E&O to launch projects with RM1.63bil GDV


KUALA LUMPUR: Eastern & Oriental Bhd (E&O) is poised to launch about three projects with a combined gross development value (GDV) of RM1.63bil over the next couple of years.

Its managing director Kok Tuck Cheng outlined these upcoming ventures, which encompass a diverse range of offerings including landed homes, The Lume, and marina apartments boasting sea-front views.

Kok emphasised the importance of ensuring that each development complements rather than competes with the others, thus maintaining a harmonious portfolio.

“The Andaman Island developments continues to build momentum, with even Senna and Fera showing strong sales performance, with over 90% take up rate, since its launch in January 2024,” Kok said during the group’s financial year ended March 31, 2024 (FY24) results briefing.

He said the Gurney Bridge is slated for completion by mid-next year, promising enhanced accessibility to the island and further catalysing its appeal.

Beyond 2025, Kok revealed plans for a grand mixed-use development spanning 19.27 acres on Andaman Island.

This project will feature a blend of hospitality and residential offerings including hotels, branded residences, a vibrant shopping centre, and modern office spaces, alongside more than 2,000 service apartments.

With an estimated GDV of RM3.75bil, this venture is poised to be a cornerstone of E&O's endeavours from 2026 to 2030.

In FY24, Kok said the group managed to lock about RM870.6mil sales, while the amount of unbilled sales has reached a record high of RM1.35bil.

Looking ahead, the group anticipates that these unbilled sales will be gradually recognised over the course of the upcoming financial years.

In the pipeline for the next fiscal year, the group is poised to introduce sustainable residential offerings, encompassing a mix of landed and high-rise projects.

Upcoming is the launch of The Lume, a collection of 261 serviced apartments situated on the Andaman Island in Penang.

As for its hospitality segment, the group expects continued growth in the coming quarters.

It said E&O Hospitality Services continues to demonstrate growth, with higher revenue attributed to elevated average room rates and occupancy rates with the E&O Hotel in Penang exceeding its pre-pandemic level.

For FY24, E&O reported revenue of RM422.8mil, up 32.9% from the RM318.1mil recorded in FY24.

Net profit for the financial period almost tripled to RM133.6mil, compared to RM44.5mil recorded in FY23.

The improvement in results in FY24 was due to higher revenue recognition from properties and hospitality segments.

This is coupled with the higher unrealised foreign exchange gain of RM52.4mil in FY24 compared to unrealised foreign exchange loss of RM7.6mil in the previous corresponding financial year.

Its properties segment recorded revenue of RM312.1mil in FY24 representing an increase of 41.2% as compared to RM221.1mil in the previous financial year.

The increased revenue was mainly due to higher revenue recognition from the ongoing project, Arica and the newly launched projects, Fera and Senna, all of which are located on Andaman Island.

Meanwhile, joint venture projects contributed a total revenue of RM265.6mil in FY24, growing close to 150% compared to revenue of RM106.8mil achieved in FY23.

As such, the properties segment recorded operating profit of RM128.1mil for FY24 as compared to RM60.7mil reported in FY23.

Its hospitality segment, meanwhile, recorded revenue of RM105.4mil for the financial period under review, up by 14% as compared to RM92.8mil in FY23, mainly due to the higher average room rate and occupancy rate achieved.

The segment recorded an operating profit of RM29.6mil in FY24, improving marginally as compared to a profit of RM29.3mil in FY23.

However, the group’s investments and others segment recorded an operating loss of RM238.8mil in FY24 as compared to operating profit of RM91.5mil in the FY23, owing to impairment in investment in subsidiaries which were eliminated at group level.

For the final quarter ended March 31, 2024 (4Q24), E&O saw its revenue almost doubled to RM121.3mil from RM65.3mil in 4Q23, due to higher revenue recognition from the ongoing development projects.

Similarly, net profit for the quarter under review grew to RM36.5mil from RM16.1mil in 4Q23, owing to the fair value gain on investment properties of RM40.1mil and offset with the net write down of property development costs of RM31.6mil during the quarter.

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Eastern & Oriental , E&O , GDV , property

   

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