Far East Orchard has reported earnings of $59 million for FY2024 ended Dec 31 2024, down 10.6% y-o-y from the $66 million reported in the same period a year ago.
For 2HFY2024, the company reported earnings of $40.7 million, down 29.4% y-o-y.
Earnings per share for FY2024 came in 11.9% y-o-y lower at 12.1 cents.
Revenue for FY2024 came in 4.5% higher at $191.9 million, and grew 1.9% y-o-y to $94.5 million in 2HFY2024.
The group’s revenue grew marginally due to higher revenue contribution from the Purpose-built Student Accommodation (PBSA) business segment.
Operating profit for this segment increased to $37.1 million. The segment saw rental growth, and additional contributions from a Southampton PBSA asset acquired in May 2023, and the share of profits from the PBSA operating platform Homes for Students, in which the group acquired a 49% stake in April 2024.
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Far East Orchard’s hospitality business segment saw growth in operating profit of $4.9 million from Japan and Europe. However, refurbishment works in a property in Australia negatively impacted operating performance.
The group divested Rendezvous Hotel Perth in December 2024 and recognised a gain on disposal of $5.9 million.
Despite this, earnings came in lower mainly due to net fair value gains recognised on investment properties and higher unrealised currency translation losses recognised in FY2024. Excluding the fair value gains (net of tax), the profit after income tax would have been higher at $35.5 million.
The group’s PBSA portfolio currently comprises close to 3,700 beds across key cities in the UK, with two developments in Bristol and Glasgow. Upon completion of the developments, this will grow to 4,700 beds across 15 properties.
As at Dec 31, 2024 Far East Hospitality, together with TFE Hotels, owns or operates over 100 properties with more than 17,500 rooms across 10 countries. About 500 new room openings are expected in Australia and Austria. The EVE Hotel Sydney, operated by TFE Hotels, opened in February 2025.
The group recommends a final dividend of 5 cents per share for FY2024.
Shares in Far East Orchard closed flat at $1.04 on Feb 28.
