Far East Orchard FY2025: Revenue +29% to S$247.6M on HFS Consolidation, FEOR25 Concludes, FEOR30 Launched

Far East Orchard FY2025 Annual Report (year ended 31 December 2025) marks the conclusion of the FEOR25 five-year strategic plan and the launch of FEOR30, with revenue surging 29.1% to S$247.6M driven by HFS consolidation. Profit attributable to equity holders declined to S$54.0M (FY2024: S$59.0M) on lower fair value gains and higher costs.

• ▸HFS Stake 49% → 84% (30 Sep 2025): Full consolidation of Homes for Students Limited — UK's leading PBSA operator managing 55,000+ beds. Drove student accommodation revenue up 108% to S$112.0M. Remaining 16% stake may be acquired by Nov 2030.
• ▸Woods Square JV: FEOR stake increased from 33.3% to 40% (24 Jan 2025); one-off gain recognised in FY2025.
• ▸Plymouth Grove Manchester (NEW): Acquired Apr 2025 via FESAD private fund. 239-bed PBSA development, leasehold, completion 2028/29 academic year.
• ▸FESAD Private Fund Closed Jun 2025: £96M committed capital; FEOR holds 36.5% stake; seeded with Osborne Street Glasgow and Plymouth Grove Manchester.
• ▸Japan Expansion: Far East Village brand expanded to Osaka — Namba South (77 rooms, Apr 2025) + Honmachi (165 rooms, Jul 2025). Japan hospitality helped offset softer Australia/Europe JV performance.
• ▸Adina Brand Debuts in UK (TFE Hotels JV): The Hobson Cambridge (56 rooms, Nov 2025) + The Wellington Glasgow (98 rooms, Dec 2025).
• ▸Westminster Fire Station DIVESTED: London mixed development (17 residential + 1 restaurant) sold Feb 2026 (post-year end).
• ▸Leadership Changes: Arthur Kiong retired as MD Far East Hospitality (31 Dec 2025; retiring from Group 30 Apr 2026); Mark Rohner appointed MD from 1 Jan 2026. Yang Zejian joined as MD PBSA Business (Sep 2025) from Mapletree (15yr student housing career).

• ▸Revenue: S$247.6M (FY2024: S$191.9M; +29.1% — HFS consolidation + Japan expansion).
• ▸Hospitality: S$124.7M (FY2024: S$128.1M; -2.7% — cyber incident impact on JV, refurbishments, higher costs; Japan mitigated).
• ▸Student Accommodation: S$112.0M (FY2024: S$53.8M; +108% — HFS consolidation).
• ▸Property Investment: S$11.0M (FY2024: S$9.9M; +11% — higher rentals + increased WSPL stake).
• ▸Operating Profit: S$64.2M (FY2024: S$77.8M; -17.5% — S$3M FV loss on PBSA JV vs S$10.7M gain in FY2024).
• ▸PAT: S$54.8M; Profit to equity holders: S$54.0M (FY2024: S$59.0M).
• ▸Total Assets: S$2,764.8M (FY2024: S$2,641.5M). NAV/share: S$2.87 (FY2024: S$2.84).
• ▸EPS: 11.0¢ (FY2024: 12.1¢). Dividend: 4.0¢ first and final (FY2024: 4.0¢ + 1.0¢ special). Gearing: 0.45x.

• ▸Owned PBSA: 3,700+ beds across UK. Portfolio: Portland Green Student Village (Newcastle, 1,668 beds, 5 buildings), The Elements Sheffield (735), The Glassworks Liverpool (323), King Square Studios Bristol (301), The Foundry Leeds (239), St Lawrence House Bristol (166), Harbour Court Bristol (133), Hollingbury House Brighton (195), Emily Davies Southampton (158). Occupancy AY25/26: 88% (slightly below prior year on city-specific softness; AY26/27 pre-leasing tracking marginally ahead).
• ▸Under development (FESAD fund, 36.5% FEOR): Plot 6 Silverthorne Lane Bristol (706 beds, completion 2026), Osborne Street Glasgow (273 beds, 2027), Plymouth Grove Manchester (239 beds, 2028/29).

Alan Tang Yew Kuen: S$1,149,434 FY2025 (FY2024: S$1,148,222; +0.1%). Mix: 54.5% base salary+CPF / 19.9% STI / 20.5% LTI (contingent, 2025-2027 performance period) / 5.1% benefits-in-kind. Top-5 KMP aggregate (excl CEO): S$2,339,402. Total director fees: ~S$554K.

Far East Orchard's FY2025 headline is scale: the HFS acquisition transformed the student accommodation segment from a niche business (S$54M) into a core pillar (S$112M), and the FESAD private fund marks the structural shift toward asset-light fund management. The softer headline profitability (PAT -S$5M) reflects lower PBSA fair value gains, a cybersecurity incident at the TFE Hotels JV and elevated financing costs — transient headwinds rather than structural deterioration. FEOR30 anchors on three pillars: strengthening core capabilities, growing recurring earnings, and maintaining asset-right discipline.