FRASERS Property : TQ5 0% posted a net loss of S$74 million for the six months ended Sep 30, from a net profit of S$741.8 million a year earlier.

The net loss came amid an 8.8 per cent decline in revenue to S$2 billion for the period, from S$2.2 billion a year before.

In its results release on Friday (Nov 10), the company attributed the fall in revenue to lower contributions from residential projects in Singapore and from industrial projects in its industrial segment.

“These were partially offset by an improvement from the hospitality segment on higher occupancies and room rates, following the end of the pandemic and resumption of international travel, as well as higher contributions from residential projects in Australia,” the group said.

The group also recorded net fair-value losses of S$441.8 million for the half year, as compared to net fair-value gains of S$902.3 million in the same period last year.

These net losses were attributed to net fair-value losses from the group’s industrial and logistics assets in Australia, Europe and the UK, as well as commercial assets in the UK.

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Loss per share for the half-year period stood at 1.9 Singapore cents, compared to earnings per share of 18.9 cents over the same period a year earlier.

For the full year, Frasers Property saw its net profit fall 85.9 per cent to S$123.2 million as revenue rose 1.8 per cent to S$3.9 billion. 

The directors have proposed a final dividend of S$0.045 per share, up from S$0.03 per share a year earlier. This is subject to the approval of shareholders at the company’s next annual general meeting.

The group said it continues to actively manage the impact of the rising cost of operations due to global inflationary pressures, as well as higher financing costs from the rise in benchmark interest rates.

It noted that 72.4 per cent of its debts were fixed rate or hedged as at Sep 30, 2023, and the average cost of debt on a portfolio basis has increased from 2.7 per cent to 3.5 per cent.

“As the group refinances debt moving forward, higher interest rates may continue to impact the average cost of debt on a portfolio basis,” Frasers said.

Shares of Frasers Property closed at S$0.765 on Friday, down S$0.005 or 0.7 per cent, before the results release.