Singha Estate Announced Dividend of 0.04 baht per share on 125% Profit Growth Focus Remains on Hotel Business with Crossroads Maldives to Launch Midyear
Bangkok – (26 March 2019) Singha Estate Public Company Limited, a leading real estate developer and investor announced its 2018 performance with net profit totaling 1.287 billion baht which grew 125% compared to 2017. The company is prepared to follow its plan to continue investing to develop its 3 core businesses including residential property development, commercial property development, and hotel businesses. In addition, Singha Estate is set to make history in June with the launch of its new mega project “Crossroads”, the Largest Integrated tourist facility in the Republic of Maldives.
Mrs. Thitima Rungkwansiriroj, Chief Financial Officer of Singha Estate Public Company Limited announced at Opportunity Day at the Stock Exchange of Thailand that in 2018 Singha Estate PCL’s total revenue was 7.539 billion baht which grew 29% year on year. The revenue growth was attributed to ownership transfers of units at THE ESSE ASOKE, started in since December 2018 and the performance of the 6 Outrigger Hotels it had acquired last year. Net profit was 1.287 billion baht which grew 125%. Total revenue came from 3 core businesses including residential property development accounting for 3.974 billion baht, commercial property development accounting for 674 million baht, and hotel businesses accounting for 2.576 billion baht. The ratio of contribution from each business was in line with the company’s targets which set out to strike a balance between recurring income and nonrecurring income at a ratio of 50:50.
In 2019, Singha Estate is prepared to pay dividends to shareholders in May at 0.04 baht per share, total of 274 million baht. Singha Estate’s business plan remains focused on its 3 core businesses including residential property development, commercial property development, and hotel businesses, reiterating its brand as the Premier Lifestyle Developer determined to become an internationally renowned Global Holding Company. For its residential business, luxury condominiums are scheduled for launch this year. Most recently, a 4-billion-baht 1-building 35-story project in Soi Rangnam had been initiated with a sales office being constructed. For its commercial business, Singha Estate is set to launch OASIS, an office and retail property for rent worth 3.695 billion baht. The building is 36-story tall with about 53,000 square meters for rent located on a 7-rai plot of land on Vibhavadi-Rangsit road. The project is scheduled to be completed by 2022. In January, SREIT, the first REIT of Singha Estate and SPRIME REIT manager was established. The company set up the S Prime Growth Leasehold Real Estate Investment Trust (SPRIME) to invest in Suntowers and be listed in the Stock Exchange of Thailand, which received great response with institutional and retail investors. Institutional investors oversubscribed the number of units over 5 times.
For its hotel business, another core business that generated high income for Singha Estate in the past year with a portfolio of 4,271 units across 37 hotels and resorts worldwide (not including Crossroads). This year, Singha Estate is also eying for a hotel located in globally renowned tourist destinations to add into its portfolio. The company also has development plan to uplift 3 Outrigger hotels including Outrigger Laguna Phuket Beach Resort, Outrigger Fiji Beach Resort, and Outrigger Castaway Island.
Moreover, Singha Estate is set to launch the first phase of Crossroads, the largest multi-island integrated leisure and entertainment destination in the Republic of Maldives, which is considered the largest comprehensive property development project for a Thai investor in the Republic of Maldives, including The Marina at Crossroads, an entertainment and retail area spanning 11,000 square meters featuring many popular restaurants and retail shops like Coffee Bean & Tea Leaf, Sazanami, Ministry of Crab, Carne Diem Grill, Island Breez and Todd, SAii Lagoon Maldives, Curio Collection by Hilton, and Hard Rock Hotel Maldives, which are set for launch this June.
“Singha Estate is yet another year for Singha Estate to realize revenue from completed projects. The company will realize revenue from The ESSE ASOKE, THE ESSE AT SINGHA COMPLEX, SANTIBURI THE RESIDENCES, BANYAN TREE RESIDENCES RIVERSIDE BANGKOK, as well as realizing a full year of revenue from SINGHA COMPLEX, 6 Outrigger hotels, and start realizing revenue from CROSSROADS in the Republic of Maldives, which will be launchedin June. According to Singha Estate’s targets and business plan for 2019, Singha Estate will grow both in assets and financial strength, establishing a foundation for sustainable growth of business, society, and the environment going forward into the future,” Mrs. Thitima said in closing.
