Far East Orchard has posted a net profit after tax of $37.2 million for the nine months ended September 30 in FY2025, marking an over 100% year-on-year increase.

This surge was primarily driven by one-off gains totaling $24.9 million, which included a $9.1 million gain from Woods Square and a $15.8 million re-measurement gain on the previously held 49% equity interest in HFS following the completion of its second phase acquisition.

Excluding these one-off gains, the net profit after tax would have been $12.3 million, lower than the $18 million reported for the same period last year.

For 9MFY2025, revenue dropped by 4.2% year-on-year to $134.2 million, while operating profit declined by 8.9% year-on-year to $42.9 million.

This decrease in operating profit was mainly attributed to underperformance in the hospitality segment due to ongoing refurbishment works at Rendezvous Hotel Perth Scarborough in Australia.

Contributions from hospitality joint ventures in Australia and Europe were lower, primarily due to weaker European performance and the effects of a cyber incident in March 2025.

Although business interruption claims helped to partially offset the impact of the cyber incident, the Australian joint venture faced additional pressure from a one-off recognition of liability this quarter, linked to a previously disclosed contingent liability.

The purpose-built student accommodation (PBSA) business segment maintained stable revenue, though its operating profit was affected by increased operating costs.

Conversely, the property development segment supported the group's results with higher contributions from Woods Square, reflecting better performance and the group's increased stake from 33% to 40%.

Shares in Far East Orchard ended 1 cent higher, or a 0.806% rise, at $1.25 on November 6.