[SINGAPORE] Hospitality and student housing player Far East Orchard’s net profit more than doubled to S$17.3 million for the first quarter ended Mar 31, 2025, from S$6.9 million the previous corresponding period, the company announced on Thursday (May 8).
The significant rise in its Q1 net profit was driven by a one-off gain of S$9.2 million from the acquisition of an additional 6.7 per cent interest in Woodlands Square in January 2025, it added. This gain arose from the higher fair value of net assets acquired compared to the purchase consideration.
However, revenue for the period fell 8.6 per cent to S$46.5 million, while operating profit declined by 4.4 per cent to S$17.3 million. These declines were attributed to reduced contributions from the hospitality business, which was affected by ongoing refurbishment works at Rendezvous Hotel Perth Scarborough (RHPS).
Nevertheless, Far East Orchard said its overall performance was supported by stronger contributions from its purpose-built student accommodation (PBSA) and property development segments
The company’s acquisition of a 49 per cent stake in PBSA operator Homes for Students (HFS) in April 2024 began to positively contribute to the share of results in the first quarter of FY2025. HFS has expanded its portfolio to over 55,000 owned and managed beds across the UK.
Additionally, the company recognised a higher share of results from Woodlands Square in the property development segment, driven by increased sales in the first quarter of FY2025 and a rise in its shareholding from 33 per cent to 40 per cent.
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Far East Orchard’s performance reflects the results of scaling its lodging platform, said chief executive Alan Tang.
He highlighted that the company’s PBSA development fund is progressing well, with the recent acquisition of a second development site in Manchester, a 239-bed project, in April.
“These initiatives strengthen our asset-light strategy, boost fee-based income, and highlight the resilience of our diversified approach as we focus on sustainable, long-term growth”, added Tang.
As at Mar 31, the company’s 13 operational PBSA assets, comprising over 3,700 beds, had 67 per cent reservations for the academic year 2025/26, aligning with current market trends.
