Singha Estate records historic high revenue of THB12.53 billion in 2022

Bangkok (February 27, 2023) – Singha Estate Public Company Limited announces the historic-high revenue of over THB 12.53 billion baht and the net profit of THB 490 million baht from 2022. It is now set to pay the dividend of THB 0.02 per share to its shareholders, marking the first step of success that was achieved in just one year after its major restructuring. In 2023, the company aims to continue with its horizonal-housing projects worth more than THB 10 billion and strengthen its portfolio with hotels profits that are now riding on fast-rebounding tourism.

In 2022, the Company adjusted its strategy in response to market conditions with aim to maximize its revenue generation from rebounding economic activities. As a result, the Company’s revenue reached a new high. Its single detached houses performed outstandingly with fast-selling units and significant growth just one year after their development from being well received by the customers, as they trust in Singha Estate’s standards. Underling the company’s status as the leading developer of luxury homes, its SIRANINN Residence Pattanakarn enjoyed an impressive launch late last year. In the following two months, this 2.9-billion-baht project recorded ownership transfers valued over 830 million baht or had 28% of its units transferred to buyers. The project’s remarkable success is a milestone in the company’s strategy to develop quality residential brands for its increasingly diverse target groups.

In addition, the revenue from the company’s Hospitality Business also grew almost twice to THB 8.693 billion from 2021 thanks to strategies that leveraged strategic locations in attracting tourists from various regions, efficient pricing, proactive marketing, and efforts to tap into new segments especially those with solid purchasing power. These strategies also integrated asset improvement for the delivery of experiential tourism. Buoyed by these strategies, the average daily rate (ADR) of the company’s many hotels from various locations including those in Maldives and the United Kingdom soared to a historic high in 2022.

The company’s Commercial Property Business, meanwhile, generated THB 1.014 billion in revenue. The revenue amount went up by five per cent thanks to its ability to raise rental fees in spite of challenging situation, and also the partial opening of S-OASIS retail area on Vibhavadi Rangsit Road. S-OASIS is scheduled for full-scale opening in the second quarter of 2023. As for industrial estate and infrastructure business, progress was on track as planned. Moreover, in 2022, S-Angthong Industrial Estate’s land sales and ownership transfers totaled THB 198 million.

Mrs Thitima Rungkwansiriroj, Chief Executive Officer of Singha Estate Plc, or “S”, reveals that, “All of our businesses units have contributed to our historic high results. Thanks to their solid revenue generation and effective cost management, we recorded the net profit of THB 490 million in 2022. As 2022 recognized profitable operations for three consecutive quarters, it truly marked the year of Singha Estate’s harvest. We have dedicatedly adjusted our businesses to challenging market and successfully ridden on economic recovery. Guided by our Sustainable Diversity vision, to create a strong and synergizing business growth. We also launch several new projects in line with our business plans in 2022. These projects will be key mechanisms in Singha Estate’s continued revenue growth”. 

Business Direction in 2023 

• Hospitality Business: The hotels are expected to perform even better in 2023, when compared with 2022, given positive momentum achieved during the last quarter of 2022 and early 2023 especially regarding hotels in Thailand and Maldives. Moreover, the Hospitality Business’ successful development of SAii brand has already pushed up ADR by 17% from pre-COVID rates. Chinese tourists’ demand has also been fast rising. Indeed, SHR has efficiently and proactively managed its portfolio by tapping into new target groups and markets with solid purchasing power. Singha Estate expects its Hospitality Business’ revenue to grow by 20 per cent. In the fourth quarter of 2023, it will launch So/ Maldives Hotel as the third resort on Crossroads Maldives.
• Residential Property Business: The Company has focused on low rise projects since its Residential Property Business’ major restructuring. Within one year after that, its Residential Property Business achieved remarkable success in 2022. Sales from ultra-luxury projects namely Santiburi and SIRANINN will give the recognized revenue of about THB 4 billion soon. The ultra-luxury segment has strong purchasing power and is less susceptible to economic conditions. In addition, the Residential Property Business plans to roll out new low rise projects worth THB 10 billion in 2023 with the strategic focus on quality home under Singha Estate’s standards. As these projects will generate revenue this year, they will raise the Residential Business’ revenue by nearly 100%. 
• Commercial Property Business: S-OASIS, the office building, the superior workplace for the modern lifestyle, will generate revenue for this business for a whole year in 2023. Offering more than 54,000 square meters of leasable spaces, it is fully equipped with modern facilities and complies with international environmental standards. In late 2022, strategic tenants already reserved spaces at S-OASIS thus boosting prospects for its 2023 occupancy rate.
• Industrial Estate and Infrastructure Business: Ownership transfers expected to proceed as planned in 2023 thanks to Thailand’s reopening, the government’s stimulus measures, and demand for industrial-operation spaces especially from agricultural products and related industries. Moreover, two power plants are scheduled to begin their commercial operations at a project of the Industrial Estate and Infrastructure Business during the fourth quarter of 2023, which will contribute to the Company’s continued profit growth.

“Collaborations within our group and with business partners will be crucial to our Sustainable Diversity concept, which will lead to sustainable growth and generate value for all stakeholders. Also, they will enable Singha Estate to foster our financial strengths in line with our goals,” Mrs Thitima adds.