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Financial results presentation8934Sun Frontier Fudousan Co.,Ltd.Real Estate

First-Quarter Financial Results Presentation for the Fiscal Year Ending March 2027

In Q1 FY2027, net sales and operating profit exceeded the year-earlier levels and progressed steadily against the full-year forecast. Ordinary profit, however, saw only modest growth, while profit attributable to owners of the parent was below the year-earlier level.

Worth reading
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
2618
¥ million (year-on-year change in net sales)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥29,937 million+9.6%
Operating profit¥6,425 million+6.7%
Ordinary income¥5,895 million+1.9%
Net income¥3,943 million-0.9%
Selling, general and administrative expenses¥3,357 million
Results for the three months of the current quarterNet sales: ¥29,937 million; gross profit: ¥9,783 million; operating profit: ¥6,425 million; ordinary profit: ¥5,895 million; net profit: ¥3,943 million. Figures are for Q1 only.
Full-year earnings forecast
Net Sales
¥130,000 million
Gross profit
¥42,839 million
Selling, general and administrative expenses
¥14,689 million
Operating profit
¥28,150 million
Ordinary income
¥26,000 million
Net income
¥17,400 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Consolidated revenue23.0%
Consolidated gross profit22.8%
Consolidated operating profit22.8%
Consolidated ordinary income22.7%
Consolidated net income22.7%
Revenue from the real estate revitalization business21.9%
Revenue from the real estate services business24.7%
Revenue from the hotel and tourism business25.0%
Other net sales24.4%
Underlying progress against full-year plan for net sales from transactional businesses67.7%
Underlying progress against full-year plan for gross profit from transactional businesses60.0%
Net sales from recurring businesses25.5%
Gross profit from recurring businesses25.7%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
A strong start against the full-year forecast; steady progress in line with the plan; progress in line with the plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Real Estate Revitalization: 5 properties sold (up 1 year on year). Hotel and Tourism: increase in the number of hotels operated. Other: increase in construction orders and the impact of M&A involving the 大竹建窓 Group. Real Estate Services: growth in serviced meeting rooms was offset by the reaction to the previous year's brokerage of large property transactions and revenue from large-scale construction projects. Amounts for individual factors in the bridge: Not disclosed.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Policy rate: 1.00%; inbound visitors from April to June 2026: 10.09 million; inbound tourism spending during the same period: ¥2,509.6 billion. Other assumptions underlying the earnings forecast: Not disclosed.
New initiatives
  • Added the Aeras Group to the consolidated group through M&A and expanded the residential business
  • Opened 4 hotels in Matsuyama, Kumamoto, Takayama and Sado
  • Launched 4 joint investment projects with ITOCHU Corporation
  • Raised the total investment planned under Medium-Term Management Plan 2028 to ¥350 billion
Key KPIsA metric the company considers important as a management benchmark.
  • Number of properties sold in the real estate revitalization business5 Engagements
    Year on year against the same period last year+1 transaction
  • Average project duration in the replanning business922 days
    Year on year against the same period last year+48 days versus the previous full fiscal year
  • Acquisition amount496 Hundreds of millions of yen
  • Number of properties acquired36 Engagements
  • Buildings under property management contracts563 buildings
    Year on year against the same period last year+4 buildings versus the end of the previous fiscal year
  • Vietnam condominium sales contract rateMore than 70%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The average transaction price for rental brokerage increased, while the number of transactions declined. In sales brokerage, the number of transactions handled increased, while the number of large-scale transactions declined.
Segment results
Real estate revitalization business
Net Sales¥18,656 million (up 4.5% year on year)
Gross profit¥5,758 million (up 5.5% year on year)
Segment profit¥5,088 million (up 8.4% year on year)
Real Estate Services Business
Net Sales¥4,261 million (down 0.6% year on year)
Gross profit¥2,266 million (down 1.9% year on year)
Segment profit¥2,261 million (down 1.9% year on year)
Hotel and tourism business
Net Sales¥5,480 million (up 19.2% year on year)
Gross profit¥1,330 million (up 7.7% year on year)
Segment profit¥1,171 million (up 5.6% year on year)
Other
Net Sales¥1,828 million (up 141.6% year on year)
Gross profit¥576 million (up 176.9% year on year)
Segment profit¥466 million (up 141.8% year on year)
Medium-term management plan targets
Medium-Term Management Plan 2028: net sales of ¥150 billion and ordinary profit of ¥30 billion for FY2028, an ordinary profit margin of 20%, ROE of at least 14%, and an equity ratio of approximately 45%. The medium-term plan targets have been revised upward. Long-term targets for FY2035 are net sales of ¥300 billion and ordinary profit of ¥60 billion.
Financial targets
ROE of at least 14% and an equity ratio of approximately 45%. The equity ratio in Q1 FY2027 was 46.4%.
Number of stores and locations
67 directly operated Aeras Group stores in the Tokyo metropolitan area. 4 hotels opened. A new serviced meeting room location, Vision Center Ichigaya Ekimae, opened. The total number of locations at the end of the period: Not disclosed.
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥29,937 million (YoY +9.6%)
Operating profit¥6,425 million (YoY +6.7%)
Ordinary income¥5,895 million (YoY +1.9%)
Net income¥3,943 million (YoY -0.9%)
Selling, general and administrative expenses¥3,357 million
Results for the three months of the current quarterNet sales: ¥29,937 million; gross profit: ¥9,783 million; operating profit: ¥6,425 million; ordinary profit: ¥5,895 million; net profit: ¥3,943 million. Figures are for Q1 only.
Full-year earnings forecastNet Sales ¥130,000 million / Gross profit ¥42,839 million / Selling, general and administrative expenses ¥14,689 million / Operating profit ¥28,150 million / Ordinary income ¥26,000 million / Net income ¥17,400 million
Progress against full-year forecastConsolidated revenue 23.0% / Consolidated gross profit 22.8% / Consolidated operating profit 22.8% / Consolidated ordinary income 22.7% / Consolidated net income 22.7% / Revenue from the real estate revitalization business 21.9% / Revenue from the real estate services business 24.7% / Revenue from the hotel and tourism business 25.0% / Other net sales 24.4% / Underlying progress against full-year plan for net sales from transactional businesses 67.7% / Underlying progress against full-year plan for gross profit from transactional businesses 60.0% / Net sales from recurring businesses 25.5% / Gross profit from recurring businesses 25.7%
Self-assessment against the planA strong start against the full-year forecast; steady progress in line with the plan; progress in line with the plan
Segment resultsReal estate revitalization business Net Sales ¥18,656 million (up 4.5% year on year) / Gross profit ¥5,758 million (up 5.5% year on year) / Segment profit ¥5,088 million (up 8.4% year on year) / Real Estate Services Business Net Sales ¥4,261 million (down 0.6% year on year) / Gross profit ¥2,266 million (down 1.9% year on year) / Segment profit ¥2,261 million (down 1.9% year on year) / Hotel and tourism business Net Sales ¥5,480 million (up 19.2% year on year) / Gross profit ¥1,330 million (up 7.7% year on year) / Segment profit ¥1,171 million (up 5.6% year on year) / Other Net Sales ¥1,828 million (up 141.6% year on year) / Gross profit ¥576 million (up 176.9% year on year) / Segment profit ¥466 million (up 141.8% year on year)
Breakdown of Factors Affecting the ChangeReal Estate Revitalization: 5 properties sold (up 1 year on year). Hotel and Tourism: increase in the number of hotels operated. Other: increase in construction orders and the impact of M&A involving the 大竹建窓 Group. Real Estate Services: growth in serviced meeting rooms was offset by the reaction to the previous year's brokerage of large property transactions and revenue from large-scale construction projects. Amounts for individual factors in the bridge: Not disclosed.
Key KPIsIndicator Number of properties sold in the real estate revitalization business / Value 5 Engagements / Year on year against the same period last year +1 transaction, Indicator Average project duration in the replanning business / Value 922 days / Year on year against the same period last year +48 days versus the previous full fiscal year, Indicator Acquisition amount / Value 496 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator Number of properties acquired / Value 36 Engagements / Year on year against the same period last year Not disclosed, Indicator Buildings under property management contracts / Value 563 buildings / Year on year against the same period last year +4 buildings versus the end of the previous fiscal year, Indicator Vietnam condominium sales contract rate / Value More than 70% / Year on year against the same period last year Not disclosed
Unit price and quantity metricsThe average transaction price for rental brokerage increased, while the number of transactions declined. In sales brokerage, the number of transactions handled increased, while the number of large-scale transactions declined.
Number of stores and locations67 directly operated Aeras Group stores in the Tokyo metropolitan area. 4 hotels opened. A new serviced meeting room location, Vision Center Ichigaya Ekimae, opened. The total number of locations at the end of the period: Not disclosed.
Assumptions Underlying the Business OutlookPolicy rate: 1.00%; inbound visitors from April to June 2026: 10.09 million; inbound tourism spending during the same period: ¥2,509.6 billion. Other assumptions underlying the earnings forecast: Not disclosed.
Medium-term management plan targetsMedium-Term Management Plan 2028: net sales of ¥150 billion and ordinary profit of ¥30 billion for FY2028, an ordinary profit margin of 20%, ROE of at least 14%, and an equity ratio of approximately 45%. The medium-term plan targets have been revised upward. Long-term targets for FY2035 are net sales of ¥300 billion and ordinary profit of ¥60 billion.
Financial targetsROE of at least 14% and an equity ratio of approximately 45%. The equity ratio in Q1 FY2027 was 46.4%.
New initiativesAdded the Aeras Group to the consolidated group through M&A and expanded the residential business, Opened 4 hotels in Matsuyama, Kumamoto, Takayama and Sado, Launched 4 joint investment projects with ITOCHU Corporation, Raised the total investment planned under Medium-Term Management Plan 2028 to ¥350 billion
Items this document does not state (11)
Gross Profit MarginOperating profit marginNumber of employeesRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The Real Estate Revitalization business reported higher revenue and profit due to an increase in properties sold and the maintenance of high profit margins. The Hotel and Tourism business benefited from an increase in the number of hotels operated, while the Other businesses reported higher revenue and profit due to the impact of M&A involving the 大竹建窓 Group and an increase in construction orders. The Real Estate Services business reported lower revenue and profit. Growth in serviced meeting rooms was offset by the reaction to the previous year's brokerage of large property transactions and revenue from large-scale construction projects.

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First-Quarter Financial Results Presentation for the Fiscal Year Ending March 2027 | Sun Frontier Fudousan Co.,Ltd. (8934) timely disclosure | Komori