Singha Estate reported revenue of 5.79 billion baht in the first half of 2022, an increase of 92% compared to the same period last year, driven by revenue growth across all business segments and the first recognition of income from the sale of industrial estate land in the second quarter. This reflects the success of the company's business restructuring efforts over the past two years, focusing on a diversified investment strategy to create variety across four interconnected business groups. We are confident that revenue in 2022 will nearly double, aiming for a new high for the company.

Ms. Thitima Rungkwansiriroj, CEO of Singha Estate Public Company Limited, stated that the second quarter was a time to reap the rewards of Singha Estate's business restructuring, particularly with additional investments in hotels to balance seasonal revenue in the company's portfolio. The second quarter coincided with the tourism season in the UK and Fiji, with revenues from both portfolios growing by 40% and 100% respectively from the previous quarter. Additionally, the investment in industrial estate business not only helps balance customer base revenue for Singha Estate but also creates opportunities for recurring income from assets in the long term. In this second quarter, the company recognized income from the sale of 77 rai of land to B.Grimm Power (Ang Thong). Coupled with the gradual recovery of other businesses and effective cost control, Singha Estate reported a net profit of 102 million baht in the second quarter of 2022, and we hope the company will maintain momentum for continuous profit generation.

Overall performance for the remainder of this year is expected to continue growing by about 30% from the first half, driven by revenue from the hotel business and sales of houses and condominiums. The company has seen clear positive signs from hotel operational statistics in July, with an average occupancy rate across the portfolio rising to 70%
and is expected to continue increasing, especially as we enter the tourism season in the Maldives and Thailand in the fourth quarter. Furthermore, the company is implementing strategies to improve hotel room quality to enhance portfolio efficiency, which is a key mechanism for driving growth in average daily room rates (ADR), particularly for hotels in the CROSSROADS project and the hotel portfolio in the UK, which is expected to achieve room rates higher than in 2019, the year before the COVID-19 pandemic, by 41% and 27% respectively. Another crucial driver for revenue in the second half of the year is the hotel portfolio in Thailand, where we have already seen rapid recovery signs since July, the first month of fully reopening to international tourists, resulting in occupancy rates of 68% and 63% for SAii Laguna Phuket and SAii Phi Phi Island Village respectively. With the strong location of all the company's hotels in key tourist areas, combined with successful brand awareness efforts, we are confident in the continued upward trend of performance and expect the hotel portfolio in Thailand to generate nearly double the revenue in the second half of the year.

The company also anticipates that the transfer of ownership for the single-family home project, Santiburi The Residences, will accelerate in the second half of the year, supported by revenue recognition from the new single-family home project, Siraninn Residences, which is expected to begin transferring ownership in the fourth quarter of 2022. This will help drive revenue growth in the residential business by 50% or over 3.3 billion baht in 2022. The Siraninn Residences project is expected to launch sales in September 2022, located in Soi Pattanakarn 32, which is currently one of the most premium residential areas for horizontal projects in the city. The project features luxury single-story homes in a two-story format within a quality community, limited to just 28 plots, with prices ranging from approximately 65 to 180 million baht, and home offices priced around 20 million baht for 4 plots. The project has received positive feedback from existing customers, who are loyal fans of the Singha Estate brand, giving us confidence that the transfer target set for the fourth quarter of 2022 will be achieved.

 

The company aims to launch new residential projects over the next 5 years with a target value of 52 billion baht, focusing on developing luxury horizontal projects across three new segments, covering a wider price range by adjusting prices downwards for each project, from 100 million to 10 million baht per unit. New single-family homes in the other two segments are set to officially launch within 2022. The company currently has two plots of land ready for development and is awaiting the transfer of additional land ownership to proceed with four projects ready for sale in 2023, with a goal of acquiring 5-7 more plots of land each year for development and gradual project launches starting in 2023, totaling over 10 billion baht annually.

Regarding the progress of leasing the company's retail space for long-term lease to the SPRIME Real Estate Investment Trust, on June 24, 2022, we leased retail space in the Sun Towers project for a total value of 213 million baht. The leased area that SPRIME invested in currently has a high occupancy rate of 98%, ensuring that SPRIME is investing in high-potential properties that will provide good long-term returns for the SPRIME Trust. However, the plan to lease the Singha Complex office building for the long term has been postponed due to volatile capital market conditions and economic pressures from interest rate adjustments, inflation, oil prices, the pandemic, and various international political conflicts. Nevertheless, we remain confident in the performance of the Singha Complex office building, which generates operational profits for the company of about 400 million baht per year,” said Ms. Thitima.