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Far East Orchard
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Orchard Parade
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Joelton
Supreme |
08-May-2024 15:11
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Far East Orchard reports higher earnings of $6.9 million for 1QFY2024
Far East Orchard has reported earnings of $6.9 million for its 1QFY2024, up 46.8% y-o-y. Revenue in the same period ended March was up 10.4% y-o-y to $50.9 million.
The company attributes the better numbers to growth from its purpose-built student accommodation business. Besides higher rentals, the addition of one of such properties helped as well.
Also, Woods Square, a property development joint venture, generated higher sales and leasing income.
&ldquo While the global economy is projected to see a steady recovery this year, it is constrained by cost headwinds and present challenges such as escalating geopolitical tensions and the higher for-longer interest rate environment," says group CEO Alan Tang.
" With an encouraging set of results to start off the year, we continue to manage our financial resources prudently, which would allow us to overcome uncertainties lying ahead and ensure we stay on our course to build a resilient business,&rdquo he adds.
Going forward, the company plans to adopt an active asset recycling strategy.
It aims to be asset-light and to also explore additional opportunities with capital partners such as Woh Hup.
" Our strategic focus remains dedicated to strengthening the hospitality and PBSA platform to scale up for growth and further expansion, which includes new recurring income streams or vertical acquisitions under the lodging platform that will ensure a diversified and balanced portfolio," the company adds.
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MrBear12
Supreme |
08-May-2024 10:19
Yells: "Cast all our anxieties on Jesus for He cares for us" |
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looking good. I trust Far East. Household name in Singapore
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Secret_Squirrel
Elite |
08-May-2024 10:18
Yells: "Stay curious but skeptical" |
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1Q Business update just out last evening. For details of the update , pls refer to SGX website. FEO posted a net profit of S$6.5 million for the three-month period ended 31 March 2024 (&ldquo 1Q FY2024&rdquo ), marking an increase of S$2.3 million or a 54.8% increase (1Q FY2023: S$4.2 million).
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finjungle
Veteran |
07-May-2024 16:09
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Hope FEO is late for the student accomadation party and not follow the trails of Ho Bee' s investment in UK
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MrBear12
Supreme |
07-May-2024 10:55
Yells: "Cast all our anxieties on Jesus for He cares for us" |
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Okay sale. I like Far East Solid and Reputable. We are in safe hands |
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Joelton
Supreme |
07-May-2024 10:53
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Far East Orchard looks to sell Rendezvous Hotel Perth Central for A$18.5 million
HOTEL operator and property developer Far East Orchard (FEOR) announced on Monday (May 6) that its subsidiaries are selling Rendezvous Hotel Perth Central and its business for A$18.5 million (S$16.5 million).
The sale option has been entered between Far East Hospitality Properties (Australia) (FEHPA) and Rendezvous Hotels (Australia) (RHA) with the buyers from Chesterfield Property Group and Mountstreet Operations.
&ldquo The sale price was arrived at after arm&rsquo s length negotiations and on a willing-buyer and willing-seller basis, after taking into consideration the prevailing market conditions and the valuation,&rdquo said FEOR.
The option agreement may be exercised by the buyers between May 6 and Aug 30, with an option fee of A$50,000 payable to FEHPA and RHA, which will be set off against the deposit, FEOR added.
FEOR said the disposal of the hotel is &ldquo in the interest of the group&rdquo . It said the disposal will enable the group to realise the value of the hotel, and in turn, improve capital allocation and optimise returns for the company&rsquo s shareholders.
&ldquo The improved liquidity would also allow the group to take advantage of any opportunities that present itself in the near future&rdquo .
Another reason for the sale would be the gain on disposal to the group, where the net sale proceeds and book value, estimated at A$6.7 million, will be recognised in the group&rsquo s consolidated statement of comprehensive income for the financial year ending Dec 31, 2024, it said.
The hotel is a 103-room freehold property located at 24 Mount Street in Perth, Australia. It is owned by FEHPA and leased to RHA.
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MrBear12
Supreme |
27-Apr-2024 11:43
Yells: "Cast all our anxieties on Jesus for He cares for us" |
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Tio liao! You are right, O Squirrel. Thanx for sharing. Only you can see, because squirrels are sharp eyed
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MrBear12
Supreme |
27-Apr-2024 11:41
Yells: "Cast all our anxieties on Jesus for He cares for us" |
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Secretive? Posting and taking down? |
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Secret_Squirrel
Elite |
27-Apr-2024 11:41
Yells: "Stay curious but skeptical" |
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Please take a look at Pg 30 of the annual report. from 2019 to 2023, the operating profit of student accomodation segment is growing, while hospitality segement is stagnant. This could be the reason why they invest more into the student accomodation. |
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MrBear12
Supreme |
27-Apr-2024 10:43
Yells: "Cast all our anxieties on Jesus for He cares for us" |
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UK property considered ' cheap' . I think it is okay to acquire now. Progressively, of course
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finjungle
Veteran |
27-Apr-2024 10:29
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I pray that PBSA sector would not srew up this company. CEO said 70% are locals. Affordability of the locals??? Every Dick Tom and Harry in Singapore is chasing this sector in UK,including CDL.
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Joelton
Supreme |
27-Apr-2024 00:57
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Far East Orchard acquires 49% stake in UK-based purpose-built student accommodation operator for £ 17.6 million
The mainboard-listed group can also progressively acquire the remaining shares in Homes For Students&rsquo issued and paid-up share capital in two stages
FAR East Orchard : O10 -0.99% on Thursday (Apr 25) announced its student housing subsidiary has acquired a 49 per cent stake of Homes For Students Limited, a purpose-built student accommodation (PBSA) operator based in the United Kingdom, for £ 17.6 million (S$30 million)
In a media release, the real estate company said it purchased the stake in Homes For Students&rsquo issued and paid-up share capital from two non-management sellers.
Founded in 2015, Homes For Students operates over 40,000 beds in more than 50 university towns and cities in the UK and Ireland. It provides an integrated student accommodation management and facilities management service, and is considered the largest independent PBSA operator in the UK.
The acquisition will supplement Far East Orchard&rsquo s PBSA operating management capabilities in the UK, as it leverages Homes For Students&rsquo operating platform, the group said. It is also in line with the group&rsquo s objective to build a lodging platform that delivers growth and a sustainable, recurring income stream.
In addition, Far East Orchard may also progressively acquire the remaining 51 per cent of Homes For Students in two stages by September 2025 and November 2030.
This is subject to fulfilling certain conditions. For Far East Orchard to acquire another 35 per cent by September 2025, Homes For Students has to hit a certain financial target by Mar 31, 2025.
Upon completing that stage, Far East Orchard will have a call option for the remaining shares in Homes For Students that may be exercised at any time, while the remaining management sellers have a put option that may be exercised after Nov 2, 2030.
The exercise price of the put and call option will be based on the fair market value of Homes For Students at the time of exercising either option, said the group.
The key members of Homes For Students&rsquo management team, including its founder and chief executive Martin Corbett, said they intend to remain employed as key management of the company throughout the three stages.
Alan Tang, Far East Orchard&rsquo s group chief executive, said the acquisition will propel the group to surpass its target of 5,000 beds, ahead of 2025. Far East Orchard&rsquo s PBSA portfolio currently consists of close to 3,700 beds in the UK.
It also in March announced its subsidiary has bought a plot of land in Glasgow to develop into a 273-bed PBSA by 2026.
With the completion of the ongoing development in Bristol and at the Glasgow site, the group&rsquo s PBSA portfolio will grow to approximately 4,700 beds across 15 properties in the UK.
&ldquo The continued strong fundamentals in the student accommodation sector, fuelled by domestic and international student demand, support our confidence in this sector for the coming years,&rdquo said Tang.
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Secret_Squirrel
Elite |
15-Apr-2024 13:01
Yells: "Stay curious but skeptical" |
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Earnings and other figures looks good. But dividend payout very stingy. |
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Alignment
Elite |
13-Mar-2024 14:52
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UK a graveyard for foreigner property investors who don' t know what they are doing in that market. Singaporeans unfortunately a prime example of this, thinking UK must be as straightforward as Singapore because they speak the same language. common law etc. Wait till the labour govt comes in later this year and the manure will then really hit the fan. |
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Secret_Squirrel
Elite |
13-Mar-2024 11:16
Yells: "Stay curious but skeptical" |
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Ho Bee has a global footprint that spans Singapore, Australia, China, United Kingdom and Europe. Its portfolio covers many quality residential, commercial and high-tech industrial projects since its inception. Ho Bee did not have PBSA. Far East Orchard management tend to be conservative in their investment. It seems that there is lesser competition in the PBSA sector than commerical or residental sector. Commerical and residential sector can make fast money and more profit than PBSA in good times. But PBSA can make more stable and recurring income. |
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finjungle
Veteran |
13-Mar-2024 10:58
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Let us hope and pray that the management knows what it is doing right now. There are a whole loads of law and regulations in building accomodation in UK Is it tyring to catch a " departed train" (PBSA) in Scotland? Ho Bee thought it knows about London and, lo and behold, it has made massive impairment on the revaluation of its latest acquisition.
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Joelton
Supreme |
13-Mar-2024 09:38
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Far East Orchard and Woh Hup buy land in Glascow for $5.1 mil to expand UK PBSA portfolio
Far East Orchard, through its subsidiary, Osborne Street Development Ltd, has acquired a plot of land in central Glasgow, Scotland for GBP3 million ($5.1 million). Osborne Street Development is held under a limited partnership with Far East Orchard O10 -1.49% Investments (UK), a wholly-owned subsidiary of the group and Aurum Investments (Private) Limited, a wholly-owned subsidiary of Woh Hup Holdings, as limited partners.
A sale and purchase agreement (SPA) was entered into with Nova Osbourne on March 12.
The site is intended to be developed into a purpose-built student accommodation (PBSA) of 273 beds.
The acquisition marks the expansion of Far East Orchard&rsquo s UK PBSA portfolio and represents its entry into Scotland.
The costs for the acquisition and development will be funded by Far East Orchard Investments (UK) and Aurum Investments in proportion to their interests in the limited partnership.
&ldquo Following the collaboration in the joint venture PBSA development at Silverthorne Bristol, we are excited to strengthen our partnership with Woh Hup with this development site acquisition in Glasgow, Scotland. This latest development will create a new supply in Glasgow to address the shortfall in beds for the ever-growing student needs in the city,&rdquo says Alan Tang, group CEO of Far East Orchard.
The completion of the acquisition is conditional upon no successful judicial review being received on the planning permission. If the development progresses as planned, it is expected to be completed in 2026.
&ldquo In alignment with the Group&rsquo s FEOR 25 strategy to grow its PBSA portfolio and build a lodging platform to achieve sustainable and recurring income, we will continue expanding our student accommodation portfolio into key UK cities which have significant demand and supply imbalances,&rdquo Tang adds.
&ldquo This development will help ease the shortage of PBSA in Glasgow and strengthen our presence in a key study destination,&rdquo he continues.
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Joelton
Supreme |
29-Feb-2024 10:44
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Far East Orchard H2 net profit up four times on gains from student accommodation investments
REAL estate group Far East Orchard : O10 0% posted on Wednesday (Feb 28) a net profit of S$57.7 million for the six months ended Dec 31, 2023, more than four times the S$13.9 million reported in the corresponding year-ago period.
Revenue for the half year improved 20 per cent to S$92.8 million from S$77.3 million in H2 2022.
The group attributed the jump in net profit to a fair-value gain on investment properties of S$58.3 million over the financial year, up from the S$2.6 million in FY2022.
The group said in a bourse filing: &ldquo The fair-value gains were mainly from the group&rsquo s purpose-built student accommodation (PBSA) portfolio in the UK, driven by a strong demand for beds from domestic and international students and a supply shortage across key UK university cities.&rdquo
Earnings per share stood at 11.84 Singapore cents for H2 2023, up from the 2.92 Singapore cents in H2 2022.
For the financial year, revenue rose 30.3 per cent year on year to S$183.6 million from S$141 million, boosted by the strong performance from the group&rsquo s hospitality segment.
The group noted that revenue from the hospitality business increased 40.5 per cent to S$126.9 million in FY2023, with the continued strong recovery in global corporate and leisure travel following the pandemic.
Nevertheless, the group is facing challenges from the higher finance expenses due to elevated interest rates, persistent inflation and higher staff costs.
Total expenses for FY2023 increased 22.1 per cent to S$84.7 million from S$69.2 million the year before.
Far East Orchard&rsquo s chief executive Alan Tang said: &ldquo Our twin engines of the hospitality and PBSA businesses are now running at full steam, and we are optimistic as international travel recovers and student demand for higher education in the UK remains robust. However, we remain cognisant of numerous macroeconomic headwinds.&rdquo
The board of directors will recommend a first and final dividend of S$0.04 per share at the group&rsquo s upcoming annual general meeting. Subject to shareholders&rsquo approval, the payout date will be announced later.
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Joelton
Supreme |
27-Jan-2024 10:50
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Far East Orchard expects to post higher profit after tax for FY2023
FAR East Orchard : O10 -0.99% has announced in a profit guidance that it expects to report a higher profit after tax for its financial year ending Dec 31, 2023, compared with the audited profit after tax for FY2022, it said in a bourse filing on Friday (Jan 26).
The expected higher profit after tax is mainly attributed to fair value gains on investment properties, it added.
The company said that it is still in the process of finalising the valuations on its portfolio of properties and will announce its unaudited FY2023 results on or about Feb 28.
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Alignment
Elite |
15-Nov-2023 23:07
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Top down forecasters might be predicting UK university numbers increasing, but looking from the bottom up it is difficult to see how this can be the case in the current environment, especially for UK domestic students. UK government subsidies are keeping fees for domestic students flat for now, but the current total income UK universities receive cannot cover the rapidly increasing costs they face. Meanwhile with a weakening UK economy and high interest rates the UK government cannot afford to keep these subsidies going, let alone increase them to allow for higher numbers of students or indeed to help cover university costs. Finally, students themselves are questioning the value of many degrees especially as the UK economy worsens and as universites come up with ever more esoteric subjects that do not prepare students for the job markets that they face in the future. The system is broken and something has to give, and the answer is unlikely to be ever increasing student numbers. |
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