Summary:

• First Sponsor Group expects to report a net loss for 2H2025 and FY2025, driven mainly by fair value losses on financial derivatives and net foreign exchange losses arising from the appreciation of the euro, Chinese yuan and Australian dollar against the Singapore dollar​

• The group will recognise an unrealised mark-to-market loss of about S$58.6 million for 2H2025 and S$56.1 million for FY2025 on its FX derivatives, alongside realised FX losses of S$21.4 million and S$20.0 million respectively on instruments that matured during the periods​

• These P&L hits are not offset elsewhere because since September 2024 the company has funded subsidiaries entirely with equity rather than foreign currency loans, removing the prior accounting hedge from loan revaluation​

• The group is also booking impairment losses on certain PRC development properties, fair value losses on some PRC investment properties and share of losses from PRC associates and JVs due to their own impairments, reflecting ongoing China real estate stress​

• Despite the expected loss, net gearing remains moderate at about 0.56 times, with over S$500 million in cash and undrawn committed facilities, and recurring net operating income from its property portfolio is projected to fully cover interest expenses​

• Management says shareholders’ funds are largely preserved, as currency strength has simultaneously generated translation gains on foreign-currency net assets, and expects recurring income to improve further after key European hotel redevelopments complete in 2026​