Singha Estate has announced its financial results for the first half of 2021, reporting total revenue of 3.018 billion baht, primarily driven by sales from the Santhiburi The Residences project, reflecting strong demand for residential properties and confidence in the company's ultraluxury brand. Additionally, revenue from the hotel in the UK, which was invested in earlier this year, contributed to positive signals for tourism in the UK, leading to expectations of continued revenue growth in the second half.

Singha Estate Public Company Limited reported total revenue of 3.018 billion baht for the first half of 2021, a decrease of 3% compared to the same period last year. This total revenue is divided into residential development revenue of 1.133 billion baht, commercial office revenue of 489 million baht, hospitality revenue of 1.347 billion baht, and other businesses contributing 49 million baht.

Despite the financial results for the first half of 2021 reflecting the exclusion of Nirvana Daii Public Company Limited (NVD) from Singha Estate's consolidated financial statements since the beginning of 2021, following the completion of the investment sale transaction in NVD on January 6, 2021, the total revenue only decreased by 3%, as anticipated by the company. This is due to the group's increased investment in FS JV Co., Ltd. (“FS JV”), which operates hotels in the UK, allowing Singha Estate to recognize revenue from the UK hotel group starting in March. Additionally, strong demand for single-detached houses has continued since last year, and demand for condominiums is gradually showing signs of recovery.

Ms. Thitima Rungkwansiriroj, CEO of Singha Estate Public Company Limited or S, stated that in the first six months, the residential business faced significant challenges due to the loss of revenue from NVD since the beginning of 2021, which previously accounted for about half of the total revenue of this business. However, the satisfactory recovery signals from the condominium projects were reflected in the transfer value in the second quarter of 2021, which was the highest in three quarters, along with continuous revenue recognition from the Santhiburi The Residences project, resulting in only a 17% decrease in residential business revenue.

In the office business, Singha Estate has been able to continuously renew contracts with existing tenants and lease additional space of over 2,100 square meters, resulting in an overall average occupancy rate reaching 88% in the first half of 2021.


Ms. Thitima Rungkwansiriroj, CEO of Singha Estate Public Company Limited

It should be noted that the resurgence of COVID-19 in 2021 continues to pressure the overall hotel business performance, with 6 out of 38 hotels reopening for commercial service again, and some may remain closed until the end of the year if the overall situation does not improve. However, in the first half of the year, the hotel business generated a revenue increase of 17%, primarily due to the increased investment stake that made Singha Estate the sole shareholder in FS JV, which operates hotels in the UK under the Mercure brand franchise in February.

The reopening of domestic travel since May, combined with FS JV's primary customer base being domestic tourists, has supported the continuous recovery of the UK hotel business as the company anticipated, with the occupancy rate in June reaching 50%, the highest in 16 months, and over 41% of hotel business revenue coming from the UK hotel portfolio.

“The UK hotels becoming a primary revenue source has driven hotel group revenues to grow for the first time since the COVID crisis, reinforcing that the additional investment in FS JV was a suitable investment in terms of both assets and timing. Furthermore, the company is confident that the hotel performance in the UK, both in terms of occupancy rates and average daily rates (ADR), will recover even more significantly in the second half of 2021 as we enter the tourism season, especially since the government announced the lifting of all travel restrictions on July 19, 2021,” Ms. Thitima stated.

Effective cost control, particularly a 40% reduction in selling expenses, along with recognizing profit shares from investments in joint ventures and associates amounting to 177 million baht from the delivery of units in The Esse Sukhumvit 36 project, significantly offset the impact of reduced revenue, resulting in Singha Estate reporting a net loss of only 26 million baht, a 92% decrease in losses compared to the same period last year.

For the second half of the year, the company's significant development will likely focus on expanding the residential portfolio under Singha Estate's management to continuously drive business growth. With a strong financial position and a debt-to-equity ratio of only 1.14 times, this is crucial for enabling the company to continue investing to generate good returns for shareholders and promote stable long-term growth for Singha Estate.