Hiap Hoe (5JK) H2 2025 earnings summary

Executive summary

• FY2025 revenue was S$135.0m vs S$125.4m; profit before tax was S$36.6m vs S$17.2m, and profit attributable to owners was S$30.37m vs S$6.57m.

• Higher hotel revenue, lower finance costs and larger investment fair-value gains supported earnings; the outlook remains cautious amid cost inflation and geopolitical uncertainty.

Financial highlights

• Hotel income rose to S$94.8m from S$84.0m; rental and carpark income was S$29.4m vs S$29.3m, while leisure revenue was S$10.8m vs S$11.1m.

• Other income of S$9.15m included a S$2.54m write-back of impairment at 130 Stirling Street; other investments recorded a S$30.22m fair-value gain vs S$24.56m.

• Finance costs fell to S$26.49m from S$38.54m; other expenses declined to S$58.46m from S$60.70m, including a S$0.53m impairment at 25 Rowe Avenue.

• Foreign-exchange loss narrowed to S$2.46m from S$6.56m; income-tax expense was S$6.03m vs S$10.64m, including a S$2.98m prior-year current-tax overprovision in FY2025.

• FY2024 included an S$18.16m gain on disposal of Four Points by Sheraton, Melbourne Docklands; FY2025 included the S$2.54m property impairment write-back and S$0.53m impairment charge.

Outlook and guidance

• Priority is lifting rental yields and occupancy across existing properties to strengthen recurring income; expenditure discipline and liquidity preservation remain priorities.

• Cautious on the coming year because of rising operating costs and geopolitical uncertainties that could affect operations and investment portfolio values.

• Sufficient banking facilities and liquidity were cited to meet debt obligations and operating needs; acquisition opportunities may be pursued when timing is appropriate.