Far East Orchard talks on COVID-19 impact ahead of AGM
The property developmemt and management company is focusing on resilience to benefit from post-pandemic recovery.
Far East Orchard has seen a significant drop in demand since the COVID-19 pandemic hit its hospitality operations in particular - in both Singapore and around the world, the company advised shareholders in advance of its 52nd annual general meeting today.
Its purpose-built student accommodation business in the UK has also been affected by early tenancy cancellations for the last semeter of the 2019-2020 academic year, as a result of university closures. These cancellations have had an estimated $5.19m negative impact on the group’s revenue.
The response to "substantial and relevant" questions from shareholders noted that several cost containment measures had been undertaken to manage the extraordinary circumstances, and conserve cash flow. To questions regarding the company's plans to alleviate these impacts, Far East responded that they will monitor the pandemic situation and "make necessary adjustments to mitigate the impact and benefit from a post-pandemic recovery".