Singha Estate reports strong 9-month performance for 2024, achieving over 10 billion Baht in revenue, up 13% YoY, and to launch 4 new real estate projects
Singha Estate reports strong 9-month performance for 2024, achieving over 10 billion Baht in revenue, up 13% YoY, and to launch 4 new real estate projects
Singha Estate has announced its financial results from sales and services operations for the first nine months of 2024, with total revenue reaching 11,431 million Baht, a 13% increase compared to the same period last year. A standout performance came from the real estate sales segment, which saw a remarkable 50% growth. Looking ahead, Singha Estate is confident in its continued growth for the remainder of 2024, driven by strong property transfer volumes across both horizontal and condominium developments. Additionally, the company anticipates significant contributions from its hotels, through asset enhancement as well as new market expansion.
Bangkok (November, 2024) – Singha Estate Public Company Limited (SET: S) has announced its financial results for the first nine months of 2024, with a total revenue of 11,431 million Baht from its core business operations. Revenue from real estate sales amounted to 2,534 million Baht, reflecting a significant 50% increase compared to the same period last year. This growth was primarily driven by the successful transfer of ownership in several key projects, including S’RIN Ratchapruek – Sai 1, The EXTRO Phayathai-Rangnam, and The ESSE Sukhumvit 36. Revenue from service businesses totaled 8,654 million Baht, driven by revenue from the hotel business, which increased by 7% year-on-year, despite renovations of some hotel rooms in Thailand during the second and third quarters. This performance reflects the success of expanding the customer base to new international markets, which helped maximize potential during off-peak periods. Additionally, the continued recovery of both domestic and international tourism supported growth, with the completed room renovations, modernized to meet the evolving needs of travelers. These factors drove more than 15% increase in the Average Daily Rate (ADR) across the company’s hotel portfolio. Furthermore, revenue from rental properties also showed strong performance, with growth exceeding 10% year-on-year, supported by increase in occupancy rate of S-OASIS.
Mrs. Thitima Rungkwansiriroj, Chief Executive Officer of Singha Estate Public Company Limited (SET: S), stated: “For the first nine months, we have seen continued growth despite the challenges faced in the overall real estate market, Singha Estate has maintained a steady performance. We remain confident that the real estate market will continue to thrive, particularly driven by robust demand for luxury and high-end residential projects. Looking ahead to the fourth quarter, we are focused on delivering quality developments, with plans to launch four new projects during the end of the year until early next year, in the luxury to super-luxury segments. These include a joint-venture condominium project in the prime Rama 3 area, along with three single-detached house projects under the SMYTH’S brand, located in two key areas including Ramindra and Kaset-Nawamin. Additionally, we will introduce the S’RIN Prannok-Kanchana project on New Prannok Road. The combined value of these projects exceeds 8.8 billion Baht. In terms of our hospitality business, we are encouraged by strong results, particularly driven by the ongoing recovery of the tourism sector both domestically and internationally. Our proactive marketing strategy into new markets and the continued asset enhancements, received positive feedback from customers. As a result, we can lift Revenue per Available Room (RevPAR) by more than 12% year-on-year.”
For the residential sector, we continue to observe strong performance driven by the successful transfer of ownership in our super-luxury and premium luxury projects, including Siraninn Residences, S’RIN Ratchapruek – Sai 1, and The ESSE Sukhumvit 36. Additionally, the market response to new launches has been highly encouraging, with strong interest in SHAWN Panya Indra and SHAWN Wongwaen – Chatuchot, both luxury single-detached home developments. As a result, the company has seen a consistent increase in the transfer of ownership from these projects over the past quarter.
As of the end of quarter 3, the company’s backlog stands at over 1.8 billion Baht. We are targeting to recognize approximately 38% of this backlog during the final quarter of 2024. This will play a crucial role in driving our full-year revenue growth as our objectives.
The performance of our hotel business during the first nine months has been exceptional, with adjusted EBITDA rose by 12%, reaching 1,918 million Baht. This strong growth reflects our effective cost management and the successful expansion of our customer base into new markets, including Kazakhstan, France, and Australia. These strategic moves have helped reduce our reliance on any single market, driving a 12% increase in RevPAR. Looking ahead to the last quarter of 2024, we see significant growth potential for our hotel business since there will be high season in Thailand, the Maldives, and Mauritius. Also, the 173 rooms that were temporarily closed under renovations at SAii Laguna Phuket are set to reopen in December, just in time to accommodate tourists during high season. Following the upgrades, we anticipated a 15-20% increase in the average daily rate (ADR), and will further enhance our revenue from other services, such as food and beverage (F&B) and the spa, in line with our strategic objectives.
For the commercial real estate sector, our S-OASIS project won the Global Business Outlook Award 2024 for Most Innovative New Office Building Development on the third quarter of 2024. This prestigious award recognizes our leadership in designing state-of-the-art office buildings that seamlessly blend cutting-edge technology with sustainable development practices. S-OASIS is one of Thailand’s premier sustainable office buildings, located in the Vibhavadi area, and it responds directly to the growing demand for green, energy-efficient spaces. This project aligns perfectly with the needs of modern tenants who value environmental responsibility, marking it as one of the outstanding choices. We anticipated that the occupancy rate of S-OASIS will reach 50% by the end of 2024.
For the industrial estate sector, S Angthong is currently equipped with fully developed infrastructure, including water and power management systems, which serve as key strengths in attracting investors. Additionally, the business is supported by favorable factors such as manufacturing relocating and government investment incentives. In 2024, the industrial park has seen continuous interest from investors, particularly from China and Taiwan. To date, we have successfully recognized revenue from the transfer of 56 rai, along with profit sharing of over 100 million Baht from the three combined cycle power plants that commenced operations since early this year. The infrastructure business will represent a significant opportunity to strengthen and diversify Singha Estate’s revenue portfolio.
“Furthermore, Singha Estate has been widely recognized for its excellence through numerous prestigious awards. In the residential real estate segment, we received 4 awards at the 19th PropertyGuru Thailand Property Awards for The Extro Phayathai-Rangnam and the Global Business Outlook 2024 award for Best Luxury Developers – Residential. These accolades underscore our unwavering commitment to sustainable quality development, providing our customers with the best living experiences,” stated Mrs. Thitima.
