Singha Estate reported total revenue from sales and services for the first half of 2023 at 6.843 billion baht, signaling growth across all business segments. The company is accelerating the development of five horizontal housing projects worth a total of 10 billion baht to fully recognize revenue in the second half of the year, driving annual performance to record highs.

Singha Estate Public Company Limited announced total revenue of 6.843 billion baht and reported adjusted EBITDA of 1.493 billion baht, a 33% increase from the same period last year. The company has laid out plans for the remaining half of the year, continuing to drive business growth by launching five luxury residential projects worth a total of 10 billion baht, with the first single-detached house project set to launch in September. The hotel business is expected to see significant growth, especially in the fourth quarter, driven by international tourists, while commercial real estate continues to progress according to plan, supported by industrial estate and power plant businesses that are set to commence commercial operations later this year.

Revenue from the company's real estate sales includes:

(1) Cumulative transfer of residential property rights over six months amounting to 1.172 billion baht, primarily supported by the launch of the “Lazua De S” project, an ultra-luxury cluster home project, which is a new brand and flagship project for Singha Estate, with record selling prices exceeding 550 million baht per unit. The project received a positive response from customers, allowing for immediate revenue recognition following its launch in the second quarter.

(2) Revenue from the sale of industrial estate land amounting to 36 million baht.

(3) Rental income from the Singha Complex project under long-term lease agreements amounting to 175 million baht. The company is currently negotiating contracts with other tenants to stimulate long-term leasing and maintain a low vacancy rate amid intense competition from increasing rental space supply in the future.

Meanwhile, the company's service revenue has significantly increased, primarily due to a 28% rise in hotel business revenue compared to the same period last year, reaching 4.821 billion baht, driven by a strong global tourism recovery since the beginning of the year, coinciding with the reopening of countries worldwide. This is supported by the strategic location of SHR hotels in top tourist destinations, excellent service standards, and proactive marketing strategies, resulting in an average occupancy rate increase to approximately 70% in the first half of 2023, with an average daily rate (ADR) increase of over 10% compared to the same period last year. However, revenue from commercial real estate in the first half remained stable at 508 million baht compared to the previous year but is expected to improve in the second half as revenue recognition begins following the commercial opening of the S OASIS building, which has over 53,000 square meters of rental space.

Ms. Thitima Rungkwansirirot, CEO of Singha Estate Public Company Limited, stated that the Adjusted EBITDA growth of 33% is a testament to the recovery of the industry and the success of the business adjustments that Singha Estate has implemented. However, the past six months have been a period of preparing to build on this success, which we expect to see clearer results in the second half of the year and into 2024, including:
(1) Development of five residential projects with a total project value of approximately 10 billion baht.

(2) Major renovations of hotels that are valuable assets in SHR's portfolio, including Outrigger Fiji Beach Resort, Laguna Phuket, Phi Phi Island Village, and some hotels in the UK, according to the Asset Rotation strategy to enhance competitiveness and generate efficient profits.

(3) Adjusting tenant acquisition strategies in the office building sector. (4) Controlling the construction plans for the power plant and developing the eco-industrial estate “S Ang Thong” to align with the company's sales roadmap to meet demand for Eco Factory & Green industry for future investment trends.

In 2023, it is a year of enhancing the residential portfolio with plans to launch record-breaking horizontal projects while also investing in high-rise projects to proactively respond to the market (Speed to market). Singha Estate kicked off the first half of the year by launching cluster home projects that offer exclusive privacy in the form of Private Estates, designed specifically for distinct lifestyles. Two projects were launched: the flagship Lazua De S, priced at over 550 million baht, and the recently launched SMYTH’S Ramintra, starting at 120 million baht. Three more horizontal projects will be launched in the second half of 2023, all of which will be ready for immediate revenue recognition upon transfer, aiming for residential project revenue of over 4.5 billion baht this year, representing an 80% growth compared to the previous year, and establishing a new revenue base for 2024. Additionally, Singha Estate sees positive signals from the recovery of the condominium market in the upper-middle-income segment and has partnered with business allies to develop condominiums outside of the brand developed by Singha Estate itself, which will be an important source of future revenue for the company, with plans to launch sales in 2024.

Similarly, in the hotel business, we aim for record revenue growth exceeding 10 billion baht, with expectations of performance growth in the remaining months of the year driven by recovering travel demand and the expansion of the airline business, which is signaling new route openings in the second half of the year. This will be supported by strategies to maximize RevPAR management, along with the development and improvement of rooms to meet tourism trends, which will enhance the ability to drive ADR growth. We believe that our key portfolio hotels will achieve the highest ADR levels during the high season in each respective country, whether in the UK or the Maldives, which account for 70% of total hotel business revenue. Additionally, the Outrigger hotels will benefit from the completed renovations of the Outrigger Fiji Beach Resort, which will drive ADR growth for this portfolio by approximately 20% compared to the first half of the year.

“Singha Estate is confident in driving revenue according to our target of over 16 billion baht for the year, while laying a strong foundation for continued growth in future performance. Additionally, we successfully sold bonds, which received overwhelming response from investors, with a total offering value of 1.7 billion baht to support business expansion towards excellence in performance, with a commitment to delivering good returns to shareholders and creating sustainable value for all stakeholders,” Ms. Thitima added.