Frasers Property reports fiscal year net profit fell 25 percent

Sign at Frasers Tower, owned by Frasers PropertySign at Frasers Tower, owned by Frasers Property

Frasers Property reported Friday its fiscal year net profit dropped 25.3 percent on-year to S$560.3 million on lower contributions from development projects in Singapore and Australia.

The decline was partly offset by contributions from the newly acquired stake in PGIM Real Estate AsiaRetail Fund and on the consolidation of Golden Land Property after increasing its stake, Frasers Property said.

Revenue for the year ended 30 September declined 12.2 percent on-year to S$3.79 billion, the property developer said in a filing to SGX.

“The merits of the strategic steps we took to enlarge the group’s base of recurring income sources over the past few years were especially noteworthy in FY19. Over the past five years, the group’s profit before interest and tax (PBIT) from recurring income sources has been increasing year-on-year,” Panote Sirivadhanabhakdi, group CEO of Frasers Property, said in the statement.

For the fiscal year, PBIT from recurring income was up 16 percent on-year, helping to partly offset the “inherently lumpy” PBIT from development, which was down 43 percent on-year, Sirivadhanabhakdi said.

The Singapore strategic business unit (SBU) reported revenue fell by 49 percent on-year to S$687 million and PBIT declined by  4 percent to S$466 million.

Revenue for Singapore retail and commercial properties increased 20 percent on-year to S$565 million and PBIT rose 47 percent to S$494 million, on a fair value change of joint ventures and associates, maiden contributions from PGIM ARF and higher contributions from the south wing of Northpoint City and Frasers Tower on higher occupancies, the filing said.

The Singapore residential properties posted revenue fell by S$766 million to S$122 million and PBIT was a loss of S$22 million, largely due to the tapering off of contributions the fully sold Parc Life Executive Condominium and North Park Residences and provisions for project costs.

The Australian residential properties posted revenue fell 11 percent on-year to S$1.07 billion and PBIT declined 58 percent to A$55 million.

“The decrease in revenue was mainly due to the lumpiness of sales settlements of residential projects, with fewer sales settlements at Tailor’s Walk in Botany, New South Wales,” Frasers Property said.

Frasers Logistics & Industrial Trust reported revenue rose 16 percent on-year to S$231 million, while PBIT increased 18 percent on-year to S$168 million.

Administrative expenses increased 18.5 percent on-year to S$447.68 million, Frasers Property said.

Frasers Property declared a total dividend of 6.0 Singapore cents a share, including a 3.6 Singapore cents a share final dividend and a 2.4 Singapore cents interim dividend paid earlier in the year. That compared with a total dividend of 8.6 Singapore cents in the previous year, the filing said.

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