Singha Estate reported total revenue from sales and services for Q1 2023 at 4.034 billion baht, an increase of 21% YoY, with a net profit of 104 million baht, up 46% YoY. This growth is attributed to the strong performance across all business segments, particularly the successful launch of new residential projects that received positive market responses, as well as the hotel business strategy to drive room rates and non-room revenue in line with targets, seizing opportunities from the increasing trend in tourism spending while creating value and sustainable growth in accordance with the strategic plan.

Singha Estate Public Company Limited or S announced its Q1 2023 performance with total revenue of 4.034 billion baht, including revenue from property sales of 997 million baht, which more than doubled due to several factors such as:
(1) Recognition of the transfer of ownership for land in the S Industrial Estate in Ang Thong after the completion of land development and public utilities at the end of 2022.
(2) The commencement of ownership transfers for units in the first quarter of the D Extro Phaya Thai-Rang Nam project.

Meanwhile, revenue from service businesses reached 3.037 billion baht, continuing to expand due to:
(1) Revenue from commercial real estate grew by 12% from the previous year, in line with the increase in the occupancy rate of the S-OASIS building.
(2) Revenue from the hotel business increased by 8% from the previous year, driven by the introduction of new room types, which pushed the average daily rate (ADR) across the portfolio up by 24% from the previous year, achieving the targets set in the asset improvement plan.

In this quarter, Singha Estate demonstrated strong performance in hotels in Thailand and two hotels in the CROSSROADS Maldives project, attracting a more diverse group of tourists, resulting in an occupancy rate of 89% and an increase in ADR of 12% from Q1 2022. Similarly, the hotel in the Republic of Fiji, which underwent renovations last year, stood out and attracted experience-focused tourists, leading to a 36% growth in revenue per available room (RevPAR) compared to the same period last year. In addition to achieving operational targets, in Q1, the company successfully issued a 3-year debenture with an interest rate of 5% per annum, with total subscriptions amounting to 1 billion baht to drive performance and provide good returns to shareholders. Singha Estate remains committed to operating in all dimensions to deliver value and quality of life to all stakeholders continuously, ensuring success. Singha Estate also received the Thailand’s Most Admired Company award in the real estate sector for the second consecutive year from BrandAge magazine for its commitment to social responsibility (Sustainable Development).

Ms. Thitima Rungkwansiriroj, CEO of Singha Estate Public Company Limited or ‘S’ stated, “The performance in Q1 reflects the success that Singha Estate has always aimed to deliver to customers to create value and sustainable growth with ‘Best in Class’ quality standards, as well as strategies to enhance asset efficiency across all portfolios over time. This has resulted in strong market confidence and positive responses to all Singha Estate products and services, as reflected in the successful launch of new markets from several projects such as the Srin Ratchaphruek 1 project, the D Extro Phaya Thai-Rang Nam project, and the S Industrial Estate in Ang Thong, proving the success of investments and the added value of Singha Estate. Furthermore, in the hotel business across various countries where we operate, there are continuous positive signals from Q1, with an increase in room bookings for the next 3-6 months compared to the same period last year, indicating the success of our proactive marketing strategies, including expanding sales channels to reach new potential markets and effective pricing strategies. Similarly, the performance trend of SO/Maldives hotels, a new luxury hotel that just opened at the end of 2022, is showing continuous improvement, which will be a significant boost for the company to achieve its operational targets set for 2023.”

Singha Estate is confident in driving new record-high revenue of 18 billion baht this year, supported by positive operational signals from the residential business since the end of 2022, such as the Sirin Residence and Srin projects, as well as the recognition of revenue from the D Extro Phaya Thai-Rang Nam project at the end of Q1. On May 14, 2023, Singha Estate is set to launch two new projects, SHAWN Panya Intra and SHAWN Wong Hwan Jatu Choti, premium luxury single houses targeting a new market segment in the potential area of Ram Inthra. Additionally, at the end of the year, the company plans to launch four new projects, consisting of two horizontal projects and two condominium projects, with a total value of 10 billion baht, resulting in a total of 14 projects developed and awaiting sale by the end of 2023, with a total value exceeding 37 billion baht. The company aims for a 50% growth in residential business revenue in 2023 compared to the previous year, partly due to a backlog of approximately 3 billion baht in sales awaiting transfer of ownership, which is expected to be gradually delivered and recognized as revenue within 2023.

Another key driver of Singha Estate's performance is the hotel business, which is expanding alongside global tourism, with strengths in location and market positioning of the hotels in the company's portfolio, excelling in providing experiences that cater to the current trends of experiential tourism and eco-tourism, as well as delivering impressive products and services. Moreover, in 2023, there will be proactive marketing strategies to attract a more diverse range of tourists to enhance portfolio efficiency by continuously improving high-potential hotels, especially in Thailand and the hotel portfolio in the UK, along with plans to develop products and services to establish a foundation for sustainable growth.

Ms. Thitima added, “For the other two assets currently in the market expansion phase, namely the S-Oasis office building and the sale of land in the S Industrial Estate in Ang Thong, we can continuously leverage from the target customer groups. Therefore, the gradual occupancy of the main tenants and targeted marketing in each industry will help drive better sales momentum in the future, which will result in the commercial real estate and industrial estate and infrastructure businesses achieving their revenue targets. For Singha Estate, 2023 is considered a year of reaping the rewards from the foundations and investment projects that the company has developed over the past 2-3 years. We are confident in achieving the company’s total revenue target to reach a record high continuously, with strong profit margins and strict financial discipline to ensure sustainable organizational growth alongside creating value for all sectors.”