Singha Estate reveals Q3/2021 performance with 2,127-million-baht revenue

Singha Estate Public Company Limited reported its total revenue of 2,127 million baht in Q3/2021, a 20% increase from the same period last year. Our financial performance continued to show strong improvement for the third consecutive quarter, affirming the business recovery. The total revenue composed of revenue from residential development of 436 million baht, revenue from commercial business of 238 million baht and revenue from hospitality business or 1,422 million baht and revenue from other businesses of 31 million baht.

Effective cost management, 44% cut selling expense in particular, coupled with share of the gain from handing over units at The ESSE Sukhumvit 36. Singha Estate, therefore, report positive EBITDA at 351 million baht, or 16% improvement from the same period last year.

Despite the deconsolidating NVD from Singha Estate’s consolidated financial statement since the beginning of 2021, total revenue increased 20% thanks to the strong performance of hospitality business. In said quarter, the revenue form hospitality business stood at 1,410 million baht, improved drastically by more than 1000% form Q3/2020. This was mainly represented the revenue recognition of UK hotels portfolio after becoming the single shareholder. The decision to allocate portfolio and expand business in a new source of revenue has emphasized the Company’s success direction to capture the potential business which has a faster recovery.

For Q3/2021 is a very good quarter of UK Portfolio, benefited significantly from the lifting all the COVID-19 measures and entering into high season. As a results, the Revenue Per Available Room (RevPAR) during the Q3/2021 has reached 95% of RevPAR during the same period in pre-COVID-19 levels, brought up the performance of UK portfolio breaks the bottom line in third quarter. Aforementioned factors definitely push the overall hospitality performance, despite the gradual recovery of tourism industry in Thailand, Mauritius and Fiji.

Mrs. Thitima Rungkwansiriroj, Chief Executive Officer of Singha Estate Plc, or “S”, revealed that the robust contribution of UK Portfolio performance is the starting point to confirm the strength of the tourism industry, particularly in leisure segment. We are confident that the positive momentum in hospitality business has continued towards Q4/2021 and the beginning of next year, reinforced by performance of CROSSROADS Project in Maldives. We expected REVPAR of CROSSROADS in the fourth quarter this year to reach Pre-COVID19 levels and foreseen the positive sign of tourism recovery in Thailand and Mauritius as well.

CROSSROADS is the one and only integrated leisure and lifestyle destination in Maldives, perfectly located just a 15-minute speedboat ride from Velana International Airport. In Q4/2021, we expect an increase in number of high spending customer such as tourists from the United State, United Kingdom and other countries in Europe which have positive impact to the REVPAR of this portfolio to once again reach the Pre-pandemic level.

Looking ahead, we expect that hotel operations will have stronger trends across all geographies which have clear directions for opening borders from the government as CROSSROADS project. We foresee the positive signs from the Outrigger Mauritius Beach Resort, which has reopened its door on October 1st, 2021, in accordance with the welcoming international visitors to the country. In October which is the first operating month after the lockdown, the occupancy rate recovers strongly to 40% with solid momentum, predicted throughout the high season.

In respect of commercial business, Singha Estate still managed to let out additional space as well as renewed the space under the existing lease contracts. Consequently, the average occupancy rate remained high at 87% during the nine-month period of 2021. This reflected the Company’s effective selection of the target customers, focusing on high-growth industries led to the potential expanding of the business and rental space in the long run.

“With the success of Sold Out in every unit sold at Santiburi the Residences, reaffirmed customer confidence toward the Singha Estate brand which emphasizes enriching a quality of living for residents through three elements: smart living, healthy living and sustainable living. We have paid attention to every detail and use only finely selected materials to offer the best-in-class projects that suit every stage of life. Besides that, we continue to develop projects of detached house, reinforcing leadership in the luxury housing segment. With its current progress of development, the Company expects to launch the first project at Pattanakarn 32 within Q2/2022.” Thitima said.