Bund Center Investment (BTE) Q1 2024 TU earnings summary

Executive summary

• Q1 2024 revenue rose 7.1% YoY to S$20.277m and EBITDA increased 1.1% to S$10.974m, while net profit fell 27.1% to S$1.994m.

• Improved hotel performance lifted gross profit and operating profit, but higher foreign exchange losses and lower business assistance grants weighed on profit before tax.

Financial highlights

• Gross profit increased 12.5% YoY to S$8.365m; operating profit rose 12.5% to S$3.007m.

• Profit before tax declined 22.6% to S$3.987m; income tax expense decreased 17.4% to S$1.993m.

• Net profit attributable to owners was S$1.890m, down 27.9% YoY; total net profit was S$1.994m, down 27.1%.

• Other operating items shifted from S$1.274m income in Q1 2023 to S$0.505m expense in Q1 2024, mainly due to higher unrealised FX losses and reduced assistance grants.

Outlook and guidance

• Hotel strategy targets domestic and international visitors through wellness programs and local cultural attractions, alongside expected support from China travel initiatives.

• Leasing strategy focuses on competitive options, flexible pricing and tenant services to retain and expand the tenant base amid market oversupply and subdued demand.