Singha Estate Public Company Limited announced its 2019 performance, showing significant growth with total revenue of 12,275 million baht, an increase of 63% from 2018, driven by a 104% rise in home and condominium sales and a 27% increase in rental and service income, while achieving a net profit of approximately 1.2 billion baht.

Mr. Narit Cheyklin, CEO of Singha Estate Public Company Limited, revealed that the company had total revenue of 12,275 million baht, consisting of revenue from property sales, including houses, townhouses, and condominiums totaling 7,385 million baht, up 104%, rental and service income of 4,805 million baht, up 27%, and product sales of 85 million baht, down 32%.

Rental and service income primarily came from the hotel business, contributing 3,818 million baht, an increase of 48% from the previous year, due to the full-year revenue recognition from six hotels under the Outrigger brand acquired in June 2018 and the opening of two new hotels in the CROSSROADS project in the Maldives. Additionally, income from leasing office and retail space rose by 13% to 759 million baht, following the opening of the Singha Complex building in late 2018.

The company reported a gross profit from operations of 5,033 million baht, an increase of 55% from 2018, with a gross profit margin for 2019 at 41%, down from 43% in 2018. This decline was attributed to the hotel business, where the initial profit margins of the new hotels in the CROSSROADS project in the Maldives are still relatively low, as new hotel operations typically see gradual increases in gross margins over 2-3 years before achieving long-term profitability.

Meanwhile, the net profit for 2019 was 1,209 million baht, down 16% due to the reduced gross profit margin, increased interest expenses from business expansion, and higher taxes from the transfer of more residential projects. However, S Hotel and Resort Public Company Limited (SHR) repaid a loan of 5,357.8 million baht for the acquisition of Outrigger hotels following a successful capital increase in November 2019, resulting in a reduction of the company's interest-bearing debt.

“2019 was a year of more than double growth for Singha Estate's residential development business, despite the overall real estate market facing challenges on multiple fronts. The company began transferring ownership of units in The S at Singha Complex in September and continued transferring units in The S Asoke and Banyan Tree Residence Riverside Bangkok, developed by our subsidiary Nirvana Daii. Additionally, we have a backlog of over 6,000 million baht to transfer in 2020,” Mr. Narit stated.

All of the company's hotel businesses are managed by SHR, a subsidiary of Singha Estate, which successfully raised funds through an initial public offering (IPO) and was listed on the stock exchange on November 12, 2019.

As of December 31, 2019, SHR had investments in 39 hotels with a total of 4,647 rooms across five countries: Thailand, Maldives, Fiji, Mauritius, and the United Kingdom. The average occupancy rate for self-managed hotels in 2019 was 72%, with Outrigger hotels at 78%, UK hotels at 70%, and hotels in the CROSSROADS project at 34%. The revenue per available room (RevPAR) for self-managed hotels in 2019 was 5,591 baht, Outrigger hotels at 4,691 baht, UK hotels at 1,851 baht, and CROSSROADS hotels at 4,262 baht.

At the end of 2019, SHR signed a joint venture agreement with Wai Eco World Developer Pte Ltd (WEWD), a major business group from Myanmar involved in various sectors including real estate, hotels, food and beverage, and mining, to develop a high-end lifestyle resort on island 3 in the CROSSROADS project in the Maldives. This new resort will feature 80 villa-style rooms priced at 900-1,000 USD per night, with construction expected to begin in 2020 and operations slated to start in 2022. The sale of a 50% stake in Prime Location Management 3 Limited, a joint venture company, was completed on February 19, 2020.

“Having a strong partner like WEWD enhances our business and financial strength, giving us confidence that the CROSSROADS project in the Maldives, island 3, will succeed and meet our operational goals,” Mr. Narit emphasized.

Additionally, the company acquired the leasehold rights to the Metropolis office building near the Phrom Phong BTS station, covering approximately 26,157 square meters, valued at 1,725 million baht, in early January. The company intends to sell the leasehold rights and the building to the S Prime Growth Leasehold Real Estate Trust (SPRIME) in the near future.

“2020 marks a significant step for Singha Estate to build upon its growth as a Global Holding Company. In addition to sustainably expanding our business in all dimensions, we will begin developing a new business in renewable energy this year to meet global market demands and promote environmental sustainability,” Mr. Narit added.

As of December 31, 2019, Singha Estate had total assets of 67,681 million baht, an increase of 8,751 million baht from the end of 2018, consisting of current assets of 24,087 million baht and non-current assets of 43,594 million baht. Total liabilities amounted to 40,085 million baht, with a net interest-bearing debt to equity ratio of only 0.77 times. With such a low debt ratio, the company is considered to have a strong financial position and is ready for continuous growth.

Furthermore, at the 2nd/2019 Board of Directors meeting on February 27, 2020, the proposal for a dividend payment of 0.045 baht per share from the net profit for the period from January 1 to December 31, 2019, was approved, with a record date set for May 7, 2020, and payment scheduled for May 21, 2020. This dividend payment resolution is subject to approval at the Annual General Meeting of Shareholders for 2020, which will be held on April 27, 2020.