Frasers Property majority owners could sell company, assets amid review: WSJ

THE majority owners of Frasers Property : TQ5 0% could put the company or some of its assets up for sale as part of a strategic review, reported The Wall Street Journal (WSJ) on Wednesday (Jan 10).

The review, which is in its initial stages, is part of shareholders’ efforts to raise capital to help reduce the debt accumulated over the past few years as a result of acquisitions.

That being said, there is no assurance of any outcome from the review, the report added, quoting people familiar with the matter.

The real estate group, which is listed on the Singapore Exchange’s mainboard, is trading at a third of its book value, while competitors such as City Developments Ltd : C09 0% and UOL : U14 0% trade at around half their book values.

It had total assets amounting to around S$39.8 billion as at Sep 30, 2023. In November last year, the group posted a net loss of S$74 million for the six months ended Sep 30, 2023, versus a net profit of S$741.8 million a year earlier.

The loss came as the group’s revenue fell 8.8 per cent to S$2 billion for the period from S$2.2 billion a year before. It was attributed to lower contributions from residential projects in Singapore and from projects in its industrial segment.

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For the full year, net profit was down 85.9 per cent to S$123.2 million, while revenue rose 1.8 per cent to S$3.9 billion.

Around 72.4 per cent of its debts were fixed rate or hedged as at the end of September 2023. The average cost of debt on a portfolio basis, meanwhile, rose to 3.5 per cent from 2.7 per cent.

Shares of Frasers Property were trading flat at S$0.915 as at 3.55 pm on Wednesday.