Frasers Property H2 net profit more than doubles to S$211.7 million

[SINGAPORE] Frasers Property on Friday (Nov 13) posted a 109.8 per cent increase in net profit to S$211.7 million for its second half ended Sep 30, from S$100.9 million a year earlier.

This came on the back of a 17.4 per cent increase in revenue to S$2.1 billion. Earnings per share (EPS) rose to S$0.054, from S$0.024 in the corresponding period.

For the full financial year ended Sep 30, net profit rose 23.5 per cent to S$300.1 million, from S$243.1 million a year earlier. Revenue grew 6.8 per cent to S$3.6 billion; earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 10.3 per cent to S$1.4 billion.

The group said its stronger operating performance was supported by higher contributions from its Singapore retail portfolio, residential projects and industrial estates, as well as land sales.

Its full-year earnings were also lifted by net fair-value gains of S$142.3 million, versus the S$37.2 million recorded in FY2025. This mainly reflected a “valuation uplift” arising from redevelopment plans for the Valley Point site in Singapore, as well as gains from the divestment of newly completed retail assets in Australia.

Earnings per share rose to S$0.074 for FY2026, from S$0.059 a year earlier. The board has proposed a dividend of S$0.05 a share in FY2026, up from S$0.045 in FY2025.

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Group CEO Panote Sirivadhanabhakdi said FY2026 was “a year of disciplined execution”.

During the year, the group released about S$4.1 billion of capital, he said, redeploying it into opportunities that “aligned with our return objectives and strengthening our balance sheet”.

“Supported by our integrated investor-developer-operator business model, we remain focused on creating resilient, long-term value for shareholders through market cycles,” he added. 

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Capital recycling

Frasers Property’s capital-recycling efforts included the sale of about S$1.1 billion worth of stabilised hospitality assets under Frasers Hospitality Trust (FHT) to third-party investors.

The group said it would continue to manage the properties and earn income from the management arrangements, while moving towards a more asset-light hospitality business.

It also transferred stabilised industrial and logistics properties worth about S$500 million to its real estate investment trusts (Reits), Frasers Logistics & Commercial Trust and Frasers Property Thailand Industrial Freehold & Leasehold Reit.

Other divestments, including Australian retail assets and UK business parks, had a total value of about S$1.6 billion.

The group also brought in capital partners for its Australian industrial and logistics and hospitality assets, as well as the Valley Point redevelopment. These partnerships involved assets with a total value of about S$930 million.

Development pipeline

Frasers Property replenished its land bank during the year, expanding its residential development pipeline in “key growth corridors” in Australia and adding residential sites in Singapore and projects in China.

In Singapore, it secured two waterfront residential sites at Bayshore Drive and Kallang Close. The group also added two premium residential projects in Shanghai through joint ventures.

“Residential development continues to be a driver of cash flow and higher returns,” the group said, pointing to about S$1.1 billion of unrecognised revenue as at Sep 30.

Frasers Property is also advancing two redevelopment projects in Singapore.

At Valley Point, Frasers Property and Mitsubishi Estate Group are jointly redeveloping the Valley Point and Fraser Suites Singapore waterfront site into a mixed-use development.

The property will comprise about 407 residential units and sky villas, a 184-unit serviced residence, as well as dining, retail and lifestyle offerings. The 999-year leasehold project is targeted for launch in 2027.

Elsewhere, Yishun 10 is slated for redevelopment into a mixed-use development comprising about 110 residential units and a retail podium.

In industrial and logistics, the group delivered about 368,000 square metres of gross floor area across its markets during FY2026. Its active multi-market development pipeline stood at about 874,000 sq m.

Recurring income accounted for about 82 per cent of Frasers Property’s profit before interest, fair-value changes, tax and exceptional items in FY2026, supported by its investment property portfolio, which recorded healthy occupancy rates and positive rental reversions.

The group completed an asset enhancement initiative at Hougang Mall and commenced enhancement works at NEX during the year, as it looks to improve returns and strengthen its retail offerings.

The group is reorganising its hospitality business into two specialised platforms: Frasers Hospitality, as a dedicated lodging operations platform, and a hospitality investment and asset management business housed under group investment.

Meanwhile, Frasers Property’s net debt-to-total equity improved to 77.3 per cent as at Sep 30, from 89.2 per cent a year earlier, while net debt-to-property-assets fell to 39.9 per cent, from 43.7 per cent.

Cash and deposits increased to about S$3 billion, from S$2.4 billion in FY2025. Some 73.2 per cent of borrowings were fixed-rate or hedged, with a blended cost of debt of 3.9 per cent per annum, compared with 4 per cent in FY2025.

Frasers Property said it will focus on delivering its residential and industrial, and logistics development pipelines, while continuing to pursue asset management and capital-light initiatives to grow recurring and fee income.

Shares of Frasers Property closed 0.5 per cent or S$0.005 lower at S$0.91 on Friday, before the results were announced.