Oxley Narrows Losses Fy2025 Shifts Focus Solely Property Development

Oxley Holdings has reported a significant improvement in its financials for the fiscal year 2025. The group’s losses have reduced thanks to higher revenue, a decrease in cost of sales, and lower financing costs.

In its annual report, Oxley announced a net loss of $6.1 million for the year ended June 30, a sharp decline from $95.9 million the previous year. The group’s revenue for the second half of the fiscal year saw a substantial increase of 59.8% year-on-year to $198.3 million, contributing to a 8.7% year-on-year growth in total revenue to $313.6 million.

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Oxley’s net operating cash inflows reached $75.7 million, supported by strong performances from its hotel revenue, rental billings, and the progressive billings from its overseas projects. The group has also successfully reduced its debt by $126.2 million during the year, with bank borrowings and fixed-rate notes standing at $1.243 billion as of June 30, of which $1.155 billion is secured. After the redemption of $88 million in unsecured debt, the group is now completely free of unsecured borrowings.

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

The group also announced the completion of its flagship project, Oxley Towers Kuala Lumpur City, with the first residential units expected to be handed over as early as September. From committed sales, the group expects to collect RM200 million in proceeds, followed by RM60 million over the next 12 months, and another RM32 million in 2027. The group still holds unsold inventory worth RM550 million.

The developer commented that market activities have been picking up in recent months following the completion of the project, providing an encouraging outlook for the future. Oxley aims to clear its inventory within the next six to 12 months.

Renovation works for its Kuala Lumpur hotel components are ongoing, with operations expected to begin soon. In Singapore, Oxley’s two hotels reported a combined average occupancy rate of 86%, while the Shangri-La Hotel in Cambodia recorded 52% occupancy since its soft launch, generating hotel revenue of $59.4 million in FY2025, compared to $58.2 million the previous year.

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

Moving forward, Oxley plans a strategic repositioning of its business, intending to exit investment properties and hotel development to focus solely on property development. The group has also expressed its willingness to divest its hotel portfolio at the right opportunity.

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

With its new focus, Oxley will prioritize its core markets, including Singapore, the United Kingdom, and Ireland, while gradually withdrawing from emerging markets like China, Cambodia, and Malaysia, once the ongoing projects in these locations are completed.

Oxley’s Riverscape project, situated on the River Thames, boasts 769 residential units (Picture: Oxley Holdings website)

“The proceeds from these divestments will be strategically reinvested to support core development activities, such as participating in local land tenders and accelerating the Dublin Arch project in Ireland,” says the group.

Oxley also points out the current low-interest rate environment, which stands to benefit the group’s future developments, resulting in significant savings in interest costs.

On August 29, Oxley’s shares closed at 10 cents, a decline of 0.97% for the day, but a year-to-date increase of 45.71%. The counter is currently valued at approximately half of its June 30 net asset value of 19.6 cents per share.