Frasers Property first-quarter earnings up 9.5% to S$159m
But the group flags the virus outbreak and fires in Australia as pressure points on its business
Singapore
FRASERS Property on Friday saw first-quarter net profit rise 9.5 per cent to S$159.4 million, lifted by improved revenue.
But looking ahead, the group also identified two key situations - the coronavirus outbreak and the bushfires in Australia - that may have some impact on parts of its operations.
It is keeping a watchful eye on both situations, which are still evolving, Frasers Property said, adding that its immediate priority is to ensure the safety and well-being of customers and staff at its properties.
The group said it will also continue to put in place "appropriate measures".
Meanwhile, revenue for the quarter ended Dec 31, 2019 was S$1.2 billion, up 8.8 per cent year on year.
These gains were largely due to contributions from development projects in China, as well as the step-up acquisition of Golden Land Property Development Public Company in Thailand.
Maiden contributions from PGIM Real Estate AsiaRetail Fund's portfolio of retail assets also helped. Frasers Property last year invested some S$1.4 billion in the fund, raising its stake to roughly 88 per cent.
But some of the gains were partially offset by lower contributions from development projects in Australia.
Revenue generated from Australia - its largest segment by geography - slid 39.2 per cent year on year to S$314 million.
Overall, earnings per share for the quarter were 4.79 Singapore cents, up from 4.74 cents in the preceding year.
Panote Sirivadhanabhakdi, the group chief executive, said: "These results reflect our focus on building scalable business platforms across asset classes and geographies to enhance portfolio resilience."
The group, in announcing its upcoming plans, said that it plans to release around 1,750 residential units for sale in FY2020 in Australia. A further two retail assets with total net lettable area of about 34,800 sq m are also being developed.
In Singapore, the main areas of focus remain the marketing and sales of launched projects as well as the upcoming completion of Seaside Residences in the second half of the year.
"The group will continue to manage its businesses and asset portfolio in a prudent manner across geographies and business segments," Frasers Property said, adding that it will increase its focus on capital management and asset repositioning.
Frasers Property's counter closed at S$1.65 on Friday before the announcement, down 1.2 per cent.
