SingPost H1 profit up 183.7% at S$55.9 million on sale and leaseback of HDB shophouses

[SINGAPORE] Singapore Post (SingPost) announced a 183.7 per cent rise in net profit to S$55.9 million for the first half ended Sep 30, 2026, from S$19.7 million a year earlier, largely driven by exceptional gains from property divestments.

Exceptional items amounted to S$44.4 million, compared with S$13.9 million in the year-ago period, largely reflecting gains from the sale and leaseback of 10 Housing & Development Board (HDB) post office shophouses.

Revenue slipped 1.3 per cent to S$185.9 million from S$188.4 million, mainly due to lower international revenue amid a structural decline in letter mail volumes.

Underlying net profit more than doubled to S$11.5 million from S$5.5 million, supported by improved operating performance and a tax provision write-back.

Earnings per share from continuing and discontinued operations, excluding distributions to perpetual securities holders, rose to S$0.0224 from S$0.0063 a year earlier.

In a regulatory filing on Friday (Nov 6), the postal services provider declared an interim dividend of S$0.0015 per share, up from S$0.0008 a year earlier. It will be paid out on Dec 4.

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Operating profit rose 42.3 per cent to S$8.1 million as operating expenses fell 2.1 per cent to S$178.6 million.

“Our results reflect green shoots in the execution of our strategy. However, the operating environment continues to be challenging,” said SingPost CEO Mark Chong.

“Amid structural letter mail declines and cross-border headwinds, maintaining operational discipline is key.”

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Revenue by segment

The group’s logistics and letters segment recorded an 8 per cent decline in revenue to S$141.4 million, although its operating loss narrowed to S$2.5 million from S$3.4 million.

Domestic parcel delivery volumes grew 23.8 per cent year on year, helping to offset a 15.6 per cent decline in domestic letter mail volumes. International logistics revenue fell 28.6 per cent amid declining cross-border letter mail volumes.

The post office network segment narrowed its operating loss by 42.9 per cent to S$3.3 million, as revenue jumped 80.8 per cent to S$10.4 million, driven by retail partnerships, commercial product sales and higher rental contributions.

Meanwhile, the property assets segment recorded revenue of S$40.9 million, up 1.1 per cent, while operating profit dipped 1.4 per cent to S$22.6 million. SingPost Centre achieved full occupancy, with blended rental rate reversions of 7 per cent.

SingPost expects operating conditions to remain challenging amid structural declines in letter mail, cross-border headwinds and macroeconomic uncertainty.

The group continues to rightsize its post office network with a target footprint of 30 branches and 50 self-service lobbies by end-March 2027.

It is also planning a targeted refresh of the SingPost Centre retail mall, with estimated capital expenditure of less than S$30 million, to enhance rental yields and its tenant mix.

Net cash from operating activities turned positive at S$5.9 million, reversing an outflow of S$28.1 million a year earlier. SingPost ended September with cash holdings of S$642.5 million.

Shares of SingPost closed S$0.005 or 1.8 per cent higher at S$0.29 on Thursday.