August 18, 2025
138 Student Living Ltd.(138SL)
Unaudited financials for the nine months ended June 30, 2025:
138 Student Living Ltd. (138SL) for the nine months ended June 30, 2025, reported a 2% decrease in Income totalling $1.02 billion compared to $1.05 billion in the corresponding period last year. Income for the third quarter had an 8% decrease to close at $303.41 million compared to $330.69 million for the comparable quarter of 2024.
Other Operating Income amounted to $50.79 million (2024: $ 110.76 million), representing a 54% year-over-year decrease. Consequently, total revenue decreased by 7% to $1.07 billion compared to $1.16 billion for the nine months ended June 30, 2024. The company booked total revenue of $277.90 million for the third quarter, versus $376.55 million reported for the similar quarter of 2024.
Administrative and other expenses increase by 7% to close at $625.71 million (2024: $582.43 million), while Profit/(Loss) From Operation decreases by 22% from $575.06 million in 2024 to $447.75 million in the period under review. As a result, finance costs for the nine months ended June 30, 2025, amounted to $225.84 million, a 10% decrease relative to $251.79 million reported in 2024.
Profit Before Taxation for the nine months ended June 30, 2025, amounted to $221.91 million, a 31% decrease relative to $323.26 million reported in 2024. Profit Before Taxation for the third quarter amounted to $31.92 million (2024: $119.19 million). Taxation totalled $14.35 million, a 39% decrease from the corresponding period last year. (2024: $23.66 million).
Profit before taxation for the nine months ended June 30, 2025, amounted to $221.91 million, a 31% decrease relative to $323.26 million reported in 2024. Profit before taxation for the third quarter amounted to $31.92 million (2024: $119.19 million).
Despite the challenges, 138SL’s net profit for the nine months amounted to $207.56 million, a 31% decrease from the $299.61 million reported in 2024. For the third quarter, Net Profit was $48.13 million (2024: $107.80 million). “The company’s nine months net profit decline was primarily driven by the reduction in total revenue, mainly attributed to student boarding seasonality. However, administrative and other expenses rose, further pressuring margins and causing operating Profit to contract. Although finance costs decreased due to reduced debt servicing, the savings were insufficient to offset the combined impact of weaker revenues and higher expenses.”
Consequently, Earnings Per Share for the nine months amounted to $0.39 (2024: EPS: $0.56), while Earnings Per Share for the quarter totalled $0.09 (2024: EPS: $0.20). The twelve-month trailing EPS was $0.47, and the number of shares used in these calculations was 536,855,600.
Notably, 138SL’s stock price closed the trading period on August 17, 2025, at a price of $4.69 with a corresponding P/E ratio of 9.96x.
Balance Sheet Highlights
The company’s assets totalled $10.46 billion (2024: $10.23 billion). The total increase in the company’s asset base is driven by a 6% YoY increase in “Financial Asset – service commission rights” endng the quarter at $9.03 billion (2024: $8.53 billion) and a 2% YoY increase in “Taxation recoverable” ending the quarter at $26.58 million (2024: $26.06 million).
Shareholders’ equity was $6.34 billion (2024: $5.64 billion), representing a robust book value per share of $11.81 (2024: $10.51).
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