Financial Highlights

Performance Summary

• Sales and profit increased compared to the same period of the previous fiscal year due to property sales and steady growth in the Real Estate Service Business and the Hotel Operation Business.
• Operating profit, ordinary profit and net profit were about 60% of the full-year forecast.
  Strong progress towards achieving the full-year targets.
• All segments progressed smoothly in line with the plan.
  • In the Real Estate Revitalization Business, purchases and sales of RP properties progressed as planned.
  • In the Real Estate Service Business, the number of buildings under management increased and the Rental Conference Room Business also grew.
  • In the Hotel and Tourism Business, existing hotels performed well, and the number of hotels in operation increased steadily due to new openings, etc.

Topics

• Two companies joined the Group through M&A.
  • Nagano Linden Holdings (Hotels)
  • Otake Kenso Holdings (Processing and construction of sashes and glass windows)
• The Group issued its first Integrated Report in September.

Consolidated Profit & Loss Statements

Real Estate Revitalization Business

The number of properties sold was 13 (down one from the same period of the previous fiscal year). Sales and profit increased due to the sale of large-scale properties and highly profitable newly constructed properties.

Real Estate Service Business

Sales and profit increased as the number of properties under management increased, sales brokerage grew, and occupancy rates for the Rental Conference Room Business were strong.

Hotel and Tourism Business

Sales and profit increased from strengthening our operational capabilities in addition to strong domestic and inbound tourism demand, and average daily rates and occupancy rates increased.

Selling, General and Administrative Expenses

Increase due to human capital investments and system investments.

Consolidated Balance Sheet -Assets-

Inventories

Increased by 12.7 billion yen from the end of the previous fiscal year due to the progress of purchases of properties for replanning and progress of hotel development.

Non-current assets

Increased by 4.2 billion yen from the end of the previous fiscal year due to the progress of hotel development.

Consolidated Balance Sheet -Liabilities/Equity-

Interest-bearing debt

Interest-bearing debt (including lease liabilities) increased by 13.8 billion yen to 106.2 billion yen.

Shareholders' equity

Increased by 7.2 billion yen from the end of the previous fiscal year due to the accumulation of profit, etc.

※For more details, please refer to the "Latest Financial Reports" in the "Shareholder and Investor Information" section (https://www.sunfrt.co.jp/en/ir/).

Sustainability

Valuing the spirit of altruism, contributing to the realization of a sustainable society