Hotel Grand Central (H18) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose to $145.6m from $140.5m, while the net loss widened to $27.5m from $14.0m, mainly on property valuation losses and higher finance costs.

• Operating profit before revaluation and fair value adjustments increased to $15.1m from $12.8m; EPS declined to (3.72) cents from (1.89) cents.

• Total assets were $1.47b and net gearing remained Nil; the Board recommended a 1.5-cent final dividend per share, subject to approval.

Financial highlights

• Revenue was $145.564m vs $140.488m; hotel operations contributed $134.198m vs $129.096m, while investment-property rent was $11.366m vs $11.392m.

• Operating profit before revaluation and fair value adjustments was $15.065m vs $12.765m; reported operating loss was $33.595m vs profit of $5.422m.

• Loss before tax was $26.562m vs profit of $7.648m; net loss was $27.474m vs $13.990m, with tax expense of $0.912m vs $21.638m.

• Fair value losses were $12.395m on investment properties and $36.265m on hotel assets; a $1.478m FX gain contrasted with a $5.277m loss in 2024.

• Operating cash flow was $35.047m vs $38.349m; cash and short-term deposits totaled $317.989m, including $69.393m pledged as restricted cash.

Outlook and guidance

• Operating conditions are expected to remain challenging in 2026; the Board expects the business to weather the storm.

• Auckland Conference Centre opened across the road in February 2026, supporting improved hotel occupancy and rates; higher airfares and reduced long-haul airline schedules may temper gains.

• Operating costs are expected to rise with oil-driven inflation, labour shortages, climate-preparedness needs and a possible high-interest-rate environment.

• SGD strength against AUD and NZD may pressure results through currency translation losses.