SingPost first-half net profit surges 183.7% to S$55.9 million on HDB shophouse sale and leaseback
Singapore Post's net profit for the first half of its financial year rose 183.7% year-on-year to S$55.9 million, driven by one-off gains from the sale and leaseback of 10 HDB post office shophouses. Underlying net profit more than doubled to S$11.5 million despite a 1.3% dip in revenue to S$185.9 mi
Singapore Post (SingPost) reported a 183.7 per cent year-on-year increase in net profit to S$55.9 million (US$43.7 million) for the first half of its financial year ended 30 Sep 2026, the national postal company said on Friday (6 Nov). The surge was largely driven by one-off exceptional gains from the sale and leaseback of 10 Housing and Development Board (HDB) post office shophouses.
Revenue fell 1.3 per cent to S$185.9 million, mainly due to lower international revenues. While cross-border parcel volume rose 9.1 per cent, overall international logistics revenue dropped 28.6 per cent amid structural declines in cross-border letter mail. Domestic postage adjustments and a 23.8 per cent rise in domestic parcel deliveries partially offset the impact of lower letter mail volumes.
Excluding exceptional items, SingPost's underlying net profit more than doubled to S$11.5 million. The company attributed this to operational optimisation, better performance in domestic parcel delivery and the Post Office Network, as well as a tax provision write-back.
SingPost's logistics and letters segment saw domestic parcel volumes increase 23.8 per cent year-on-year, helping to mitigate a 15.6 per cent decline in domestic letter mail volumes. Disciplined cost management narrowed the segment's operating loss to S$2.5 million. The Post Office Network segment reduced its operating loss by 42.9 per cent to S$3.3 million while revenue rose 80.8 per cent to S$10.4 million, supported by retail partnerships, commercial product sales, higher rental contributions and the Singtel Special Discounted Shares transfer exercise.
The property assets segment generated an operating profit of S$22.6 million on revenue of S$40.9 million, with full occupancy at SingPost Centre and blended rental rate reversions of 7 per cent. SingPost is planning a targeted asset refresh of the SingPost Centre retail mall with an estimated capital expenditure of less than S$30 million.
SingPost's cash holdings stood at S$642.5 million as at 30 Sep 2026. The board declared an interim dividend of 0.15 Singapore cents per ordinary share for the first half of FY2026/27. The company is targeting a network of 30 post office branches and 50 self-service lobbies by end-March 2027, and expects to grow its retail partnerships from 11 to 30 branches over the next six months.
Chief executive officer Mark Chong said the results reflect "green shoots" in the execution of SingPost's strategy, but noted the operating environment remains challenging amid structural letter mail declines and cross-border headwinds.
