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15 Aug 2022

Singha Estate announced an increase 92% in total revenue to 5,790 billion baht

Singha Estate announced an increase 92% in total revenue to 5,790 billion baht

for 1H 2022, returning to profit-making for the first time after five-consecutive loss-making quarters. Pushing the second half results to surpass the full-year target, driven by 4 businesses across the portfolio together with the new housing project.


Bangkok – Singha Estate Public Company Limited reported its total revenue of THB 5,790 million in the first half of 2022 (1H2022), which jumped 92% YoY. The significant improvement in financial performance has mainly resulted from an increase in revenue across 4 existing businesses and the revenue recognition from sales of the industrial estate land plot for the first time in the second quarter. Thanks to our strategies during the past 2 years to diversify our investment across all core and connected businesses. The strategic move has led 2022 revenue to double the performance over the last year, reaching its new high.

An increase in revenue due primarily to the robust performance of the hospitality business, reported at THB 3,761 million, tripled the total revenue from the same period of 2021. This was attributed to the sharp recovery in the performance of CROSSROADS Phase 1 hotels together with the UK Portfolio hotels which increased 128% compared to the same period last year and made up to 75% of total revenue from the hospitality business. Moreover, the Company foresees the great momentum of the Outrigger Portfolio and Thailand Portfolio hotels which generate revenue from sales and services increased over 8 times from the same period last year, contributing 25% of total revenue from the hospitality business. The Company has set the revenue target of those portfolios to reach the goal of 35% of its total revenue from the hospitality business in stabilized period or more than THB 4,000 million. This reflects a positive signal to future revenue growth which can be substantial when the tourism sector recovers to surpass pre-pandemic.

At the same time, revenue generated from commercial business in 1H2022 increased 5% YoY mainly from the solid average occupancy rate at 88%. Meanwhile, the Company could achieve a higher average rental rate amidst the challenging situation. Therefore, the revenue from rental and services improved by 132% from the same period last year to THB 4,371 million in 1H2022. The revenue from sales of real estate also improved to THB 1,419 million in the said period. The increase was attributed to the recognized revenue from THE ESSE Asoke and THE ESSE at Singha Complex together with the revenue from sales of the industrial estate land plot in S Industrial Estate Angthong for the first time in the second quarter of 2022.

Mrs. Thitima Rungkwansiriroj, Chief Executive Officer of Singha Estate Plc, or “S”, revealed that the success of business restructuring became fruitful in Q2/2022, particularly the additional investment in the hotel portfolio which could provide a diversified and seasonal balanced portfolio. Tropically the second quarter is considered the high season in the United Kingdom and the Republic of Fiji, leading the revenue of those portfolios to increase by 40% and 100% respectively, compared to the same period last year. Moreover, investing in the industrial estate and infrastructure business is helping diversify revenue stream via customer base and generating recurring income in the long run. During the said quarter, Singha Estate achieved total land transfer and realized the revenue from sale industrial area of 77 rais to B.Grimm Power (Angthong). Regarding the accelerated business recovery and effective cost management, the Company announced its second quarter 2022 financial results, posting a returning to strong profitability at THB 102 million. We are confident that the strong performance will keep up the momentum.

Looking into the remainder of 2022, the financial performance is expected to have a progressive improvement, rising 30% from the first half of the year, benefited by the robust performance of the hospitality business and the revenue from house and condominium units sales. The Company foresees the positive sentiment of operating results in July 2022, showing the average occupancy rate at 70%. We expect the hospitality business to continue its robust recovery, particularly in the high travel season of Thailand and Maldives in Q4/2022. Moreover, we continue to uplift the properties in order to strengthen hotel efficiency and increase average room rates (ADR) in the future. Consequently, CROSSROADS hotels and UK Portfolio hotels are expected to enhance ADR to surpass the pre-COVID19 level by 41% and 27%, respectively. Apart from the continuous outstanding performance from CROSSROADS and UK Portfolio, another key driver that will escalate the operating results is from Thailand hotel portfolio, following the fully re-opening of the country in July, resulting in SAii Laguna Phuket and SAii Phi Phi Island Village to achieve an occupancy rate of 68% and 63%, respectively. Therefore, with the potential of the Company's hotels which are based in the prime location of the five most popular tourist destinations around the world, and the success of the Company’s brand awareness, we are fully confident in the stronger performance of Thailand hotel portfolios, expected to generate nearly double the revenue growth in the second half of the year.

Singha Estate also expects the accelerated transferred activities of the SANTIBURI THE RESIDENCES in the second half of the year. Moreover, the Company set a target to transfer the new project “SIRANINN Residences” by the fourth quarter of the year. This will lead the full-year revenue from residential to grow by 50% YoY or more than THB 3,300 million in 2022. For the new housing project “SIRANINN Residences” which is expected to launch in September this year. The project is located on Pattanakarn 32, one of the most premium locations for urban housing projects today. SIRANINN Residences is a two-story horizontal luxury detached housing project, surrounded by quality communities, offering exclusively only 28 units which an estimated price starts from THB 65 million to THB 180 million, and 4 home offices whose price is estimated around THB 20 million each. The Company has been receiving interest from customers who have loyalty towards Singha Estate brand. We, thus, are confident to achieve the transfer target in Q4/2022, according to the business plan.

The Company has set the ambitious target of a new project launch of THB 52,000 million within 5 years, pushing forward the luxury housing market through three new segments which have estimated prices per unit starting from THB 10 – 100 million. The other two segments will be officially launched in 2022. With its current progress of land acquisition, the Company has secured 2 land plots and the remaining target is nearly to be completed for project development which will be ready to launch 4 projects within 2023. The Company fully expects to acquire another 5 - 7 land plots per year and will continue to launch the projects with an estimated value of THB 10,000 million per year.

“Regarding the progress of long-term lease agreement on the Company’s retail space with S Prime Growth Leasehold Real Estate Investment Trust (SPRIME), on 24th June 2022, the Company has leased the retail space in the Suntowers building to the SPRIME with the transaction amount of THB 213 million, in which the particular retail space has an occupancy rate at 98% currently. The Company strongly believed that the investment of SPRIME is focused on the potential assets that would provide a profitable in the long term. However, the Company is considered to postpone the long-term lease of Singha Complex into SPRIME owing to the fluctuated capital market. As well as the economic situation is still under pressure from the higher interest rate, inflation, fuel price, pandemic, and the international political conflicts. However, the Company is confident that the performance of Singha Complex will generate profit from operation around THB 400m per year,” said Thitima.

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