Far East Orchard (O10) H1 2025 earnings summary

Executive summary

• H1 FY25 revenue fell 6.1% YoY to S$91.3m and profit after tax declined 8.3% to S$18.0m; attributable profit rose 7.5% to S$19.6m.

• Hospitality disruptions weighed on results, while resilient UK PBSA income and a S$9.1m one-off gain from increasing the Woods Square interest supported reported earnings.

• Growth initiatives included expanding the Japan hotel portfolio and closing the first UK PBSA development fund.

Financial highlights

• Revenue was S$91.3m, down 6.1% YoY; operating profit was S$30.9m, down 14.4%.

• Profit before tax rose 1.5% to S$23.1m; profit after tax fell 8.3% to S$18.0m, while attributable profit rose 7.5% to S$19.6m.

• Excluding the S$9.1m Woods Square gain, profit after tax was S$8.9m and attributable profit was S$10.5m; profit after tax also included a S$1.0m currency translation gain.

• Gross profit declined 2.2% to S$50.3m; other income fell 34.4% to S$2.3m, while net other gains rose to S$10.7m, largely due to the acquisition gain.

• Operating cash flow was S$17.2m versus S$14.3m; cash and cash equivalents fell S$30.5m to S$150.8m, mainly reflecting acquisition outflows.

Outlook and guidance

• AY25/26 PBSA reservations were 74% at 30 June 2025, versus 92% for AY24/25 at the comparable date; student demand is expected to remain strong despite slower bookings.

• Rendezvous Hotel Perth Scarborough room renovations are complete, but operational disruption is expected to continue until the refurbishment programme ends in H2 2028.

• Priorities include growing recurring income, strengthening fund management capabilities, disciplined capital deployment and scaling the lodging platform for long-term value.