Frasers Property reports 76% rise in 1Q earnings to $146 mil

PC Lee

SINGAPORE (Feb 12): Frasers Property reported a 76.1% rise in 1Q earnings to $145.6 million compared to $82.7 million a year ago.

Group CEO Panote Sirivadhanabhakdi said the bottomline was boosted by sales and settlements of the group’s residential development projects in Australia and China, as well as an enlarged base of recurring income assets following its acquisition of six business parks in the United Kingdom last year. In addition, maiden contributions from its Frasers Tower office building and the south wing of the Northpoint City shopping mall in Singapore also gave results a lift.

Revenue grew 44.7% to $1.08 billion while PBIT rose 50.7% to $354.4 million from a year ago. Singapore residential properties reported lower revenue and PBIT by $29 million and $17 million to $117 million and $14 million, respectively. The decline was mainly due to lower progressive profit recognition from North Park Residences for the period under review.

In Australia, revenue and PBIT grew 119% to $471 million and $139 million, respectively, mainly contributed by sales and settlements from residential development. Hospitality revenue and PBIT remained fairly constant at $210 million and $40 million, respectively.

Looking ahead, Frasers Property Singapore said it will launch Rivière, a 455-unit private residential project along the Singapore River in the first half of 2019. The development will also include Fraser Residence Promenade, comprising 80 serviced apartments which are fully integrated with the conserved warehouse.

In Australia, 300 residential units were released for sale in 1Q19 and another 2,000 are expected to be launched over the remainder of FY19. Frasers Property Australia (FPA) also settled 580 units during the quarter and is scheduled to complete and settle another 1,7209 over the rest of the financial year.

In the commercial & industrial and retail development space, FPA is developing 14 facilities, of which five with a gross development value of around $436 million are to be sold while nine with an aggregate investment value of around $254 million will be retained on its balance sheet.

On the hospitality front, Frasers Hospitality opened two properties -- Modena by Fraser Buriram in Thailand and Fraser Place Puteri Habour in Malaysia -- and signed-up three others -- Fraser Residence Promenade Singapore, Modena by Fraser Chengdu in China, and Modena by Fraser Hanoi in Vietnam -- during the quarter.

Over the course of the remainder of FY19, another four properties -- Fraser Residence Orchard and Capri by Fraser, China Square in Singapore; Capri by Fraser, Johor Bahru in Malaysia; and Fraser Suites Hamburg in Germany-- are scheduled to be opened.

With these additions, the group now has equity interests in and manages over 17,000 units and has around 8,000 units signed-up and pending openings.

Shares in Frasers Property closed 2 cents lower at $1.69.