Bund Center Investment (BTE) H1 2023 earnings summary

Executive summary

• HY2023 revenue rose 20.1% YoY to S$40.6m; EBITDA increased to S$22.8m from S$20.1m and net profit to S$6.1m from S$1.4m.

• Higher hotel activity drove the improvement, while leasing income declined amid cautious tenants and a softer leasing market.

Financial highlights

• Gross profit rose 42.7% to S$17.3m; gross margin improved to 42.6% from 35.9%.

• Operating profit increased 122.3% to S$7.1m; profit before tax rose 67.6% to S$10.5m.

• Net profit attributable to owners was S$5.8m, up 375.1% YoY; HY2022 was S$1.2m.

• Q2 revenue rose 38.4% YoY to S$21.7m; operating profit increased 74.5% to S$4.4m and net profit was S$3.3m versus a S$1.1m loss.

• Operating cash flow was S$15.0m versus S$9.0m; cash and cash equivalents closed at S$160.0m.

Outlook and guidance

• Flexible room-rate strategy will target continued hospitality demand, with focus on the hotel's well-being program and local attractions for domestic and overseas visitors.

• Leasing strategy will be adjusted to attract prospective tenants and retain existing tenants amid a competitive office market.