Frasers Property full-year profit rises 17.8% to S$243 million on fair-value gains; revenue dives S$800 million
A dividend of S$0.045 per share has been proposed
[SINGAPORE] Net fair-value change and reversal of tax provisions pushed Frasers Property’s full-year earnings up by 17.8 per cent, said the real estate company on Friday (Nov 14).
For the financial year ended Sep 30, the group’s net profit rose to S$243.1 million, from S$206.3 million in the previous year.
This was despite a 19.2 per cent fall in revenue to S$3.4 billion, from S$4.2 billion in 2024. The group said that its residential development pipeline provided earnings visibility, with unrecognised revenue of S$1.4 billion as at Sep 30.
Earnings per share rose to S$0.059, up 40.5 per cent from S$0.042 in the previous corresponding period. The group has proposed a dividend of S$0.045 per share.
Panote Sirivadhanabhakdi, group chief executive of Frasers Property, said: “FY2025 performance reflected ongoing macroeconomic headwinds and the inherent lumpiness of residential contributions. Even so, our resilient recurring income base and net fair-value change supported earnings.”
The group said its earnings benefited from a net fair-value change recorded from “build-to-core development completions and divestments”, along with reversal of tax provisions.
However, operating profit fell 12.3 per cent due to lower residential contributions across most markets, “primarily due to timing of project settlements and impairments on certain projects”. This was partly offset by stronger industrial and logistics and retail performance.
Excluding the one-off reversal of tax provisions, attributable profit was 50 per cent lower year on year, reflecting lower operating profit and higher net interest expenses.
Frasers’ net asset value per share was down 3.3 per cent to S$2.37 as at Sep 30. The strengthening of the Singapore dollar, particularly against the Australia dollar, resulted in unrealised net foreign currency translation reserve loss, said the group.
As at Sep 30, Frasers’ net debt to property assets ratio stood at 43.7 per cent, while its net debt to total equity ratio rose to 89.2 per cent from 83.4 per cent in Sep 30, 2024.
The higher net debt was mainly due to funding for the privatisation of Frasers Hospitality Trust, acquisitions by the group’s consolidated real estate investment trusts, as well as capital expenditure.
About three-quarters of the group’s total debt was either on fixed rates or hedged, with a weighted average debt maturity of 2.5 years and a blended cost of debt of 4 per cent per annum.
Shares of Frasers Property closed 1 per cent or S$0.01 lower at S$1.04 on Thursday.
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