When contemplating an investment in a condo, it is imperative to also evaluate the potential rental yield. This refers to the annual rental income as a percentage of the price paid for the property. In Singapore, the rental yields for condos can vary greatly depending on factors such as location, condition of the property, and demand in the market. Generally, areas with high rental demand, such as those close to business districts or educational institutions, tend to offer better rental yields. It is advisable to conduct comprehensive market research and seek guidance from real estate agents to gain valuable insights into the potential rental income of a specific condo.
Heeton Holdings achieved a remarkable 221% increase in earnings for the 2nd half of their fiscal year 2024, which ended on December 31, 2024, with a total of $3.85 million. However, for the full fiscal year 2024, the group still experienced a loss.
During the 2nd half of fiscal year 2024, earnings per share amounted to 0.79 cents, while it was -0.28 cents per share for the entire fiscal year 2024. The increase in revenue for the 2nd half of fiscal year 2024 was 10.5% compared to the previous year, reaching $41.1 million. For the full fiscal year 2024, the increase in revenue was even higher at 15.2%, reaching $78.2 million.
According to the group, the turnover for the 2nd half of fiscal year 2024 was mainly due to rental income from investment properties, hotel operations, and management fees. The higher revenue for the fiscal year 2024 was a result of higher occupancy rates in the United Kingdom and an increase in rental rates for the group’s investment properties.
In addition, during the year 2024, the group sold off some of its subsidiaries, including its 70% interest in Gloucester Corinium Avenue Hotel Limited and Ensco 1154 Limited. This resulted in a net gain of $3.78 million.
The group also reported an increase in property, plant, and equipment, amounting to $418.83 million, mainly due to the acquisition of a hotel in Edinburgh, United Kingdom. However, this was offset by disposals of hotels in Japan and the United Kingdom, depreciation charges, and the effect of the appreciation of Pound Sterling.
In terms of cash flow, the group saw a decrease of $32.70 million in cash and cash equivalents due to significant inflows and outflows. This includes proceeds from the disposal of property, plant, and equipment, as well as disposals of subsidiaries. On the other hand, the group also had a net repayment of loans from associated and joint venture companies, additions to property, plant, and equipment, and a restricted cash pledge for a bank facility.
Given the uncertain economic outlook and geopolitical landscape under Trump’s administration, the group remains cautious and will continue its steady and prudent strategic expansion.
Despite the challenges faced by the hospitality industry, such as high operating and labor costs, elevated interest rates, and an uncertain macroeconomic environment, Heeton will continue to offer top-quality and experiential stays for its guests as a bespoke boutique brand.
Heeton will also continue to participate in land tenders in the local residential market, often as part of a consortium. Additionally, its two retail malls are expected to generate steady and recurring income for the property investment business.
The group has declared a final dividend of 0.5 cents per share for the current financial period. Shares in Heeton closed at 27 cents on Feb 20, a decrease of 0.5 cents or 1.818%.