Singha Estate Records Robust Performance in First Nine Months of 2023 Revenue Soars by 19% Year-On-Year to Above THB 10 Billion To Launch 2 More Property Projects, Plus Benefit from the Touri
Singha Estate earned THB 10,072 million in revenue during the first nine months of 2023. Revenue from its property sales jumped remarkably by 34% thanks to the launch of three projects under three different Luxury brands. Of them, S’RIN Ratchapruek-Sai 1 is worth over THB 3,000 million and ready for immediate revenue recognition. The Company’s service revenue also increased by 16% during the nine-month period. Business prospects in Q4 are bright as key hotels in Thailand and Fiji, which are now being renovated, will re-open in time for the high season of their respective location. Following the major renovations, these hotels look set to enjoy a significant hike in the Average Daily Rate (ADR).
Bangkok (16 November 2023) - Singha Estate Public Company Limited announces that its revenue grew by 19%. Revenue from its property sales totaled at THB 1,902 million, a big hike of 34%, due to the following: (1) Ownership transfer of properties over nine months accumulated to the value of THB 1,692 million mainly because of the ULTRA LUXURY cluster-home project “LA SOIE de S”, a new brand and the latest flagship of Singha Estate that launched with ready-for-ownership transfer units and full revenue recognition from The Esse Sukhumvit 36 – which Singha Estate recently acquired 100% of shares – to snatch opportunities from rebounding demand for condominiums. The ownership transfers at SIRANINN RESIDENCES also contributed to the boost; (2) Sales of land plots in its industrial estate provided the revenue of THB 36 million; and (3) The recognition of the Singha Complex’s 175-million-baht revenue from long-term leases.
Singha Estate’s service revenue also soared by 16% largely from the Hospitality Business’ revenue rose by 18% to THB 7,222 million on the ride of the world’s rebounding tourism. The occupancy rate at the Singha Estate’s hotels, which was calculated based on available rooms for services, was 71% - up by 12% from the previous year. At the same time, the ADR also increased thanks to S Hotels and Resorts Public Company Limited’s (SHR) price adjustment abilities. SHR hotels have enjoyed many strengths – locations in top tourist destinations, excellent service standards and proactive marketing strategies. In the first half of 2023, revenue from Singha Estate’s Commercial Property Business reached THB 259 million, the same range on income, compared to the same period last year. However, the revenue of the Commercial Property Business looks set to grow in the last quarter of 2023 as S- OASIS building will gradually recognize more revenue in the period.
Mrs. Thitima Rungkwansiriroj, Chief Executive Officer at Singha Estate Public Company Limited or ‘S’, reveals that, “We successfully drove up Singha Estate’s revenue in the first nine months of the year in line with our investment strategies. During the period, we also ensured efficient cost control that properly matched our business expansions or our entry into new markets. Our Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) thus jumped by 32% to THB 2,276 million year-on-year. This impressive performance is solid proof that Singha Estate has expertly adjusted and successfully grasped opportunities from the rebounding property and hospitality industries. It, moreover, underlines the fact that our products and services have continued to enhance people’s quality of life. We are confident that our operating results will peak in the fourth quarter as we will recognize the revenue from our new project, S’RIN Ratchapruek-Sai 1. Launched early in Q4, this project is worth THB 3,800 million and has won much interest. To date, more than 10% of its units have already been reserved and met its target. SHR’s hotel portfolio will also contribute to the expected growth in Q4 as the renovated hotels are well readywell-ready to welcome customers in the year’s peak season. The long-haul market is already turning vibrant once more after airlines have added more flights”.
“This year, we have expanded our portfolio to cover all luxury segments of horizontal housing in accordance with our plan. The expansion has been implemented while we have firmly upheld our DNA of being ‘Best in Class’. Thanks to our unwavering commitment to quality, we have won positive responses even in segments that we tapped into for the first time. This is possible because customers trust our expertise in the development of luxury properties and our commitment to deliver superior products and services as well as precious experiences to customers,” she continues.
Mrs. Thitima adds that “Singha Estate has achieved a milestone through portfolio expansion, which offers more opportunities to reach out to new customers. Today, we have several brands to serve different segments. A greater variety of choices for customers means we can deliver what best suits our customers’ needs. For the SUPER LUXURY segment that offers each unit at THB 50 to 100 million, we have developed SIRANINN. For the PREMIUM LUXURY segment that offers each unit at THB 30 to 50 million, we have created S’RIN. For the LUXURY segment, our biggest horizontal-housing segment, which offers each unit at THB 10 to 30 million, we have just launched SHAWN. Moreover, we have developed SMYTH to serve ultimate flexibility for those looking for an ULTRA LUXURY home. This brand is a big highlight this year because it offers a customizable cluster home at over THB 100 million per unit. Customers can get a home designed truly based on their lifestyles from SMYTH. We believe that such project development will solve the constraints of getting a big land plot in a prime location.
We have found opportunities in the build-to-order home segment and thus tapped into this segment while upholding our firm commitment to solid quality and Singha Estate’s signature development”.
On the 2024 business forecast, Singha Estate says its Residential Property Business has already had a backlog of around THB 4,000 million. Its revenue will also grow further thanks to the launches of detached-house projects in late 2023. Singha Estate is also set to hand over units of ‘The EXTRO Phayathai–Rangnam’ condominium project to customers in early 2024. Other condominium projects, which Singha Estate has developed in collaboration with partners in a big and well-growing segment that offers condos at THB 100,000 – 200,000 per square meter, meanwhile promise to enable Singha Estate to enjoy opportunities from the condo segment for middle-income earners. These condo projects, which are not Singha Estate’s pillar or own brands, will also launch next year.
As for the Hospitality Business, it looks set to grow well from the last quarter of this year to next year on the rides of tourism growth and the launch of additional flights that will spur cross-region travel. This year marks the first year that the whole world re-opens to tourism again after the COVID-19 crisis. Singha Estate has already noticed the rising number of customers in new markets or regions that it has just entered. Backed by service excellence, the Company now aims to tap further into such markets and prepare new products to respond better to new tourism trends.
Regarding Major Renovation of key hotels in SHR’s portfolio, works at the Outrigger Fiji Beach Resort, the SAii Laguna Phuket Hotel, the SAii Phi Phi Island Village Hotel, and some hotels in the United Kingdom have proceeded in line with plans. The newly renovated hotels will be ready for services in the high season based on their respective locations, thus raising SHR’s competitiveness and profitability. Singha Estate expects the ADR of the renovated hotels to rise by between 15% and 25%
“We are confident that our revenue is going to reach an All-Time High as we have been laying down a strong foundation in pursuit of long-term growth. Our operations are rooted in the principles of sustainable development. Guided by the principles, we honour our promise to our customers, partners, society, and the environment while observing good financial discipline and preparing the best financial tools for each market stage. We seek to grow our businesses on a continuous basis and keep a proper debt-to-equity ratio in accordance with our corporate policy,” Mrs. Thitima concluded.