Financial Results for the First Three Quarters ofFiscal Year Ending March 31, 2012
(Based on Japanese GAAP)(Translation of Japanese Flash Report, Released on February 8, 2012)
Company name: Sun Frontier Fudousan Co., Ltd.
Stock listing: Tokyo Stock Exchange 1st Section
Code number: 8934
URL: http://www.sunfrt.co.jp
Address: 14F, Toho Hibiya Building, 2-2, Yurakucho 1-chome, Chiyoda-ku, Tokyo 100-0006
Representative: Tomoaki Horiguchi, President
Inquiry: Seiichi Saito, Senior Managing Director(Phone: +81-3-5521-1301)*Amounts under one million yen have been rounded down.

1. Consolidated Performance in First Three Quarters of Fiscal Year Ending March 31, 2012
(1) Operating results*Percentage figures shown under sales, operating income, ordinary income, and net income columns indicate year-on-year changes
for those items.
(Millions of yen, except for per share figures)

Net Sales

Operating Income

Ordinary Income

3rd quarter of FY ending March 31, 2012

\4,744 (58.3%)\467 (-5.0%)\419 (4.3%)

3rd quarter of FY ended March 31, 2011

\2,997 (-67.2%)\491 (-%)\402 (-%)

Net Income

Net Income per Share(Yen)

Fully Diluted
Net Income perShare(Yen)

3rd quarter of FY ending March 31, 2012\386 (67.8%)\1,039.12\1,039.09

3rd quarter of FY ended March 31, 2011\230 (-%)\619.32\619.32(2) Financial Position (at end of the term)(Millions of yen, except for per share figures)

Total Assets

Net Assets

Equity Ratio(%)

3rd quarter of FY ending March 31, 2012

\11,121\5,921

53.2%

FY ended March 31, 2011\12,787\5,554

41.5%

Reference) Equity at term-end: 3rd quarter of FY ending March 31, 2012 (as of December 31, 2011): \5;921 million
FY ended March 31, 2011 (as of March 31, 2011): \5,535 million－1－2. Cash Dividends(Yen)
Cash Dividends per Share
1st quarter period

2nd quarter period

3rd quarter period

FY ended March 31, 2011

-

\0.00

-

FY ending March 31, 2012-\0.00-Year end

FY ending March 31, 2012
(Projections)

Annual total

\0.00

\0.00

\350.00\350.00

Note: There were revisions to forecast dividends during the quarter.

3. Projections for Consolidated Performance in the Fiscal Year Ending March 31, 2012
(From April 1, 2011 to March 31, 2012) *Percentage figures are indicated year-on year changes for those items.

FY ending March 31,
2012

Net Sales

Operating Income\6,300 (46.9%)\500 (-24.5%)(Millions of yen, except for per share figures)
Net Income per Share
Ordinary Income
Net Income
(Yen)
(Yen)
\440 ( -18.8%)\400 (10.1%)\1,076.73

Note: There were no revisions to consolidated earnings forecasts.

4. Other(1) Significant changes in scope of consolidation during the period (change of specified subsidiaries that lead to achange in the scope of consolidation): None
New Companies: -- Company (Company Name)Excluded Companies: -- Company (Company Name)(2) Application of accounting methods which are exceptional for quarterly consolidated financial statement: None
(3) Changes in accounting policies, accounting estimates and restatement of corrections
1) Changes caused by revision of accounting standards: None
2) Changes other than those included in 1): None
3) Changes in accounting estimates: None
4) Restatement of corrections: None
(4) Number of shares issued and outstanding (common shares)
1) Number of shares issued and outstanding at the end of the period (including treasury stock):
December 2011: 371,495 shares
March 2011: 371,495 shares
2) Number of treasury stock at the end of period:
December 2011: － shares
March 2011: － shares3) Weighted average number of shares for the first quarter period (April 1 – December 31):
December 2011: 371,495 shares
December 2010: 371,495 shares※Disclosure concerning status of implementation of quarterly review procedure
This quarterly financial results report is exempt from the quarterly review procedure based on the Financial Instruments
and Exchange Law. At the time of disclosure of this quarterly financial results report, such review procedure forquarterly reports based on the Financial Instruments and Exchange Law had been under development.

※Appropriate use of projections for performance, other notes
The projections for performance in this report contain forward-looking statements based on information available to theCompany at the date of publication, and on certain set assumptions that have been deemed reasonable. Actual earnings
may vary greatly in accordance with a wide range of factors. Refer to Item 3, “Qualitative information on consolidated
earnings forecasts” under “Qualitative information/financial statements” on page 5.
－2－

1. Qualitative information concerning consolidated business performance for the quarter underreview(1) Qualitative information on consolidated operating results
During the third quarter, although the Japanese economy is still suffering from the impact of the Great
East Japan Earthquake, there are signs of gradual recovery such as improvement in consumption andproduction from rebuilding the supply chain. However, with fears of an economic downturn overseas fromthe European debt crisis, and the concurrent rapid appreciation of the yen, the future of the economy
remains unclear.
In the real estate industry, vacancy rates hovered at a high level and rent continues a downward trend,so the state of the office rental market in central Tokyo remains severe. On the other hand, the real estate
investment market is showing signs of gradual recovery, as investment needs of the wealthy are beginning
to appear for real estate in central Tokyo.
Under these circumstances, the Sun Frontier Fudousan Group has evolved our business to focus on offices
and retail buildings in central Tokyo, which compose the middle to downstream business areas in the realestate industry including property management, sales brokerage, and leasing brokerage. The brokerage andproperty management business needs to be expanded steadily with a long-term view, and while increasing theamount of assets under contract in the property management business, we have placed our efforts on
generating business opportunities through incorporating sales, construction, and revitalization needs derived
from transactions in the leasing brokerage. On the other hand, in the real estate revitalization business, wefocused on acquisition/sales activities in the market for mid- to small-size properties of several hundred
million yen worth with high liquidity.
As a result, our operating results for the first three quarters of the fiscal year ending March 2012 were as
follows: sales of \4,744 million (up by 58.3% from the same period of the previous fiscal year), operating
income of \467 million (down by 5.0%), and ordinary income of \419 million (up by 4.3%). Net income was\386 million (up by67.8%).
Business performance by segment is as follows.
Real Estate Revitalization
In our replanning business, we focused on property acquisition and sales activities, while carefullyascertaining the real estate market trend. We carefully examined properties located in the five wards inTokyo, the group’s strongest area, mainly as short-term projects and purchased seven properties. By
making various improvements to the commodification process including invitation of tenants andrenovations, a rapid revitalization with high turnover rate was achieved, and five properties were sold.
For the building rental business, in order to switch to rental buildings competitive in the mid- to longterm and increase capital for purchasing new replanning properties, four rental buildings were sold in May(one rental building was purchased in the same month), therefore rental income decreased compared to thesame period of the previous fiscal year.
As a result of the above activities, sales were \3,283 million (up by 90.9% from the same period of theprevious fiscal year) and segment income was \611 million (down by 7.1%).
Real Estate Brokerage
In our sales brokerage business, we continued to strengthen our customer base through efforts such as
expanding trade opportunities with foreign investors, with Asia as our main focus. Because potential needs
in urban real estate that centered on the wealthy has been strong, self-use demand from corporations has
been materializing, and a partial improvement of the disparity in price levels between selling and buying
prices has been seen, there is an upward trend in the number of contracts concluded through the sales
brokerage.
In the leasing brokerage business, we endeavored to increase fee income by continued strengthening of brokerage sales
efforts, through the "as-is office," cooperation with related projects such as supporting a comprehensive office relocation,and including peripheral business. As a result of the above activities, sales were \770 million (up by 13.2% from the same
period of the previous fiscal year) and segment income was \639 million (up by 7.9%).

－3－

Property Management
In the property management business, we worked to expand assets under contract in order to createbusiness opportunities including sales brokerage, construction, and revitalization by focusing on the needsof consignors. Further, we have focused on creating new business opportunities by actively proposing
renewal plans that aim to increase the added value of properties under contract, while we made an effort toprevent vacancies through close tenant support.
As a result of the above activities, sales were \334 million (up by 12.9% from the same period of theprevious fiscal year) and segment income was \245 million (up by 12.3%).
Other Businesses
In the construction planning business, performance of the “Total Relocation Services,” a project thataims to solve the various issues that arise when relocating offices, such as layout proposals, interior
contracting and restoration work, has remained steady.
Additionally the delinquent rent guarantee business has also remained stably due to the desire ofbuilding owners to avoid rent delinquency and tenants wanting to lower the risk of entrusting guaranteemoney and security deposits under the sluggish economy.
As a result of the above activities, sales were \356 million (up by 18.2% from the same period of theprevious fiscal year) and segment income was \168 million (up by 36.3%).

(2) Qualitative information on consolidated financial position
Total assets at the end of the third quarter were ¥11,121 million (down by 13.0% from end of previous
consolidated fiscal year) and liabilities were ¥5,200 million (down by 28.1%). The decrease in total assets
was mainly due to a decrease in property, plant and equipment of ¥4,112 million, despite an increase in
cash and deposits of ¥2,016 million and an increase in inventories of ¥534 million. The decrease inliabilities was mainly due to a decrease in short-term loans payable of ¥600 million and a decrease in longterm loans payable of ¥1,657 million, despite an increase in current portion of long-term loans payable of¥326 million.
Net assets were ¥5,921 million (up by 6.6%). The main reason for the increase in net assets was the net
income of ¥386 million. As a result, the equity ratio changed to 53.2%.
(3) Qualitative information on consolidated earnings forecasts
No revisions have been made to the consolidated earnings forecast for the year ending March 2012 thatwere announced on November 10, 2011.

－4－

2. Consolidated Financial Statements*Amounts under one thousand yen have been rounded down.

(1) Quarterly Consolidated Balance Sheets(\ thousand)FY ended March 31, 2011(as of March 31, 2011)

End of 3Q of FY ending
March 31, 2012(as of December 31, 2011)ASSETS
Current assets
Cash and deposits

2,115,547

4,131,820

Accounts receivable-trade147,498

183,255

Real estate for sale787,243

352,979

1,015,584

1,984,993

Real estate for sale in process
Supplies

600

Other

191,352

Allowance for doubtful accounts

180,287(6,583)(12,088)

4,251,244

6,821,248

Buildings, net

4,697,732

1,904,293

Vehicles, net

2,650

1,839

3,192,919

1,935,984

Total current assets
Noncurrent assets
Property, plant and equipment

Land
Construction in progress

62,500

Other, net

9,804

10,7807,965,607

3,852,897

Other

46,18032,808

Total intangible assets

46,18032,808

Other

530,792

422,809

Allowance for doubtful accounts(6,351)(8,184)

Total property, plant and equipment
Intangible assets

Investments and other assets

Total investments and other assets
Total noncurrent assets
Total assets－5－524,440

414,625

8,536,2284,300,332

12,787,473

11,121,580

(\ thousand)FY ended March 31, 2011(as of March 31, 2011)

End of 3Q of FY ending
March 31, 2012(as of December 31, 2011)ASSETS
Current assets
Cash and deposits
Accounts receivable-trade
Real estate for sale
Real estate for sale in process
Supplies

2,115,547

4,131,820

147,498

183,255

787,243

352,979

1,015,584

1,984,993

600

Other

191,352

180,287

Allowance for doubtful accounts(6,583)(12,088)

4,251,244

6,821,248

4,697,732

1,904,293

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings, net
Vehicles, net
Land

2,650

1,839

3,192,919

1,935,984

Construction in progress

62,500

Other, net

9,804

10,7807,965,607

3,852,897

Other

46,18032,808

Total intangible assets

46,18032,808

Other

530,792

422,809

Allowance for doubtful accounts(6,351)(8,184)

Total investments and other assets

524,440

414,625

Total property, plant and equipment
Intangible assets

Investments and other assets

Total noncurrent assets
Total assets－6－

8,536,228

4,300,332

12,787,473

11,121,580

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of comprehensive
incomeQuarterly Consolidated Statements of Income(\ thousand)From 1Q to3Q of FY ended
March 31, 2011
(April 1– December 31, 2010)

From 1Q to3Q of FY ending
March 31, 2012
(April 1– December 31, 2011)

Sales

2,997,561

4,744,737

Cost of sales

1,294,544

3,007,997

1,703,016

1,736,739

1,211,178

1,269,635

491,837

467,104

Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income

1,145907

Dividends income

343

331－

4,200

Compensation income
Liquidated Damages Income

1,587Interest on refund

21

2,236

Other

1,729

2,811

Total non-operating income

4,827

10,486

93,32349,141Non-operating expenses
Interest expenses
Other

693

8,585

94,01757,727

402,648

419,863－

18,893

Reversal of allowance for doubtful accounts

3,634

－

Reversal of construction warranty reserve

3,220

－

Other

1,221

2,702

Total extraordinary income

8,075

21,595－41,510Total non-operating expenses
Ordinary income
Extraordinary income
Gain on reversal of subscription rights to shares

Extraordinary loss
Loss on derivatives cancellation
Litigation settlement

155,000－

6,053

1,596

Total extraordinary losses

161,053

43,107

Income before income taxes and minority interests

249,670

398,352

Income taxes-current

19,578

11,947

Other

Income taxes-deferred
Total income taxes
Income before minority interests
Net income－7－－

373

19,57812,320230,092

386,031230,092

386,031

Quarterly Consolidated Statements of comprehensive income(\ thousand)From 1Q to3Q of FY ended
March 31, 2011
(April 1– December 31, 2010)

From 1Q to3Q of FY ending
March 31, 2012
(April 1– December 31, 2011)

230,092

386,031

Valuation difference on available-for-sale securities

99(638)

Total other comprehensive income

99(638)230,191

385,392

230,191

385,392

Income before minority interests
Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent－8－

（4）Important Subsequent Events
3rd Quarter of FY Ending March 31, 2012
(from September 1, 2011 to December 31, 2011)(Acquisition of Companies by Purchasing Stocks)
At the board of directors’ meeting held on December 27, 2011, the decision was made to acquire stock in Yubi Co., Ltd. and turn it
into a subsidiary. The agreement to transfer stock was made on the same day, and all shares were acquired on January 6, 2012.
1. Purpose in Acquiring Stock
By making Yubi Co., Ltd. into a subsidiary, we can expect a synergistic effect with existing businesses, particularly property
management. Also, by bringing in a building maintenance business with its close relation to real estate operations, we canimprove our overall building management capability, because one of our goals is to increase our capabilities and services
available for building management. It also increases competitiveness within the real estate services sector as a whole.
2. Name of Company Stocks Acquired From
Diamond Facility Co., Ltd.
3. Name, Operations, and Scale of Company Acquired(1) Name

Yubi Co., Ltd.

(2) Business Operations All activities related to maintenance of buildings
Equipment work and maintenance and inspection of facilities inside buildings
Designing, overseeing, carrying out and maintaining building construction(3) ScaleCapital ¥20,000 thousand (As of May 31, 2011)
Total Assets ¥460,398 thousand (As of May 31, 2011)
Sales ¥1,025,059 thousand (May, 2011)

4. Date Stocks Acquired
January 6, 2012
5. Number of Stocks Acquired, Acquisition Price and Percentage of Share Ownership After Acquisition(1) Number of Shares Acquired 40,000(2) Acquisition Price ¥510,000 thousand(3) Ownership Percentage After Acquisition 100%
6. How Payment Funds were Acquired
Funds on hand－9－