Heeton Holdings Limited swung back to the black in the six months ended Jun 30 2026, posting a group net profit of S$0.18 million against a net loss of S$9.48 million a year earlier. The turnaround was underpinned by stronger contributions from investment properties, a recovery in hospitality earnings and a one-off gain from the divestment of a Japanese hotel asset.

Basic and diluted earnings per share came in at 0.25 Singapore cents, reversing a loss per share of 1.60 cents in the prior-year period. The board did not declare an interim dividend, in line with the same period last year.

Revenue inched up 1.0 per cent year-on-year (YoY) to S$37.25 million. Hotel operations remained the largest contributor, accounting for S$30.36 million, followed by rental income of S$6.58 million from investment properties and S$0.31 million in management fees.

Segmentally, the property investment division delivered a pre-tax profit of S$9.26 million, more than quadrupling the S$2.04 million recorded a year earlier, aided by a S$3.0 million upward revaluation of Tampines Mart. The hospitality segment posted a pre-tax profit of S$9.21 million versus a loss of S$3.39 million in H1 2025, helped by the full-period contribution from the upgraded Dorsett Changi City Singapore and a S$9.95 million gain from the sale of Smile Hotel Sapporo. Conversely, the corporate segment widened its pre-tax loss to S$12.56 million, weighed by finance costs and impairment charges, while property development recorded a pre-tax loss of S$3.53 million.

Headwinds during the half included S$8.89 million in impairment losses on financial assets, largely tied to receivables from property-related parties, and finance expenses of S$12.20 million despite lower borrowing costs. Foreign-exchange translation losses of S$1.94 million, reflecting yen and sterling weakness, also curbed bottom-line growth.

Heeton continued to refine its portfolio, completing the S$27.1 million divestment of its Sapporo hotel and adding Singapore’s Link Hotel to its hospitality footprint through a consortium. It also took part in a joint-venture acquisition of the Upper Thomson Road (Parcel A) site, strengthening its residential development pipeline. Post-period, on 2 Jul 2026, the group issued S$90.0 million of 5.50 per cent notes due 2030, partly via an exchange of S$43.0 million of its 7.00 per cent notes due 2026, extending its debt maturity profile and providing additional working capital.

Looking ahead, management pointed to persistent cost pressures, geopolitical uncertainties and uneven global growth. The group intends to maintain tight cost control, disciplined capital allocation and continued portfolio optimisation while selectively pursuing new development and hospitality opportunities through strategic partnerships.