Far East Orchard has reported earnings of $6.9 million for its 1QFY2024, up 46.8% y-o-y. Revenue in the same period ended March was up 10.4% y-o-y to $50.9 million.
The company attributes the better numbers to growth from its purpose-built student accommodation business. Besides higher rentals, the addition of one of such properties helped as well.
Also, Woods Square, a property development joint venture, generated higher sales and leasing income.
“While the global economy is projected to see a steady recovery this year, it is constrained by cost headwinds and present challenges such as escalating geopolitical tensions and the higher for-longer interest rate environment," says group CEO Alan Tang.
"With an encouraging set of results to start off the year, we continue to manage our financial resources prudently, which would allow us to overcome uncertainties lying ahead and ensure we stay on our course to build a resilient business,” he adds.
Going forward, the company plans to adopt an active asset recycling strategy.
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It aims to be asset-light and to also explore additional opportunities with capital partners such as Woh Hup.
"Our strategic focus remains dedicated to strengthening the hospitality and PBSA platform to scale up for growth and further expansion, which includes new recurring income streams or vertical acquisitions under the lodging platform that will ensure a diversified and balanced portfolio," the company adds.
Far East Orchard shares closed May 7 at $1.02, unchanged for the day.
