Q&A

The following are Sun Frontier Fudousan's replies to frequently asked questions (FAQ) with regard to IR information.

Questions to Sun Frontier Fudousan
Q When was the company founded?
Q Why was that company name chosen?
Q What is the company's credo and management philosophy?
Q Can you explain your business details?
Q What kind of consolidated subsidiaries do you have?
Q What is the capitalization value?
Q How many employees do you have?
Q How many offices - including branches - do you have?
Questions about financial and business results
Q What is the accounting period?
Q Would you explain sales per business segment?
Q Could you describe your measures concerning IR activities?
Questions about stocks
Q What is your ticker code?
Q When was the stock first offered to the public?
Q How many shareholders do you have?
Q Who are the major shareholders?
Q How many shares can be traded as one unit?
Q What is the total number of shares issued and outstanding?
Q What is the latest stock split?
Q Is there a fixed date for dividend payments?
Q What is the concept for returns to shareholders? Are there hospitality programs for shareholders?
Q What is the contact number for inquiries regarding stock-related procedures, such as transfers?
Other questions
Q Would you explain your environmental measures?
Q How can we obtain corporate information?

Questions to Sun Frontier Fudousan

Q. When was the company founded?
A. We were founded on April 8, 1999 as Sun Frontier Co., Ltd. Later, in November 2000, we changed the company name to its current moniker, Sun Frontier Fudousan Co., Ltd.
Q. Why was that company name chosen?
A. The name reflects the founder's stance of always being passionate and ambitious - in other words, to blaze a trail and continuously move forward under our own responsibility without relying on others. Sun Frontier is a merger of two emphatic words. We chose "sun" to convey the brightness experienced at midday as an expression of our clear-cut intention - "The desire to keep seeking our dream", while "frontier" expresses our constantly positive and pioneering spirit.
Q. What is the company's credo and management philosophy?
A. For a detailed explanation, please see the page dedicated to "Management Philosophy".
Q. Can you explain your business details?
A. The company provides a comprehensive real estate service centered on real estate revitalization business
1. Real estate revitalization
(1) Replanning
(2) Building leasing
2. Real estate services
(1) Commercial real estate brokerage
(2) Office and store leasing
(3) Property management
(4) Renovation and construction planning
(5) Leasing guarantee services
3. Other real estate business
(1) Real estate securitization

Refer to "Business" for further details.
Q. What kind of consolidated subsidiaries do you have?
A. Currently, we have three wholly owned consolidated subsidiaries within the group as follows.

SF Building Support Inc.
Lease support service to provide guarantee rental payment liability for the building's tenants to the lessor in order to reduce the social expense of the (Japanese) guarantee system. This service not only offers the advantage of reducing the guarantee fee, but also supports creditworthiness and enables access to a better specification of office. It also alleviates concerns about defaulting on rental payments, refurbishment work, and clerical work, as well as providing peace of mind to the local community.

Sun Frontier Real Estate Investment Advisory Inc.
This subsidiary has been established to handle real estate funds created in relation to the real estate securitization handled by us, to be entrusted with asset management by corporations that hold property portfolios or another company's private placement funds, and to be entrusted with arrangement services to set up private placement funds.

SF Capital Co., Ltd.
This subsidiary undertakes the planning and production stages for real estate revitalization, and is involved in the real estate securitization and its related building management services in order to maximize the exit strategy options. In terms of the replanning service, it is tasked with refurbishment, solicitation of new tenants, the sale of upgraded office buildings to special purpose companies (SPC) to be established separately in accordance with prioritized silent partnerships contracts with investors, and to be entrusted with the subsequent asset management and property management, as well as operating the non-asset business. As a separate entity, it functions as a vehicle for us to make subordinated investment in silent partnerships to the relevant SPC.
Q. What is the capitalization value?
A. ¥5,515 million (as of Jun 30, 2011)
Q. How many employees do you have?
A. 147 (as of Dec 31, 2011)
Q. How many offices - including branches - do you have?
A. There are five offices, namely the Head Office, and branch offices in Kanda, Shinjuku, Yokohama,and Shibuya(as of March 31, 2009).


Questions about financial and business results

Q. What is the accounting period?
A. Annual, ending March 31.
Q. Would you explain sales per business segment?
A. Sales per business segment and ratio are as follows.
Business segments Consolidated financial year ended March 31, 2007
Amount (¥ thousand) YOY
Total real estate revitalization business 32,662,679 217.2
Replanning business 31,250,199 224.4
Building leasing business 1,412,480 127.0
Total Real estate service business 1,647,087 98.7
Brokerage business 962,009 84.9
Property management and Construction planning business 685,077 127.7
Total other real estate business 944,777 -
Total 35,254,543 -
Business segments Consolidated financial year ended March 31, 2008
Amount (¥ thousand) YOY
Total real estate revitalization business 44,063,777 134.9
Replanning business 41,104,796 131.5
Building leasing business 2,958,980 209.5
Total Real estate service business 1,719,581 104.4
Brokerage business 940,395 97.8
Property management and Construction planning business 779,186 113.7
Total other real estate business 2,366,865 250.5
Total 48,150,224 136.6
Q. Could you describe your measures concerning IR activities?
A. Currently, we are implementing the following IR activities under a basic policy whereby information is disclosed to all stockholders and investors fairly.
  • Disclosure of quarterly account settlement
  • Implementation of timely disclosure
  • Holding explanatory meetings for account settlement targeted at analysts (quarterly)
  • Information provision via the Internet, such as streamed distribution of the explanatory meetings
  • Explanatory meetings for private investors
  • Reinforcement and enriching of our website (IR information page)
  • Visiting institutional investors, etc.

Questions about stocks

Q. What is your ticker code?
A. 8934.
Q. When was the stock first offered to the public?
A. We listed on the JASDAQ market on November 19, 2004.
Our stocks have been listed on the First Section of the Tokyo Stock Exchange since February 26, 2007.
The stocks were subsequently delisted from JASDAQ on April 21, 2007.
Q. How many shareholders do you have?
A. 9,190 (as of March 31, 2008)
Q. Who are the major shareholders?
A. The 10 major stockholders are as follows (as of March 31, 2008):
Personal or corporate name Number of shares held Ratio of shares held to total number of shares issued and outstanding (%)
Tomoaki Horiguchi 176,322 53.19
Japan Trustee Services Bank, Ltd.(trust units)
10,414 3.14
The Master Trust Bank of Japan, Ltd. ( trust units) 9,300 2.81
Mellon Bank, N.A. as Agent for its Client Mellon Omnibus US Pension 5,603 1.69
JPMCB Omnibus US Pension Treaty Jasdaq 380052 5,556 1.68
Shinichi Hasegawa 5,257 1.59
JP Morgan Chase Bank 380055 4,209 1.27
Takeshi Kobayashi 4,143 1.25
Keiko Horiguchi 3,990 1.20
Deutsche Bank AG London 610 2,342 0.70
Total 227,136 68.52
Q. How many shares can be traded as one unit?
A. One stock.
Q. What is the total number of shares issued and outstanding?
A. 331,495 shares (as of March 31, 2008)
Q. What is the latest stock split?
A. With March 31, 2006 used as the base date, each common stock was split into three stocks as of April 1, 2006.
Q. Is there a fixed date for dividend payments?
A. Annual payments are made on March 31 every year. When interim dividends are paid, the date is September 30.
Q. What is the concept for returns to shareholders? Are there hospitality programs for shareholders?
A. We consider that the return of permanent and steady profits to shareholders is an important managerial responsibility. We also decide on return measures with full consideration for the business results of each term bearing in mind retained earnings with the aim of reinforcing our corporate growth and bolstering management efficiency as a basic policy.
The appropriation of internal reserves is planned to reinforce our financial strength and for future business development to cope with changes in the business environment, and we aim to increase corporate value through effective use of funds.
We do not hold hospitality programs for shareholders.
Q. What is the contact number for inquiries regarding stock-related procedures, such as transfers?
A. Please contact Mizuho Trust & Banking Co., Ltd., who acts as an administrator of the shareholders' name list.
Telephone inquiries: Mizuho Trust & Banking, Stock Transfer Agency Department
0120-288-324 (toll free in Japan)


Other questions

Q. Would you explain your environmental measures?
A. Please refer to the "Responsibility" page on our website.
Q. How can we obtain corporate information?
A. Please do not hesitate to contact us for any inquiries.
IR Office Tel: 03-5521-1551