Frasers Property H1 profit rises 147.6% to S$142.2 million on tax reversal; revenue rises 2.7%
The surge was largely due to a net tax credit of S$6.1 million, reversing a tax expense of S$117.5 million in the prior year, the real estate developer said in a bourse filing on Friday (May 9). The group attributed the credit to the reversal of tax provisions subsequent to finalisation.
However, profit before tax and exceptional items fell 13.5 per cent to S$286 million, from S$330.5 million a year ago, weighed down by net interest expense climbing 14 per cent to S$281.5 million during the half.
Revenue rose 2.7 per cent to S$1.6 billion, with Singapore residential properties such as Sky Eden@Bedok and The Orie drawing strong sales. Driven by better residential contributions from the company's Singapore portfolio and the absence of an impairment recorded in H1 2024, profit before interest and taxes rose 3.8 per cent to S$599.3 million in the first half of 2025.
Group chief executive Panote Sirivadhanabhakdi said that the company remains 'vigilant and proactive' amid global uncertainties.
'We are confident Frasers Property is well-positioned to navigate these challenges,' he said. 'We will stay focused on strengthening our balance sheet, improving risk-adjusted returns and ensuring our operating model remains agile and fit for purpose.'
A NEWSLETTER FOR YOU
Tuesday, 12 pm Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
Sign Up
Sign Up
In view of macroeconomic slowdowns, the group said it would increase developments in resilient sectors such as residential as well as industrial and logistics sectors, while building stable income from its investment properties.
In April, Frasers Property said it had placed into a joint venture eight industrial and logistics assets in Australia.
The group's net debt to property assets ratio rose to 44 per cent from 42.1 per cent in the previous half, while its net debt to equity ratio climbed to 88.5 per cent, from 83.4 per cent. The increase in net debt was attributed to capital expenditure and the acquisition of an industrial property in Singapore by one of the group's Reits.
No interim dividend was declared for the period.
Shares of Frasers Property were trading down S$0.01 or 1.2 per cent to S$0.80 on Friday at 11 am.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
20 hours ago
- Business Times
Historic Moulmein Road site draws 13 bidders for master tenancy of cluster, with bids for monthly rent of up to S$388,800
[SINGAPORE] A state tender for a cluster of heritage properties in Moulmein Road drew a strong turnout when it closed on Aug 6, attracting 13 bids vying for master tenancy of the 44 buildings on the site. The state-managed buildings stand in a park-like compound on a 985,350 sq ft site with an estimated gross floor area (GFA) of 139,705 sq ft. Of the 44 buildings, 23 are subject to addition and alteration guidelines to retain the character of the site. The other 21 buildings cannot be demolished, but will be exempted from these guidelines. The cluster was home to the National Centre for Infectious Diseases up to 2018, and supported Covid operations until it was returned to the state in 2023. It was put up for tender by the Singapore Land Authority (SLA) in May. A compound has been envisioned as a 'dynamic lifestyle hub' catering to families and multi-generational communities. Permitted uses include serviced apartments such as co-living spaces; wellness and fitness facilities such as outdoor pickleball or tennis courts; pet-friendly services; urban farms; an art gallery; and education programmes. About a third of space is to be set aside for food and beverage (F&B) and retail outlets. The 13 bids received exceeded expectations. Savills Singapore's executive director of research and consultancy Alan Cheong said: 'In view of the size of the land and a limited GFA, we were expecting about five bids.' A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up The highest offer of S$388,800 a month came from Country City Investment, a property investment company which has, since 2007, managed parts of the SLA's Dempsey Hill cluster, which has been branded as a lifestyle enclave. The lowest bid of S$18,889 a month came from S1F, an entity linked to contractor Sunray Woodcraft Construction. Other bidders included Cherrylofts Resorts and Hotels (S$382,000), which had also bid in an earlier SLA tender for a holiday chalet site in in Pasir Ris, and SA31 (S$290,000), an entity linked to IndoChine Group's chief executive officer Michael Ma. Developer TS Group offered S$168,000, and marina developer SUTL Enterprise bid S$160,661. The tender evaluation will give 40 per cent weightage to the bid price, and 60 per cent to the concept quality. SLA said this is to encourage 'compelling concepts and forward-looking proposals' from prospective tenderers. Huttons Asia senior director of data analytics Lee Sze Teck said the site's central Novena location likely fuelled the strong turnout. Savills' Cheong noted that the top bid of S$388,800 translates to about S$0.39 per square foot (psf) on land, and S$2.78 psf a month on GFA. In comparison, median retail rents in District 11 in Q2 were over S$8 to S$9 psf. Cheong said: 'Although the successful bidder will have to fork out capital expenditures and very likely have to reinstate the property to its original condition at the end of the lease, the base rent is still low enough to make it feasible.' Overall, he predicts that the site could yield 'something positive' for the occupier if the average passing rent is set at S$8 psf or more a month. Noting that the cost of maintaining the grounds would be high, and that the tenancy was on a '5+4 tenure scheme', that is, for a five-year term, renewable for another four, he added: 'It is the additional four years that may form the bonus pool for the winner, because the time taken to renovate the project would eat up a significant chunk of the first five years of the lease.' Over the last few years, the SLA has offered more heritage properties for private management, in a move to foster adaptive reuse and bring fresh commercial potential to Singapore's older buildings. Recent master tenancy tenders for SLA properties have attracted a wide range of investors and operators, drawn to the unique attributes of the state properties. A co-living concept at 26 Evans Road pulled in a staggering 25 bids – an SLA record – in October 2023. It was eventually awarded to turnkey solutions provider Cover Projects, which submitted the second-highest bid of S$265,000 in a field that ranged from S$63,000 to S$319,000 a month. Another state property in Kim Yam Road drew 11 bids when its tender closed in June 2022. The Lo & Behold Group, a hospitality F&B business founded by UOB's Wee family scion Wee Teng Wen, won the tender despite its bid of S$400,000 a month being the second-lowest. The highest bid came from ACL Construction, at S$806,722. Today, the site is home to New Bahru, a creative lifestyle hub that showcases homegrown brands in food, retail, art, wellness, and design. In the north A cluster of 20 heritage 'black-and-white' bungalows in Sembawang was also offered earlier this year, in a tender that closed in June with five bids. The top bid of S$56,000 a month came from construction company Eco Energy. The group won another state tender for a two-storey heritage shophouse on Hindoo Road – the first state-owned building to be repurposed for co-living – with a top bid of S$68,000 a month in August 2023. Other bidders included TS Group (S$37,600), logistics and leasing company Peck Tiong Choon (S$31,500), and real estate group Top Global (S$8,008). Rounding up the bids was A & C Consultancy with a bid of S$20 a month. The two-storey black-and-white bungalows are in Admiralty Road, Falkland Road, Auckland Road West and Fiji Road. They collectively span around 245,300 sq ft of land, with an estimated GFA of 94,945 sq ft. The tenancy is also on a 5+4 tenure scheme, similar to the Moulmein Road parcel. Unlike Moulmein Road, however, the Sembawang properties are limited mainly to serviced apartment use, although up to 9,580 sq ft of GFA can be given over to F&B and retail use. Huttons' Lee said this could explain the more moderate level of interest in the site. The minimum stay for a serviced apartment is a week, and a hotel licence is not required. SLA has also suggested multi-generational and senior co-living concepts for this site, to promote 'senior living, active ageing and interaction and activities across generations'. Wong Xian Yang, Cushman & Wakefield's research head for Singapore and South-east Asia, said the majority of co-living developments are in the central region, not in suburbs such as Sembawang. The central location means operators can tap into a diverse tenant pool comprising professionals seeking proximity to the central business district and international students attending nearby universities. 'Given the lease tenure, the eventual winner is unlikely to embark on extensive capex works, and would likely prioritise bringing the site to be operationally ready,' he said. The proposals for the two sites are being evaluated. The Moulmein Road tender is expected to be awarded on Nov 30, and the Sembawang site, on Oct 31.
Business Times
2 days ago
- Business Times
Stocks to watch: SIA, CapitaLand Ascendas Reit, Frasers Logistics & Commercial Trust, iFast
[SINGAPORE] The following companies saw new developments that may affect trading of their securities on Monday (Aug 18): Singapore Airlines (SIA) : Passenger traffic for its two carriers rose 6.2 per cent to 13.5 billion in July 2025, from 12.7 billion in the year-ago period, SIA's latest operating update on Friday indicated. The increase in passenger traffic for SIA and Scoot outpaced the 2.8 per cent expansion in passenger capacity. Shares of SIA declined 0.2 per cent or S$0.01, to close at S$6.59 on Friday. CapitaLand Ascendas Reit (Clar) : CapitaLand Ascendas Reit (Clar): The manager of the real estate investment trust (Reit) announced on Monday the proposed divestments of five Singapore properties for a total consideration of S$329 million. These divestments are proposed at 'healthy premiums' of 6 per cent to the properties' total valuation and original purchase price, said the manager in a bourse filing. The estimated net proceeds after divestment costs are expected to be S$313 million. Completion of the divestments is expected within the fourth quarter of 2025. The counter closed 0.74 per cent or $0.02 down at S$2.69 on Friday. Frasers Logistics & Commercial Trust (FLCT) : The manager on Friday issued S$100 million worth of 2.45 per cent fixed rate notes due in 2034 under its S$1 billion multicurrency debt issuance programme established in 2016. The notes have been assigned an issue rating of 'BBB+' by Fitch Ratings and are expected to be admitted to the official list of the Singapore Exchange Securities Trading with effect from 9 am on Monday. Units of FLCT ended Friday unchanged at S$0.89. iFast : The group on Friday announced that its Malaysia-incorporated subsidiary iFast Pay Malaysia received in principle approval from Bank Negara Malaysia to operate as an electronic money issuer and to hold a Money Services Business Class A licence. iFast said that this is a regulatory milestone in Malaysia that paves the way for it to introduce payment-related services complementary to its existing suite of wealth management and digital banking solutions. The counter ended Friday 2.8 per cent or S$0.27 higher at S$9.78. Frasers Hospitality Trust (FHT) ; Frasers Property : The latest attempt to privatise FHT succeeded on Friday, with 618 out ot 718 stapled security holders present voting in favour of the proposed privatisation scheme . This follows real estate giant Frasers Property proposal to privatise FHT at S$0.71 per stapled security on May 14 this year citing the trust's inability to improve its distribution and growth due to macroeconomic headwinds. The May proposal was Fraser's second attempt in three years to take FHT private after a failed bid in September 2022. Units in FHT and Frasers Property closed at S$0.705 and S$0.96, respectively, on Thursday before a trading halt on Friday morning. FHT and Frasers Property asked for the trading halt to lifted on Monday. Oiltek : The mainboard-listed company on Monday announced that it had secured new contracts in Malaysia, Pakistan and Indonesia valued at RM74.3 million (S$22.7 million). These new contract wins result in the group's cumulative contracts secured to date in FY2025 to amount to around RM136.2 million. The company's current order book amounts to around RM398.2 million and is expected to be fulfilled over the next 18 to 24 months with the addition of the new contracts, barring any unforeseen circumstances. Shares of Oiltek closed up 4 per cent or S$0.04 at S$1.05 before the announcement.
Business Times
3 days ago
- Business Times
Singapore-listed office Reits deliver resilient H1 2025 performance
[SINGAPORE] Singapore-listed office real estate investment trusts (S-Reits) demonstrated resilient performance in the first half of 2025, supported by stable occupancy, positive rental reversions and proactive asset management. The six S-Reits with Singapore office exposure are CapitaLand Integrated Commercial Trust (CICT), Mapletree Pan Asia Commercial Trust (MPACT), Suntec Reit , Keppel Reit , OUE Reit and Lendlease Global Commercial Reit (LReit). Keppel Reit, a pure-play office S-Reit with mostly Singapore assets, reported positive rental reversion of 12.3 per cent across its portfolio as the Singapore portfolio continued to be an engine of growth and key contributor to the overall performance. Attributable net property income (NPI) for its Singapore portfolio rose 3.1 per cent on year to S$131.7 million in H1 2025. Suntec Reit reported 3.7 per cent distribution per unit (DPU) growth amid strong operating performance from its Singapore portfolio. The Reit reported positive rental reversion of 10 per cent along with NPI growth for its Singapore office portfolio in H1 2025. Joint venture income also grew, due to strong operating performance from higher rent at One Raffles Quay, alongside lower interest expense there and at Marina Bay Financial Centre. OUE Reit reported core DPU climbing 11.4 per cent on year, amid a declining interest rate environment and the resilient performance of its local commercial portfolio. Its Singapore office portfolio saw rental reversions of 9.1 per cent for office lease renewals in Q2 2025. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up MPACT posted a 2.7 per cent decrease in rental reversion at Mapletree Business City and an increase of 4.8 per cent at its other Singapore office assets. CICT reported DPU growth of 3.5 per cent in H1 2025 amid portfolio reconstitution, better performance from existing properties and lower interest expenses. Its Singapore office portfolio had positive rental reversion of 4.8 per cent during the period. CICT also raised around S$600 million through a private placement this month, with proceeds partly used to acquire the remaining 55 per cent interest in the office and retail component of CapitaSpring. Meanwhile, LReit has entered into an agreement to divest its Jem office asset for S$462 million, in line with the independent valuation. The proceeds will be used predominantly towards repayment of borrowings and is part of LReit's capital recycling strategy. Occupancy across the S-Reits' Singapore office portfolios remained stable and high, above 90 per cent. The six S-Reits trade at an average price-to-book ratio of around 0.8. Looking ahead, Reit managers remained focused on tenant retention and optimising occupancy across their office assets. Reit managers expect performance of their Singapore office assets to remain stable. Suntec Reit noted that limited new supply and Singapore's reputation as a stable and attractive business hub will continue to support core CBD rent growth. According to CBRE Research, Singapore's office market remained resilient in Q2 2025, with core CBD Grade A rents rising 1.3 per cent, defying earlier concerns over global headwinds. The property consultancy also noted that limited new supply in the pipeline has meant that market dynamics are expected to remain strong, supporting continued growth through 2025 and beyond. CBRE Research has revised its rental forecast upwards, projecting rental growth for 2025 to reach the upper end of the 2 to 3 per cent range. SGX RESEARCH The writer is a research analyst at SGX. For more research and information on Singapore's Reit sector, visit for the S-Reits & Property Trusts Chartbook.
