Frasers Property H2 profit falls 32.2% to S$100.9 million on lower contributions from residential projects

[SINGAPORE] Frasers Property posted a net profit of S$100.9 million for the six months ended Sep 30, a 32.2 per cent decline from S$148.9 million for the corresponding period a year earlier.

This came on the back of a 32 per cent drop in revenue to S$1.8 billion for the period, from S$2.7 billion a year before.

In a bourse filing, Frasers Property attributed the poorer performance in H2 FY2025 to lower contributions from residential projects in countries such as Singapore and Australia, and impairments on projects in China, Thailand and the UK, among others.

Earnings per share (EPS) fell to S$0.024, down 27.3 per cent from S$0.033 for H2 2024.

Development pipeline

Frasers Property said its residential development pipeline provided earnings visibility, with unrecognised revenue of S$1.4 billion as at Sep 30.

Group chief executive Panote Sirivadhanabhakdi said Frasers Property’s 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,” he added.

Giving an update on the prime Dunearn Road residential site which was awarded to a Frasers-led consortium in July for S$491.5 million or S$1,410 per square foot, Soon Su Lin, chief executive officer of Frasers Property Singapore, said the group is aiming to launch the site in H2 2026. 

Frasers Property said it is shifting towards a partnership model for residential developments. For instance, in October, it acquired a residential site in Shanghai, China, via a 14 per cent held joint venture.

“These partnerships enable the group to combine complementary strengths to build a quality portfolio of residential projects in a capital-efficient manner while effectively balancing risk and returns,” the group said. 

Over in Thailand, where the residential market is facing challenges, Frasers Property’s One Bangkok continues to move units in its luxury residential projects. 

Lim Hua Tiong, chief executive officer for Thailand and emerging markets, Asia, said all 90 units released in its first ultra-luxury residential development, One89 wireless, have been sold.

Another 291 units for its upcoming Eighteen Seven residential development are expected to be launched soon, he said. About 70 of these units have been pre-sold.

Full-year results

For FY2025, net fair value change and reversal of tax provisions pushed Frasers Property’s net profit up by 17.8 per cent year on year to S$243.1 million, from S$206.3 million previously. 

This was despite a 19.2 per cent fall in revenue to S$3.4 billion, from S$4.2 billion in FY2024. EPS for FY2025 rose to S$0.059, up 40.5 per cent from S$0.042 a year earlier.

The board has proposed a first and final dividend of S$0.045 per share.

Major divestments

Frasers Property 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.

Major divestments included the sale of a 50 per cent stake in Northpoint City valued at S$187.6 million to Frasers Centrepoint Trust.

As at Sep 30, Frasers’ net debt to property assets ratio stood at 43.7 per cent; its net debt to total equity ratio rose to 89.2 per cent from 83.4 per cent as at Sep 30, 2024.

The higher net debt was mainly due to funding for the privatisation of Frasers Hospitality Trust (FHT), acquisitions by the group’s real estate investment trusts and capital expenditure.

FHT’s delisting will give the group more flexibility in how it unlocks value from the assets in its portfolio, said Eu Chin Fen, chief executive officer of Frasers Hospitality, at the full-year earnings briefing held on Friday. 

“We have (an)… operating business, which is backed by a strong house of brands. At the same time, we also have an investment business, which is really about managing capital well to deliver returns for investors,” she said.

“Our investment business gives us control over the type of assets we develop or acquire and the flexibility to reposition them.”

In FY2025, Frasers Property and its Reits recycled S$1.5 billion, building on the S$1.8 billion recycled in FY2024, as it looks to redeploy capital into higher-return assets. 

Good potential

The acquisition of 10 strata lots in Yishun 10 next to Northpoint City positions the group to “unlock further value”, Frasers Property said. It also acquired the Golden Village Multiplex in Yishun 10 in June 2025. 

Soon said: “We believe that there is good redevelopment potential for us to develop (it) into something that is residential, and maybe commercial, to enhance the quality of the area.

“We are still reviewing our plans so we are taking time to make sure we put the site to the highest and best use.”

When asked about The Centrepoint, where a collective sale is in the works, Soon said it was business as usual at the mall.

“We continue to look at new concepts, to upgrade the mall’s tenant mix, but at the same time we are aware of the Urban Redevelopment Authority’s (plans) for the area with the Strategic Development Incentive Scheme. We continue to look at how we can combine our sites to create an even better development in future.” 

The group’s malls in Singapore have performed very well, with an increase in tenant sales and positive rental reversions, she added. 

“We remain very confident of the performance of our malls because they have been very resilient. They are social hubs in the communities that we serve,” Soon said.

Shares of Frasers Property rose 1 per cent or S$0.01 to close at S$1.05 on Friday, after the news.