Far East Orchard (O10) Q3 2024 TU earnings summary

Executive summary

• 9M FY2024 net profit was S$18.0 million, supported by strong 1H operating performance, PBSA rental growth and resilient hospitality contributions.

• Operating profit rose 16.4% YoY to S$47.6 million; management expects growth to flatten as post-COVID travel recovery normalises and market uncertainties persist.

Financial highlights

• Revenue was S$140.1 million, up 4.5% YoY from S$134.1 million.

• Operating profit was S$47.6 million, up 16.4% YoY from S$40.9 million.

• Profit after tax was S$18.0 million versus S$7.0 million; profit attributable to equity holders was S$16.9 million versus S$7.6 million, both increases of more than 100%.

• Net profit was achieved despite higher finance expenses; 3Q PBSA operating profit was seasonally lower due to the six-week summer break.

Outlook and guidance

• Management expects growth to flatten with normalisation of the post-COVID surge and market uncertainties; focus remains on strategic initiatives to strengthen resilience.

• IMF forecasts global growth of 3.2% in both 2024 and 2025; geopolitical tensions and financial volatility remain key concerns.

• UK PBSA demand remains healthy, but rental growth is expected to moderate amid softer international student demand.