Far East Orchard posts bigger net loss of S$12.6m for 9M FY21

FAR East Orchard has reported that its net loss for the nine months ended Sep 30 has widened to S$12.6 million from S$6.3 million a year ago.

Revenue slid by 10.2 per cent year on year to S$75.4 million as the pandemic continued to weigh on its hospitality business, in particular in Australia.

Meanwhile, a weaker Australian dollar also resulted in an exchange loss of S$5 million vis-a-vis an exchange gain of S$5.9 million for the corresponding period in 2020.

Far East Orchard highlighted that the losses were partly offset by a operating profit from its purpose-built student accommodation (PBSA) business, rental income from medical suites, businesses from government isolation and movement control order in Singapore, as well as government grants.

As at Sep 30, 2021, the group's PBSA portfolio in the United Kingdom had a occupancy of over 80 per cent. It said: "With the ramp up in vaccination rate in Australia, the curbs are expected to ease progressively. However, with the lifting of restrictions and requirements for isolation hotels, the demand is expected to dwindle in the months to come."

In the third quarter, its hospitality arm, Far East Hospitality, opened its fourth hotel, the 191-key Oasia Resort Sentosa on Sentosa. Together with the new 234-key Adina Apartment Hotel in Munich - by its joint venture TFE Hotels - the group has some 18,000 rooms in its portfolio. It is targeting 25,000 rooms by 2025, with new properties in the pipeline in markets such as Germany, Japan and Vietnam.

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During the quarter under review, the group's property development in the United Kingdom, Westminster Fire Station, was completed. Pre-sales activities for the mixed-use Grade II Listed heritage building, comprising residential apartments and a restaurant, have begun.

As at Sep 30, 2021, the group had a cash position of S$261.6 million, down from S$278.4 million as at Dec 31, 2020.

Shares in Far East Orchard closed at S$1.12 on Tuesday, up one cent or 0.9 per cent.