Singha Estate has reported remarkable financial results for the first half of 2024, announcing a total revenue of 7.798 billion baht, a 14% increase from the previous year. The company achieved a net profit of 24 million baht, a significant turnaround from a loss of 76 million baht during the same period last year. This impressive performance reflects a robust recovery across all business segments, bolstered by customer confidence in Singha Estate’s brand and products. The company’s strategic expansion into both residential and hotel markets has also been met with a positive market response.

Bangkok (August 14, 2024) - Singha Estate Public Company Limited (SET: S) has reported a total revenue of 7.798 billion baht for the first six months of 2024. This includes (1) revenue from real estate sales of 1.983 billion baht, marking a substantial 43% increase due to impressive transfer volumes from projects such as S'RIN Ratchaphruek - Sai 1 and THE EXTRO Phayathai-Rangnam. Additionally, the company experienced a fourfold increase in transfer volumes from S Ang Thong Industrial Estate, following the completion of land development and infrastructure at the end of 2023. (2) Revenue from the service sector reached 5.815 billion baht, continuing its growth trajectory. This includes an 8% rise in hotel revenues from the previous year, driven by increased tourism demand across all operational regions and positive reception of new room types in both Thailand and Fiji. The average daily rate (ADR) across the portfolio saw a 15% increase from the previous year, aligning with the company’s asset enhancement goals. Additionally, rental income from commercial real estate rose by 12% from the previous year, reflecting higher occupancy rates at S-OASIS.

Mrs. Thitima Rungkwansiriroj, Chief Executive Officer of Singha Estate Public Company Limited (SET: S), remarked: "We are very satisfied with our revenue growth and the turnaround to profitability in the first half of the year. Despite facing seasonal pressures and navigating economic and industry challenges, our results underscore the quality, resilience, and diversification of our portfolio. Our targeted and proactive marketing strategies have enabled us to tap into high-potential markets with strong purchasing power. Concurrently, we have focused on elevating our products and delivering exceptional services tailored to the mid-to-upper market segments, which has supported our effective pricing strategies. As we move into the peak of our operations, we are confident that our fully optimized portfolio will drive substantial growth in the second half of 2024."

The success of the hotel business in the past six months is attributed to an ability to enhance room rates, which reflects the effectiveness of the strategy to improve hotel operations for better profitability. This includes the introduction of new room types that cater to the growing trend of experiential travel. As a result, renovated rooms at OUTRIGGER Fiji Beach Resort and SAii Phi Phi Island Village have seen average daily rates (ADR) increase by up to 40%. A dedication to proactive marketing, dynamic pricing, and targeting a diverse range of tourists has led to a balanced market mix, enhancing flexibility in response to current global conditions. Consequently, our hotels have become increasingly popular with travelers from the United States, the Middle East, and Saudi Arabia. This has resulted in a 12% and 17% increase in revenue per available room (RevPAR) for the CROSSROADS Maldives project and Singha Estate’s self-managed hotels in Thailand, respectively.

These factors have bolstered the potential for revenue and EBITDA growth compared to the same period last year, despite facing temporary challenges such as the closure of 173 rooms at SAii Phi Laguna Phuket for renovation, which started in April and is scheduled to reopen in December 2024. Additionally, there were pressures from the early performance of the SO/ Maldives hotel. Excluding these two factors, other hotels in the portfolio have shown a significant recovery. The Company is also seeing positive trends with increased room bookings for the next 3 to 6 months compared to the same period last year. This will be a crucial driver for the hotel business under SHR to achieve the performance goals for 2024.

In terms of significant developments within the hotel portfolio, the company is advancing its strategic plan to enhance portfolio performance. This includes a strategic partnership with Ascott to elevate hotels in four key cities in the UK, which are major tourist and economic hubs. The goal is to reposition these hotels in the market to improve performance and attract more international tourists, thereby enhancing overall operational efficiency.

In the residential sector, the company has achieved a 49% increase in revenue, driven by the recognition of income from new projects. Customer reception has been exceptionally positive, particularly for the "THE EXTRO Phayathai-Rangnam" condominium project, which began transferring ownership at the end of March. This project has already generated over 800 million baht in revenue in the first half of the year, accounting for 20% of the project's total value. The positive feedback regarding the project's quality and service strengthens confidence in maintaining customer trust and achieving transfer targets. This will be a key factor in driving the company's revenue growth for 2024-2025.

The continued positive feedback of the S'RIN Ratchaphruek - Sai 1 project, which has garnered strong interest from the premium luxury segment in western Bangkok, is setting the stage for success in the upcoming project. Planned for launch in late 2024 on the new Phran Nok Road, this new project, valued at over 4.2 billion baht, aims to bolster the S'RIN brand and ensure ongoing revenue stability for the company.

In the second half of the year, a recovery in the residential real estate sector is anticipated, driven by improving economic conditions, government investments, and a boost from tourism. These factors are expected to support continued growth in property transfers. We are confident that Singha Estate is poised to maintain its “Mastery of Luxury” status and achieve notable success with our flagship projects, including Santiburi The Residences, Siraninn Residences Pattanakarn, and THE ESSE Sukhumvit 36, all set to be completed by the end of 2024.

In the office building sector, which is committed to developing properties that meet modern work lifestyles and enhance user quality of life, the company has achieved international ISO certification for all four of its projects: S-OASIS, S-METRO, SUNTOWERS, and SINGHA COMPLEX. This certification reflects its dedication to maintaining stable performance and promoting a healthy work environment. Notably, S-OASIS, recognized for its sustainability, has received LEED Gold Version 4 certification and is seeing steady occupancy from key tenants. Combined with Singha Estate’s targeted marketing strategies, this positions us well to improve sales opportunities for future spaces.

Furthermore, the sale of industrial estate space at S Ang Thong, with its advantages in electrical and water resource readiness and lower utility costs compared to other economic zones, is expected to attract significant investor interest and expand our target customer base in the future.

Mrs. Thitima concluded: "We remain steadfast in our commitment to cautiously and resolutely pursue our revenue target of 18 billion baht as planned. To achieve this, we will implement tailored strategies, conduct thorough market analyses, and adjust our investment approach for the second half of the year amidst a challenging industry environment. Our ability to proactively adapt to market changes is crucial to our goal of becoming a truly international investment and development company. Success is not just about the numbers but also about the ongoing trust our customers place in us. By deepening our understanding of customer needs, we aim to create real value in our products and services, setting Singha Estate apart in the current market."