Bund Center Investment (BTE) H2 2024 earnings summary

Executive summary

• FY2024 revenue was S$84.4m; EBITDA rose 7.9% to S$44.6m and net profit increased 22.0% to S$14.0m, supported by hotel recovery and cost management.

• Hotel growth offset weaker office leasing; the hotel averaged 80.6% occupancy while the Office Tower averaged 65.7%.

Financial highlights

• Revenue was S$84.405m versus S$83.889m in FY2023; gross profit reached S$36.495m versus S$35.924m.

• Operating profit was S$13.264m versus S$13.066m; profit before tax was S$22.704m versus S$20.999m, and net profit was S$14.023m versus S$11.496m.

• Profit attributable to owners was S$13.565m versus S$11.097m; basic and diluted EPS was S$1.79 cents versus S$1.46 cents.

• Net cash from operating activities was S$32.777m; cash and cash equivalents ended the year at S$168.718m, up from S$151.485m.

Outlook and guidance

• 2025 hotel prospects are positive on continued domestic and international travel recovery and Shanghai’s MICE demand; competition, inflation and cost pressure remain.

• Office leasing is expected to stay challenging amid oversupply and economic uncertainty; flexible leases, upgraded amenities and premium co-working space are intended to support tenant demand.

• Half-yearly reporting will replace voluntary quarterly reporting from the half-year ending 30 June 2025.