Far East Orchard has reported net profit after tax of $37.2 million for the 9MFY2025 ended Sept 30, an over 100% y-o-y increase.
This was boosted by one-off gains of $24.9 million, comprising the $9.1 million gain from Woods Square and a $15.8 million re-measurement gain on the previously held 49% equity interest in HFS following the completion of its second phase acquisition.
Excluding these one-off gains, profit after tax would have been S$12.3 million, lower than the $18 million reported in the same period a year ago.
For the 9MFY2025, revenue declined 4.2% y-o-y to $134.2 million, while operating profit declined 8.9% y-o-y to $42.9 million.
This decline in operating profit was mainly due to the weaker performance of the hospitality business segment, impacted by the ongoing refurbishment works at Rendezvous Hotel Perth Scarborough in Australia.
Contributions from the Australia and Europe hospitality joint ventures were lower, mainly due to weaker European performance and the impact of a cyber incident in March 2025.
See also: Genting Singapore net profit up 19% y-o-y to $94.6 mil for 3QFY2025
While business interruption claims helped mitigate the impact of the cyber incident, the Australia joint venture was also impacted by a one-off recognition of liability this quarter, related to a claim previously disclosed as a contingent liability.
Far East Orchard’s purpose-built student accommodation (PBSA) business segment revenue remained stable, but operating profit was impacted by higher operating costs.
Meanwhile, the property development business segment bolstered the group’s results with a higher share of results from Woods Square, reflecting better performance and the group’s increased shareholdings from 33% to 40%.
Shares in Far East Orchard closed 1 cent higher or 0.806% up at $1.25 on Nov 6.
