Hiap Hoe Limited FY2025: Revenue +7.7% to S$135.0M, Net Profit 4.6x to S$30.4M, Orchard Towers Occ 53%→84%, 10 New Human Capital Profiles

Hiap Hoe Limited (SGX: H17) released its FY2025 Annual Report covering the year ended 31 December 2025. Revenue grew 7.7% to S$135.0M and net profit attributable to owners surged 4.6x to S$30.4M — a standout year driven by strong hotel performance, a dramatic occupancy turnaround at Orchard Towers, and a S$12M reduction in finance costs on lower interest rates.

• ▸Revenue: S$135.0M (FY2024: S$125.4M; +7.7%) — Hotel S$94.8M (+12.9%), Rental/carpark S$29.4M (+0.3%), Leisure/bowling S$10.8M (-2.3%). No development revenue in FY2025 (FY2024: S$1.0M).
• ▸Net profit attributable to owners: S$30.4M (FY2024: S$6.6M; +4.6x). Includes: fair value gain on investments S$30.2M (FY2024: S$24.3M), impairment write-back on 130 Stirling Street S$2.5M, impairment on 25 Rowe Avenue S$0.5M, over-provision of prior-year tax S$2.7M (related to Four Points Melbourne disposal in FY2024).
• ▸EPS: 6.45¢ (FY2024: 1.40¢).
• ▸NAV/share: S$1.5811 (FY2024: S$1.5197; +4.0%).
• ▸Equity attributable to owners: S$744.0M (FY2024: S$715.1M).
• ▸Investment properties (cost model): carrying S$527.1M (FY2024: S$532.5M); FAIR VALUE S$840.7M (FY2024: S$830.8M; +1.2%).
• ▸PP&E hotels+bowling: S$542.6M (FY2024: S$559.8M).
• ▸Financial investment portfolio: S$461.0M (FY2024: S$398.3M; +15.7%).
• ▸Total loans: S$853.5M (current S$246.2M + non-current S$607.3M) vs S$768.3M FY2024. Weighted average effective rate improved materially: secured borrowings at 2.41–3.15% vs 4.39–5.04% FY2024.
• ▸Finance costs: S$26.5M (FY2024: S$38.5M; -S$12.0M — largest single driver of profit improvement).
• ▸Cash and short-term deposits: S$140.1M (FY2024: S$69.8M).
• ▸Shares: 470,557,541 (FY2024: 470,557,541 net of treasury; treasury shares of 3,999,850 cancelled during FY2025).
• ▸Dividend: 1.25¢ total (0.25¢ interim + 1.00¢ final) vs 0.75¢ FY2024. Final dividend +100% to 1.00¢.

• ▸Orchard Towers — Occupancy Turnaround:
• ▸The flagship freehold Orchard Road retail/office property (NLA 11,898sqm; 21 retail + 38 office strata units) saw committed occupancy surge from 53% in FY2024 to 84% in FY2025. The Group's strategy of competitive pricing and an ongoing makeover is proving effective — Orchard Towers is positioned as a high-value option for businesses seeking Orchard Road presence at comparatively lower cost.

• ▸130 Stirling Street Perth — Occupancy and Impairment Recovery:
• ▸The A-grade Perth CBD office building (11,792sqm office + 263sqm retail) recorded occupancy of 95% in FY2025, up sharply from 76% in FY2024. Reflecting the improved tenancy profile, the Group recognised a S$2.5M impairment write-back — partially reversing the S$4.1M impairment taken in FY2024. The asset is now near-fully let.

• ▸25 Rowe Avenue — Stable with Minor Impairment:
• ▸The Rivervale Perth office building (NLA 10,455sqm; 81% occupancy FY2025, stable) recorded a S$0.5M impairment in FY2025, reflecting Australian commercial property headwinds. The asset continues to contribute recurring income.

• ▸Aloft Singapore Novena — Hotel Ramp Continues:
• ▸The flagship 781-room hotel (99.54% stake, Marriott/Aloft managed, largest Aloft worldwide) reported revenue growth of 27% YoY in FY2025, continuing its post-rebranding stabilisation following the 2023 Aloft launch. The two-tower Zhongshan Park integrated development (office + mall + hotel) achieved full occupancy across its commercial components.

• ▸Great Eastern Motor Lodge (Perth) — First Full Year:
• ▸The 198-room budget hotel acquired in March 2024 for A$42.1M delivered its first full operating year, achieving occupancy of more than 93% — strong proof-of-concept for the value-segment acquisition.

• ▸Aloft Perth — Robust at >91%:
• ▸The 224-room Aloft Perth (Marriott managed) maintained occupancy above 91% for the year.

• ▸Holiday Inn Express Manchester — Stable:
• ▸The 220-room Trafford City hotel held its market share despite UK economic headwinds, delivering stable revenues and profit.

• ▸Zhongshan Mall & Hiap Hoe Building — Full Occupancy:
• ▸Both commercial components of the Zhongshan Park integrated development (50,000sqft mall + 13-storey office tower) achieved 100% occupancy in FY2025.

• ▸HH@Kallang Industrial — 96% Stable:
• ▸The freehold Kallang light industrial building (45 factory units + canteen; NLA 8,373sqm) maintained 96% occupancy.

• ▸1 & 3 Yuan Ching Road — 99%:
• ▸Properties adjacent to SuperBowl Jurong grew occupancy from 94% to 99% in FY2025.

• ▸SuperBowl — 7 Centres:
• ▸The leisure segment now operates 7 bowling centres (from 8) following the closure of the HomeTeamNS-JOM clubhouse in January 2025. Revenue S$10.8M (FY2024: S$11.1M). Remaining outlets: Khatib HomeTeamNS, SAFRA Tampines, Keat Hong CC, SuperBowl Mount Faber, SuperBowl Toa Payoh, SuperBowl Jurong, Siglap CC.

• ▸Treasury Share Cancellation:
• ▸The 3,999,850 treasury shares (cost S$1,101,125) were cancelled during FY2025, reducing issued share capital accordingly.

PROPERTY PORTFOLIO SNAPSHOT (31 DEC 2025)

• ▸Singapore — Investment Properties (cost model; carrying S$527.1M total; fair value S$840.7M):
• ▸• Orchard Towers (Retail/Office): 400 Orchard Road + 1 Claymore Drive; Freehold; 11,898sqm NLA; 84% occ FY2025
• ▸• Zhongshan Park (Mall + Office): Balestier Road; 99yr LH from Nov 2008; 15,138sqm GFA; 100% occ FY2025
• ▸• HH@Kallang (Industrial): 56 Kallang Pudding Road; Freehold; 8,373sqm NLA; 96% occ FY2025
• ▸• Parklane Shopping Mall: 35 Selegie Road; 99yr LH from Dec 1974; 2,352sqm NLA
• ▸• Orchard Plaza: 150 Orchard Road; 99yr LH from Jun 1977; 1,424sqm NLA
• ▸• Bukit Timah Plaza: 1 Jalan Anak Bukit; 99yr LH from Aug 1976; 112sqm NLA
• ▸• Residential Units (68 St Thomas Walk + 1 Lewis Road): Freehold; ~1,213sqm NLA

• ▸Singapore — PP&E:
• ▸• Aloft Singapore Novena: 16 Ah Hood Road / 1 Jalan Rajah; 99yr LH from Nov 2008; 781+4 rooms; 23,983sqm GFA; rev +27% YoY
• ▸• SuperBowl Jurong: 1 Yuan Ching Road; 30yr LH from Jan 2002; 21,754sqm land

• ▸Australia — Investment Properties:
• ▸• 130 Stirling Street Perth (Office): Freehold; A-grade; 12,055sqm NLA; 95% occ FY2025; S$2.5M impairment write-back
• ▸• 25 Rowe Avenue Perth (Office): Freehold; 10,455sqm NLA; 81% occ FY2025; S$0.5M impairment

• ▸Australia — PP&E:
• ▸• Aloft Perth: 27 Rowe Avenue, Rivervale; Freehold; 224 rooms; 17,774sqm GFA; >91% occ
• ▸• Great Eastern Motor Lodge: Great Eastern Highway, Rivervale; Freehold; 198 rooms + 180 bays; >93% occ

• ▸UK — PP&E:
• ▸• Holiday Inn Express Manchester: 2 Mercury Way, Trafford; 200yr LH from Aug 2015; 220 rooms; stable FY2025

• ▸Historical:
• ▸• Four Points by Sheraton Melbourne — DISPOSED Apr 2024 (A$96M; gain S$18.2M)

• ▸Exact remuneration for all directors (new SGX disclosure requirement complied with):
• ▸• Teo Ho Beng (Executive Chairman): S$2,434,321 FY2025 (FY2024: S$2,359,438; +3.2%). Salary 76% / Bonus 23% / Other 1%.
• ▸• Teo Keng Joo, Marc (CEO): S$415,341 FY2025 (FY2024: S$403,727; +2.9%). Salary 73% / Bonus 22% / Other 5%.
• ▸• Tan Kim Seng (Executive Director): S$464,555 FY2025 — first full year (FY2024: S$229,073 from 1 Jul 2024). Salary 79% / Bonus 19% / Other 2%.
• ▸• Chan Kum Onn Roger (NED, ARC Chair): S$55,000 fees (unchanged from FY2024).
• ▸• Kwok Chui Lian (NED, NC Chair): S$45,000 fees (unchanged).
• ▸• Ong Seet Joon Amos (NED, RC Chair): S$45,000 fees (unchanged).

• ▸KMP bands (4 disclosed, excluding directors):
• ▸• Roland Teo Ho Kang (ED Subsidiaries — brother of Executive Chairman): S$750,001–S$1,000,000 (unchanged).
• ▸• Teo Poh Sim Agnes (Head HR & Admin — sister of Executive Chairman): S$250,001–S$500,000 (unchanged).
• ▸• Irene Cheah Lan Kwee (CFO): S$250,001–S$500,000 (unchanged).
• ▸• Teo Ho Kheong Andrew (ED Subsidiaries — brother of Executive Chairman): Below S$250,000 (unchanged).

Note: The Teo family holds multiple related-party roles — Executive Chairman Teo Ho Beng has five siblings employed in the Group in executive and management positions.

Hiap Hoe's FY2025 is a genuine operational and financial recovery. Strip out the investment fair value gains and the tax over-provision, and the core business improvement is clear: hotel revenue +13%, Orchard Towers occupancy near-doubled, 130 Stirling Street fully let for the first time in years, and finance costs down S$12M on lower rates. The financial investment portfolio (S$461M) remains the hidden asset — almost equal in size to the cost-model investment property portfolio — and generated S$30.2M in fair value gains. Cash nearly doubled to S$140M. The tripled final dividend to 1.00¢ signals management confidence. Near-term watches: Great Eastern Motor Lodge full-year ramp (first full year complete at >93%), Orchard Towers rental rate trajectory as occupancy consolidates above 80%, and any plans for the S$140M cash balance.