Bund Center Investment (BTE) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose to S$83.9m from S$67.6m; profit for the year was S$11.5m versus S$2.8m, while comprehensive results remained negative due to currency translation losses.

• Hotel recovery lifted revenue, while leasing faced Renminbi translation effects, intense competition and weak office demand; office occupancy averaged 73.7%.

Financial highlights

• Revenue increased 24.1% to S$83.889m; gross profit was S$35.924m versus S$24.397m, and operating profit was S$13.066m versus S$5.701m.

• Profit before tax was S$20.999m versus S$13.305m; profit for the year was S$11.496m versus S$2.834m, including S$4.738m of other operating income versus S$2.176m.

• Profit attributable to owners was S$11.097m versus S$2.575m; basic and diluted EPS rose to 1.46 cents from 0.34 cents.

• Hotel revenue grew 132.8% to S$44.5m; property leasing income declined to S$39.4m from S$48.5m.

Outlook and guidance

• Flexible room pricing and wellness and local-attraction offerings aimed to capture continued hospitality recovery and demand from domestic and international travellers.

• Leasing strategy focused on tracking market conditions, attracting new tenants and retaining existing tenants amid Shanghai office oversupply and subdued demand.

• 2024 hospitality prospects were supported by China’s travel facilitation measures; the operating environment for office leasing remained highly competitive.