Bund Center Investment (BTE) Q3 2024 TU earnings summary

Executive summary

• 9M2024 revenue edged up 0.7% YoY to S$63.0m; net profit fell 4.8% to S$7.8m, while EBITDA rose 4.9% to S$33.4m.

• Hotel growth offset weaker leasing revenue; Q3 net profit declined 63.2% YoY to S$0.8m.

Financial highlights

• 9M revenue was S$63.027m, gross profit S$27.239m, operating profit S$10.607m and profit before tax S$13.907m.

• 9M net profit attributable to owners was S$7.513m, down 5.4% YoY; Q3 attributable profit was S$0.697m, down 67.1%.

• Q3 revenue fell 5.6% YoY to S$20.687m; gross profit decreased 10.5% to S$8.768m and operating profit decreased 16.4% to S$3.150m.

• 9M operating expenses rose 2.4% to S$16.632m, reflecting higher management fees and payroll costs.

Outlook and guidance

• Shanghai hotel demand is supported by domestic and international travel and MICE activity; flexible room rates, wellness programs and curated local attractions are intended to sustain competitiveness.

• Leasing strategy will adapt to office oversupply and new building supply through flexible rental packages and enhanced property amenities to attract and retain tenants.