First Sponsor (ADN) Q3 2024 TU earnings summary

Executive summary

• PRC property sentiment remained weak and presales subdued; most development projects are advanced, with handovers underway or expected within 15 months. Late-September policy easing prompted cautious optimism for a market recovery.

• European property holding income grew in 3Q2024 and 9M2024; a €39.9m share of NSI profit was recognized in 3Q following a change in accounting treatment.

Financial highlights

• European property holding operating income was €14.748m in 3Q2024, up 6.0% YoY, and €40.042m for 9M2024, up 15.2%.

• European hotel revenue rose 6.3% YoY to €35.15m in 3Q2024 and 6.9% to €97.61m in 9M2024; EBITDA increased 5.8% to €8.07m and 20.6% to €19.35m, respectively.

• The NSI accounting change generated a €39.9m share of profit, equivalent to approximately S$57.2m, included in 3Q2024 profit.

Outlook and guidance

• Puccini Hotel Milan renovation is expected to complete in 3Q2025; Dreeftoren office completion is delayed one quarter to 3Q2025, while the residential timeline remains under review.

• Prins Hendrikkade completion is targeted for 3Q2025, subject to building permit approval; Meerparc's permit application is expected in late 2025, with construction estimated to start in 2026.

• Property holding pipeline includes Puccini Milan and Prins Hendrikkade in FY2025, Dreeftoren office and residential in FY2025–FY2026, Sydney Pitt Street Central in FY2027 and Meerparc in FY2028.

• PRC property loans will be disbursed cautiously; the loan book is expected to decline further in 4Q2024 following repayments on a Shanghai loan.