Bangkok – Singha Estate Public Company Limited reported its total revenue of 7,739 million baht in 2021 amid the subsequent waves of COVID-19 which disrupted the business operations in several aspects. Whereas the Company continued to seek the opportunity to grow our business towards the risk diversification and balanced portfolio management. The revenue for the year 2021, thus, improved for the fourth consecutive quarter or an 18% rise comparing to the previous year. Singha estate still achieved a net profit of 100 million baht for Q4/2021.
An increase in revenue due primarily to the robust performance of hospitality business, reported at THB 4,512 million nearly tripled the total revenue from sales and services of last year. This reflected the success of the Company’s strategy which focus to diversify the risk by investing in hotels with balancing of revenue mix geographically and seasonally. While 90% of total revenue in 2021 was contributed by the UK Portfolio hotels which showed the strong recovery of tourism industry from the high vaccination rate of their populations and the Project CROSSROADS Phase 1 hotels which were highly rated among tourists and attracted various types of customers. In Q4/2021, the ADR of CROSSROADS Phase 1 hotels was $418 which reached the highest level of ADR since its opening in September 2019, emphasizing a positive signal to future revenue growth which can be substantial when tourism sector resumes normal.
Mrs. Thitima Rungkwansiriroj, Chief Executive Officer of Singha Estate Plc, or “S”, revealed that the great business performance was derived from the Company’s strategies to continue adjusting our business model and differentiate through product / service development to enhance the profitability. Along with the effective cost management led the 2021 performance to achieve positive EBITDA of 1,562 million baht, improved drastically by 213% from the previous year. Singha Estate, therefore, reported a net profit of 100 million baht for Q4/2021, reversed from loss of 2,029 million baht for the same period last year.
In respect of residential business, the Company continued to emphasize the success of Santiburi the Residences through the development of low-rise project to leverage brand equity, focusing on luxury segment for the estimated price starts from 20 – 100 million baht which is considered as the Company’s expertise. Singha Estate expects to officially launch the first project at Pattakarn 32, for which the estimated price starts from 50 – 100 million baht within 2H2022. Moreover, the Company plans to acquire 4 additional land plots in other potential districts in 2022.
Despite the pressure from various negative factors towards commercial property for rent market, a balance of customer portfolio management, asset improvement, and the offering of new business models to cope with tenants’ changing demand are factors driving the average occupancy to remain solid at 87%. In Q2/2022, Singha Estate expects to officially launch “S Oasis” the new office building which was designed under the “Hybrid Workplace” concept to support the high flexibility useable area. This mixed-used project is the first Prime Grade office tower located on Vibhavadi Rangsit road with approximately 54,000 square meter net leasable area for office and retail space.
Singha Estate strikes a deal on a long-term lease agreement of three premium office buildings and retail space which will have total rental space of over 64,000 sq m. with S Prime Growth Leasehold Real Estate Investment Trust (SPRIME). The lease agreement is valued no less than 6.45 billion baht. This follows the company’s asset portfolio management strategy, which will focus on capital recycling to strengthen its financial positioning and to support consistent business expansion in the future while enhancing SPRIME’s growth potential.
“This is a milestone year that marks our transition into the next phase of Singha Estate’s development journey to strengthen its portfolio with competitive advantages and create the unique selling points. This follows our mission to drive the business to become one of Thailand’s foremost enterprises that leverages the synergies between multiple property sectors and across related services to deliver the double size of revenue in 2022.” Thitima said.