Bund Center Investment (BTE) Q1 2023 TU earnings summary

Executive summary

• 1Q2023 revenue rose 4.2% YoY to S$18.939m; EBITDA increased 7.3% to S$10.859m and profit for the period rose 12.2% to S$2.735m.

• Easing of China’s COVID-19 restrictions supported hotel demand, offsetting lower leasing income and reduced business assistance grants.

Financial highlights

• Gross profit increased 25.7% to S$7.435m; operating profit rose to S$2.674m from S$0.655m YoY.

• Profit before income tax grew 20.8% to S$5.149m; profit attributable to owners increased 11.2% to S$2.621m.

• Net other operating income fell to S$1.3m from S$2.5m, mainly due to lower business assistance grants; income tax expense rose to S$2.414m from S$1.826m.

Outlook and guidance

• Strategy focuses on hotel well-being programs and local attractions to capture an expected hospitality-market rebound among domestic and overseas visitors.

• Leasing strategy will continue to target potential tenants and retain existing tenants in investment properties.