Hotel Properties Limited has reported earnings of $27.2 million for the FY2024 ended Dec 31, 2024, 95.1% lower y-o-y, even though revenue grew on a y-o-y basis.
The earnings plunge was due to lower net fair value gains reported during the year. In FY2024, HPL reported net fair value gains of $96.6 million compared to FY2023’s $645 million. The gains were for the group’s Singapore investment properties.
Earnings per share (EPS) on a diluted basis stood at 3.86 cents from 106.08 cents in the year before.
FY2024 revenue rose by 7.9% y-o-y to $692.9 million mainly due to the opening of Six Senses Kanuhura in late 2023 and Four Seasons Hotel Osaka in August 2024.
The group also received a distribution of $38.7 million under the “other operating income” line after the Brillia Tower Dojima residential apartments in Osaka were completed. The group has a 25% share in the apartments via a partnership agreement.
In FY2024, HPL generated an operating profit before share of results of associates and jointly controlled entities, depreciation, amortisation, fair value changes and finance cost of $180.4 million, 23% higher than the $146.7 million recorded last year.
During the year, the group recorded a mark-to-market fair value loss of $1.5 million on long-term investments compared to $11.9 million in FY2023. Finance costs rose to $105.6 million from $98.3 million in FY2023 due mainly to higher borrowings and interest rates.
In FY2024, the group reported share of losses from associates and jointly controlled entities of $57.5 million compared to last year’s $56.4 million. This was mainly attributed to higher finance costs and fair value loss suffered by the group’s properties in London due to higher capitalisation rates.
The board has recommended a first and final dividend of 4 cents per share, unchanged from last year’s dividend. The date payable will be announced at a later time.
Shares in HPL closed flat at $3.60 on Feb 27.
