First Sponsor (ADN) H1 2026 earnings summary

Executive summary

• Attributable loss was S$92.846m in 1H2026 versus profit of S$18.978m in 1H2025, with revenue down 11.2% to S$136.726m; impairment, derivative losses and lower associate/JV earnings weighed on results.

• European property portfolio NOI rose to €25.5m from €24.7m, while PRC development sales remained slow amid weak market sentiment.

• Interim tax-exempt dividend was 1.1 Singapore cents per share, unchanged YoY.

Financial highlights

• Revenue fell 11.2% YoY to S$136.726m; gross profit declined to S$53.2m from S$60.7m, and operating result swung to a S$66.1m loss from S$28.3m profit.

• Basic and diluted loss per share was 8.74 cents versus earnings per share of 1.16 cents in 1H2025; total comprehensive loss attributable to equity holders was S$65.412m.

• Other expenses of S$83.1m included a S$36.7m Humen Oasis impairment, S$33.2m unrealised derivative fair-value loss and S$10.7m net loss on matured derivatives.

• Net finance costs rose 16.7% to S$26.0m; share of associates’ and JVs’ after-tax profit fell to S$6.7m from S$27.3m.

Outlook and guidance

• European recurring income is expected to benefit from Puccini Hotel Milan, Amsterdam hotel acquisitions and redevelopments including PHK16-19 and Drive Tower in 2H2026, followed by Live Tower in 1Q2027.

• PHK16-19 and Drive Tower are targeted for completion in September 2026; Sydney House in 1H2028. Meerparc construction is expected to start in late 2027, subject to approvals.

• PRC asset exposure was below 50% of consolidated assets at 30 June 2026 and may temporarily exceed 50% after the Kingsman Residence acquisition, before declining through monetisation and non-PRC expansion.

• Existing PRC project sales remain slow; management will monitor market conditions, geopolitical and economic risks, and foreign-currency hedging.