Olive Tree Estates Limited: FY2025 Financial Analysis and Outlook

Olive Tree Estates Limited recently released its condensed financial statements for the full year ended 31 December 2025. The company, which is listed on the Singapore Exchange (Catalist), primarily operates in investment holding and property rental, having divested its Vietnam property development interests in early 2025. Below, we provide a structured analysis of the company’s financial performance, highlight key trends, and offer a perspective on its future outlook for investors.

Key Financial Metrics

*NAV per share as at period-end.

Performance Review

Revenue and Earnings

The company’s revenue remained stable, with a modest 1% year-over-year increase, primarily due to revised rental rates for its Singapore investment property portfolio. There was full rental occupancy during FY2025 and FY2024. However, profitability deteriorated sharply: net loss for FY2025 rose to S\$1.47 million (from S\$0.53 million in FY2024), and EPS fell to -1.27 cents. This was mainly attributed to realized foreign exchange losses from the sale of Vietnam investments and the transfer of currency translation reserves to the P&L, as well as a lack of profits from the Vietnam joint ventures following their divestment.

Expenses and Cash Flow

• Administrative expenses declined 11% YoY, reflecting staff cost reductions, although this was offset by increased professional fees related to the mandatory general offer (MGO) conducted in late 2025.
• Finance expenses dropped 38% YoY, thanks to loan repayments and lower outstanding loan balances.
• Operating cash flow for FY2025 was an outflow of S\$0.30 million. However, the company had a significant investing cash inflow of S\$7.91 million from the disposal of its Vietnam property development assets.
• Closing cash and bank balances rose to S\$7.19 million (from S\$1.94 million at end-FY2024) due to these asset sales.

Balance Sheet

• Total assets decreased to S\$14.6 million (from S\$18.1 million), reflecting the sale of Vietnam investments.
• Total liabilities fell to S\$6.15 million (from S\$8.5 million), mainly due to loan repayments.
• Net asset value per share declined to 7.28 cents (from 8.30 cents), as accumulated losses increased.

Dividends

No dividend was proposed or paid for FY2025 or the preceding period. Management stated the intention to preserve cash resources given the company’s current circumstances.

Exceptional Items, Corporate Actions & Related-Party Transactions

• Divestment: In April 2025, Olive Tree Estates completed the divestment of all its Vietnam joint-venture development projects, resulting in a significant shift to a Singapore-focused property rental model.
• Mandatory General Offer: An MGO was conducted in October–December 2025, followed by a board refresh and senior management transitions in early 2026. The company is now evaluating new business directions.
• Related-Party Transactions: Rental expenses of S\$27k were paid to Affluence Resource Pte Ltd (a company linked to a former controlling shareholder); this arrangement ended mid-2025.
• Share Capital: No new shares were issued, and no buybacks occurred. The company continues to hold 2,500 treasury shares (0.002% of issued capital).
• Use of Proceeds: Of the S\$6.88 million raised in a 2022 placement, S\$562k remains, with the bulk used for debt servicing and working capital.

Historical Performance Trends

• Revenue has been stable and entirely derived from Singapore property rental since the Vietnam divestment. The loss of contribution from Vietnam ventures and one-off FX/currency translation losses have weighed on net results.
• Operating expenses are trending down, as are finance costs, following cost controls and loan repayments.
• Net asset value and equity base are eroding due to continued losses in the absence of new investment or business growth.

Outlook and Strategic Developments

The company is in a state of transition. Following the disposal of its Vietnam projects, the business is now concentrated on its Singapore industrial property portfolio, which remains fully occupied and cash-generative. However, the lack of new growth initiatives and the ongoing evaluation of strategic options by the new board and management reflect uncertainty about the company’s future direction.

The company cited challenges in raising capital and the persistent undervaluation of listed property companies as drivers for its strategic pivot. Management is focused on preserving cash and evaluating options to enhance shareholder value, but no specific new ventures or investments have been announced.

Conclusion & Recommendations

Overall Assessment: Olive Tree Estates Limited’s FY2025 performance was weak, with continued net losses, declining NAV, and an uncertain future strategy. While the company enjoys stable rental income from its Singapore asset, it faces limited growth prospects and has yet to articulate a clear new business direction following the exit from Vietnam.

• If you currently hold this stock: Consider reviewing your investment thesis. The company is in a transitional phase with no immediate growth catalysts, and further value erosion is possible unless a credible new business plan emerges. Hold only if you are comfortable with a cash-preservation, low-growth scenario and are willing to wait for management’s next move. Otherwise, consider reducing exposure.
• If you do not currently hold this stock: Wait for greater clarity. There is no dividend and no clear growth path. Prospective investors should remain on the sidelines until the new board announces a clear and actionable growth strategy that could justify a re-rating.

Disclaimer: This analysis is based solely on information disclosed in the company’s latest financial statements and is not a recommendation to buy or sell any security. Please consult a licensed financial adviser before making investment decisions. Past performance is not indicative of future results.

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