Bukit Sembawang Estates Limited 1H FY2025/26 Results: 25% Profit Drop, $51.78 Million Dividends Paid, and Outlook for Singapore Property Development 314

Bukit Sembawang Estates Limited 1H FY2025/26 Financial Results Analysis

Bukit Sembawang Estates Limited, a Singapore-based property developer and investment holding company, released its unaudited interim financial statements for the first half year ended 30 September 2025. This article provides a comprehensive analysis of the Group’s financial performance, key metrics, historical trends, and strategic outlook based solely on the disclosed report.

Key Financial Metrics and Year-on-Year Comparisons

Metric	1H FY2025/26	2H FY2024/25 (Previous Quarter)	1H FY2024/25	YoY Change	QoQ Change
Revenue	\$130.2m	\$193.8m	\$324.0m	-60%	-33%
Gross Profit	\$61.9m	–	\$72.5m	-15%	–
Profit Before Tax	\$57.2m	–	\$74.4m	-23%	–
Net Profit After Tax	\$47.2m	–	\$62.9m	-25%	–
EPS (cents)	18.21	–	24.30	-25%	–
Ordinary Dividends Paid	\$51.8m	–	\$41.4m	+25%	–

Segmental Performance Overview

Property Development: Revenue fell 61% YoY, primarily due to completion and TOP of The Atelier and LIV@MB projects, reducing contributions. New launches (8@BT, Pollen Collection) did not fully offset this drop.
Hospitality: Revenue declined 12% YoY, attributed to lower room rates and occupancy at Fraser Residence Orchard.
Investment Holding: Revenue remained stable, with no significant changes reported.

Balance Sheet Highlights

Total Assets: Increased 8% to \$1,834.1m as at 30 September 2025, driven by higher development properties (mainly due to Land Betterment Charges for new projects).
Total Liabilities: Rose sharply by 138% to \$246.0m, due to new borrowings for project funding, higher deferred tax liabilities, and increased payables for construction costs.
Net Asset Value per Share: \$6.13 as at 30 September 2025, down slightly from \$6.15 at the end of March 2025.
Cash Position: Cash and cash equivalents dropped to \$283.4m from \$582.4m at the start of the period, mainly due to land payments and dividend distributions.

Cash Flow Analysis

Operating Cash Flow: Significant outflow of \$367.1m, primarily from land charges and dividend payments.
Financing Cash Flow: Net inflow of \$68.2m from a \$121.0m loan drawdown, partially offset by dividend outflows.
Overall Cash Movement: Net cash outflow of \$299.1m for 1H FY2025/26.

Dividends

Paid in 1H FY2025/26: \$51.8m (including a \$0.04/share final dividend and a \$0.16/share special dividend, both tax-exempt).
Paid in 1H FY2024/25: \$41.4m.

Asset Revaluation

Investment property fair value (\$28.5m) was not revalued during the interim period but based on the previous annual valuation. External valuation will be conducted at year-end.

Exceptional Earnings and Expenses

Other Income: Up 220% YoY, due to a government grant.
Finance Costs: Rose sharply from \$0.1m to \$1.0m, reflecting higher interest expense after drawing down a \$121m term loan for project development.

Related-Party Transactions

No material related-party transactions reported for the current period. Previous period included \$1.448m in revenue from property sales to persons associated with the CEO.

Chairman’s Statement and Tone

“The Board of Directors hereby confirms to the best of their knowledge that nothing has come to their attention which may render the condensed interim financial statements for the first half year ended 30 September 2025 to be false or misleading in any material aspect.”
On Behalf of The Board of Directors
Koh Poh Tiong, Chairman

The tone is neutral and factual, indicating confidence in the accuracy of the financial statements but not expressing overt optimism or caution regarding future performance.

Industry Commentary and Outlook

The Group expects resilient demand for Singapore private residential property, supported by strong household balance sheets and lower mortgage rates. Private housing prices rose 0.9% quarter-on-quarter in Q3 2025, led by landed properties. The Group is planning the launch of Pollen Collection II, continuing sales of 8@BT and remaining units at Pollen Collection, and progressing with planning for Luxus Hills Phase 10. Management will calibrate future launches in response to market conditions and monitor construction progress for timely completion.

Conclusion and Investment Recommendations

Performance Summary:
The Group’s financial performance in 1H FY2025/26 was weaker than the prior period, marked by a significant drop in revenue, gross profit, and net profit. This was primarily due to the completion of major development projects, leading to lower sales recognition. Despite this, the Group maintains a strong asset base, has launched new projects, and continues to pay substantial dividends. Liquidity remains adequate, though cash reserves have declined due to project investments and dividend payouts.

Investor Recommendations:

If you are currently holding the stock: Consider holding your position. The company remains fundamentally sound, with new project launches on the horizon and a resilient property market outlook. However, monitor cash flows and sales momentum in upcoming quarters, as continued weak earnings could pressure future dividends or valuations.
If you are not currently holding the stock: Consider waiting for greater earnings visibility. While the Group has a strong track record and continues to pay dividends, current earnings are subdued and prospects hinge on successful launches and sales of new projects. Re-entry may be more attractive once there is evidence of renewed revenue growth from ongoing developments.

Disclaimer: This analysis is based solely on the information provided in the company’s 1H FY2025/26 unaudited interim financial results. It does not constitute investment advice. Investors should conduct further due diligence and consider their own financial circumstances and risk preferences before making investment decisions.