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SingPost’s first-half net profit rises 183.7% to S$55.9 million on HDB shophouse sale and leaseback
Singapore Post’s net profit rose 183.7 per cent year on year to S$55.9 million in the first half of FY2026/27, largely because of gains from selling and leasing back 10 HDB post office shophouses. The result highlights how property transactions boosted reported earnings while the postal business continues to face declining letter volumes and pressure on international logistics.
Revenue slipped 1.3 per cent to S$185.9 million, but underlying net profit, excluding exceptional items, more than doubled to S$11.5 million. Domestic parcel volumes grew 23.8 per cent, while international logistics revenue fell 28.6 per cent despite a 9.1 per cent rise in cross-border parcel volumes; cash holdings were S$642.5 million and the board declared an interim dividend of 0.15 Singapore cents per share.
In short
- Shophouse sale and leaseback gains lifted first-half net profit to S$55.9 million.
- Underlying net profit more than doubled to S$11.5 million.
- Parcel growth partly offset falling letter mail and international revenue.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The results show SingPost turning valuable property into a substantial gain while retaining use of the post office sites through leasebacks. Supporters could argue this releases capital, strengthens cash reserves and, alongside higher underlying profit and domestic parcel growth, gives the company more scope to adapt as mail volumes decline.
The case against
The headline profit increase was driven largely by a property transaction, so it may overstate the improvement in the performance of SingPost’s ongoing business. Revenue fell, international logistics weakened, and the sharp divergence between cross-border parcel growth and logistics revenue raises questions about the durability of earnings and the company’s ability to offset pressure on its core operations.