MYP (F86) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 5.2% to S$17.8m and EBITDA was broadly stable at S$11.2m, while the year shifted to an S$8.6m net loss from S$1.8m profit, mainly on lower property revaluation gains.

• A S$3.1m fair value loss on investment properties, S$1.2m impairment of art pieces and higher net finance costs weighed on results.

• Year-end liquidity and covenant pressure were significant: a S$323.4m bank loan was classified as current after an interest coverage covenant breach; the lender confirmed the breach was resolved in June 2024 after a further S$3.6m deposit was pledged.

Financial highlights

• Revenue increased 5.2% to S$17.811m from S$16.928m, supported by higher rental rates, service charges and supplemental income.

• Operating results were S$6.854m versus S$11.855m; net finance costs rose to S$15.140m from S$9.971m, including S$17.343m bank interest expense.

• Net loss was S$8.561m versus net profit of S$1.773m; basic and diluted loss per share was 0.54 cents versus earnings per share of 0.11 cents.

• Total expenses were reported at S$23.3m versus S$15.9m, up 46.5%; staff costs and property operating costs increased, including utilities, property tax, repairs and maintenance.

• Net cash from operations was S$11.580m; net cash used in financing was S$20.192m, resulting in a S$5.793m net cash decrease for FY2024.

Outlook and guidance

• Core CBD Grade A office rents were forecast to grow 2%–3% in 2024, with rents potentially plateauing in H2 as 2.9m sq. ft. of new office supply completes, including 1.8m sq. ft. in the CBD.

• FY2025 planning remains cautious amid geopolitical tensions, high interest rates, inflation, slower China growth, trade tensions and climate-related risks; global GDP growth was forecast at 3.2% for 2024 and 2025.

• No FY2024 dividend was recommended, with resources retained to maintain a strong balance sheet and support future investment and sustainable growth.