The stock hit a two-year high in intraday trade after a BT report on the retailer&rsquo s plans to launch new retail concepts

 

[SINGAPORE] Shares of department store retailer   Metro   : M01 +6% advanced on Tuesday (Sep 16), following news of its retail strategy revamp.  

 

The counter hit a two-year high in intraday trade, with more than 1.1 million shares changing hands, as it rose to S$0.555 &ndash its highest price since September 2023, according to ShareInvestor data. This was 11 per cent or S$0.055 higher than its S$0.50 closing price for Monday. By market close on Tuesday, it had retreated somewhat to S$0.53, still up by 6 per cent or S$0.03, with around 1.3 million shares transacted. 

 

On Sunday, The Business Times reported on Metro&rsquo s plans to revamp its retail strategy to combat the industry headwinds that have hit its retail division, which posted a loss after tax of S$6.9 million for FY2025, versus a S$1.8 million profit in the previous year. 

 

Its two remaining Singapore outlets at Paragon and Causeway Point recorded lower contributions, as sales fell 8.5 per cent to S$96.5 million. 

 

On a group level, the company sank into the red with a S$224.8 million net loss for FY2025, from a S$14.6 million net profit previously.  

 

The weak performance sparked shareholder questions at its recent annual general meeting on whether the company would exit the retail industry, but Metro intends to press on. 

 

In a bid to improve business, it is turning to a slew of new strategies, including global tie-ups as well as immersive and modular concepts. 

 

For one thing, it has partnered South Korean retail giant Shinsegae to bring in exclusive products &ndash including brands that will be available in Singapore only through Metro &ndash as part of a bid to differentiate itself from competitors. 

 

Through the tie-up, Metro is also looking at introducing its brands to Shinsegae. 

 

&lsquo Building the next sunrise&rsquo : Metro pivots to global tie-ups, immersive concept stores to woo shoppers

Experiential offerings are also in the pipeline, such as a &ldquo sleep lab&rdquo that will allow customers to try mattresses. 

 

Another new concept is MiniMuse, a luxury beauty and wellness selection targeting young customers that offers sample-sized products for them to try before making full-sized purchases.

 

Yet another is Kitchen Stadium, which will allow shoppers to watch live demonstrations by chefs. 

Between Aug 13 and 19, non-executive and non-independent director Ong Sek Hian acquired 1,560,300 shares at an average price of S$0.422 a share. This raised his total interest from 35.40 to 35.59 per cent. 

 

He is a substantial shareholder of the company through his deemed interest in Dynamic Holdings, Leroy Singapore and Eng Kuan Co. An entrepreneur with over a decade of experience, Ong has expertise in diverse sectors and strong venture capital and private equity credentials, having successfully invested in and exited multiple startups.

 

Metro Holdings reported a net loss of S$224.7 million in FY2025 (ended Mar 31), reversing a net profit of S$14.6 million in FY2024. This was attributed primarily to non-cash fair-value and impairment losses from its China real estate exposure, compounded by global economic challenges including inflation, interest rate hikes and geopolitical tensions. 

 

To improve financial performance and shareholder value, the group is focused on optimising asset efficiency, diversifying into resilient sectors, strengthening its retail operations, and maintaining strong liquidity while navigating ongoing macroeconomic uncertainties.

Revenue for the half-year falls 14.6% to S$56.2 million

 

[SINGAPORE] Metro sank into the red for its second half ended March, with a net loss of S$228.1 million, reversing from a S$6.4 million net profit in the previous corresponding period.

 

This translates to a loss per share of S$0.276, versus an earnings per share of S$0.008, the mainboard-listed property investment and development group said in its financials released on Friday (May 23).

 

The losses came amid lower revenue, which was down 14.6 per cent at S$56.2 million from S$65.7 million in the year-ago period on lower contributions from Metro&rsquo s retail, sale of property rights and rental income divisions.

 

Revenue from the property division fell to S$4.6 million from S$5.9 million, mainly from lower sales of property rights of residential development properties in Bekasi and Bintaro, Jakarta. Its retail division recorded a drop in sales at its two Singapore department stores &ndash Metro Paragon and Metro Causeway Point &ndash to S$51.6 million from S$59.8 million.

 

The six-month period recorded other net expenses of S$12.2 million, as compared to H2 FY2024 which recorded other net income of S$9.7 million, mainly driven by higher net fair-value loss from long-term investments.

 

These included investments of S$6.3 million in Mapletree Global Student Accommodation Private Trust (MGSA), S$3.6 million in BentallGreenOak (BGO) China Real Estate Fund III and S$6 million for other long-term investments. The group also registered a S$3.5 million decline in interest income and S$2.6 million in foreign exchange losses.

 

For the full year, the company recorded a net loss of S$224.8 million, a turnaround from its S$14.6 million net profit for the year-ago period. It netted a S$0.272 loss per share against a S$0.018 earnings per share previously. Full-year revenue fell 9.8 per cent to S$104.5 million from S$115.9 million.

 

The losses were attributed to non-cash fair-value and impairment losses arising from the group&rsquo s China real estate exposure, as Metro&rsquo s property division was negatively hit by prolonged sector headwinds in China.

 

These led to a S$105.4 million share of loss from its associate Top Spring International, stemming from operating losses and fair value losses on investment properties S$91.1 million in fair value loss from China properties held under its associates and joint ventures and impairment of amounts due from associates amounting to S$32.9 million.

 

The group also logged S$23.2 million in fair value losses from investments in MGSA.

 

Looking ahead, Metro chairman Tan Soo Khoon noted the prolonged property market downturn in China and a &ldquo challenging retail environment in Singapore&rdquo , amid &ldquo strong headwinds&rdquo resulting from tariffs.

 

&ldquo The group&rsquo s associate, Top Spring, our co-investments with BGO and our other China investment properties will continue to be subject to persistent market headwinds in China and Hong Kong,&rdquo Metro said.

 

It pointed to the Ministry of Trade and Industry&rsquo s downgrading of Singapore&rsquo s 2025 growth forecast to a range of 0 to 2 per cent, from 1 per cent to 3 per cent previously.

 

&ldquo The spike in uncertainty may lead to a larger-than-expected pullback in economic activity as businesses and households adopt a &ldquo wait and see&rdquo approach before making spending decisions,&rdquo Metro said.

 

Retail sales in Singapore will likely remain subdued in 2025 as consumer demand is diverted overseas given the strong Singapore dollar, the group added.

 

&ldquo Amid these uncertainties, Metro will exercise caution and prudence while taking proactive measures to maintain strong capital management discipline, including preserving cash, optimising cash flows and liquidity,&rdquo it noted.

 

A final dividend of S$0.02 per ordinary share was proposed for the year, unchanged from the previous year.

Revenue for the half-year falls 14.6% to S$56.2 million

 

[SINGAPORE] Metro sank into the red for its second half ended March, with a net loss of S$228.1 million, reversing from a S$6.4 million net profit in the previous corresponding period.

 

This translates to a loss per share of S$0.276, versus an earnings per share of S$0.008, the mainboard-listed property investment and development group said in its financials released on Friday (May 23).

 

The losses came amid lower revenue, which was down 14.6 per cent at S$56.2 million from S$65.7 million in the year-ago period on lower contributions from Metro&rsquo s retail, sale of property rights and rental income divisions.

 

Revenue from the property division fell to S$4.6 million from S$5.9 million, mainly from lower sales of property rights of residential development properties in Bekasi and Bintaro, Jakarta. Its retail division recorded a drop in sales at its two Singapore department stores &ndash Metro Paragon and Metro Causeway Point &ndash to S$51.6 million from S$59.8 million.

 

The six-month period recorded other net expenses of S$12.2 million, as compared to H2 FY2024 which recorded other net income of S$9.7 million, mainly driven by higher net fair-value loss from long-term investments.

 

These included investments of S$6.3 million in Mapletree Global Student Accommodation Private Trust (MGSA), S$3.6 million in BentallGreenOak (BGO) China Real Estate Fund III and S$6 million for other long-term investments. The group also registered a S$3.5 million decline in interest income and S$2.6 million in foreign exchange losses.

 

For the full year, the company recorded a net loss of S$224.8 million, a turnaround from its S$14.6 million net profit for the year-ago period. It netted a S$0.272 loss per share against a S$0.018 earnings per share previously. Full-year revenue fell 9.8 per cent to S$104.5 million from S$115.9 million.

 

The losses were attributed to non-cash fair-value and impairment losses arising from the group&rsquo s China real estate exposure, as Metro&rsquo s property division was negatively hit by prolonged sector headwinds in China.

 

These led to a S$105.4 million share of loss from its associate Top Spring International, stemming from operating losses and fair value losses on investment properties S$91.1 million in fair value loss from China properties held under its associates and joint ventures and impairment of amounts due from associates amounting to S$32.9 million.

 

The group also logged S$23.2 million in fair value losses from investments in MGSA.

 

Looking ahead, Metro chairman Tan Soo Khoon noted the prolonged property market downturn in China and a &ldquo challenging retail environment in Singapore&rdquo , amid &ldquo strong headwinds&rdquo resulting from tariffs.

 

&ldquo The group&rsquo s associate, Top Spring, our co-investments with BGO and our other China investment properties will continue to be subject to persistent market headwinds in China and Hong Kong,&rdquo Metro said.

 

It pointed to the Ministry of Trade and Industry&rsquo s downgrading of Singapore&rsquo s 2025 growth forecast to a range of 0 to 2 per cent, from 1 per cent to 3 per cent previously.

 

&ldquo The spike in uncertainty may lead to a larger-than-expected pullback in economic activity as businesses and households adopt a &ldquo wait and see&rdquo approach before making spending decisions,&rdquo Metro said.

 

Retail sales in Singapore will likely remain subdued in 2025 as consumer demand is diverted overseas given the strong Singapore dollar, the group added.

 

&ldquo Amid these uncertainties, Metro will exercise caution and prudence while taking proactive measures to maintain strong capital management discipline, including preserving cash, optimising cash flows and liquidity,&rdquo it noted.

 

A final dividend of S$0.02 per ordinary share was proposed for the year, unchanged from the previous year.

 

Metro Holdings has announced a committed occupancy of 95% as at March 31, 2025 for its two Grade-A office towers located in Tampines Regional Centre.

 

The towers, known as Asia Green, are 50% owned by Metro and have new key tenants including private school DIMENSIONS, Food Empire Holdings, and a hospital under SingHealth.

 

These spaces were backfilled after it was vacated by Hitachi Asia after its lease expiry. It accounted for nearly 30% of the property&rsquo s net lettable area (NLA).

 

Asia Green had a market valuation of $395 million when it was acquired in April 2019. The property has a market valuation of $435 million as at March 31, 2025, and a NLA of 26,442 square metres.

 

&ldquo The Singapore office asset class continues to be resilient in our investment property portfolio. The positive leasing progress achieved at Asia Green is testament to our proactive asset management efforts in positioning the property to continue capturing tenant demand for quality, decentralised but well-connected commercial space. We expect the continued backfilling and new leases secured to further grow our recurring income from Asia Green,&rdquo says Metro group CEO and executive director Yip Hoong Mun.

 

Metro Holdings is a mainboard listed property investment and development company with a footprint in Singapore, China, Indonesia, the UK and Australia.

Metro Holdings has reported earnings of $3.6 million for the 1HFY2025 ended Sept 30, 56.4% lower y-o-y from the same period last year. 

 

Similarly, the group&rsquo s profit before taxation dropped by 36% y-o-y to $7 million in the same period. This came on the back of China&rsquo s protracted property market downturn, which negatively impacted the group&rsquo s property division, with higher fair value losses from China investment properties by $11.1 million. 

 

Additionally, the group saw lower profit from its retail division due to lower gross margins and increased cost. However, these were partially offset by higher other net incomes and higher share of fair value gain from the group&rsquo s 30%-owned portfolio of purpose-built student accommodation (PBSA) properties in the UK. 

 

Meanwhile, the group&rsquo s revenue saw a 3.6% y-o-y decline to $48.4 million. Revenue from the property division for 1HFY2025 fell to $3.4 million from $4.6 million in 1HFY2024, due to lower contributions from sale of property rights of the residential development properties in Bekasi and Bintaro, Jakarta. 

 

The group&rsquo s retail division reported lower revenue at $44.9 million in 1HFY2025 from $45.6 million in 1HFY2024, mainly due to lower sales from Metro Paragon and Metro Causeway Point, the two department stores in Singapore.

 

Correspondingly, overall gross profit decreased to $2.5 million in 1HFY2025 from $5.1 million, driven by lower revenue. 

 

As at Sept 30, the group&rsquo s net assets and total assets stood at $1.4 billion and $2.3 billion, respectively. 

 

Yip Hoong Mun, group CEO, says: &ldquo We continue to make progress in our measured, ongoing efforts to enhance shareholder value under an operating environment marked by heightened uncertainties. In Singapore, strata sales of retail and office units at our VisionCrest Orchard freehold office property have commenced. In the UK, we recently increased our stake in the award-winning Middlewood Locks mixed-use development from 25% to 50%, and Phase 3 of this development is expected to be completed by end-2024. In Australia, we acquired our 18th property which is a freehold prime office building located in the financial core of Sydney&rsquo s CBD. However, we expect that the multiple headwinds persisting in China&rsquo s property market and our retail business will continue to weigh on our performance in the near-term.&rdquo

 

Mainboard-listed Metro Holdings M01 has increased its stake in Fairbriar Real Estate Limited to 50% from 25% previously.

 

On Nov 1, Metro announced that its direct wholly owned subsidiary, Sun Capital Assets Pte. Ltd., entered into a sale and purchase agreement (SPA) with an existing joint venture (JV) partner to acquire the additional 25% stake for GBP18 million ($31 million). The consideration comprises the purchase of shares for GBP10.9 million and the assignment of shareholders&rsquo loan and its accrued interest of around GBP7.1 million as at Sept 30.

 

The acquisition of the additional stake comes after Metro acquired a 25% stake in Scarborough Real Estate Limited, which was subsequently renamed as Fairbriar Real Estate Limited. According to Metro, the acquisition is in the ordinary course of its business and is in line with the group&rsquo s intention to enhance its presence in the UK.

 

Fairbriar, through its wholly-owned subsidiary, Fairbriar Real Estate Developments Limited, owns and develops the freehold Middlewood Locks mixed-use development and Milliners Wharf Phase 2 in Manchester, the UK. Middlewood Locks is an award-winning project that is located next to the River Irwell and is within walking distance to St.Johns, Spinningfields business district and the city centre. It will provide 2,215 new homes and an additional 1,000 new homes or 1 million sq ft of commercial space. The commercial space will include offices, a hotel, shops and restaurants. The entire development has an estimated gross floor area (GFA) of 3 million sq ft and a gross development value of GBP1 billion.

 

Middlewood Locks is being delivered in phases. Phases 1 and 2 of the development comprises 1,117 homes and commercial space occupied by Seven Bro7hers Beer house, 92 Degrees coffee shop and Co-op groceries store. Phase 3 is a residential development comprising 189 residential units named The Railings and is expected to be completed by the end of 2024.

 

According to UK property firm Bidwells and Deloitte, Manchester is said to be the UK&rsquo s second economic powerhouse and continues to see strong demand for build-to-rent (BTR) and new homes. Manchester is also said to be one of the most wealthy areas in the UK with the largest BTR market outside of London.

 

Metro&rsquo s CEO and executive director, Yip Hoong Mun, says the transaction &ldquo strengthens and extends [the group&rsquo s] successful decade-long partnership with the Scarborough Group&rdquo . The transaction will also enable the group to &ldquo further leverage on [Scarborough Group&rsquo s] expertise in UK real estate,&rdquo Yip adds.

 

Scarborough Group International chairman Kevin McCabe said he was &ldquo delighted&rdquo that Metro increased its share ownership at Middlewood Locks.

 

&ldquo The move represents great confidence in Manchester, and indeed the UK, as a high performing investment opportunity for international operators. We are delighted to continue our close partnership with Metro, securing the future of this important regeneration project,&rdquo he adds.