Singha Estate reported its total revenue of 3,018 million baht in the first half of 2021. Major contributors were revenue from Santiburi the Residences, strong demand in residential property and consumers’ confidence in its ultraluxury product, coupled with four-month revenue of UK portfolio hotels which it invested early this year. Moreover, with the emerge of UK tourism and hospitality since “Freedom Day”, Singha Estate is fully convinced that would substantially drive its revenue to grow even faster for the rest of the year.

Singha Estate Public Company Limited reported its total revenue of 3,018 million baht in the first half of 2021, a 3% decline from the same period last year. The total revenue composed of revenue from residential development of 1,133 million baht, revenue from commercial business of 489 million baht and revenue from hospitality business or 1,347 million baht and revenue from other businesses of 49 million baht.

The completion of the disposal of all Singha Estate’s stake in Nirvana Daii Public Company Limited (“NVD”) on 6 January 2021 resulted in the deconsolidating NVD from Singha Estate’s consolidated financial statement since the beginning of 2021. However, total revenue declined by only 3% thanks to the kicking in of new engines. Singha Estate started consolidating revenue of FS JV Co., Ltd. (“FS JV”) since March 2021 after increasing ownership in FS JV in February 2021. Moreover, demand of landed residential property remained strong since last year while demand of condominium showed a sign of gradual recovery.

Mrs. Thitima Rungkwansiriroj, Chief Executive Officer of Singha Estate Plc, or “S”, revealed that in the first half of this year, residential business was under pressure due to the deconsolidating revenue from NVD since the beginning of the year. Prior to the disposal, revenue from NVD accounted for approximately half of revenue from residential business. Fortunately, revenue contribution from Santiburi the Residence together with condominium transference hitting three-consecutive-quarter record high partially compensated an impact from the absence of NVD, resulting in 17% decline in revenue from residential business.

In respect of commercial business, Singha Estate still managed to let out additional 2,100 square meter space as well as renewed the space under the existing lease contracts. Consequently, the average occupancy rate remained high at 88% during the first half of the year.

The latest wave of the COVID-19 pandemic in early 2021 still puts tremendous pressure on hospitality business. Six out of thirty-eight hotels became suspended again and might have their doors remain closed until end of this year if the outbreak persists. Amid several negative factors during the first half of the year, revenue from hospitality business did grow substantially at 17% thanks to the investment in FS JV. In February 2021, Singha Estate decided to increase its ownership portion to become the single shareholder in FS JV of which portfolio hotel spanning across the United Kingdom under the Mercure brand.

Performance of FS JV benefited significantly from the reopening of domestic travel in UK as its major client base is domestic demand. Right after the reopening, the occupancy spike up. In June, occupancy reached 50%, a sixteen-month record high. Besides, about 41% of revenue from hospitality business attributed to FS JV’s UK Portfolio Hotels.

“FS JV’s UK Portfolio Hotels became the main engine driving revenue from hospitality business to grow for the first time after covid-induced economic crisis. This growth undoubtedly confirmed that increasing our stake in FS JV was the right investment decision considering both asset wise and timing wise. Moreover, upcoming high season and the full lift of all restrictions on 19 July 2021 would encourage occupancy, average daily rate (“ADR”) and overall performance of UK hotels to record the sharpest rise in the second half of the year” Thitima said.

Effective cost management, 40% cut selling expense in particularly, coupled with 177 million baht share of the gain from handing over units at The ESSE Sukhumvit 36 almost wiped-out negative effect from the decline in revenue. Singha Estate, therefore, report a minimal net loss at 26 million baht, or 92% improvement from the same period last year.

During the second half of the year, Singha Estate’s significant move would be adding up landed residential property portfolio under its own management. Regarding financial position, it remains strong evidenced by low interest-bearing-debt to equity ratio as of 30 June 2021 at 1.14x. This financial strength would support Singha estate to scale up its business through further investment, leading to greater stability of return to shareholders and long-term sustainable growth of the Company in general.