Frasers Property H1 profit rises 18% to S$275.8m on change in use of industrial properties

A "ONCE in a very blue moon" factor helped Frasers Property post an 18 per cent rise in net profit to S$275.8 million for the first half ended March 31, even as revenue fell 26.6 per cent to S$1.57 billion, from S$2.13 billion a year ago, as the group felt "the full brunt of the pandemic".

The rise in profit was mainly because of a reclassification of a portfolio of industrial properties in Australia and Europe - valued at about S$1.2 billion before the revaluation - from properties held for sale to investment properties.

The gain on the change in use represents the difference between the fair value at the date of transfer and its previous carrying amount. Excluding this gain, the net profit would have been just S$23 million.