Tuan Sing Holdings FY2025: PAT 13x to S$32.1M on S$70M Fair Value Gains; Dunearn Village AEI Complete, Melbourne Planning Permit Secured

Tuan Sing Holdings FY2025 Annual Report (year ended 31 December 2025) is a recovery year — profit attributable to shareholders surged 13x to S$32.1M (FY2024: S$2.3M), driven primarily by a S$70.3M net fair value gain on investment properties (FY2024: S$6.7M), two completed asset enhancement projects, and a stronger hospitality performance in Melbourne. Revenue declined to S$146.0M (FY2024: S$192.5M) as the absence of Peak Residence progressive recognition post-completion dominated the top line.\n\nFINANCIAL HIGHLIGHTS\n\nRevenue: S$146.0M (FY2024: S$192.5M; -24.1%) — decline driven almost entirely by Real Estate Development (S$3.9M vs S$44.9M FY2024) as Peak Residence completed TOP in October 2024; partly offset by higher Hospitality revenue.\nAdjusted EBIT: S$45.3M (FY2024: S$40.8M; +11.0%) — the operational picture is actually improving.\nProfit before tax: S$39.7M (FY2024: loss of S$1.2M).\nProfit after tax attributable to shareholders: S$32.1M (FY2024: S$2.3M; +13x) — turnaround driven by net fair value gains of S$70.3M on investment properties in Singapore and Australia.\nEPS: 2.58 cents (FY2024: 0.19 cents).\nNAV/share: 98.0 cents (FY2024: 98.0 cents; unchanged — gains offset by dividends and FX translation losses).\nTotal assets: S$2,803.3M (FY2024: S$2,700.3M; +3.8%).\nGross gearing: 1.14x (FY2024: 1.08x). Net gearing: 1.01x (FY2024: 0.96x).\nTotal borrowings: S$1,398.5M. Cash: S$159.8M.\nDividend: 0.7 cent per share first and final (unchanged for 17th consecutive year). Total payout ~S$8.7M. Scrip Dividend Scheme option retained.\n\nFAIR VALUE GAINS — WHERE THEY CAME FROM\n\nTotal net fair value gain: S$70.3M (FY2024: S$6.7M — a 10x increase).\nDunearn Village: Val jumped S$90M (+22%) to S$500M from S$410M — AEI completion triggered reclassification from residual/development method to direct comparison method. AEI delivered improved tenant mix, sheltered MRT connection, redesigned facade. Tenants commenced trading in H2 2025; final carpark works H1 2026.\n123 Collins Street (Melbourne): Val surged A$48.8M (+50%) to A$146.8M (~S$126.4M from ~S$83.1M) — receipt of Planning Permit in December 2025 from Melbourne City Council triggered revaluation using residual method (previously capitalisation/DCF only). Planning Permit enables major mixed-use redevelopment: luxury retail podium (3 levels, flagship duplexes), F&B precinct, facade revitalisation, +~5,000 sqm NLA. Once complete, expected to command higher rents and stronger valuation.\nOther SG investment properties: The Oxley +S$6M to S$85.5M; L&Y Building +S$1.2M. 18 Robinson flat at S$689M.\n\nKEY PORTFOLIO DEVELOPMENTS\n\nDunearn Village AEI (completed H2 2025):\nPhased completion in second half of 2025 transformed Link@896 into a refreshed lifestyle destination with redesigned facade directly linked to King Albert Park MRT Station. Diverse lifestyle tenant mix, improved shopper circulation. Tenants progressively commenced operations; revenue generation following phased approach. Final carpark improvement expected H1 2026. Expected to command higher rents and gains in capital value.\n\n123 Collins Street Planning Permit (December 2025):\nOfficial Planning Permit received from Melbourne City Council for redevelopment of 121-131 Collins Street and 23-25 George Parade. Proposed transformation: luxury retail podium (3 levels, flagship duplexes), adjoining F&B precinct, facade revitalisation. Post-redevelopment: retail NLA increases by ~5,000 sqm; revitalised asset expected to command higher face rents and boost cashflow. Partial existing podium retained to allow Grand Hyatt Melbourne and tenants to continue operations; hotel performance expected to be impacted during construction.\n\nGrand Hyatt Melbourne (FY2025 highlights):\nOccupancy improved to 81% (FY2024: 76%) — capitalised on robust Melbourne event calendar: Australian Open and Australian Grand Prix drove exceptional demand surges. Further boosted by expanded international flight connectivity. Hospitality Adjusted EBIT grew 28% to S$15.5M. Awards: Forbes Travel Guide Recommended 2025 and 2026; EarthCheck Silver; DestinAsian Top 5 Australia Hotels.\n\nResidence on Langley Park (Perth — 'The Langley'):\nLaunched as 'The Langley' precinct in November 2025, combining the hotel/serviced apartments, 18 Terrace Road office, and Shoppe on Langley Park under one brand identity. 51 rooms converted to serviced apartments in FY2025 for extended-stay market. Delivered improved occupancy rates and positive Adjusted EBIT contribution (turnaround from FY2024). Anchor tenants at 18 Terrace Road (Fortescue leases expiring 2025–2026) — replacement tenants being secured.\n\nFraser Residence River Promenade (Singapore):\nAcquired July 2024; delivered stable occ ~82% and consistent performance in FY2025. Core feeder markets: China, Australia, UK (corporate + extended-stay + MICE). Multiple 2025 hospitality awards including World Luxury Hotel Awards (Best Serviced Apartments Asia), Travel Weekly Asia Best Serviced Residence.\n\nOpus Bay, Batam (Indonesia):\nCluny Villas completed and commenced handover to buyers. Balmoral Tower construction ongoing (scheduled completion 2026). 57-villa Cluny Resorts (luxury hotel villas, private pools) under development; expected operations H2 2026. Retail promenade under construction. Teluk Senimba Ferry Terminal AEI commenced (targeted 2026). TGO East Jakarta: 4.5M+ visitors since opening; 80%+ occupancy; 130 tenants.\n\nBALANCE SHEET AND REFINANCING\n\nS$960M of loan facilities successfully refinanced and maturity extended in FY2025 — all Singapore secured borrowings now have maturities beyond 2 years. This was highlighted by management as a key financial management achievement. Total borrowings S$1,398.5M: 89% secured (S$1,249.8M), 11% unsecured (S$148.7M — Series V MTN, S$150M at 7.50% p.a., due Nov 2027). Interest coverage ratio improved to 1.7x (FY2024: 1.0x). 51% fixed rate / 49% floating (after swaps). 78% SGD / 21% AUD / 1% RMB.\n\nCEO REMUNERATION\n\nWilliam Nursalim alias William Liem: S$2,402,784 total for FY2025 (FY2024: S$2,060,426; +16.6%). Breakdown: Base Salary S$1,408,680 (+5.0%), Variable Bonus S$939,100 (+40.0%), Benefits S$55,004. The 40% bonus surge reflects the Group's turnaround performance — PAT up 13x, Adjusted EBIT +11%, AEI projects completed. No LTI or stock options — pure cash compensation structure.\nTop 5 KMP (excl CEO) aggregate: S$2,515,141. Individual bands: Patrick Tan (Head, Asset & Fund Mgmt) S$500K–S$749K; Peggy Wong (General Counsel) S$500K–S$749K; others S$250K–S$499K.\nTotal directors' fees FY2025: S$446,000 (proposed at 2026 AGM; FY2024: S$468,251; -4.8% — fewer ad-hoc meetings and no overseas engagements).\n\nBOARD CHANGE\n\nCheng Hong Kok (Independent Director, RC Chair, 7+ years of service since Aug 2017) is not seeking re-election at the April 2026 AGM.\n\nKEY TAKEAWAY\n\nTuan Sing's FY2025 earnings recovery (+13x PAT) is primarily an accounting/fair value event, not a fundamental cashflow turnaround. Strip out the S$70M fair value gain, and operating performance is modest but improving — Adjusted EBIT +11%, hotels recovering, Dunearn Village coming online. The real milestones are structural: Dunearn Village AEI completion (S$500M val; connected to MRT; tenants ramping), the Melbourne Planning Permit (unlocks luxury retail podium at Collins Street), and the S$960M debt refinancing (maturities secured beyond 2 years). The S$1,398M debt load and net gearing above 1x remain the central balance sheet consideration. Revenue will remain lumpy until a new residential development is launched — no Singapore residential pipeline announced post-Peak Residence. Watch for: (1) Dunearn Village tenancy ramp and rental uplift in FY2026; (2) Melbourne construction timeline and Grand Hyatt occ impact during podium works; (3) Perth anchor tenant replacement at 18 Terrace Road; (4) Opus Bay hospitality opening (H2 2026).