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Business Times
07-08-2025
- Business
- Business Times
Frasers Property logs S$1.4 billion in regional pre-sales, says it's well-placed to manage upcoming debt
[SINGAPORE] Frasers Property has achieved pre-sold revenue of S$1.4 billion so far in financial year 2025 for its projects in Singapore, Australia, China and Thailand, the real estate group said on Thursday (Aug 7), in a business update for its third quarter ended June. In Singapore, the group said the residential market remains resilient, underpinned by strong homeownership rates and continued investment appeal. It also noted that residential sales volume rose year on year, driven by a pickup in private residential launches in Q2 and a moderation in interest rates. For the first nine months of FY2025, the group sold 712 units in the city-state, with unrecognised revenue amounting to S$400 million as at end-June. Among its developments, 41 per cent of the units at the Robertson Opus were sold; at The Orie in Toa Payoh, the figure was 91 per cent. Meanwhile, Sky Eden@Bedok is on track for completion by the first quarter of FY2026. In Australia, the group noted that mean dwelling prices rose in Q2, and that residential housing demand improved following recent interest rate cuts. 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 Unrecognised revenue there stood at S$500 million as at Jun 30, with 1,672 contracts on hand, it said. Frasers also highlighted proactive leasing strategies and the portfolio repositioning of its office assets to mitigate softer occupancy and valuation pressures. It said office metrics weakened due to planned vacancies in Lee Street in Sydney, stemming from deliberate non-renewal of leases to support potential redevelopment. At Rhodes Quarter, also in Sydney, continued leasing efforts and tenant retention helped sustain weighted average lease expiry and occupancy levels despite challenging market conditions. The group noted that Thailand's residential segment remained subdued, though signs of improvement are emerging. In China, the residential portfolio delivered a stable performance, supported by steady sales and timely project completions. Frasers Property said it is well-positioned to meet all debt obligations due in the next 12 months, either through repayment or refinancing. As at end June, its net debt stood at S$15.3 billion, up 5.3 per cent from end September 2024. Its net debt-to-equity ratio worsened by 5.8 percentage points to 89.2 per cent. Frasers Property closed flat at S$0.955 on Thursday, before the announcement.
Business Times
09-05-2025
- Business
- Business Times
Frasers Property H1 profit rises 147.6% to S$142.2 million on one-off tax reversal
[SINGAPORE] Higher contributions from residential projects in Singapore, as well as a one-off reversal of tax provisions, pulled up Frasers Property 's first-half earnings – but the group said it will continue zeroing in on optimising capital efficiency. Speaking at an earnings briefing on Friday (May 9) morning, Frasers group chief executive Panote Sirivadhanabhakdi said: 'The most important priority now is building the right cash flow and maintaining the right costing… Our disciplined approach to optimise capital efficiency will allow us to continue to create, sustain and unlock value.' In the latest half-year ended Mar 31, 2025, the group posted a 147.6 per cent jump in profit to S$142.2 million, from S$57.4 million in the year-earlier period. This came as revenue rose 2.7 per cent to S$1.6 billion, from S$1.5 billion in the same period last year. Earnings per share rose to S$0.035, from S$0.009 in the previous corresponding period. No interim dividend was declared for the period, unchanged from the previous year. 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 surge in profit was largely due to a one-off reversal of tax expenses amounting to S$6.1 million, said Frasers. Excluding the reversal, which is subsequent to finalisation, the group's profit was down 13 per cent year on year. This was mainly from a 14 per cent increase in net interest expense to S$281.5 million. Revenue also rose from the absence of an impairment on a UK commercial property, as well as higher contributions from residential projects in Singapore, such as its 158-unit Sky Eden@Bedok condominium and 777-unit Toa Payoh project, The Orie. In the half-year, Frasers sold 692 homes in Singapore, with S$0.4 billion in unrecognised revenue from 849 contracts on hand. At the same time, Frasers said it maintains a 'robust non-residential development pipeline', focusing on industrial and logistics assets across developed and emerging markets. For instance, the group has 10 assets under development in Australia and Europe, with six to be completed in FY2025, another three in FY2026 and one in FY2027. In total, the 10 span 2.6 million square metres. Panote highlighted that revenue generated from Frasers' residential developments ensure earning and cash flow visibility, while its 'strong build-to-core pipeline' of non-residential assets support the resilience of its recurring income base. '(This) robust portfolio asset management will drive returns and sustainable value (for shareholders) over the long term,' said the chief executive. 'The important part is for us to build up the performance of the company, back to where it has to be. It's not just about a quality portfolio, it's about quality earnings.' As at Mar 31, 2025, Frasers' net asset value per share was down 2.9 per cent to S$2.38. Net interest cover fell to 2.1 times, while net gearing ratio inched up to 88.5 per cent. Meanwhile, fixed rate debt, including those that were hedged, fell to 70.3 per cent. Its average weighted debt maturity was 2.6 years, with a 4 per cent blended cost of debt. Frasers group chief financial officer Loo Choo Leong highlighted that even though almost all figures on the balance sheet were in the red, they were still 'within acceptable levels'. Net debt over property assets stood at 44 per cent. Since the group's balance sheet was currently made up of more investment property assets, including its real estate investment trusts, Loo said this was 'still a decent enough level' from a loan-to-value perspective. He added that it was also a 'timing issue', since some of Frasers' capital partnerships that are already in place had yet to go through. When asked about a potential privatisation – similar to some of its peers, and given that Frasers appeared undervalued – Panote said shareholder decisions were beyond him. But he emphasised that Frasers will remain vigilant and proactive in assessing the health of its business and financial position. This includes ensuring it has the right operating model, and an 'enterprise mindset' to sustain value creation. 'We are closely monitoring the evolving macroeconomic conditions, and we are confident that Frasers Property is well-placed to navigate across the challenging times,' he said. Shares of Frasers Property were trading down S$0.01 or 1.2 per cent to S$0.80 on Friday at 11 am.
Business Times
09-05-2025
- Business
- Business Times
Frasers Property H1 profit rises 147.6% to S$142.2 million on tax reversal; revenue up 2.7%
[SINGAPORE] Higher contributions from residential projects in Singapore, as well as a one-off reversal of tax provisions, pulled up Frasers Property 's first-half earnings – but the group said it will continue zeroing in on optimising capital efficiency. Speaking at an earnings briefing on Friday (May 9) morning, Frasers group chief executive Panote Sirivadhanabhakdi said: 'The most important priority now is building the right cash flow and maintaining the right costing… Our disciplined approach to optimise capital efficiency will allow us to continue to create, sustain and unlock value.' In the latest half-year ended Mar 31, 2025, the group posted a 147.6 per cent jump in profit to S$142.2 million, from S$57.4 million in the year-ago period. This came as revenue rose 2.7 per cent to S$1.6 billion, from S$1.5 billion in the same period last year. Earnings per share rose to S$0.035, from S$0.009 in the previous corresponding period. No interim dividend was declared for the period, unchanged from the previous year. The surge in profit was largely due to a one-off reversal of tax expenses amounting to S$6.1 million, said Frasers. Excluding the reversal, which is subsequent to finalisation, the group's profit was down 13 per cent year on year. This was mainly from a 14 per cent increase in net interest expense to S$281.5 million. Revenue also rose from the absence of an impairment on a UK commercial property, as well as higher contributions from residential projects in Singapore, such as its 158-unit Sky Eden@Bedok condominium and 777-unit Toa Payoh project, The Orie. In the half-year, Frasers sold 692 homes in Singapore, with S$0.4 billion in unrecognised revenue from 849 contracts on hand. At the same time, Frasers said it maintains a 'robust non-residential development pipeline', focusing on industrial and logistics assets across developed and emerging markets. For instance, the group has 10 assets under development in Australia and Europe, with six to be completed in FY2025, another three in FY2026 and one in FY2027. In total, the 10 span 2.6 million square metres. Panote highlighted that revenue generated from Frasers' residential developments ensure earning and cash flow visibility, while its 'strong build-to-core pipeline' of non-residential assets support the resilience of its recurring income base. '(This) robust portfolio asset management will drive returns and sustainable value (for shareholders over the long term,' said the chief executive. 'The important part is for us to build up the performance of the company, back to where it has to be. It's not just about a quality portfolio, it's about quality earnings.' As at Mar 31, 2025, Frasers' net asset value per share was down 2.9 per cent to S$2.38. Net interest cover fell to 2.1 times, while net gearing ratio inched up to 88.5 per cent. Meanwhile, fixed rate debt, including those that were hedged, fell to 70.3 per cent. Its average weighted debt maturity was 2.6 years, with a 4 per cent blended cost of debt. Frasers group chief financial officer Loo Choo Leong highlighted that even though almost all figures on the balance sheet were in the red, they were still 'within acceptable levels'. Net debt over property assets stood at 44 per cent. Since the group's balance sheet was currently made up of more investment property assets, including its real estate investment trusts, Loo said this was 'still a decent enough level' from a loan-to-value perspective. He added that it was also a 'timing issue', since some of Frasers' capital partnerships that are already in place had yet to go through. When asked about a potential privatisation – similar to some of its peers, and given that Frasers appeared undervalued – Panote said shareholder decisions were beyond him. But he emphasised that Frasers will remain vigilant and proactive in assessing the health of its business and financial position. This includes ensuring it has the right operating model, and an 'enterprise mindset' to sustain value creation. 'We are closely monitoring the evolving macroeconomic conditions, and we are confident that Frasers Property is well-placed to navigate across the challenging times,' he said. Shares of Frasers Property were trading down S$0.01 or 1.2 per cent to S$0.80 on Friday at 11 am.
Business Times
09-05-2025
- Business
- Business Times
Frasers Property H1 profit rises 147.6% to S$142.2 million on tax reversal; revenue rises 2.7%
[SINGAPORE] Frasers Property posted a 147.6 per cent jump in net profit to S$142.2 million for the first half ended Mar 31, 2025, from S$57.4 million in the year-ago period. 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.
