Singha Estate Public Company Limited announced its first-quarter results, reporting a net profit of 335 million baht, an increase of 14% from total revenue of 2,186 million baht. Revenue came from the residential business at 752 million baht, office buildings at 243 million baht, and hotels at 1,144 million baht. The company maintains a strong financial position and is set to pay an annual dividend of 0.045 baht per share for the year 2019, supported by good cooperation from partners as it continues to prepare strategic plans for business recovery following the easing of the COVID-19 crisis, confident in sustainable growth.

Singha Estate Public Company Limited reported its first-quarter results from its three core businesses, with total revenue of 2,168 million baht. This includes revenue from the residential business at 752 million baht, down 56% from the same period last year; office buildings generating 243 million baht, up 41% year-on-year; and hotels with revenue of 1,144 million baht, up 17% year-on-year. Consequently, the company's net profit for Q1 2020 stood at 335 million baht, a 14% increase from Q1 2019, primarily due to recognizing profits from the sale of investments in a subsidiary of SHR amounting to 423 million baht and changes in accounting standards for derivatives (Mark to market), resulting in a profit recognition of 115 million baht.

Ms. Thitima Rungkwansiriroj, Chief Financial Officer of Singha Estate Public Company Limited, elaborated on the first-quarter results, stating that total revenue from the company's three core businesses was 2,168 million baht. Revenue from the residential business came from the transfer of condominiums from the projects THE ESSE ASOKE and THE ESSE at SINGHA COMPLEX, accounting for approximately 34% or 752 million baht. The lockdown measures still impacted the business to some extent, as foreign customers could not travel to inspect their units in person, and some Thai customers delayed visiting the projects and inspecting their units until the situation improved to maintain social distancing. However, the impact during Q1 was not significant.

This year, the company has projects nearing completion and is ready to start transfers in Q4, including THE ESSE SUKHUMVIT 36, a joint venture with Hongkong Land, which has already achieved over 60% sales. This super luxury condominium project has a total value of 6.5 billion baht. To ensure safety and reduce the risk of COVID-19 transmission, the company has enhanced its online marketing channels with a 360-degree Virtual Tour, allowing customers to view sample rooms as if they were on-site. Additionally, the company launched an affordable luxury condominium project in a prime location in Rangsit under the name THE EXTRO PHAYATHAI – RANGNAM, valued at over 4.1 billion baht, enabling the residential business to grow at the expected level.

In the office building sector, the company currently has four buildings: Sun Towers, Singha Complex, The Lighthouse, and Metropolis, with a total area of 140,000 square meters and an average occupancy rate of about 87%. In Q1 2020, the company recognized revenue of 243 million baht, a 41% increase compared to the same period last year, due to the acquisition of the Metropolis building, which has an area of 13,700 square meters and a high occupancy rate of 97%, presenting significant growth opportunities due to its excellent location near the Phrom Phong BTS station, a lifestyle hub for the new generation.

In the hotel business, from a total portfolio of 39 properties, revenue reached 1,144 million baht, accounting for 52% of total revenue. The increase in revenue was attributed to the opening of the Crossroads project, which includes SAii Lagoon Maldives, Hard Rock Hotel Maldives, and The Marina @ CROSSROADS, which have been operational since late last year into early this year.

However, the opening of the Crossroads project has led to increased management expenses. Nevertheless, the company's profits have continued to grow, thanks to revenue recognition from other sources, including a profit of 423 million baht from the sale of investments in the third island of the Crossroads project, selling a 50% stake to Wai Eco World Developer Pte. Ltd. under a joint venture agreement to develop and manage high-end lifestyle resorts, with a share sale price of 16.2 million USD. Additionally, due to TFRS 9 accounting standards, the company recognized a profit of 115 million baht from the mark-to-market difference of convertible bonds, resulting in a net profit of 335 million baht, a 14% increase from Q1 2019.

“In light of the COVID-19 pandemic, the company is well aware of the significant challenges ahead and the uncertainty affecting the overall economy. However, the company is confident in maintaining sustainable growth due to its strong financial position, with a net interest-bearing debt to equity ratio of 0.86, which is very low compared to the company's covenant of 2.0. To prioritize shareholder returns, the company will maintain its interim dividend from the net profit for the year 2019 at 0.045 baht per share, with payment scheduled for May 21, 2020.

For the next quarter, the company is adjusting its strategic plans to recover the business, focusing on strict cost management, such as budget adjustments and controlling marketing expenses, managing cash flow, and creating synergy with business partners. Importantly, the company is committed to developing quality projects that create sustainable value for all stakeholders while ensuring organizational flexibility to prepare for changes in all dimensions, and is confident that the company will emerge from this crisis stronger,” Ms. Thitima concluded.