Far East Orchard (O10) presented its “Scaling the Platform” strategy during a Phillip Securities webinar on Oct, 08 2026, highlighting a sharp rebound in financial performance and a transformative acquisition that will give it super-majority control of the managers of Far East Hospitality Trust (FEHT).

The integrated lodging group reported revenue of 248.5 million Singapore dollars for 1H FY2026, more than doubling year on year. Operating profit edged up 1.0 % to 31.2 million Singapore dollars, while adjusted earnings per share climbed 8.1 % to 2.0 Singapore cents. Profit after tax fell 35.6 % to 11.6 million Singapore dollars, but adjusted profit attributable to shareholders improved 7.7 % to 9.8 million Singapore dollars.

Total assets stood at 2.7 billion Singapore dollars as at Jun, 30 2026, with assets under management at 3.315 billion Singapore dollars, of which 60 % are hospitality, purpose-built student accommodation (PBSA) and fund assets. The debt-to-equity ratio eased to 41.2 % from 45.4 %, and the weighted average cost of debt declined 30 basis points to 4.9 %.

During the half, Far East Orchard generated 26.6 million pounds (46.7 million Singapore dollars) from the sale of Westminster Fire Station in London and 4.0 million Singapore dollars from a unit in Novena Medical Center, redeploying proceeds to reduce borrowings and fund core business initiatives. The company also lifted its stake in UK PBSA operator HFS to 87 % and secured its first London development site via the Far East Orchard Student Accommodation Development Fund.

Key refurbishments included the reopening of the 114-room Adina Sydney Darling Harbour after a comprehensive overhaul, ongoing upgrades at the 337-room Rendezvous Hotel Perth Scarborough, and a refresh of the 134-room Adina Frankfurt Neue Oper.

In a strategic move, Far East Orchard agreed to acquire an additional 42 % stake in the managers of FEHT from parent Far East Organization for 28.3 million Singapore dollars in cash, boosting its holding to 75 %. The transaction, slated for completion by end-2026, is projected to lift pro-forma FY2025 earnings per share by 3.7 % and expand core AUM to about 3.9 billion Singapore dollars, supporting the group’s ambition to exceed 5.0 billion Singapore dollars in core AUM by FY2030.

Management said the enlarged platform will enhance recurring fee and distribution income, underpin dividend growth and support further capital-light expansion across hospitality and student accommodation markets.