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Fraser Property's fiscal 2018 profit up 10% to S$759m

FAIR value gains of S$637 million on Frasers Property’s investment properties, as well as the timing of sales settlements of development projects in Singapore and Australia, and maiden contributions from the business parks in the United Kingdom lifted results for the group for its 2018 financial year.

Net profit increased 10.1 per cent to S$759 million from the previous year, while revenue grew 7.1 per cent to S$4.31 billion for the 12 months ended Sept 30.

The group did not provide a breakdown of its latest quarterly results.

Earnings per share after fair value change and exceptional items rose to 23.35 Singapore cents, from 21.48 Singapore cents for the year-ago period. Net asset value per share edged up to S$2.53 as at Sept 30, 2018, from S$2.46 a year ago.

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Dividend per share was flat at 6.2 Singapore cents. Including the 2.4 Singapore cents per share interim dividend paid out earlier this year, the group’s proposed total dividend for fiscal 2018 is maintained at 8.6 Singapore cents per share.

Looking ahead, it said that in Singapore, the residential developments that have been launched have been substantially sold and/or completed. During the financial year, Frasers Property purchased a site on Jiak Kim Street that will potentially yield around 455 residential units. This development is expected to be launched in the first half of 2019.

The group’s retail malls continue to record improving occupancy rates and positive rental reversions. In the commercial space, Frasers Tower has been completed and over 90 per cent of its leaseable area has been leased, on the back of the recovery in the office market. 

On the residential front in Australia, 2,200 units are planned for release in the upcoming financial year, compared to over 1,800 units released in FY20 18. Some 2,300 units are planned for completion and settlement in FY2019, compared to over 3,000 units settled during FY2018.

In the commercial, industrial and retail segment, 12 facilities totalling 166,500 square metres are being developed, and the group has also secured 68 hectares of land across five industrial sites in New South Wales, Victoria and Queensland.

Conversely, the group’s hospitality business has been experiencing challenging market conditions in the UK. Consumer sentiments have declined, impacting Malmasion Hotel du Vin Group’s F&B (food and beverage) segment, and leading to the group providing for an impairment of intangible assets of S$156 million in FY2018, as business sentiment shifted due to Brexit uncertainties.