Far East Orchard has reported earnings of $19.6 million for the 1HYF2025 ended June 30, up 7.5% y-o-y. Excluding the $9.1 million one-off gain from an acquisition made in January, earnings would have declined to $10.5 million.
The group’s revenue for the 1HFY2025 declined 6.1% y-o-y to $91.3 million, and profit after tax declined 8.3% y-o-y to $18 million.
The group says that this decline was due to the weaker performance in the Hospitality business segment, impacted by the ongoing refurbishment works at its owned hotel in Australia, the Rendezvous Hotel Perth Scarborough (RHPS).
The group’s leased and managed property, Orchard Rendezvous Hotel, Singapore, continued to be affected by surrounding construction works. The divestment of Rendezvous Hotel Perth Central in December 2024 also resulted in the absence of contribution from that asset in 1HFY2025.
In addition, a cybersecurity incident affecting Toga Far East Hotels (TFE Hotels) and the Adina Europe joint venture in March 2025 had impacted operations.
Meanwhile, recurring income from the UK PBSA business segment remained resilient, underpinned by the acquisition of HFS in April 2024, which contributed positively to the share of results in 1H FY2025.
See also: Creative remains in the red for FY2025; guides for better FY2026
Property development earnings also contributed positively, with a higher share of results from Woods Square following its 6.7% interest increase in January 2025 (WS acquisition). A one-off gain of $9.1 million recognised from the WS acquisition helped cushion the impact of the softer operating results.
Excluding the one-off gain, profit after tax would have been lower y-o-y, reflecting the operational challenges and continued macroeconomic pressures.
As at June 30, the group’s hospitality portfolio comprises over 17,500 rooms, excluding the approximately 500 rooms in the pipeline. The group’s PBSA portfolio occupancy stood at 92% for the AY24/25, and its owned UK PBSA portfolio comprises about 3,700 operational beds and about 1,000 beds under development.
Shares in Far East Orchard closed flat at $1.20 on Aug 7.
