Net profit of THB 98 million up 141%, accelerating its ultra-luxury property segment leadership with “SIRANINN Residences” almost sold out after notching sales of THB 2,900 million prior to its official launch.
Singha Estate Public Company Limited reported total revenue of THB 8,491 million for the nine-month period of 2022 (9M2022), up 65% YoY from an over 2X increase in hospitality revenue. Net profit in the period amounted to THB 98 million, reversed from a Net loss of THB 238 million in 9M2021. The company also announced the success story of SIRANINN Residences Pattanakarn achieving 95% presales of project value at THB 2,900 million.
The significant improvement in financial performance mainly resulted from a 121% increase in revenue from hospitality business units to THB 6,123 million, driven from across all geographies. CROSSROADS, Maldives maintained a solid occupancy rate at 67% with an increase in ADR of 41% from the same period last year.
At the same time, the robust recovery in the United Kingdom has kept its momentum, allowing the company to achieve the highest ADR level since its opening and pushing the RevPAR in 9M2022 to exceed 19% compared to the same period of pre-Covid level. Moreover, the Company foresees the strong rebound of travel demand in Fiji and Mauritius, backed by pent-up demand and unique selling points of the hotel properties. This made the Outrigger Portfolio record the most remarkable recovery, reporting an increase in ADR of 20% from the same period of 2019. The Outrigger portfolio reached higher Gross Profit and Gross profit margin during the said period, surpassing the pre-pandemic level.
Moreover, revenue generated from commercial business in 9M2022 in an amount of THB 767m increased 6% YoY mainly from the higher average rental rate amid the challenging situation. The occupancy rate of S Metro increased to 93% thanks to its rebranding and renovation. This reflected the Company’s efficiency in managing assets and the effective selection of target customers. Focusing on high-growth industries led to the potential expanding of business and rental space in the long run.
Mrs. Thitima Rungkwansiriroj, Chief Executive Officer of Singha Estate Plc, or “S”, revealed that, “We announced the financial performance for the third quarter of 2022 (Q3/2022) with satisfactory results. The net profit of THB 44 million is considered as the second consecutive quarter returning to profit for Singha Estate. While the hospitality business of the Company which was under the management of the Company’s subsidiary, SHR returned to profitability in Q3/2022 for the first time since the emergence of COVID-19. The great momentum in the fourth quarter of 2022 (Q4/2022) is expected to continue at a rapid pace due to the strong recovery of Thai hotels, reflecting accelerated growth in tourist arrivals after the country has fully reopened to international tourism. With the aforementioned factors, combined with the potential of the locations of our hotels which are in the most desired destinations, together with our efficiency in hotel management, the Company saw the average occupancy rate of SAii Phi Phi Island Village and SAii Laguna Phuket increase to 81% and 77% in October 2022. The hotels in CROSSROADS Maldives will also play a key role in growth during Q4 as Maldives enters its peak season. In Q4/2022, we expect CROSSROADS to reach the greatest performance since its opening in 2019.”
“Singha Estate’s most recent low-rise residential project, ‘SIRANINN Residences Pattanakarn’, is a two-story house based on the ‘Horizontal Luxury House’ design concept and includes 28 plots of single-detached family homes with estimated prices from THB 65 – 180 million. Even though the project was expected to be sold by the end of 2022, 95% of its total project value has already been purchased. This accomplishment illustrates consumers’ trust in Singha Estate’s property development potential, reiterating the brand’s quality that sets it out from competitors. The Company’s target to transfer ownership of housing projects between Q4/2022 and Q1/2024, brought up the revenue from residential business to expand more than 50% in 2023. The new housing projects will play an important role to drive next year’s growth. An additional three projects under two segments are set target to officially launch in the beginning of Q2/2023 with a total project value of THB 7,700 million. The site for these new projects is currently ready for development.”
“SIRANINN Residences Pattanakarn has gained better-than-expected feedback, reaffirming customer confidence towards Singha Estate’s brand and product. Although we recently introduced a new brand into the market which is the second product of our housing project, the customer trust to purchase houses priced at THB 100 million level prior to the official launch and viewing appointment, became a prominent achievement. This success milestone led to the confidence of our business growth plan in the next five years. The Company continues to launch 3 - 4 projects annually with an estimated value of THB 7,000m per year. The announcement of a full-fledged horizontal property market penetration strategy entitled: ’Rise Above’ reflects Singha Estate’s commitment to designing and developing superior products to deliver best-in-class living experiences and to value residents' tastes in line with the elevated quality of life in all dimensions. This originates from the company’s vision to provide best-in-class experiences of extraordinary living lifestyle. The company strive to develop our projects with a commitment to elevating the Singha Estate houses in every design element, material selection, and comprehensive functionalities to ensure that Singha Estate’s projects can truly fulfill the needs of the Super Luxury market.”
Singha Estate will move towards business diversification to create a well-balanced portfolio, revenue stability and business sustainability. Consequently, Singha Estate has passed selection for inclusion in Thailand Sustainability Investment (THSI) 2022 for the third consecutive year. Moreover, the company’s subsidiary SHR has been included among the 170 companies on the THIS list for the first time. This reflects Singha Estate Group’s unwavering efforts to integrate sustainability into its business strategies with a deep commitment to creating value for stakeholders, financial strength, and operating with social and environmental responsibility.
