Frasers Property reports fiscal full-year net profit rose 10 percent on development sales

Singapore two-dollar bills

Frasers Property reported on Friday that its fiscal full-year net profit rose 10.1 percent on-year to S$759.0 million on development project sales in Singapore and Australia and on contributions from the U.K. business parks and European assets.

Revenue for the year ended 30 September rose 7.1 percent on-year to S$4.31 billion, the company said in a filing to SGX before the market open on Friday.

“The group’s diversification into investment properties in developed markets has helped to smoothen the effects of the inherent lumpiness of development income,” Panote Sirivadhanabhakdi, CEO of Frasers Property, said in the statement. “To further strengthen Frasers Property’s resilience amid an environment of increasing macroeconomic volatility, we continued to expand the group’s recurring income base during the year.”

It posted fair value gains of S$637 million on its investment properties for the year, with profit attributable to shareholders before fair value changes and exceptional items rising 3.9 percent on-year to S$507.2 million.

The share of results of joint ventures and associates, net of tax, rose 30.1 percent on-year to a gain of S$240.96 million, it said.

Administrative expenses increased 30.9 percent on-year to S$378.00 million, it said.

Frasers Property declared a dividend of 6.2 Singapore cents a share, flat with the year-earlier dividend.

During the year, Frasers Property moved to expand its logistics and industrial platform, including the U.K. platform, it said.

“These include completing the buy-out of the remaining stake in Geneba Properties, the acquisition of the project and asset management platform of Alpha Industrial, as well as 12 of Alpha Industrial’s 22 logistics and light industrial properties,” it said.

It also expanded its Vietnam footprint, with the acquisition of residential-cum-commercial projects in District 2 and Thu Duc District, respectively, in Ho Chi Minh City, Vietnam, it said.

But CEO Sirivadhanabhakdi also pointed to headwinds for the development business ahead, including heightened geopolitical risks.

In particular, he pointed to headwinds in the U.K. hospitality business.

“Consumer sentiments have declined, impacting Malmasion Hotel du Vin Group’s F&B segment, and leading to the group providing for an impairment of intangible assets,” the filing said.