First Sponsor sinks into the red with S$92.8 million loss in H1

[SINGAPORE] Property developer First Sponsor reported a net loss of S$92.8 million for the first half ended June, from a net profit of S$19 million in the previous corresponding period.

Loss per share stood at S$0.0874 in H1, compared to an earnings per share of S$0.0116 in the year-ago period.

Despite being in the red, the board is proposing an interim dividend of S$0.011 a share for H1 2026, unchanged from the previous year. It will be paid out on Sep 25, following the record date of Sep 11.

Revenue fell 11.2 per cent to S$136.7 million in H1, from S$153.9 million in the previous year.

The decline mainly came from a drop in contributions from the sale of development properties, property financing and rental income from investment properties.

This was offset by an increase in revenue from hotel operations, said the group on Monday (Aug 3).

Neo Teck Pheng, group CEO of First Sponsor, said: “The operating environment became more challenging amid escalating geopolitical and trade tensions, including the conflict in the Middle East, alongside the sustained weakness in China’s real estate market.”

The group attributed its net loss to losses on financial derivatives, an impairment charge of S$36.7 million on its Humen Oasis Mansion project in China’s Guangdong province, and its share of losses from its associate, NSI.

The company’s Chinese projects continued to be dogged by subdued sales amid a prolonged weakness in property market sentiment.

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While the group continues to adopt a long-term perspective on project sales, it will also monitor market developments and adjust its sales strategy where appropriate, said Neo.

As at end-June, the group’s China asset exposure fell to a record low of below 50 per cent of its total consolidated assets. While it may temporarily rise above 50 per cent following the acquisition of Kingsman Residence project company, First Sponsor expects such increase to be temporary as it continues to monetise its China property portfolio and expand its businesses outside China.

Neo said: “The group remains in a financially secure position, not only to navigate the economic challenges arising from geopolitical uncertainties and difficult market conditions, but also to capitalise on favourable business opportunities that may arise.”

Shares of First Sponsor ended Monday flat at S$0.955, before the release of its results.