FY2023/3 FY2024/3

ROE (left axis)

PBR (right axis)※ PBR is the figure as of the end of each period.
However, for FY2024/3, the figures are as of February 1, 2024.
Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

32

Sun Frontier Fudousan Co., LtdTrends for Each Indicator and Initiatives
for ROE Improvement
Ordinary Profit Margin

Total Capital Turnover

Enhance added value in clients' pointof view and evolve and grow highly
profitable businesses.
40%

35%

Equity Ratio

× Increase efficiency by shortening
business period and increasing stockbusiness sales.

Ordinary Profit Margin
経常利益率(左軸）(left axis)

× Maintain financial soundness
while promoting investment
and accelerating business.

Total
Capital Turnover
総資本回転率（右軸）(right axis)＝

Improving ROE
70%

EquityRatio (right axis)
自己資本比率（右軸）

63.5%

60%

56.2%
53.2%
30%

56.1%

52.3%

50.4%

52.2%

54.3%
52.9%

51.7%
48.1%

25%
22.0%

22.7%

24.0%

49.7%

43.2%

46.8%
22.0%

20.9%
17.1%

19.6%

40%

17.8%
30%

17.6%

16.8%

17.7%

12.6%

15.3%

ROE (left axis)

13.4%

10%

20%

10.8%

5%

0%

50%

52.2%

20%

15%

50.0%

10%

6.5%

FY2017/3
17/3期

FY2018/3
18/3期

FY2019/3
19/3期

FY2020/3
20/3期

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

FY2021/3
21/3期

33

FY2022/3
22/3期

23/3期

FY2024/3 (forecast)
24/3期（予）0%Sun Frontier Fudousan Co., Ltd

Driver to improve ROE
Initiatives for expanding business and stable shareholder return accordingly to profit growth.
ROE

売上高
Net
Profitmargin
純利益率

Real
Estate
不動産
Revitalization
再生事業
Business

Continuation and maintenance of
高収益事業の維持・継続
highly profitable businesses

Improvementof purchase capability
仕入れ力の向上
Improvement of manufacturing
モノづくり力の向上
capability

Enhancementof products for sale
販売商品の充実
Shorteningof the business period
事業期間の短縮

Improvementof leasing capability
リーシング力の向上
Site supervision and construction
現場監督・工期管理
schedule management

総資本
Total
asset
turnover
回転率

Real
Estate不動産
Services
サービス事業
Business

Increaseratio of stock business with
利益率・資産効率のhighprofit margin and asset efficiency
高いストックビジネス比率向上

Enhancement of proposal-based
提案営業力の向上
marketing capability
Increase the number of customers

多様な不動産サービスを利用する顧客の増大
In a variety of real estate services
Serviceenhancements
サービスの増強

Hotel
and
ホテル・
Tourism
観光事業
Business

Financial
自己資本
leverage
比率

Capital

資本政策
policyGrowth into a highly profitable
高収益事業への成長
business

RevPAR
improvements
RevPARの向上

Developmentof high added value
高付加価値な開発

Expansionof manufacturing capability
モノづくり力の拡充

Allocationof appropriate investment
適正な投資配分

Shift to active investment
積極投資への転換
Verification of post-investment
投資後の収益検証
returns

Stableshareholder return
安定的な株主還元

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

34

Dividends
based on profit growth
利益成長に応じた配当

Sun Frontier Fudousan Co., Ltd

Strengthening IR Activities
By expanding IR activities, we aim to make more conversation with capital market actively.
IR activities
Presentation of financial
results

Held every quarter by President Representative
Director, Seiichi Saito.

Website for on-demand broadcast (including Q&A)
https://www.sunfrt.co.jp/ir_info/ir_doc/on-demand.html

Individual IR meetings

Conducted individually as needed.
(mainly handled by IR staff).

FY2024/3 2Q: 32 times (FY2023/3: 61 times)

Property visit

A hotel visit(Hiyori Hotel Maihama) held on July 12, 2023 for sell-side analysts and institutional investors.

Web sites for investors

FISCO: https://web.fisco.jp/platform/companies/0893400
IR STREET: https://www.irstreet.com/new/en/brand/index.php?&contents=brand_whatsnew&brand=398

Investor briefings

Scheduled to participate in a seminar for individual investors hosted by the Securities Analysts Association of Japan (To be held on March 12,2024 at the Nikkei Kayabacho Conference Room)

Disclosed materials
Financial Results

Disclose Japanese and English version simultaneously.
Disclose Chinese version within a week after Japanese.

Website (IR Library)

IR Presentation

Disclose Japanese, English version and Chinese version
simultaneously.

Annual Securities Report

Disclose Japanese and English version.

Japanese: https://www.sunfrt.co.jp/ir_info/
English: https://www.sunfrt.co.jp/en/ir_info/ir_doc/annual_securities_report/

Notice of General
Meeting of Shareholders

Disclose Japanese and English version.

Japanese: https://www.sunfrt.co.jp/ir_info/annual_general_meeting/English: https://www.sunfrt.co.jp/en/ir_info/annual_general_meeting/Anaylist Report

FISCO 、 Shared Research

Japanese: https://www.sunfrt.co.jp/ir_info/
English: https://www.sunfrt.co.jp/en/ir_info/

Japanese: https://www.sunfrt.co.jp/ir_info/ir_doc/statement-of-accounts/
English: https://www.sunfrt.co.jp/en/ir_info/ir_doc/statement-of-accounts/
Chinese: https://www.sunfrt.co.jp/ch/ir_info/ir_doc/

Shareholder benefit program
OutlineDiscount coupons for hotels operated by our group companies based on the number and period of shares held.

Details and facilities
available for use

Shareholder benefit program website
https://www.sunfrt.co.jp/ir_info/stockholder_benefit_plan/

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

35

Sun Frontier Fudousan Co., LtdImprove PBR by the initiatives for ROE
Improvement
ROE

PBR

＝

Net profit

Market capitalization

Market capitalization

EquityNet profit

EquityROE (left axis)
ROE(左軸)PER(right axis)
PER(右軸)

25.0%

20.0%

PER

×

PBR (right axis)
PBR(右軸）

10.92

19.6%

10.0

17.6%

16.8%

17.7%
15.3%

6.65

15.0%

12.0

6.67

13.4%

8.0

6.13

5.92

10.8%

6.0

5.03

10.0%
4.0
3.50

5.0%
1.16

1.17

6.5%
1.03

0.62

0.71

2.0

0.72

0.77

0.0%

0.0
FY2017/3
17/3期

FY2018/3
18/3期

FY2019/3
19/3期

FY2020/3
20/3期

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

FY2021/3
21/3期

36

FY2022/3
22/3期

FY2023/3
23/3期

FY2024/3
24/3期(forecast)（予）
Sun Frontier Fudousan Co., Ltd

Medium-term Management Plan

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

37

Sun Frontier Fudousan Co., Ltd

Medium-term Management Plan

Basic Policy and Growth Strategies
Basic Policy
Providing “a place where people gather and communicate with each other,and create social development and happiness for people"

Growth strategies
OfficeAccelerate property purchasing and commercialization.
Enhance purchase capabilities by improving leasing capabilities.

Hotel

Further evolute "a heartwarming and fun hotel“ and accelerate
the growth toward 10,000 rooms in 10 years.

Overseas

Increasing assets under custody from Taiwan clients, apartment
replanning in NY, apartment construction in Da Nang.

M&A

Invest in start-ups and peripheral businesses
to expand our current business

Key Points

ESG

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Digital38

Cash flow

Marketing
Sun Frontier Fudousan Co., Ltd

Medium-term Management Plan
FY2024/3 3Q
Results

Net sales
売上高(100 millions of yen)

1,200

Ordinary profit
経常利益

FY2024/3
Revised forecast

Net sales

62.3 billions yen

79.0 billions yen

100.0 billions yen

Ordinary profit

13.9 billions yen

16.5 billions yen

20.0 billions yen

Net profit

9.7 billions yen

11.6 billions yen

14.0 billions yen

Ordinary profit margin

22.3%

20.8%

20%

Equity ratio

51.4%

Around 50%

Around 50%

-

13.4%

More than 10%

ROE

Net profit
当期純利益

1,000

1,000
827

800
600

FY2025/3
Target

732

790

712
596

533

623

400
200

128

161
88

107

75

147

122
74

44

116

FY2020/3
20/3期

FY2021/3
21/3期

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

FY2022/3
22/3期

39

116

139

0
FY2019/3
19/3期

200

165

FY2023/3
23/3期

140

97

FY2024/3
3Q
24/3期3Q(forecast)
FY2025/3
25/3期（予）Sun Frontier Fudousan Co., LtdInvestment Plan of Medium-termManagement Plan（FY2022/3-FY2025/3）
Office Business(100 millions of yen)(100 millions of yen)

2500

2000
2000

550

500

379

Overseas Business

100
Reaccelerating investment to reach 10,000
rooms.

150

80

120

1257

1000

（(100 millions of yen)）

200

Record highpurchase amount forthe current period.
Continuing aggressive
investment.

1500

Hotel Business

100

Land acquisition, for HIYORI Aqua Tower in
Vietnam. Start of construction expected
this spring.

60

50

50

70

40

50

20

70

11.5

328
0
Plan
計画
FY2022/3
22/3期

FY2023/3
23/3期

0Progress
進捗

Plan
計画

FY2024/3(Expected)
24/3期(見込)（(100 millions of yen)）

100
80
60

FY2022/3
22/3期

Progress
進捗
FY2023/3
23/3期

M&A

Plan
計画

FY2024/3(Expected)
24/3期(見込)(100 millions of yen)

50
Toward the creation of business synergies
continue to actively consider investment.

40
30

50

FY2022/3
22/3期

15.7

20

10.7
0
Plan
計画

30

FY2022/3
22/3期

FY2023/3
23/3期

12.8
10.3
6
Plan
計画
FY2022/3
22/3期

FY2024/3(Expected)
24/3期(見込)FY2024/3(Expected)
24/3期(見込)29.1

0Progress
進捗

FY2023/3
23/3期

Investment amount is expected to increase
toward the data utilization stage.

10
5Progress
進捗

Digital

20

40

11.5

0

Progress
進捗
FY2023/3
23/3期

FY2024/3(Expected)
24/3期(見込)* Plan is the total investment amount for the four periods of 22/3-25/3. The figures for Office Business, Hotel Business, and Overseas Business are the sum of purchases and construction. The amount of M&A investment is theamount invested. Digital investment is the total of system installation costs and running costs.

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

40

Sun Frontier Fudousan Co., Ltd

Philosophy and Sustainability

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

41

Sun Frontier Fudousan Co., Ltd

Philosophy
Systematic the philosophy for the further penetration
Top-level concept
Credo (Company policy)

MissionVisionValue

Management
Philosophy

Future Image

Course of
ActionCopyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

COMPASSION
We believe in helping others, as many as we can,throughout our lives.
Our mission is to co-create a rich and sustainable society bycontributing to the evolution and the development of thehuman society as we look after every employee and pursue
the happiness of both mind and matter.

Our vision is to become the most appreciatedvisionary company that fully utilizes limited resources
and continues the challenges to create new values.
1. Work For Your colleagues

5. Be GENBA-Centric

2. Stay Humble, Thankful, And
Respectful

6. Always Work Creatively

3. Do The Right Thing

7. Be Open-Minded Cheerful and
Wonderful

4. Absolute Proactiveness42

Sun Frontier Fudousan Co., Ltd

Business area
Solving social issues through our core business, Real Estate Utilization.

Realization of Sustainable Society
Environmental
Protection

Human Resource
Development

Office Business

Regional
Revitalization

Hotel and Tourism
Hotel
Hotel
Operating Development
・Operating

Real Estate Revitalization Real Estate Service
・Replanning
・Small-lot Property
・Rental Building

Others・Construction

・Sales Brokerage
・Leasing Brokerage
・Property Management
・Building Maintenance・Asset Consulting
・Rent Guarantee
・Conference Room Rental

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

・Development
・Revitalization
・SalesRegional Revitalization(Shima Yume)
・Hotel Operating andDevelopment
・Tourism
Taxi, Restaurant
Rental car, Rental bicycle

43

Overseas
Taiwan・Sales Brokerage

USA（New York）

・Replanning

Vietnam・Residential
Development
・Residential
Management

Sun Frontier Fudousan Co., Ltd

Sustainability Issues and Targets
Sustainability Vision

Sustainability HP → https://www.sunfrt.co.jp/en/sustainability/

We will contribute to the realization of a sustainable society through business activities while
respecting the heart of altruism, the Company policy.
IImportant Issues

Environmental
protection

Social issues to be solved

PolicySmall and medium-sized buildingsthat can still be used withincreased value are being
demolished.
= Waste of resources■ Extend the life and health ofreal estate■ Energy conservation andreduction of environmental
impact by the Real Estate
Revitalization Business

•
•
•
•
•
•

Revitalizationof regional economies

Regional
revitalization

Human
resource
development■ Create buildings, offices, andspaces with “job satisfaction”
and “creativity” that
contribute to economic growth

Response to massive natural
disasters■ Prevent and mitigate disasterthrough regional cooperation

Elimination of the decline in theworking-age population due to lowbirthrate and aging population (realdecrease in labor force) and thegender gap■ Respect and utilize diversity■ Create workplaces with job
satisfaction, creativity andgrowth opportunities

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

SDGs
icon

Goal (KPI)

44

•
•

Extend economic estimated useful lives by at least 30%
Occupancy rate of buildings over 30 years old to be 90% or
moreRetention of management after sale of replanning property
to be 90% or more
Reduce carbon dioxide emissions by an average of at least
12% compared to a building reconstruction project
100% carbon offset
Establish internal standards, “Sun Frontier Wellness Score”,
by the end of FY2022
Percentage of new supply of replanning properties thatexceed the established internal standards to be 30% ormore in FY2023
Implement tenant satisfaction surveys (for Companyowned properties)••

At least five lots by FY2023
Post disaster prevention information on the dedicatedwebsite 100% in FY2023 (for Company-owned properties)•

Ratio of female management to be 12% or more by April
2025
Training hours as a percentage of prescribed working hours
to be 12% or more
Increase hourly recurring profit in FY ending March 2023
year-on-year••

Sun Frontier Fudousan Co., Ltd

Sun Frontier Sustainability Report 2023 Issued

Business overview

Financial and non-financial highlights

Environmental protection

Regional revitalization

Front cover

Top message

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

[Main contents]
・ Sun Frontier Philosophy
・ History of Sun Frontier・ Top message
・ Growth strategies by businesses
・ Sustainability management
・ Examples of sustainability activities
・ ESG data
Etc.
Human resource development

45

Sun Frontier Fudousan Co., Ltd

ESG Data
Environment

SocialGovernance
As of Decｅmber 31, 2023

As of Decｅmber 31, 2023

Actual numberof RP buildings

Carbon Offset
Cumulative total 3,003t

Ratio of male and female employees
in managerial positions（people） ■Male ■Female

500
410 people

400

Total 480 buildings

RE100/Mori no Denki
Total 19 buildings 2,241ｔ

RP construction
39 buildings
762ｔ
Capital and business alliance
Promoting the use ofelectricity storage systems

Establishment of SF
Ocean Power Generation
Co., Ltd.

Target ratio of female（people） managers at least 12%269
People
65.6%

300
200
100

100

79 people

50

141
35.1%

0

0

72
91.2%
7people8.8%

Employee

管理職Management

Childcare leave

Human resource
development

Utilization rate 100%

Aim to over 12%

As of Decｅmber 31, 2023

Transition to acompany with
Audit & Supervisory
Committee

Ratio of Outside
Officers 1/3 or more

As of June 30, 2022

Board of Directors
Audit &
Supervisory
Committee

Female Directors
1 out of 11External
36.4%

Full-time
63.6%

Nomination andCompensation
Committee (optional)
2 out of 4 outside officers

13.3%
Return to work
ratio 92.6%

Full-time Full-time

Capital and business alliance
Promoting agrivoltaics

Acquired BELS for
6 properties

Outside Outside

From childcare leave,
92.6% return to work

Training 13.3% ofworking hours

Ensuring transparency
and soundness

・ RE100 ・ ・ ・ ・ Carbon offset using J-credit derived from renewable energy. Initiatives to become thefirst in Japan to introduce this system on each floor. Achieve zero Co2 emissions per tenant company.
・ "Mori no Denki" ・ ・ ・ Carbon offset using J-credit derived from forests. We can feel that we aresupporting forests side-by-side and moving into the building will contribute to the environment.

Sustainability website
https://www.sunfrt.co.jp/en/sustainability/
Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

■ Male ■ Female

46

Sun Frontier Fudousan Co., Ltd

Business Model

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

47

Sun Frontier Fudousan Co., Ltd

Strategy in Office Business
Solving client’s various problems, mainly in the five cities of central Tokyo.

12

NakanoRP

Arakawa
Arakawa
14

11

Toshima*As of the end of December 2023

Taito

BunkyoBunkyoLM

25
80

Shinjuku
Shinjuku
41

ChiyodaOf the total number of RP buildings,
480 buildings, 80% are in the five cities ofcentral Tokyo and adjacent cities.

138

PM

Community-based 12 branches
Ginza, Kanda, Nihonbashi, Kodemmacho, Kojimachi,
Shinjuku, Shibuya,Gotanda,Hamamatsucho,
Yokohama, Shimbashi, Ikebukuro

Of the 494 entrusted properties, over 80% arein the five cities of central Tokyo.
*As of the end of December 2023

Shibuya
11

Chuo
50

BM

MinatoOf the 232 buildings under comprehensive
management, 85% are in the five cities ofcentral Tokyo.
*As of the end of December 2023

Rent
Guarantee

MeguroOf the 7,687 cumulative new contracts signed,
90% are in the five cities of central Tokyo.
*As of the end of December 2023

8

Rental13 of the 14 sites are in the five cities ofConference central Tokyo.
Room*As of the end of December 2023. The rest of one is in

ShinagawaShinagawa* The numbers on the columns in the map are
the cumulative number of RP buildings.
Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Yokohama

48

Sun Frontier Fudousan Co., Ltd

Strengths in Office BusinessWith in-house manufacturing from purchase, development, leasing to sales and consulting,
we solve various problems by getting client’s needs correctly.

① Real Estate Utilization
To be a partner for solving various problems from clients’ point of view

Fundraising Consulting

Asset consulting

Rent guarantee

Construction planning

Property management

Leasing brokerage

Sales brokerage

Property
purchasing② Real Estate
Revitalization
Building
development ofvalue chain

Property
sales

Clients
1. Real estate utilization: Get close to our clients and solve various problems. Capture the source of added value
from clients’ voices.
2. Real estate revitalization: Utilize the needs we earned and the know-how for improving the valuation to conduct
sales activities.
Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

49

Sun Frontier Fudousan Co., Ltd

Business Model for Replanning Business
Renovating the office buildings with low occupancy and in need of large-scale repairs
into high-value-added properties demanded by society using “clients’ point of view.”

Low-occupancy
low-profit buildings
・ Aging degradation
・ Earthquake
resistance anxiety
・ Violation of legal
compliance, etc.

Creativity

Leasing

Design offices in clients'
point of view and carryout renovation and repair
work in pursuit of safety
and security.

A community-based sites
network keep the building inhigh occupancy and becomesthe closest contact point for
any kind of consultation.

High-occupancy
high-profit buildingssought by owners

Value-up

Purchasing

Rent Guarantee

Purchase of lowoccupancy and nonoccupancy buildings
using various routes andmethods.

Encourage tenants tomove into the building andguarantee stable income
for the owner in the eventof rent arrears.

Clients =Building owners

Sales

Management

Stay close to clients of asset
holders and meet needs
with high levels of difficulty
beyond expectation.

Provide high-quality
services, maintain highoccupancy rate, andstabilize building
revenues.

・ Asset management, inheritancemeasures, etc.

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

50

・ Full occupancy
・ Improve
income andexpenditure
・ Stable income

Sun Frontier Fudousan Co., LtdReplanning Business

Set-up Office Share"Set-up Office" is a kind of office replanned by our Company. Unlike regular office interiors, there are reception andreception room, etc., in the office with highly designed interior. We also provide some equipment for rent or fixtures preinstalled.

◆Four benefits for tenant companies
Merit 1) Reduced burden on management
No need for unfamiliar tasks such as designing office interiors andselecting interior decorators, significantly reducing management’s
effort.

Merit 2) Immediately available after moving
Increase the net estimated internal useful life due to no work other than wirerelated work and moving, a significant reduction in the relocation period and ashorter construction period for interior finishing and restoration.

Merit 3) Reduced financial burden
Significant cost reduction for office interiors, etc., and no interior assets
recorded by tenants.

Merit 4) Employment, motivation and productivity improvement
Improve employment of human resources, employee motivation, and officeproductivity by the office interior that pursues a high level of design, focusing
on design, functionality, and various usage scenes.

The share of Set-up Office in 23 wards of Tokyo
Based on the number of rental rooms

Other

29.0%

Company B

Based on rental area

Other

Sun Frontier
Fudousan

27.9%

58.6%

Company A

5.6%

Sun Frontier
Fudousan

51.7%

9.5%

Company A

6.8%

Company B

10.9%

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

51

Survey conducted in September 2022
Survey planning: Sun Frontier Fudousan Co., Ltd.
Survey conducted: H. M. Marketing Research

Sun Frontier Fudousan Co., LtdReplanning Business

Create both Customer Value and Social Value
Solving social issues through supporting our clients' business.
Supporting the business growth forbuilding owners and tenants throughour Replanning Business.

Comparison of resource input over 50 years(kg / ㎡)

3,991

(t-CO₂)

40.9% ↓

4,000

Comparison of CO₂ emissions over 50 years

7,000

=
Utilizing the limited, keeping challenging
to create new value, and aiming tobecome the most appreciated visionary
company in the world.

3,000

19.1% ↓

2,357
6,000

2,000

5,179
1,000

5,000

0
Rebuilding
建替
New bldg
新築

Clients’
value

6,399

Renovation
改修

Rebuilding
建替

Renovation 4,000
改修

Repair
修繕

Comparison of waste generation over 50 years(kg / ㎡)

3,000

801

49.3% ↓

800

2,000
600

406

400

Economic
value

Social
value

1,000

200
0
Rebuilding

Renovation

建替

New bldg

新築

Rebuilding

建替

改修

RepairRenovation

修繕

改修

Demolition

解体

0Standard
標準
New新築
bldg
Maintenance

維持管理

Renovation
改修

Repair
修繕 Renovation改修
Disposal
Energy

廃棄エネルギー<Assumptions and rationale> Assuming a 30-year-old office building of approximately 3,000 square meters, the environmental contribution over a 50-year period (the service life of SRC office buildings) was
estimated based on the Architectural Institute of Japan's LCA Tool (*).
・ Rebuilding: “In the case of rebuilding every 35 years” ・ Renovation: "Regeneration without destroying old buildings (long-life buildings)" ・ Standard: "Assuming a 30-year-old unrenovated building"*Architectural I "LCA Tool for Buildings Ver5.0 - Evaluation Tool for Global Warming, Resource Consumption and Waste Management”, estimated with the cooperation of Engineering Research Institute of Japan.

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

52

Sun Frontier Fudousan Co., Ltd

Regional Revitalization Business--Shima Yume Business-We will energize the islands throughtourism business!

SADO

When region becomes energized, Japan will be as well. As the number of visitors
spurred by fascination (culture, history, nature, food, hot spring, hospitality and others)
that Japan is proud of is rapidly increase, we challenge of regional revitalization
business that focuses on the attractiveness and features unique to the regions to spreadthe “Wonderfulness of Japan.”

Sado Island,
Niigata Prefecture
Tabino Hotel Sado
Donden Kogen Lodge
Miyako Shimojishima Airport
Restaurant - Coral Port

Port of Ryotsu

Operation starts on October 1, 2022

Tabino Hotel lit
Miyakojima
Miyako Shimojishima
AirportSADO NATIONAL PARKHOTEL OOSADO

Sado Outdoor BaseMIYAKO
Miyakojima, Okinawa
SADO RESORＴ HOTEL AZUMALE BLUESADO SAWANE

Tabino Hotel live Sado
Start operating in June 2023

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

53

Tabino Hotel Villa Miyakojima
Operation starts on November 3, 2022.

Sun Frontier Fudousan Co., LtdReference Materials

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

54

Sun Frontier Fudousan Co., Ltd

Conversion conditions of CB
Type

Convertible bonds withshare acquisition rights

Maturity

Issuance date

October 6, 2023

Convertible
periodAmount offunds acquired

Approximately 10 billion yen

Bond interest
rate

5 years after the payment due date
However, In principle, non-convertible for 1 year
after the payment due date

1,554 yen per share

Specific use of funds

AmountAcquisition of land in conjunction withnew hotel development and construction
work investment

Approx. 8 billionyen

M&A funds primarily for the hotel
development business and construction
business

Approx. 2 billionyen

In principle, convertible (exercisable) only when exceeding

Conversion
price

0%

5 years

120% (1,865 yen)of the conversion price (exercise price)
However, this shall not apply to cases such as any
conversion (exercise) after the end of the business allianceperiod.

Issuance
2023/10After 1 year
2024/10After 2 years
2025/10After 3 years
2026/10After 4 years
2027/10After 5 years
2028/10

Possibility転換による株式数の増加の可能性
of Share Increasing due to the Conversion
上場株式
Outstanding
shares60,000,000

転換株式
Conversion shares

55,190,454

Business alliance
50,000,000

Maximum
13.2%
increase

40,000,000

Conversion of CBwith shareacquisition rights

Non-exercisable
in principle

In principle, convertible (exercisable) only when exceeding
120% of the conversion price (exercise price)
However, this shall not apply to cases such as any
conversion (exercise) after the end of the businessalliance period.

6,434,954

48,755,500

30,000,000
48,755,500

48,755,500

転換前
Beforeconversion

After転換後
conversion

20,000,000

Dilution
will not occur.

If the AA fund sells shares on the market afterconverting convertible bonds into shares, it cannot
sell more than 25 percent of the total daily volume.
AA is prohibited from transferring the converted
shares to any of our competitors or activists.

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

55

10,000,000
0Sun Frontier Fudousan Co., LtdReference Materials

Office Vacancy Rates and Rents in Five
Cities of Central Tokyo
Average rent (left axis)（%）

Vacancy rate (right axis)

Average rent as ofDecember 2023

19,748 yen

Peak of average rent
August 2008
22,901 yen（yen）( 6 yen ↓MoM )Average vacancy rate in
December 2023

6.03%
( 0.0%pt ↓ MoM )Peak of vacancy rate
June 2012
Vacancy rate: 9.43%

Peak average rent
July 2020
23,014 yen

Bottom of average rent
October 2004
17,526 yen

Bottom of average rent
December 201316,207 yen

Bottom of vacancy rate
November 2007
Vacancy rate: 2.49%

Bottom of vacancy rate
February 2020
Vacancy rate: 1.49%* Source: Compiled by the Company based on Miki Shoji's "Office Report”. Office buildings with a standard floor area of 100 tsubo or more in five central cities of Tokyo are covered.
Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

56

Sun Frontier Fudousan Co., LtdReference Materials

Long-term Trends in Office Vacancy Rate and Rent
(yen)

(%)

50,00045,000Vacancyrate
平均空室率(right axis)

Averagerent
平均賃料(left axis)

44,193

Average vacancy rate in
September 2023

9.01

6.03%

10

9

8.08

Average rent in
September 2023

8.12

40,0008

19,748円

35,000

6.47

7

6.03
6

30,00025,0005

22,18620,00019,748
4

17,577

16,2073.77
15,00021,999

3

3.17
2.65

10,000

2

1.79
1.55

5,000

1

0.39
0

0

Source: Compiled by the Company based on Miki Shoji's "Office Report"
Target office buildings with a standard floor area of 100 tsubo or more in five central cities of Tokyo are covered. Figures for 2021 and earlier are taken as of December of each year.
Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

57

Sun Frontier Fudousan Co., LtdReference Materials

Age Distribution of Office Buildings in Tokyo’s 23 Cities
Solving social issues through revitalizing and utilizing Aging Small-to-Medium-Sized Buildings
Tokyo 23 cities with 9,410 buildings

Small-to-Medium-Sized Buildings(Total floor area: 300 to 5,000 tsubo)

8,644 buildings

75

Large-sized Buildings

70(Total floor area: Over 5,000 tsubo)

65766 buildings

60

Old Seismic Building Codes:
2,132 buildings (25%)

55

Old Seismic Building Codes:
115 buildings (15%)

50
45

20 years old or more:

40

7,509 buildings(87%)

Age of buildings

35
30

Buildings built for more than 20 years :25

478 buildings(62%)

20
15

Buildings built for less than 20 years :101,135 buildings (13%)

Buildings built for less than 20 years :5288 buildings (38%)

0
800

600

400

200

0

200

400

600

800

Number of buildings
Source : Created by us based on "Tokyo 23 cities Office Pyramid 2023 (based on the number of buildings)" (Xymax Real Estate Institute)

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

58

Sun Frontier Fudousan Co., LtdReference Materials

Demographics and Number of Corporations in Tokyo
Provide happiness and improve society development in Tokyo, people and corporations gathering.
Ratio of Tokyo population to Japanese population (estimate)(Thousand people)

160,000

Population in
東京都人口
Tokyo

Population
日本人口of Japan

Population of Tokyo as a percentage of the
東京人口が日本人口に占める割合
population of Japan

25.0%

140,000
20.0%

120,000
100,000

15.0%

80,00060,00040,000

10.6%

10.3%

11.1%

11.4%

11.7%

11.9%

12.6%

9.5%

9.8%

12,064

12,577

13,15913,515

13,85013,97913,93813,754

13,458

2000

2005

2010

2015

2020

2025

2030

2035

2040

10.0%
5.0%

20,0000

0.0%

Source: Compiled by the Company based on Tokyo Metropolitan Government statistics - "Population of Tokyo (Estimate).”Top 10 Prefectures in Number of Corporations
Tokyo 京東Osaka 阪大Kanagawa
神
奈 川
Aichi
愛
知
Saitama埼
玉Hokkaido
北海 道
Chiba 葉千兵Hyogo庫福岡Fukuoka静
岡Shizuoka

575,234
223,407
184,363
153,694130,108
119,564
107,704
94,01383,562

76,981
Source: Compiled by the Company based on the National Tax Agency‘s “Number of Corporations by Prefecture”.

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

59

Sun Frontier Fudousan Co., LtdReference Materials

History(million of yen)

In April 2022, Listed on Prime Sectionof Tokyo Stock Exchange

Net sales
売上高100,000(people)In October 2018, Start Specified Joint Real Estate Ventures

Ordinary profit
経常利益

In April 2016, Start Conference Room Rental Business

Number of employees
従業員数

In August 2015, Start Hotel Operating Business

In February 2007, Listed on First Section ofTokyo Stock Exchange

80,00073,218641

800
82,77779,00071,251
702
696

In July 2005, Start Rent Guarantee Business

600

612
In December 2004, Listed on JASDAQ

59,63260,00053,291 522

In January 2001, Start Replanning Business

48,150In 2000, Start Property Management Business

47,463400

40,394 381

40,00035,254329
30,62526,870

5,003

20,000

7,760

3,588
2

1

681
24

1,771

0 140

0

52
377

70

84

16,730134 125152

206

14,469
141

96

142

8,289
6,346
3,474

501 791 1,437

181

27,741
199

16,127276

223

17,772
10,580
7,024
6,923
5,593
4,341
4,289
2,039
541 799
139

12,813
10,755
8,894

16,500200

14,722
12,2157,524

0▲3,776▲20,000▲17,794'00/3'01/3 '02/3'03/3 '04/3'05/3 '06/3 '07/3'08/3 '09/3

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

(200)'10/3 '11/3'12/3 '13/3

60'14/3 '15/3 '16/3'17/3 '18/3'19/3 '20/3'21/3 '22/3'23/3 '24/3(forecast)

Sun Frontier Fudousan Co., LtdReference Materials

Company Profile
Company Name

Sun Frontier Fudosan Co., Ltd.

Location of Head Quarters 1-2-2, Yurakucho, Chiyoda-ku, Tokyo
Date of Foundation

April 8, 1999

Date of Listing

February 26, 2007 (First Section of Tokyo Stock Exchange)

Capital Stock *11,965 millions yen

Representative

Tomoaki Horiguchi, Chairman Representative Director
Seiichi Saito, President Representative Director

Number of Consolidated
Employees *Average Age of
Employees*

739 employees (1,339 including part-timers and temporary workers)
36.4 years old
Real Estate Revitalization

Business Profile

Management, Brokerage, Construction Planning,
Real Estate Service Properties
Rent Guarantee, Building Operations, Asset Consultation

Hotel Development and Operation
Others

Accounting Month
Listed Market

March
Tokyo Stock Exchange Prime (Code number: 8934)* As of the end of December 2023
Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

61

Sun Frontier Fudousan Co., Ltd

Sun Frontier Fudousan Co., Ltd

Thank you for your continued support.
◆ The purpose of this document is to provide information that can be used as a reference, not for soliciting or promoting you

to purchase a specific product. Please make your decision by your own discretion and responsibility when you make an
investment. If you want to purchase shares of our Company, please contact securities companies.
◆ The information provided in this document is not necessarily in compliance with the Financial Instruments and ExchangeAct, the Building Lots and Buildings Transaction Business Act, the Listing Rules for the Tokyo Stock Exchange and otherrelated laws and regulations.
◆ Forward-looking statements included in this document do not guarantee future performance.
◆ Although we have made every effort to ensure the contents of this document, we can not guarantee their accuracy or
certainty. Please note that they are subject to change or removal without notice.

<Inquiries about this document>
Sun Frontier Fudousan Co., Ltd. IR Desk
Phone : +81-3-5521-1551
URL : https://www.sunfrt.co.jp/
Mail : ir-contact@sunfrt.co.jp