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Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

<h2>10 Questions for Far East Orchard Limited</h2>
Company Overview Far East Orchard Limited is a property developer, hospitality assets owner and operator, with a diversified property investment portfolio comprising purpose-built student accommodation (PBSA) and medical suites. It has properties in Australia, Malaysia, Singapore and the United Kingdom. It is a member of Far East Organization, Singapore’s largest private property developer. <a href="https://www.sgx.com/securities/equities/O10" target="_blank" rel="noopener">Link to StockFacts company page</a>
<ol>
<li>The Group’s diversified property portfolio comprises residential, commercial, hospitality, purpose-built student accommodation (PBSA) and medical suites. What would you maintain or change?</li>
</ol>
<ul>
<li>Our strategy for the near to mid-term is to focus on building a lodging platform on the back of our hospitality and PBSA businesses. In 2012, we embarked on a strategic transformation and expanded into hospitality management and healthcare real estate, to generate a sustainable and recurring income stream to augment our property development and investment businesses. In 2015, we further diversified into PBSA properties in the UK. These real estate lodging businesses will be our main priority in the coming years.</li>
<li>Our enlarged base of recurring income from hospitality and the PBSA businesses complement the one-off earnings from property development projects to provide better stability. We aim to continue growing recurring hospitality revenue through operating contracts and strategic partnerships and continue the expansion of the PBSA portfolio through acquisitions or development.</li>
</ul>
2. Describe the Group’s revenue mix and profitability over the past few years.
<ul>
<li>We adopt a diversified strategy to provide earnings stability, and have seen an increased proportion of operating profit from our hospitality and property investment businesses, from 85% in FY2018 to almost 100% in FY2019. Our hospitality segment has been the core contributor to our recurring income base.</li>
<li>Since entering the PBSA sector in 2015, our portfolio has increased by fivefold to over 3,000 beds. This has provided a healthy balance and diversification to the recurring income composition provided by the hospitality business. We see potential to continue the expansion of our PBSA portfolio given the continued growth of both domestic and international student numbers in the United Kingdom (UK), and the resilient nature of this income stream.</li>
</ul>

10 Questions for Far East Orchard Limited
Company Overview Far East Orchard Limited is a property developer, hospitality assets owner and operator, with a diversified property investment portfolio comprising purpose-built student accommodation (PBSA) and medical suites. It has properties in Australia, Malaysia, Singapore and the United Kingdom. It is a member of Far East Organization, Singapore’s largest private property developer. Link to StockFacts company page

The Group’s diversified property portfolio comprises residential, commercial, hospitality, purpose-built student accommodation (PBSA) and medical suites. What would you maintain or change?


Our strategy for the near to mid-term is to focus on building a lodging platform on the back of our hospitality and PBSA businesses. In 2012, we embarked on a strategic transformation and expanded into hospitality management and healthcare real estate, to generate a sustainable and recurring income stream to augment our property development and investment businesses. In 2015, we further diversified into PBSA properties in the UK. These real estate lodging businesses will be our main priority in the coming years.
Our enlarged base of recurring income from hospitality and the PBSA businesses complement the one-off earnings from property development projects to provide better stability. We aim to continue growing recurring hospitality revenue through operating contracts and strategic partnerships and continue the expansion of the PBSA portfolio through acquisitions or development.

2. Describe the Group’s revenue mix and profitability over the past few years.

We adopt a diversified strategy to provide earnings stability, and have seen an increased proportion of operating profit from our hospitality and property investment businesses, from 85% in FY2018 to almost 100% in FY2019. Our hospitality segment has been the core contributor to our recurring income base.
Since entering the PBSA sector in 2015, our portfolio has increased by fivefold to over 3,000 beds. This has provided a healthy balance and diversification to the recurring income composition provided by the hospitality business. We see potential to continue the expansion of our PBSA portfolio given the continued growth of both domestic and international student numbers in the United Kingdom (UK), and the resilient nature of this income stream.


10 in 10 with Far East Orchard - Building A Lodging Platform (27Oct2020)