In Singapore, Oxley Holdings’ two hotels — Mercure and Novotel on Stevens Road – achieved a combined average occupancy rate of 86% (Photo: Samuel Isaac Chua/EdgeProp Singapore)

Oxley Holdings has narrowed its losses for FY2025 on the back of higher revenue, lower cost of sales, and reduced financing costs.

For the year ended June 30, the group reported a net loss of $6.1 million, a sharp improvement from $95.9 million a year earlier.

Revenue for 2HFY2025 jumped 59.8% y-o-y to $198.3 million, bringing full-year revenue to $313.6 million, up 8.7% y-o-y.

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The group generated net operating cash inflows of $75.7 million, supported by hotel revenue, rental billings, and progressive billings from its overseas projects.

Debt levels were further reduced by $126.2 million during the year. As of June 30, bank borrowings and fixed-rate notes stood at $1.243 billion, of which $1.155 billion is secured. Following the redemption of $88 million in unsecured debt after the reporting period, the group has no remaining unsecured borrowings.

The flagship Oxley Towers Kuala Lumpur City has been fully completed (Picture: Oxley Holdings website)

Oxley also announced that construction of its flagship Oxley Towers Kuala Lumpur City has been fully completed. The group expects to hand over its first residential units as early as September. From its committed sales, it anticipates collecting RM200 million in proceeds, followed by RM60 million over the next 12 months, and another RM32 million in 2027. The group still holds RM550 million worth of unsold inventory.

“Encouragingly, transaction volumes have picked up in recent months on the back of the project’s completion,” says the developer, adding that it aims to clear its inventory within the next six to 12 months.

Renovation works at its Kuala Lumpur hotel components are ongoing, with operations expected to begin “in the near term.” In Singapore, Oxley’s two hotels achieved a combined average occupancy rate of 86%, while the Shangri-La Hotel in Cambodia recorded 52% occupancy since its soft launch. Together, these properties generated hotel revenue of $59.4 million in FY2025, compared with $58.2 million the previous year.

The Shangri-La Hotel in Cambodia recorded 52% occupancy since its soft launch in December 2024 (Picture: Oxley Holdings website)

Looking ahead, Oxley plans a “strategic repositioning” of its business. The group intends to exit investment properties and hotel development, and focus exclusively on property development. It has signalled its willingness to divest its hotel portfolio “at the right opportunity.”

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“This strategic shift allows us to channel resources into markets and segments where we have a strong competitive advantage,” says executive chairman and CEO Ching Chiat Kwong. “By focusing on our core development business and recycling capital from divestments, we are positioning the group to stay agile, capture growth opportunities, and create sustainable value for our stakeholders.”

With this repositioning, Oxley will focus on its core markets—Singapore, the United Kingdom, and Ireland—while gradually exiting emerging markets, including China, Cambodia, and Malaysia, once the ongoing projects in these locations are completed.

Oxley’s Riverscape project, on the edge of the River Thames, has 769 residential units (Picture: Oxley Holdings website)

“Proceeds from these divestments will be strategically redeployed to support core development activities, including participating in local land tenders and accelerating the Dublin Arch project in Ireland,” says the group.

Oxley adds that the “prevailing low interest rate environment” provides a favourable backdrop for future development, as it expects “significant” savings in interest costs.

On Aug 29, Oxley’s shares closed at 10 cents, down 0.97% for the day but up 45.71% year to date. At this level, the counter trades at roughly half its June 30 net asset value of 19.6 cents per share.

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