Singha Estate has reported its performance from sales and services for the first nine months of 2023, achieving a revenue of 11,431 million baht, representing a 13% year-on-year increase. Notably, revenue from real estate sales grew significantly by 50%. The company anticipates continued revenue growth for 2023, driven by the transfer of ownership in both horizontal and condominium projects, along with strong contributions from the hotel business, which has seen remarkable revenue growth due to room renovations and expansion into new customer markets.

Bangkok (November 2023) - Singha Estate Public Company Limited (SET:S) announced its financial results for the first nine months of 2023, with total revenue from its core business reaching 11,431 million baht. This includes (1) revenue from real estate sales amounting to 2,534 million baht, up 50% from the same period last year, primarily supported by the transfer of ownership from projects such as S’RIN Ratchapruek - Sai 1, THE EXTRO Phayathai-Rangnam, and The ESSE Sukhumvit 36; and (2) service business revenue of 8,654 million baht, driven by a 7% increase in hotel business revenue compared to the same period last year, despite some hotel room renovations in Thailand during the second and third quarters. This reflects successful customer base expansion into new countries to maximize potential during the off-peak season, along with ongoing recovery in the tourism industry both domestically and internationally. The completed renovations have modernized the rooms to meet tourist demands, pushing the average daily rate (ADR) of the portfolio up by over 15%, complemented by more than 10% growth in rental income from commercial real estate, in line with improved occupancy rates at S-OASIS office buildings.

Ms. Thitima Rungkwansiriroj, CEO of Singha Estate Public Company Limited, stated, "Although the overall real estate market faces challenges, Singha Estate's performance in the first nine months continues to grow, driven by our residential projects focused on the luxury segment, which still sees strong customer demand. For the fourth quarter, we remain committed to delivering quality projects, with plans to launch 4 projects in the luxury to super-luxury segment by the end of this year and early next year. This includes one joint venture condominium project located in Rama 3 and three single-house projects under the SMYTH’S brand in key locations such as Ram Inthra and Kaset-Nawamin, as well as S’RIN Prannok-Kanchana on Prannok-New Road, with a total project value of over 8,800 million baht. The hotel business has shown satisfactory performance, driven by the recovery of the tourism sector both domestically and internationally, with a proactive market expansion strategy into new markets and improvements in asset quality receiving positive customer feedback, resulting in a 12% increase in revenue per available room (RevPAR) compared to the previous year."

In the residential business, there are continuous signs of improvement from the transfer of ownership in super-luxury and premium luxury projects such as Siraninn Residences, S’RIN Ratchapruek - Sai 1, and The ESSE Sukhumvit 36, as well as positive responses to projects launched during the year, including SHAUN Panya Indra and SHAUN Wongwaen - Chatuchot, which are single houses in the luxury segment, with increasing ownership transfers observed in the past quarter.

As of the end of the third quarter, the company has a backlog of over 1,824 million baht, with a target to recognize revenue from ownership transfers of approximately 38% of the backlog in the final quarter of 2023, which will support revenue growth for the entire year.

The hotel business's performance in the first nine months has shown remarkable growth, with earnings before interest, taxes, depreciation, and amortization (EBITDA) increasing by 12% to 1,918 million baht, reflecting effective cost control while expanding the customer base from new markets to reduce reliance on any single market. This diversification contributes to economic value and seasonal stability, driving a 12% increase in RevPAR for the final quarter of 2023. The company sees growth opportunities in the hotel business during the high season in Thailand, the Maldives, and Mauritius, with 173 renovated rooms at SAii Laguna Phuket set to reopen in December to accommodate high-season tourists, and room rates expected to increase by 15-20% due to these renovations, along with additional revenue from services such as food and beverage (F&B) and spa services as per the strategic plan.

In the office building business, the company recently won the Global Business Outlook Award 2024 for Most Innovative New Office Building Development for the S-OASIS project, reflecting its leadership in office building innovation. This award emphasizes the success of smart building design that integrates advanced technology with sustainable development concepts. S-OASIS is recognized as a leading sustainable office building in Thailand, located in the Vibhavadi area, where demand for sustainable innovations is high among tenants committed to environmentally responsible business practices, making this project a standout choice in the market. We expect the occupancy rate of S-OASIS to reach 50% by the end of 2023.

Regarding the industrial estate business, S Ang Thong currently has comprehensive infrastructure, including stable water and electricity management, which is a strong point in attracting investors. Additionally, there are positive factors from foreign investors relocating production bases or government investment measures supporting this sector. In 2023, there has been continuous interest from investors in visiting the industrial estate, particularly from clients in China and Taiwan, with revenue recognition from ownership transfers totaling 56 rai and a profit share of over 100 million baht in the first nine months from three operational co-generation power plants in the estate since the beginning of the year. The infrastructure business is another area that will strengthen Singha Estate's revenue portfolio.

"Furthermore, Singha Estate has received numerous quality awards, such as four awards from the PropertyGuru Thailand Property Awards 2023 for the residential real estate business for THE EXTRO Phayathai-Rangnam project and the Global Business Outlook 2024 award for BEST LUXURY DEVELOPERS – Residential. All of these affirm our commitment to developing quality projects and services sustainably to provide the best living experience for our customers," Ms. Thitima added.