Far East Orchard has reported earnings of $16.9 million for the 9MFY2024 ended Sept 30, a more than 100% y-o-y increase from the same period a year before.
This came on the back of a strong performance in 1HFY2024 despite higher finance expenses, says the group.
For the same period, net profit after tax (NPAT) stood at $18 million,up from $7 million in 9MFY2023. Operating profit for 9MFY2024 saw a 16.4% y-o-y increase to $47.6 million, driven by strong results in 1HFY2024.
The group adds that its hospitality business segment maintained stable contributions, due to a “ buoyant performance in the Japan and Europe market”.
Meanwhile, revenue stood at $140.1 million in 9MFY2024, up 4.5% y-o-y.
The group’s UK purpose-built student accommodation (PBSA) business, which comprises 13 assets and approximately 3,700 beds, has reported an occupancy rate of 91% as at Sept 30. The lower occupancy rate was partially due to marginally lower international student acceptance, says the group.
See also: Kimly reports higher FY2024 revenue but earnings down on higher depreciation and other costs
On Sept 26, the group announced that its hospitality arm, Far East Hospitality, together with its joint venture, Toga-Far East Hotels,entered a strategic partnership with Heritage Hotels for the refurbishment and rebranding of half of the Heritage portfolio under the Adina and Rendezvous brands. The group says it remains proactive in seeking opportunities to “refurbish and enhance each asset in line with their respective performance and life-cycle, ensuring competitiveness and optimal performance”.
Moving forward, while the group expects global inflation to decline, it adds that risks from increasing geopolitical tensions and financial volatility remain a key concern for global businesses.
Shares in Far East Orchard O10 closed flat at $1.03 on Nov 7.
