Far East Orchard (O10) investor relations material

Executive summary

• H1 FY26 revenue rose to $248.5m from $91.3m, mainly due to Homes for Students (HFS) consolidation; profit after tax fell to $11.6m from $18.0m.

• HFS expanded the UK PBSA platform and recurring income base; acquisition-related non-cash amortisation offset some earnings benefit.

• Total comprehensive income rose 50.2% to $26.9m, including $15.3m of other comprehensive income.

• FEOR30 execution included $50.7m of capital recycling from non-core asset disposals and continued lodging platform expansion.

Financial highlights

• Revenue increased by $157.2m to $248.5m; gross profit rose 48.2% to $74.5m, partly offset by HFS-related amortisation.

• Total operating profit was $31.2m, up 1.0% YoY; profit before tax was $16.6m versus $23.1m.

• Profit after tax fell 35.6% to $11.6m; PATMI fell 39.9% to $11.8m, partly due to the absence of the prior-year Woods Square JV gain.

• Adjusted PATMI rose 7.7% to $9.8m and adjusted profit after tax rose 23.0% to $9.1m, excluding other gains and related tax effects.

• Operating expenses increased to $48.4m from $27.3m, mainly due to HFS consolidation; finance expenses fell to $17.7m from $18.9m.

Outlook and guidance

• Priorities include growing recurring earnings, disciplined capital allocation, balance-sheet flexibility, operating efficiency and selective asset enhancement.

• UK PBSA AY26/27 pre-leasing was marginally ahead of the prior-year period; rental growth moderated and pipeline advancement remains a focus.

• Hospitality priorities include revenue management, loyalty programmes and operating efficiency amid mixed conditions; no earnings forecast was disclosed.

• Any dividend recommendation will follow consideration of full-year results and the dividend policy.