Olive Tree Estates FY2025: small rental REIT-like play with flat revenue, deeper loss but stronger cash
Summary:
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Full-year revenue was stable at S$1.276m (up ~S$0.01m) with 100% occupancy at its One Commonwealth industrial units; all income is rental from Singapore.
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Despite flat topline, net loss widened to S$1.47m from S$0.53m, mainly due to S$0.66m of other losses (FX and translation losses on Vietnam divestment) and the absence of prior-year associate profits, though admin and finance costs fell.
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Operating business remains lean: FY2025 administrative expenses fell to S$1.92m (from S$2.16m) helped by staff cost cuts, partially offset by higher professional fees linked to the mandatory general offer.
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Finance expenses dropped to S$0.17m (from S$0.28m) and bank borrowings were reduced from S$6.92m to S$4.76m as loans were repaid, improving interest coverage and reducing risk.
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Cash and bank balances jumped to S$7.19m from S$1.94m, largely funded by S$7.9m proceeds from the sale of the Vietnam development interests reclassified as assets held for sale last year.
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Total assets fell to S$14.6m (from S$18.1m) after the Vietnam disposal, but net debt is now modest and NAV per share slipped only from 8.30 cents to 7.28 cents despite the larger loss.
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Strategically, the group has exited all Vietnam development JVs and is repositioning around stable Singapore rental income plus potential redeployment of the sale proceeds into new, likely asset-light or income-generating opportunities.