SINGAPORE, 13 NOVEMBER 2024

Frasers Property Limited (“Frasers Property”, and together with its subsidiaries, the “Group”) today announced its financial results for its full year ended 30 September 2024 (“FY24”).

FINANCIAL HIGHLIGHTS

The Group’s FY24 earnings were bolstered by higher contributions from residential projects in China and Australia, despite higher interest expenses. Significant unrealised fair value losses were recorded on certain commercial properties in the UK and Australia. This was partially mitigated by net fair value gains on Singapore properties (largely realised), as well as industrial and logistics (“I&L”) properties in Australia and the EU.

Mr Panote Sirivadhanabhakdi, Group Chief Executive Officer of Frasers Property, commented, “While we remain cautious about the macroeconomic environment, we have taken steps to improve our agility and strategic focus to better navigate the challenges ahead. The disciplined unlocking of value to recycle capital will continue to be top of our agenda. This will support our deleveraging initiatives and our plan to increase development exposure for better risk-adjusted returns.”

For the full-year ended 30 September 2024, the Group’s net debt³ to total equity⁴ ratio stood at 83.4% (30 September 2023: 75.8%), whilst net debt to property assets ratio stood at 42.1% (30 September 2023: 40.4%). The higher ratios were driven mainly by capital expenditure and redemption of perpetual securities, partially offset by certain divestments and equity fund raising by the Group’s REIT. 72.9% of the Group’s total debt are on fixed rates, which has helped to mitigate the impact of rapidly rising interest rates over the past two years. However, it will similarly take time for the effects of lower interest rates to flow through when the rate reductions begin. Blended debt funding cost was 3.9% and weighted debt maturity stood at 2.5 years, as compared to 3.5% and 2.6 years for the previous financial year.

Taking into consideration the Group’s financial performance and cash flow requirements, Frasers Property’s board of directors has proposed a first and final dividend of 4.5 Singapore cents per share for FY24, maintaining the same level of 4.5 Singapore cents per share paid for FY23. 

FY24 KEY HIGHLIGHTS AND LOOKING AHEAD

Increasing development exposure over the medium to long term

Frasers Property’s expertise in property development and placemaking is pivotal to creating value in strategic segments and locations. Leveraging deep market insights, the Group creates spaces that cater to customer requirements. The Group will gradually increase its development exposure in both residential and selected non-residential asset classes to deliver better risk-adjusted returns.

Boosting recurring income and fee income

Recurring income streams are a substantial part of Frasers Property’s earnings. As at 30 September 2024, 88% of the Group’s property’s assets comprised recurring income asset classes, contributing 74% of the Group’s FY24 PBIT. The Group’s development of I&L assets ensures a robust base of high-quality assets in strategic locations. Driven by its focus of sustaining value, the Group aims to enhance the income-generating potential of its recurring income properties over a longer period, thereby supporting the valuation of its investment properties over the long-term.

Consistently unlocking asset value and optimising capital efficiency

Frasers Property unlocks the value from its portfolio by actively recycling capital where it can deliver better risk-adjusted returns. In FY24, the Group undertook asset transactions totalling S$1.8 billion, including the divestment of its stake in NEX, a suburban retail mall in Singapore, to Frasers Centrepoint Trust (“FCT”) and four German I&L properties to Frasers Logistics & Commercial Trust (“FLCT”). Additionally, the Group and its REITs divested assets to unrelated third parties, including Fraser Residence River Promenade and Capri by Fraser, Changi City.

Capital partnerships remain a key focus for optimising capital and managing risks. Frasers Property entered into several capital partnerships in FY24, and will continue to seek collaboration opportunities, as well as explore redevelopment opportunities within its portfolio to unlock optimal returns. 

Advancing on Frasers Property’s ESG commitments

Frasers Property remains committed to Environmental, Social, and Governance (“ESG”) aspects through its ESG Goals, aimed at enhancing business resilience against physical and transition climate risks. The efforts across the Group are reflected in the GRESB 2024 assessment, which recognised the sustainability performance of its business units with six global and regional sector leadership positions. This marks the fourth consecutive year that all listed and non-listed business units, including the Group’s five REITs, have participated in GRESB for targeted peer benchmarking, which is enabling the Group to continuously learn and improve across geographies and asset classes.

Progressing on sustainable value creation

The Group will continue to create value through a measured pace of property development aligned with local market conditions and its well-located pipeline. Sustaining value by continuously driving returns from its investment properties portfolio, and unlocking value will enable the Group to optimise capital efficiency as it progresses on its sustainable value creation path.

1   Profit before interest, fair value change, tax and exceptional items

2   Profit after interest, fair value change, tax and exceptional items attributable to owners of the company and holders of perpetual securities

3   Includes net debt of consolidated SGX-listed REITs

4   Includes non-controlling interests (primarily related to consolidated REITs) and perpetual securities