Above pictured is Brookhaven, a masterplanned community by Frasers Property. Image: Supplied.
  • Attributable profit of S$928 million
  • Is an 11% increase on FY21, or 60% increase (adjusted)
  • Industrial and logistics played an important role

Frasers Property Limited has reported S$928 million attributable profit in FY22. In a brief overview, the company’s revenue increased year-on-year by 3% to S$3,877 million, and the proposed dividend is 3.0 Singapore cents per share.

Financial highlights

The company’s performance was the result of years of hard work, said Group CEO Panote Sirivadhanabhakdi, with industrial and logistics playing a leading role:

“As a result of our efforts over the years, we were able to deliver improved operating performance over the course of FY22,”  said Mr Sirivadhanabhakdi.

“The Group’s earnings were further boosted by higher fair value gains, primarily from industrial and logistics properties. This is a result of the Group’s strategy over the years to increase its exposure to investment properties, particularly industrial and logistics assets, which have been benefitting from sectoral tailwinds in recent years.”

FY22
(S$ ‘mil)
FY21
(S$ ‘mil)
lnc/(Dec)
(%)
Revenue 3,877.0 3,763.8 3.0
PBIT1 1,249.2 1,424.7 (12.3)
PBIT (adjusted)2 1,249.2 1,069.0 16.9
Attributable Profit 928.3 833.1 11.4
Attributable Profit (adjusted)2 928.3 581.6 59.6

Frasers also noted higher contributions from the Group’s Singapore and Australia residential businesses supported earnings in FY22; hospitality also saw improvements as the sector continues its recovery.

Last financial year (FY21), a portfolio of Frasers’ industrial and logistics properties in Australia and Europe was reclassified from properties held for sale to investment properties, and the company said an unrealised valuation gain on the change in use was recognised as a result of the reclassification.

Excluding the impact of the unrealised valuation gain on change in use, PBIT for FY22 would have increased 16.9% year-on-year from S$1,069.0 million2 to S$1,249.2 million, while attributable profit would have increased 59.6% year-on-year from S$581.6 million2 to S$928.3 million.

“As we navigate the challenging macro developments, the Group will maintain its disciplined approach towards its investments and asset and capital management, putting in place mitigation measures in both its business operations and funding structures,” Mr Sirivadhanabhakdi added.

FY23 developments, and more

Frasers said over 80% of its property assets are in recurring income-based asset classes. Across FY22, the Group completed circa 454,000 square metres of industrial and logistics, commercial and business parks, and retail development projects. For FY23, the company expects to deliver almost 700,000 (697,000) square metres from its non-residential development pipeline, mostly in Australia, Thailand, and Vietnam.

Frasers achieved sales of over 9,800 residential units and settlement of close to 4,000 residential units in FY22. The Group continued to selectively replenish its residential land bank in FY22, including a residential site in Queensland that can yield around 2,150 lots.

The Group has been consistently deploying proceeds from the rights issue concluded in April 2021 to fund its development pipeline of industrial and logistics, as well as commercial business park assets. As at 20 October 2022, the Group has utilised circa S$690 million out of the allocated S$700 million to fund the capital and development expenditure of industrial and logistics assets.

For full details, please see the Frasers Property website.

~~

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

2 Excluding the one-off impact of the unrealised valuation gain on the change in use arising from the reclassification of a portfolio of industrial properties in Australia and Europe from properties held for sale to investment properties in FY21



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