Bund Center Investment (BTE) Q3 2023 TU earnings summary

Executive summary

• 9M2023 revenue rose 22.0% YoY to S$62.6m; net profit reached S$8.2m vs S$0.7m, driven by a hotel business recovery.

• Hotel growth outweighed lower leasing income; operating cash flow improved, while currency translation losses reduced comprehensive income and asset values.

Financial highlights

• 9M revenue was S$62.567m, up 22.0%; gross profit rose 42.2% to S$27.125m and operating profit increased 93.3% to S$10.883m.

• 9M profit before tax increased 72.5% to S$14.502m; net profit was S$8.230m vs S$0.657m, with income tax expense down 19.1% to S$6.272m.

• Q3 revenue increased 25.6% to S$21.923m; operating profit rose 55.1% to S$3.769m and net profit was S$2.154m vs a S$0.719m loss.

• 9M EBITDA was S$31.806m vs S$29.979m; Q3 EBITDA was S$8.982m vs S$9.860m.

Outlook and guidance

• Hospitality recovery following China’s border reopening supported expectations for continued market rebound; flexible room rates, the hotel’s well-being program and local attractions are intended to attract domestic and overseas demand.

• Leasing strategies will be adjusted to attract potential tenants and retain existing tenants amid a competitive market.