Far East Orchard Ltd posted a net profit of S$54.8 million for the year ended 31 Dec 2025, down 10.7 per cent year-on-year, as smaller fair-value gains on investment properties and higher finance costs offset stronger top-line growth.
Earnings per share eased to 11.02 Singapore cents from 12.07 cents a year earlier. The board recommended a first-and-final dividend of 4.0 cents a share, unchanged from the ordinary payout a year ago but lower than the total 5.0 cents distributed for FY24 when a 1.0-cent special dividend was also declared. Payment details will be announced later.
Group revenue rose 29.1 per cent to S$247.6 million, propelled by the consolidation of UK student accommodation operator Homes for Students (HFS) from 30 Sep 2025 and firmer hospitality takings in Japan. Student accommodation contributed S$111.9 million to turnover, up sharply from S$55.0 million in FY24, while hospitality revenue retreated 2.7 per cent to S$124.7 million amid refurbishment works at an Australian hotel and construction disruptions at a leased Singapore property.
Operating profit before tax fell 18.8 per cent to S$59.1 million as net fair-value gains on investment properties narrowed to S$8.0 million from S$32.3 million previously. Segment-level operating profit showed: • Hospitality management services: S$5.8 million (+15.0% YoY) • Hospitality operations: S$14.3 million (-29.5%) • Hospitality property ownership: S$2.3 million (-26.3%) • Student accommodation – property ownership: S$20.6 million (-43.6%) • Student accommodation – operations (HFS): S$3.1 million (n.a.) • Property development: S$9.5 million (-42.6%) • Property investment: S$8.7 million (+63.8%)
Finance expenses grew 12.2 per cent to S$38.4 million following the expiry of low-rate interest swaps in late 2024, while other income declined 32.7 per cent on lower bank-deposit returns and reduced government grants.
The group launched its “FEOR30” five-year plan to expand its integrated lodging platform, prioritising scale in hospitality and purpose-built student accommodation (PBSA), disciplined capital deployment and selective use of third-party capital. Management expects 2026 trading conditions to remain challenging amid global economic uncertainties and financing-cost pressures but sees structural demand for travel and education accommodation supporting long-term growth. In hospitality, Singapore should benefit from a robust pipeline of leisure and MICE events, while Japan’s sector is projected to normalise after a record 2025. The UK PBSA market faces moderating rental growth yet remains underpinned by restricted new supply and resilient student demand.