Singha Estate strides forward according to plan, unveiling impressive Q1 results with revenue reaching THB 4,034 million

Friday 17 May 2024 11:44
Singha Estate strides forward according to plan, unveiling impressive Q1 results with revenue reaching THB 4,034 million, accompanied by a substantial net profit surge of 46%
Singha Estate strides forward according to plan, unveiling impressive Q1 results with revenue reaching THB 4,034 million

Singha Estate reports its consolidated Q1/2024 sales and service revenue at THB 4,034 million in total, marking a notable 21% YoY increase, and the net profit of THB 104 million, showing a substantial 46% YoY growth. These achievements are attributed to the overall business expansion across all sectors, with particular success for the introduction of new residential projects and hospitality business strategies that focus on optimizing room rates and increasing non-room revenue, with the latter aiming to capitalize on the growing trend in tourism expenditure. This strategic direction is geared towards fostering sustainable value creation and growth, in alignment with the established strategic plan.

Bangkok (May 14, 2024) - Singha Estate Public Company Limited (SET: S) announced its Q1/2024 performance with the total revenue reaching THB 4,034 million, of which THB 997 million was generated from real estate sales, showing a remarkable growth. This growth is attributed to various factors, including the successful land rights transfers in the S Industrial Estate Angthong, following the completion of land development and public utility systems in late 2023, and the successful unit transfers for the first quarter of The Extro Phayathai-Rangnam while revenue from hospitality businesses totaled THB 3,037 million, indicating consistent expansion. Notably, revenue from commercial business trading saw a 12% increase, compared to the previous year, in line with the rising leasing rates of S-OASIS. Furthermore, revenue from hospitality business rose by 8%, driven by the introduction of new room types, resulting in a 24% growth in the average room rate (ADR) across the portfolio compared to the previous year, meeting the targeted asset enhancement plan.

During the quarter, Singha Estate witnessed robust growth across its operations, notably in its Thai hotel segment and the two hotels within the CROSSROADS Maldives project, attracting a more diverse tourist demographic. This resulted in an impressive occupancy rate of up to 89% and a 12% increase in Average Daily Rate (ADR) compared to the first quarter of 2023. Similarly, hotels in the Republic of Fiji, having undergone renovations in the prior year, experience-seeking travelers. As a result, Revenue Per Available Room (RevPAR) surged excelled in drawing by 36% compared to the corresponding period in the preceding year. In addition to meeting its planned objectives, the company successfully issued a 3-year corporate bond with a 5% annual interest rate, garnering subscriptions worth THB 1,000 million. This strategic move aims to drive business performance and deliver favorable returns to shareholders. Singha Estate remains steadfast in its commitment to operate across all facets, consistently delivering value and enhancing the quality of life for stakeholders, ensuring sustained success. Moreover, Singha Estate has been honored with the "Thailand's Most Admired Company" award in the real estate sector for the second consecutive year by BrandAge magazine, recognizing its dedication to social responsibility and sustainable development.

Mrs. Thitima Rungkwansiriroj, Chief Executive Officer, Singha Estate Public Company Limited (SET: S), disclosed: "For the first quarter, our performance underscores Singha Estate's unwavering commitment to delivering value to customers consistently, striving for sustainable growth while upholding 'Best in Class' quality standards. Our strategic initiatives to enhance asset efficiency across all portfolio segments have yielded positive outcomes, instilling confidence and garnering favorable market responses for all our products and services. This is evident from successful market launches across various projects such as S'RIN Ratchapruek-Sai 1, The Extro Phayathai-Rangnam, and the S Industrial Estate Angthong, all of which highlight our successful investments and added value creation. Moreover, in our hospitality business across multiple countries, we have observed ongoing positive trends. In the first quarter, room bookings for the next 3-6 months saw an increase compared to the same period last year. This serves as a testament to the success of our proactive marketing strategy, which includes expanding sales channels to tap into new potential markets and implementing effective pricing strategies. This echoes the performance trajectory of SO/ Maldives, a newly opened luxury hotel at the end of 2023, which has consistently shown positive momentum. These factors will play a pivotal role in enabling the company to achieve the operational targets set for 2024.

Singha Estate is poised with confidence to propel its revenue to unprecedented heights, targeting a milestone of THB 18,000 million within this fiscal year. This optimism stems from the consistent improvement in operational performance witnessed since the close of 2023. Noteworthy progress has been observed across residential ventures like SIRANINN Residences, S'RIN, and the increasing revenue recognition from The Extro Phayathai-Rangnam during the end of the first quarter of 2024. On May 14, 2024, Singha Estate is set to introduce two exciting new projects: SHAWN Panya Indra and SHAWN Wongwaen - Chatuchot. These ventures offer premium luxury detached house strategically located in the burgeoning Ramindra area, aimed at capturing new market segments. Looking ahead, the company plans to unveil four additional projects before year-end, comprising two horizontal projects and two condominium developments with a collective value of THB 10,000 million. By the close of 2024, Singha Estate anticipates having 14 projects ready for sale, representing a cumulative value exceeding THB 37,000 million. The company targets a robust 50% revenue growth in its residential property segment for 2024, with a portion of this growth attributed to backlog sales totaling approximately THB 3,000 million, expected to be progressively delivered and recognized as revenue throughout 2024.

Another vital factor propelling Singha Estate's business performance is its expansion into the hospitality industry, synchronized with global tourism trends. Leveraging strategic locations and market positions within the company's portfolio, its hotels excel in experiential tourism and eco-tourism trends. Furthermore, in 2024, a proactive marketing strategy aims to attract a diverse range of tourists, enhancing portfolio efficiency through continuous enhancement of high-potential hotels, particularly in Thailand and the UK. Additionally, plans for product and service development are in place to foster sustainable growth.

Mrs. Thitima elaborated: "Regarding the other two assets currently in the market expansion phase - the S-OASIA and the S Industrial Estate Angthong - there's a consistent potential to expand towards the target customer base. Thus, gradually occupying space by primary tenants and implementing focused marketing strategies in each industry will likely propel future space sales rates upwards, boosting revenue for our real estate trading business, industrial estates, and infrastructure projects in line with our targets. For Singha Estate, 2024 marks a year of reaping the rewards from our foundational efforts and investments made over the past 2-3 years. We are confident in reaching our New All-Time High total revenue goal, driven by robust profit growth rates and sustained financial discipline. This aligns with our commitment to fostering enduring organizational growth while delivering value across all sectors."

Source: MSL Thailand

Singha Estate strides forward according to plan, unveiling impressive Q1 results with revenue reaching THB 4,034 million