Revenue for FY2024 was 37% y-o-y lower at $192.5 million, and revenue for 2HFY2024 was 46% y-o-y lower at $86 million.
The group says that lower earnings for the full year was driven by decline in occupancy rate due to ongoing asset enhancement works at Link@896, one-off expenses related to the termination of the Hyatt Regency Perth Hotel Management Agreement and the property's subsequent rebranding, as well as reduced contributions from other investments.
The group recorded an $18.5 million gain by divesting its majority stake in a subsidiary that owns the land in Fuzhou City, Fujian, China.
Revenue for the full year declined due to lower revenue contribution from Real Estate Development as a result of lower progressive recognition of revenue from units sold in Peak Residence.
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The group says that it experienced softer financial performance due to ongoing asset enhancement initiatives (AEI) in its properties.
Moving into the new year, the group says the sluggish office leasing market is expected to persist. However, upcoming lease expirations in 2025-2026 may lead to relocations or downsizing. Meanwhile, retailers’ expansionary appetite is expected to remain strong in 2025, although ongoing challenges, especially rising labour costs, may have slightly weakened demand.
The group’s flagship commercial property, 18 Robinson, remains a steady source of income.
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In Australia, the group says outlook is bright as hospitality assets comprising the Grand Hyatt
Melbourne and the Residence on Langley in Perth together with the adjoining Shoppe on Langley Park will benefit from the growth of domestic tourism and uptick in international travel.
In Indonesia, Tuan Sing acquired Teluk Senimba Ferry Terminal, one of Batam’s five international ferry terminals, to enhance connectivity to Opus Bay. AEI works will begin in 2025 and completion is targeted for 2026.
Opus Bay is progressing in phases as an integrated township, says the group.
Finally in China, GulTech is expected to continue contributing to the group’s performance in 2025, despite weaker demand for printed circuit boards across all segments.
The board of directors has proposed an unchanged first and final one-tier tax exempt dividend of 0.7 cents per share for FY2024, payable on June 26, 2025.
Shares in Tuan Sing closed 1 cent lower or 3.333% down at 29 cents on Feb 27.
