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Frasers Centrepoint posts 11.8% profit drop for FY16

FRASERS Centrepoint (FCL) reported an 11.8 per cent drop in attributable profit to S$479.9 million for the full year ended September 2016 from S$543.8 million a year ago on the back of lower contributions from Singapore and Australia strategic business units (SBU).

After fair value change and exceptional items, net profit fell 23 per cent to S$597.2 million for the year.

Absence of profits from development projects in Singapore that had achieved temporary occupation permit (TOP) in prior years and impairment losses in residential projects in Western Australia and a weaker Australian dollar led to the lower earnings.

Revenue slipped 3.4 per cent to S$3.4 billion.

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Earnings per share stood at 14.33 Singapore cents versus 17.17 Singapore cents in 2015.

The board has recommended a final dividend of 6.2 Singapore cents per share, same as the previous year. This brings the proposed total dividend for FY15/16 to 8.6 Singapore cents per share - same as the previous two years.

The real estate firm said it will selectively tender for sites to replenish its landbank in Singapore and Australia. A key focus in Australia will be the restocking of industrial portfolio following the injection of industrial assets into Frasers Logistics & Industrial Trust (FLT). In the UK, China and Thailand, the group will carry on seeking opportunities to grow its presence in these markets.