English translation
February 10, 2022
Consolidated Financial Results for FY2022-3Q
(Fiscal Year Ended December 31, 2021)
Company name: | Sun Frontier Fudousan Co., Ltd. |
Stock listing: | Tokyo Stock Exchange 1st Section |
Code number: | 8934 |
URL: | https://www.sunfrt.co.jp |
Address: | 14F, Toho Hibiya Building, 1-2-2, Yurakucho, Chiyoda-ku, Tokyo 100-0006 |
Representative: | Seiichi Saito, President |
Inquiries: | Takeshi Hirahara, Executive Officer, General Manager of Corporate Planning Department |
(Phone: +81-3-5521-1301) | |
Scheduled date of filing quarterly securities report: | February 14, 2022 |
Scheduled date of commencement of dividend payable: | - |
Supplemental materials for quarterly results: | Yes |
Presentation on quarterly results to be held: | None |
*Amounts are rounded down to million yen. |
1. Consolidated Performance for FY2022 3Q (April 1, 2021 to December 31, 2021)
- Consolidated Operating Results
(Percentage figures indicate year-on-year changes.)
Net Sales | Operating Profit | Ordinary Profit | |||||
Million yen | % | Million yen | % | Million yen | % | ||
3Q FY2022 | ¥61,618 | 32.7 | ¥12,151 | 72.8 | ¥11,983 | 82.6 | |
3Q FY2021 | ¥46,442 | (15.0) | ¥7,032 | (48.1) | ¥6,562 | (50.6) | |
(Note) Comprehensive income: For the nine months ended December 31, 2021: ¥7,786 million (+100.2 %) | |||||||
For the nine months ended December 31, 2020: ¥3,890 million (-56.4 %) | |||||||
Profit Attributable to | Earnings per Share | Fully Diluted | |||||
Owners of Parent | Earnings per Share | ||||||
Million yen | % | yen | yen | ||||
3Q FY2022 | ¥7,519 | 85.3 | ¥154.40 | ¥154.26 | |||
3Q FY2021 | ¥4,059 | (54.8) | ¥83.35 | ¥83.31 | |||
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- Consolidated Financial Position
("¥" indicates millions of yen)
Total Assets | Net Assets | Equity Ratio | ||
yen | yen | |||
December 31, 2021 | ¥131,278 | ¥74,500 | 54.3 | % |
March 31, 2021 | ¥127,485 | ¥69,773 | 52.3 | % |
(Reference)Total Equity: As of December 31, 2021: ¥ 71,334 million As of March 31, 2021: ¥ 66,627 million
2. Cash Dividends
Cash Dividends per Share (Yen) | |||||||
1st Quarter | 2nd Quarter | 3rd Quarter | Year-end | Annual Total | |||
FY2021 | - | 0.00 | - | 42.00 | 42.00 | ||
FY2022 | - | 21.00 | - | ||||
FY2022 (Forecast) | 21.00 | 42.00 | |||||
(Note) Changes from the latest released dividend forecasts: None
3. Forecast for Consolidated Financial Results for FY2022 (April 1, 2021 to March 31, 2022)
(Percentage figures indicate year-on-year changes.)
Net Sales | Operating Profit | Ordinary Profit | Profit Attributable to | Earnings | ||||||
Owners of Parent | per Share | |||||||||
FY2022 | Million yen | % | Million yen | % | Million yen | % | Million yen | % | yen | |
¥76,000 | 27.4 | ¥12,000 | 51.7 | ¥11,500 | 52.8 | ¥7,400 | 73.1 | ¥151.95 | ||
(Note) Changes from the latest released performance: None
- Notes
-
Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): None
New companies: -
Excluded companies: - - Adoption of special accounting practices in the preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, estimates and restatement
1) | Changes in accounting policies due to changes in accounting standard: | Yes |
2) | Changes in accounting policies other than 1) above: | None |
3) | Changes in accounting estimates: | None |
4) | Retrospective restatement: | None |
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- Number of outstanding shares (common stock)
- Number of outstanding shares at the end of the period (including treasury stock):
As of December 31, 2021: | 48,755,500 shares |
As of March 31, 2021: | 48,755,500 shares |
- Number of s treasury stock at the end of the period:
As of December 31, 2021: | 56,644 shares |
As of March 31, 2021: | 56,644 shares |
- Average number of shares for the period:
As of December 31, 2021: | 48,698,856 shares |
As of March 31, 2021: | 48,698,856 shares |
*This Summary of Consolidated Financial Results is not subject to review processes under the Financial Instruments and Exchange Act.
*Explanation for appropriate use of forecast and other special matters
Forward-looking statements, such as forecast of consolidated financial performance, stated in this document are based on information currently possessed by the Company as well as certain assumptions deemed rational. It does not mean that the Company assurances that the contents mentioned in these forward-looking statements will ever materialize. Actual financial performance may be significantly different from such expectations due to various factors. For the assumptions used and other notes, please refer to "1. (3) Explanation regarding forward-looking statements such as consolidated earnings forecasts" on page 6.
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Accompanying Materials | ||
Contents | ||
1. Qualitative information regarding consolidated performance for the first nine months ................................ | 2 | |
(1) | Explanation regarding operating results .................................................................................................... | 2 |
(2) | Explanation regarding financial position ................................................................................................... | 5 |
(3) | Explanation regarding forward-looking statements such as consolidated earnings forecasts ................... | 6 |
2．Quarterly Consolidated Financial Statements and Key Notes ..................................................................... | 7 | |
(1) | Consolidated Balance Sheet....................................................................................................................... | 7 |
(2) | Consolidated Statements of Income and Comprehensive Income............................................................. | 9 |
(3) | Notes to Consolidated Financial Statements............................................................................................ | 11 |
(Notes to Assumption of Going Concerns))................................................................................................ | 11 | |
(Notes on Significant Changes in the Amount of Shareholders' Equity).................................................... | 11 | |
(Change of Accounting Policies) ................................................................................................................ | 11 | |
(Additional information) ............................................................................................................................. | 12 | |
(Segment Information, etc.) ........................................................................................................................ | 13 | |
(Significant Subsequent Events) ................................................................................................................. | 14 |
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1. Qualitative information regarding consolidated performance for the first nine months
(1) Explanation regarding operating results
Although the Japanese economy has shown signs of recovery since the state of emergency declaration was lifted, the number of infected people is rapidly increasing due to the impact of the COVID-19 variant. The business environment in Japan continues to be severe, especially in the accommodation and tourism industries. As for the world economy, while the impact of this new variant is spreading, various countries consider to remove Easy Monetary Policy and start tapering against the background of soaring prices. It is necessary to monitor interest rate trends in the future.
The deterioration in the average vacancy rate in the office building market in central Tokyo (5 districts of the Central Tokyo: Chiyoda, Chuo, Minato, Shinjuku, and Shibuya), where the Company operates its office building business, bottomed out in November 2021, and as of December 2021, the average vacancy rate was 6.33%, a slight improvement for the second consecutive month (approximately 0.12%) according to a survey by a private research institution. However, the overall office market remained weak, with the average rent falling for the 17th consecutive month (2,418 yen/ approximately 11%) to 20,596 yen (unit price per tsubo). In the real estate investment market, although institutional investors remain eager to invest, the market is approaching a phase of global monetary tightening, and the outlook for interest rates is unpredictable.
Based on this business environment, the Company is developing its business based on the medium-term management plan announced in May 2021. During the fiscal year under review, even in the pandemic of COVID-19, the Company's core business, Real Estate Revitalization Business, is resulting in steady sales of real estate due to the progression of commercialization with high-margin and high-quality. And Real Estate Service Business is maintaining in strong performance.
On the other hand, because of the great effect by the pandemic of COVID-19, Hotel Operation Business recorded a loss in the fiscal year under review due to the impact of the state of emergency declaration and the start-up expenses of new hotels.
As a result, net sales amounted to 61,618 million yen (up 32.7% YoY)t, operating profit amounted to 12,151 million yen (up 72.8% YoY), ordinary profit amounted to 11,983 million yen (up 82.6% YoY), and profit attributable to owners of parent amounted to 7,519 million yen (up 85.3% YoY).
Due to partial change in the report segment from the beginning of FY2022 1Q, actual results for FY2022 3Q and the same period of the previous fiscal year have been reclassified into the new segment classification. The background and outline of the segment change are as follows. In November 2020, in order to utilizing the know-how in Hotel Operation Business for the "Hotel Development Business" and enhance profitability in an integrated manner, the Company changed the organizational structure by transferring Hotel Development Business from Sun Frontier Fudousan Co., Ltd. into Sun Frontier Hotel Management Inc. Accordingly, the business segment will reflect this change and is renamed the report segment "Hotel and Tourism Business." Also, in order to strengthen further the coordination of each business segment in the real estate services field, the Company consolidated related business segments such as Conference Room Rental Business and Rent Guarantee Business into "Real Estate Service Business".
The results of each segment are as follows. (Real Estate Revitalization Business)
In the Real Estate Revitalization Business, we are engaged in (1) Replanning Business and (2) Rental Building Business.
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