Far East Orchard’s 9M profit more than doubles to S$37.6 million
The sharp increase is mainly driven by one-off gains of S$24.9 million
[SINGAPORE] Hospitality and student housing player Far East Orchard’s net profit more than doubled to S$37.6 million for the nine months ended Sep 30, up from S$16.9 million in the same period a year earlier.
The sharp increase was largely driven by one-off gains totalling S$24.9 million.
These comprised a S$9.1 million gain from its acquisition of a 6.7 per cent stake in the Woods Square integrated commercial development, and a S$15.8 million remeasurement gain on its previously held 49 per cent interest in UK-based student accommodation operator Homes For Students (HFS), following the completion of its second-phase acquisition.
Excluding these one-off gains, profit would have been S$12.7 million, the mainboard-listed company said in a bourse filing on Thursday (Nov 6).
Group chief executive Alan Tang said the completion of the HFS acquisition marked an important milestone in strengthening Far East Orchard’s lodging platform and expanding its UK footprint.
He added that the group remains focused on building a resilient business through disciplined capital management and operational excellence despite near-term challenges.
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Revenue for the period fell 4.2 per cent to S$134.2 million, while operating profit declined 8.9 per cent to S$42.9 million.
These declines were attributed to weaker performance in the group’s hospitality segment, which was affected by ongoing refurbishment works at Rendezvous Hotel Perth Scarborough in Australia.
Contributions from its hospitality joint ventures in Australia and Europe also fell, mainly due to softer performance in Europe – which had benefited from a stronger events calendar in 2024 – as well as the impact of a cyber incident in March 2025.
Far East Orchard said business interruption claims helped cushion the impact of the cyber incident. However, its Australia joint venture was affected by a one-off liability recognised this quarter, related to a claim previously disclosed as a contingent liability.
Revenue remained stable in its purpose-built student accommodation (PBSA) segment, though operating profit was weighed down by higher costs.
As at Sep 30, the company’s 13 PBSA assets – comprising more than 3,700 beds – had an occupancy rate of 88.4 per cent for the 2025/2026 academic year.
For its hospitality segment, Far East Orchard noted that Singapore recorded 12.9 million visitor arrivals from January to September, a 1.3 per cent decline year on year and below the Singapore Tourism Board’s full-year target of 17 million to 18.5 million.
The group said tourism arrivals were gradually recovering in Australia, supported by major sporting events, though demand remains uneven across cities.
Meanwhile, Japan recorded over 30 million visitor arrivals year to date, but the pace of growth has moderated, the group said.
Despite the challenging outlook, Far East Orchard said it will continue investing in refurbishments at Rendezvous Hotel Perth Scarborough, Adina Apartment Hotel Sydney Darling Harbour and Adina Apartment Hotel Frankfurt Neue Oper to support long-term growth.
Far East Orchard said it “anticipates challenging operating conditions” amid uneven global growth and varying inflation trends, even as the International Monetary Fund slightly raises its 2025 and 2026 growth forecasts.
The group said it will continue to monitor developments and manage potential impacts on its operations.
Shares of Far East Orchard closed 0.8 per cent or S$0.01 higher at S$1.25 on Thursday.
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