Singha Estate Records 6,843-Million-Baht Revenue in First Half of 2023 Pushing Full Steam to Develop Ready-for-Ownership Transfer Housing Projects in Latter Half Confidently Expects Solid Gro
Singha Estate reports its revenue of THB 6,843 million from its sales and services in the first half of 2023, with positive signals for businesses growth across its portfolio this year. Efforts are also now stepping up in support of its plan to launch five horizontal-housing projects with a value of THB 10,000 million this year. These projects are expected to significantly boost the company’s revenue recognition in the latter half of 2023 and push up the revenue for the whole year to reach a record high.
Bangkok (15 August 2023) – Singha Estate Public Company Limited announces the revenue of THB 6,843 million from its sales and services for the first half of 2023 and the adjusted EBITDA (Adjusted Earnings Before Interest Taxes Depreciation and Amortization) of THB 1,493 million from the period, marking an increase of 33% year-on-year. In the second half of 2023, Singha Estate aims to grow its businesses further by unveiling five luxury housing projects that have the value of THB 10,000 million, expected to launch the first Single-Detached House project in September 2023. The Hospitality Business is anticipated the bright prospects with the highest growth rate expected in Q4 as a result of the growing international arrivals. The implementation of its Commercial Property Business is continuing to move forward as planned. The Industrial Estate Business will be another growth engine as its power plants are scheduled to start commercial operation late this year.
Revenue from Singha Estate’s property sales covered (1) A total of THB 1,172 million from ownership transfers of properties over the six-month period, mainly spurred by the launch of an Ultra Luxury cluster-home project “LA SOIE de S”, a new brand and the latest flagship of Singha Estate property. Not only that this project receives a tremendous response from customers, but its units were also sold at the highest price over THB 550 million per unit. Following its launch in Q2/2023, the transfer of unit ownership took place led its revenue was recognized immediately; (2) A total of THB 36 million from the sale of Industrial Estate land plots; and (3) A total of THB 175 million from the Singha Complex’s rental fees recognition under long-term lease agreements. Singha Estate, moreover, is now in the process of negotiating with other tenants to raise the proportion of long-term leases with the aim to maintain a stable occupancy rate and to minimise volatility risk amidst of the imminent fierce competition, which can be expected as more rental spaces will be available in the future.
Singha Estate’s service revenue rose significantly with its Hospitality Business’ 28% revenue growth, when compared with the same period a year earlier. In the first half of 2023, the Hospitality Business’ revenue soared to THB 4,821 million because global tourism had expanded well since the beginning of the year. As all countries has re-opened for tourists globally and hotels in S Hotels & Resorts’ (SHR) portfolio has ranked among tourists’ top destinations thanks to their great locations. In addition, SHR hotels have delivered excellent services and implemented proactive marketing strategies. Consequently, their overall occupancy rate rose by approximately 70% in the first half of 2023 while their average daily rate (ADR) soared by more than 10% from the same period a year. The Commercial Property Business’ total revenue in the first half of 2023 was THB 508 million, which was almost unchanged from a year earlier. However, there is a good sign that its revenue will increase in the latter half of the year as it will start recognition more revenue from the opening of S OASIS, which has more than 53,000 square meters of leasable spaces.
Mrs. Thitima Rungkwansiriroj, Chief Executive Officer at Singha Estate Public Company Limited or ‘S’, reveals that her company’s Adjusted EBITDA grew by 33% in the first half of 2023 thanks to not just its industry’s clear recovery but also its business adaptability. In the past six months, Singha Estate had also made preparations to build up further success that should become evident in the latter half of 2023 and 2023. The preparations were: (1) Development of five housing projects that have the value of approximately THB 10,000 million altogether; (2) Major renovation of hotels with good potential in SHR portfolio namely the Outrigger Fiji Beach Resort, the SAii Laguna Phuket Hotel, the SAii Phi Phi Island Village Hotel, and some hotels in the United Kingdom based on Asset Rotation strategy that seeks to enhance competitiveness and profitability; (3) Adjustment of strategy to attract tenants of office rental spaces; and (4) Supervision of S Industrial Estate Angthong’s power plants construction and land development to ensure sales plans proceed in line with Singha Estate’s roadmap, which focuses on answering the demand for Eco Factory & Green industry in response to future investment trends.
In 2023, Singha Estate has significantly boosted its housing-project portfolio with horizontal housing projects that break All-Time High records and vertical housing projects that demonstrated speed to market. In the first half of the year, Singha Estate launched two Cluster Home projects for residents’ ultimate privacy. Developed as Private Estates, these projects featured housing units for clearly defined target groups to answer their differentiated and outstanding lifestyles. The first project LA SOIE de S, which is already a flagship, sold its units at over THB 550 million each. The second project, the just-launched SMYTH’S Ramintra, hit the market with a starting price of THB 120 million. Singha Estate is also set to unveil three horizontal-housing projects in the latter half of 2023. All the upcoming projects will be ready to transfer their units and immediately recognize revenue after their launch, supporting Singha Estate’s goal to generate more than THB 4,500 million in revenue from its housing projects or mark a growth of over 80% year-on-year. This will strengthen the company’s revenue-generation in 2024 as planned. At present, Singha Estate has already noticed positive signs in the rebounding condominium segment for middle-income and above. Therefore, Singha Estate has collaborated with business partners in developing condominium projects for the segment, which we have never tapped into before. This new project expects to be a significant source of revenue for the company as it will start offering their unit for sale from 2024 onwards.
Singha Estate has expected its Hospitality Business to achieve more than THB 10,000 million and achieve a monumental revenue growth rate this year. Travel demand, after all, looks set to grow further in the remainder of the year as the aviation industry is preparing to launch more routes. The Hospitality Business, moreover, has implemented a Revenue per Available Room (RevPAR) strategy that ensures maximum efficiency. Its rooms have also been renovated and improved in response to new tourism trends, paving the way for it to push up ADR. Singha Estate is confident that key hotels in its portfolio will beat the highest ADR during high season in their respective country. Its hotels in the UK Portfolio and CROSSROADS Maldives which accounted for 70% of the Hospitality Business’ total revenue. The Outrigger subgroup in the portfolio will also enjoy a remarkable performance because the renovation of Outrigger Fiji Beach Resort has already completed. This newly renovated hotel will likely raise the portfolio’s ADR by 20% in the latter half of 2023 compared to the first half.
“We are confident that Singha Estate will earn more than THB 16,000 million in 2023 and strengthen our foundation for the coming years. Our issuance of debentures, which amounted to THB 1,700 million, marking a big success with an overwhelming response from investors. The fund from the debenture will support our business expansion, as we pursue excellent operating results and uphold our promise to create good returns to shareholders and sustainable value to all groups of stakeholders,” Mrs. Thitima concludes.