Singha Estate announced its Q1/2020 performance with net profit of 335 million baht, rising 14% from the same period last year, and total revenue of 2,186 million baht. Of the total revenue, 752 million baht came from the residential business, 243 million baht from commercial business and 1,144 million baht from hospitality business. The company has its strong financial positioning and will pay dividends on 2020 performance at 0.045 baht per share in May 2020. With full support from business partners, it will continuously move forward with its business rehabilitation plan after the easing of COVID-19 crisis with confidence in its sustainable business growth.

Singha Estate Public Company Limited or ‘S' posted its total revenue of 2,186 million baht in the first quarter of 2020, of which 752 million baht was derived from residential business, declining 56% year-on-year, 243 million baht from commercial business, growing 41% year-on-year, and 1,144 million baht from hospitality business, rising 17% year-on-year. During this period, the company also realized gain on selling 423 million baht from the share sale in S Hotels & Resorts Plc's subsidiary together with 115 million baht gain on conversion option embedded in convertible bonds. This made its Q1/2020 net profit stood at 335 million baht, up 14% year-on-year.

Mrs. Thitima Rungkwansiriroj, Chief Financial Officer of Singha Estate Plc, reveals about the Q1/2020 performance that the company recorded total revenue of 2,186 million baht and the residential business realized majority of revenue from the ownership transfer at The ESSE Asoke and The ESSE at Singha Complex, representing 34% or 752 million baht. Additionally, the government's lockdown measure gave some impact on its residential business as foreign customers postponed the transfer as they could not travel to inspect their units themselves, while potential Thai buyers opted to delay their visit as well as unit inspection at its residential projects in a bid to maintain social distancing following the well-known campaign during COVID-19 outbreak. However, the first quarter impact remained modest.

There are other ongoing projects this year, The ESSE Sukhumvit 36, super luxury condominium, which is the joint venture project with Hong Kong Land, worth 6.5-billion-baht is nearly completed and will start the ownership transfer in the fourth quarter. To keep our customers safe and reduce the risk of COVID-19, we are now offering online marketing campaign via 360-degree Virtual Tour. And recently launched, The EXTRO Phayathai-Rangnam, affordable luxury condominium, worth 4.1 billion baht and located in the high potential area. These two projects will give a support to the company's residential business to grow as expected.

For commercial business, Singha Estate has four office projects including Suntowers, Singha Complex, The Lighthouse, and Metropolis Building, with combined space of 140,000 square meters and average occupancy rate at 87% in the first quarter of 2020. During the period, the company's commercial business generated 243 million baht in revenue, growing 41% from the same period of the year before, due mainly to the acquisition of Metropolis Building which has 13,700 sq.m. with 97% occupancy rate. This office building has high growth potential as located in prime location,close to BTS Phrom Phong Station, the lifestyle hub for new generation.

For hospitality business, Singha Estate realized 1,144 million baht in revenue from the portfolio of 39 hotels worldwide in the first quarter of 2020, representing 52% of its total revenue. The increase of revenue came from the opening of CROSSROADS in Maldives, which has operated SAii Lagoon Hotel Maldives, Hard Rock Hotel Maldives, and The Marina at Crossroads, the lifestyle and recreation area, since late last year,

However, the opening of CROSSROADS caused a considerable rise of administration expenses, but the company still recorded its net profit growth. The additional revenue 423 million baht gain from the sale of 50% shares in Island 3 at CROSSROADS worth US$16.2 million to Wai Eco World Developer Pte. Ltd. under the joint venture agreement to develop a high-end lifestyle resort, together with 115 million baht gain on conversion option embedded in convertible bonds. According to TFRS 9, all derivative instruments must be mark-to-market to be recorded at its fair value and any change in fair value will be realized in profit and loss statement in such period. This resulted in the net profit in Q1/2020 rise 14% to 335 million baht.

"With the COVIID-19 crisis, the company is well aware that it is facing such great challenges, which have caused a lot of uncertainties to the overall economy. However, the company is confident that it can maintain sustainable growth with strong financial positioning derived from the interest-bearing debt to equity ratio at 0.86 times, which is considered very low when compared to the company's financial covenant at 2.0 times. With our commitment to create the sustainable value to shareholders, the company will pay interim dividends on the 2020 performance at 0.045 baht per share, with the dividend payment due on 21 May 2020.

For the next quarter, the company has adjusted its strategy to revive its business by focusing on strict cost management such as revising its budget and controlling marketing expenses, managing cashflow and building synergy with business partners. Most Importantly, the company will focus on developing high quality projects with utmost stakeholder value while building resilience for the organization as these strategies will prepare the company to face changes in all aspects. We are confident that we will pass through this crisis and become stronger," Mrs Thitima added.