Singapore Land Group Limited: 1H 2025 Financial Analysis

Singapore Land Group Limited (SLG) has released its unaudited financial results for the half-year ended 30 June 2025. The report highlights the group’s performance across its property investment, development, hotel, and technology operations segments. Below, we analyze the key metrics and trends, and present a summary table comparing performance against prior periods.

Key Financial Metrics

^*Final dividend for FY2024, paid in 1H 2025.

Performance Trends and Segmental Analysis

• Revenue Growth: Revenue rose 8% YoY to S\$368.3 million, led by strong growth in property investments (+19% YoY), notably from the new 388 George Street, Sydney, and better performance from core Singapore assets. Technology operations also posted a robust 20% YoY increase driven by hardware sales. These gains offset a sharp 60% drop in property development revenue and slightly weaker hotel operations.
• Profitability: Gross profit improved 15% YoY, while PATMI rose 7% to S\$111.4 million. EPS (including fair value gains) was 7.8 cents, up from 7.2 cents a year prior.
• Expenses: Administrative expenses climbed 18% YoY due to higher salary costs and increased outsourcing of services. Finance expenses rose 18% YoY, reflecting both higher interest rates and increased borrowings, primarily for the 388 George Street acquisition.
• Other Income: Interest income declined 30% mainly due to loan repayments from associates. Miscellaneous income dropped 69% due to lower government grant income.
• Share of Results: Associates’ contributions fell by 30% as profits from The Watergardens at Canberra were fully recognized in FY2024. Joint venture results declined significantly due to a fair value loss on investment property.
• Fair Value Gains: The group recognized S\$10.2 million in fair value gains on investment properties, nearly doubling the previous year’s figure.

Balance Sheet and Cash Flow Highlights

• Net Asset Value: NAV per share increased slightly to S\$5.88 from S\$5.87 at the end of FY2024, reflecting stable balance sheet strength.
• Gearing: Net gearing rose from 2.1% to 5.7%, primarily due to the acquisition financing for 388 George Street. Liquidity remains strong with over S\$1.8 billion in unused credit facilities.
• Cash Flows: Net cash from operations was S\$101.5 million (down from S\$127.0 million a year ago). Investing outflows were substantial at S\$341.3 million, driven by the 388 George Street purchase and asset enhancements. Financing inflows rose to S\$221.2 million, offsetting the large investing outflows.

Exceptional Items, Asset Revaluation, and Related-Party Transactions

• Asset Revaluation: Investment properties are carried at fair value, with increases mainly from the 388 George Street acquisition and revaluation of Singapore commercial assets.
• Exceptional Items: There were no material exceptional gains/losses outside of fair value adjustments and the recognition of associate/joint venture fair value changes.
• Related-Party Transactions: The group disclosed significant transactions, including provision of services, loans, and shared resources with UOL Group Ltd and Kheng Leong Company (Private) Limited. Notably, there was a S\$55.5 million capital injection from Kheng Leong.

Corporate Actions and Events

• Acquisitions: The acquisition of a 50% interest in 388 George Street, Sydney, was the most significant event, financed via new borrowings and capital injection.
• Dividends: No interim dividend was declared, consistent with past practice. The final dividend for FY2024 was raised to 4.5 cents per share (from 4.0 cents previously).
• Share Capital: No changes in issued share capital; no treasury shares or share buybacks reported.

Macroeconomic and Industry Outlook

The group notes heightened external headwinds, including geopolitical and trade uncertainties, leading to a downward revision of Singapore’s GDP growth forecast for 2025 (now 0.0–2.0%). The office property market remains stable with moderate rental growth expected, while the retail sector is set for modest growth. The hospitality segment faces challenges from manpower constraints and global volatility, though tourism fundamentals remain intact. The residential market outlook is cautiously optimistic, supported by resilient owner-occupier demand and expectations for a more favorable interest rate environment.

Conclusion

Overall, Singapore Land Group Limited delivered a solid 1H 2025 performance despite headwinds in certain business segments. Revenue and profits rose, underpinned by robust property investment and technology operations, and supported by strategic acquisitions. While gearing has increased due to recent investments, the group’s liquidity remains strong and NAV per share continues to rise. The absence of an interim dividend is consistent with past practice, but shareholders benefited from a higher final dividend payout for FY2024.

The outlook appears neutral-to-positive: While the domestic and global macroeconomic environment presents challenges, SLG’s diversified asset base, strong balance sheet, and prudent management position it to weather uncertainties and capitalize on growth opportunities in its core markets.

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