The Straits Trading Company's net profit attributable to shareholders fell by 64.9% y-o-y to $5.23 million in 1HFY2024 for the six months to end-June. This was due to a decrease in dividend income for 1H2024 from a lower investment stake in Suntec REIT as compared to last year. Other losses incurred in 1H2024 were mainly due to loss from the disposal of an investment property in Australia and lower fair value gain on the embedded derivative component of Exchangeable Bonds. These losses were offset by net fair value gain in investment properties in 1H2024 from logistic properties located in South Korea and Australia, and properties in Singapore.
However, revenue rose by 7.1% y-o-y in 1H2024 to $252.5 million as a result of an increase in revenue and cost of tin mining and smelting for 1H2024 due to higher average tin price. However, Straits Trading said in a press release: "The Resources segment, through the Group’s 52%-owned Malaysia Smelting Corporation Berhad (MSC) reported a 39.6% decline in Ebitda to $19.8 million in 1H2024." This decline was mainly due to the upgrading and scheduled maintenance of the Pulau Indah furnace, which interrupted refined tin production at the smelter.
On the property front, despite limited transaction opportunities in the market, Straits Real Estate Pte. Ltd. (SRE) successfully carried out its capital recycling and reallocation strategy. In April 2024, SRE divested an industrial property located at 34 Share Street, Kilkenny in Adelaide, Australia for A$52.7 million and one block consisting of eight industrial units in Gloucester Business Park in the United Kingdom for £2.1 million. SRE’s asset portfolio continues to generate stable and healthy cash flow through leases across multiple countries and asset classes. Rental income stood at $32.4 million for 1H2024. In June 2024, STC Property Management Sdn Bhd (STCPM) concluded the Phase 1 development of Straits City in Penang, Malaysia, marked by the landmark completion of the 343-key 5-star hotel, Crowne Plaza Penang Straits City. This milestone positions Straits City for opportunities from Penang’s economic growth and policies aimed at driving investments and tourism. In addition, leasing and licensing are in progress for the retail component of Straits Galleria and Straits City Concept Centre respectively.
The operating performance of Far East Hospitality Holdings Pte. Ltd. (FEHH), the Group’s 30%-owned hospitality platform, strengthened. The Group’s Hospitality segment delivered $1.9 million of profit in 1H2024 compared to a loss of $0.3 million in 1H2023.
The company didn't declare an interim dividend.
