When contemplating an investment in a condominium, one must also consider the potential rental yield. Rental yield refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, rental yields for condos can greatly differ depending on the location, condition of the property, and market demand. Typically, areas with high rental demand, such as those near business districts or educational institutions, tend to offer more attractive rental yields. To gain a better understanding of the rental potential of a specific condominium, it is important to conduct thorough market research and seek advice from real estate agents. Additionally, exploring Singapore Projects can provide valuable insights into the rental opportunities available for potential condo investors.
Heeton Holdings has reported a 221% year-on-year increase in earnings for the second half of FY2024, which ended on December 31, 2024. The company’s earnings for this period amounted to $3.85 million.
However, for the full year of FY2024, the group is still experiencing losses. For the second half of the year, earnings per share stood at 0.79 cents per ordinary share, while for the full year, earnings per share were a negative 0.28 cents per share.
In the second half of FY2024, Heeton’s revenue grew 10.5% year-on-year to $41.1 million. For the full year, revenue increased by 15.2% year-on-year to $78.2 million.
The group attributes its revenue growth in the second half of the year to rental income from investment properties, hotel operation income, and management fees. The increase in revenue for the full year was mainly driven by higher occupancies in the United Kingdom and an increase in rental rates for the group’s investment properties.
During FY2024, the company divested some of its subsidiaries, including its 70% stake in Gloucester Corinium Avenue Hotel Limited and Ensco 1154 Limited. This resulted in a net gain of $3.78 million.
The company’s property, plant, and equipment, which amounted to $418.83 million, mainly consisted of hotel properties. There was an increase of $16.92 million in FY2024 due to the acquisition of a hotel in Edinburgh, United Kingdom. The appreciation of Pound Sterling and reversal of impairment changes offset by the disposal of hotels in Japan and the United Kingdom and depreciation charges recognized.
.
Investing in a Singapore condo is a significant decision, and it’s essential to consider not only the property itself but also its maintenance and management. Typically, condominiums come with maintenance fees that cover the upkeep of shared spaces and facilities. Although these fees may add to the overall cost of owning a condo, they also ensure that the property remains well-maintained and retains its value over time. For those looking for a more hands-off approach to managing their investment in a Singapore condo, hiring a property management company, such as Singapore Condo, can be highly beneficial.
In terms of cash flow, the company experienced a decrease in cash and cash equivalents of $32.70 million, mainly due to major cash inflows and outflows. This includes proceeds from the disposal of property, plant, and equipment of $26.43 million and proceeds from disposals of subsidiaries of $11.37 million.
On the cash outflow side, the company had a net repayment of loans from associated and joint venture companies of $24.45 million, additions to property, plant, and equipment of $40.36 million, and a restricted cash pledge for a bank facility of $22.98 million.
Given the current economic uncertainty and geopolitical environment, Heeton plans to maintain a cautious and steady expansion strategy. The company will focus on being a bespoke boutique brand that offers high-quality, experiential stays for its guests, as the hospitality industry continues to face headwinds such as high operating and labor costs, elevated interest rates, and an uncertain macroeconomic environment.
In addition to participating in land tenders in the local residential market, the company also expects its two retail malls to continue generating steady and recurring income for its property investment business.
Heeton has declared a final dividend of 0.5 cents per share for the current financial period. Shares in Heeton closed 1.818% lower at 27 cents on Feb 20.