Far East Orchard (O10) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 4.5% YoY to S$191.9 million, while operating profit increased 35.6% to S$78.5 million on stronger Hospitality and PBSA contributions.

• Profit after income tax declined 7.2% to S$61.3 million, primarily reflecting lower net fair value gains on investment properties and higher unrealised currency translation losses.

Financial highlights

• Revenue was S$191.9 million versus S$183.6 million in FY2023; operating profit was S$78.5 million versus S$57.9 million.

• Profit attributable to equity holders was S$59.0 million versus S$65.9 million; EPS was 12.1 cents versus 13.7 cents.

• Excluding net fair value gains on investment properties, profit after tax was S$35.5 million versus S$18.3 million; attributable profit was S$33.3 million versus S$18.1 million, and EPS was 6.82 cents versus 3.77 cents.

Outlook and guidance

• A cautious approach is planned amid economic and geopolitical uncertainty, with focus on resilience, cost control, strategic growth and lodging-platform expansion.

• PBSA rent and hospitality room-rate growth are expected to flatten as post-pandemic growth normalises; elevated costs and market uncertainty remain.

• Hospitality refurbishments and surrounding construction affecting operations in 2024 are expected to continue impacting performance into 2025.

• Around 500 hospitality rooms are expected to open in Australia and Austria in 2025; EVE Hotel Sydney opened in February 2025.