First Sponsor Group Ltd posted a net loss attributable to shareholders of S$92.8 million for the six months ended Jun 30, reversing a profit of S$19.0 million a year earlier, as mark-to-market losses on currency hedges and a property impairment outweighed stable operating income.

Revenue fell 11.2 per cent year-on-year (YoY) to S$136.7 million. The board declared an interim tax-exempt cash dividend of 1.1 Singapore cents a share, unchanged from a year ago.

The property developer and investor said the European portfolio generated net operating income of €25.5 million, up from €24.7 million in 1H2025, helped by stronger office rents and initial contributions from two recently purchased Amsterdam leased hotels. In China, sales from largely completed residential projects remained subdued amid weak market sentiment.

The bottom line was hit by a S$33.2 million unrealised loss on foreign-exchange derivatives used to hedge euro, renminbi and Australian-dollar exposures, alongside a S$10.7 million realised loss on matured contracts. A separate S$36.7 million impairment was booked on 122 unsold units at the Humen Oasis Mansion project following an adverse court ruling.

During the half, First Sponsor led consortiums to acquire the 207-room Crowne Plaza Amsterdam South for €58.1 million and the 122-room Andaz Amsterdam Prinsengracht for €93.5 million, taking 33 per cent stakes in each asset. In July the group agreed to buy the remaining 5 per cent of its Dutch Bilderberg hotel portfolio and assume operational management, and to acquire the outstanding 50 per cent of China’s Kingsman Residence project company for RMB220 million.

Chief executive officer Neo Teck Pheng said the group’s foreign-exchange hedging strategy largely preserved shareholder equity despite the accounting losses, and reiterated that the purchase of Kingsman Residence is expected to be value-accretive by lowering the project’s breakeven cost. He added that the company’s China asset exposure, now below 50 per cent, may rise temporarily after the Kingsman deal but should decline again as mainland projects are sold and overseas operations expand.

Looking ahead, management expects recurring income to rise with the January opening of the Puccini Hotel Milan, the two new Amsterdam hotels, and the scheduled completion of the PHK16-19 Amsterdam, Drive Tower Amsterdam and Live Tower Amsterdam redevelopments through 1Q2027. The group believes its balance-sheet strength allows it to weather geopolitical uncertainties while pursuing opportunistic acquisitions.