Far East Orchard Limited (O10) reported a resilient operating performance for the quarter ended Mar, 31 2026, with its Hospitality and UK purpose-built student accommodation businesses holding steady despite macroeconomic volatility.

Operating profit rose slightly year on year, supported by property sales, including Westminster Fire Station and a medical-suite unit that had been classified as properties held for sale.

Net profit after tax declined compared with the same period a year earlier, mainly because the prior year included a one-off gain of 9.1 million Singapore dollars and due to higher tax expenses linked to the latest property disposals.

The U.K. student accommodation portfolio recorded 88% occupancy for the academic year that began in Sep, 2025, down from 92% a year earlier, while pre-leasing for the upcoming academic year starting Sep, 2026 is marginally ahead of last year’s pace.

In its hospitality arm, company-owned and managed hotels in Australia and Japan generated higher contributions, offsetting softer results in Singapore and Europe where refurbishment works are under way.

Looking ahead, Far East Orchard said it expects operating conditions to remain uncertain amid geopolitical tensions and cost pressures but noted that a significant share of its energy needs for 2026 is hedged at fixed rates. The group will continue to pursue refurbishment projects and monitor market conditions as it executes its FEOR30 strategy.