The contribution of specific purpose student dormitory business increased, Far East Orchard's revenue in the second half of fiscal 2024 increased by 1.9% year-on-year to RMB 94.544,000, but its net profit fell by 29.4%.

Far Eastern Orchard announced its results after the market closed on Friday (February 28), with annual revenue in fiscal 2024 increasing by 4.5% year-on-year to 191.9 million yuan, due to the increase in contributions to specific-purpose student dormitory business. However, in the second half of last year, net profit fell 29.4% year-on-year to 40.74 million yuan, and the annual net profit was 58.968,000 yuan, a year-on-year decrease of 10.6%.

The company recommends paying 4 new points of dividends per share for fiscal year 2024 and a special dividend of 1 new point.

The group said that despite increased operating profits, net fair value gains from investing in real estate decreased. The fair value return on investment real estate recognized in fiscal year 2024 was RMB 32.3 million, compared with RMB 58.3 million in the same period in fiscal year 2023. In addition, due to the depreciation of the Australian dollar against the SGD, unrealized exchange losses recognized in fiscal 2024 increased.

The growth of the specific purpose student dormitory business is mainly benefiting from the rental growth in the school year in September 2023 and September 2024, the additional contribution of the acquisition of student dormitory assets in Southampton, UK in May 2023, and the share of Student Home (HFS), a student dormitory operator that acquired 49% of the equity in April last year.

Further reading

Far East Orchard set up a private equity fund to raise 120 million yuan to expand UK student dormitories

The hotel business's annual revenue fell by RMB 400,000 to RMB 126.5 million, mainly due to weak performance in Singapore's rental property and Australian owned hotels.

The stock price of Far Eastern Orchard Friday is 1.04 yuan, without any change.