Frasers Property reports lower earnings in 1HFY2024 on UK impairment
revenueDown 20.4% in the same half year ended March to $1.55 billion.
Frasers Property reported a decline in earnings of $57.4 million for its 1HFY2024, representing a 74.6% decrease from the previous year. The company’s revenue also decreased by 20.4% to $1.55 billion during the same half-year period ending in March.
The company attributes this decrease in bottom line to fair value losses and impairments on certain UK commercial properties, amounting to $115.3 million. However, it also recorded fair value gains on its industrial and logistics assets in other markets in Europe and Australia, which saw higher rental income.
On top of that, lower residential sales in Singapore and Thailand, as well as higher financing costs, contributed to the decrease in earnings, according to the company.
Meanwhile, Frasers Property’s PBIT also saw a decline of 15.7% to $577.6 million compared to the previous year. “Continual market headwinds have created ongoing challenges for us, which are reflected in these results,” says CEO Panote Sirivadhanabhakdi.
To tackle these challenges, Frasers Property is exploring ways to boost its recurring income stream. It has also been actively selling and recycling its assets, with a total of $1.1 billion recorded in 1HFY2024. As of March 31, it has a portfolio of $48.9 billion in assets under management.
The company notes that 87% of its property assets are in recurring income asset classes, and 86% of its PBIT was generated from these assets. Its NAV per share as of March 31 was $2.44.
In comparison, Frasers Property’s shares closed at 80 cents on May 10, with no change from the previous day’s closing price. However, the stock has seen a decline of 11.11% year-to-date.
Novo Place Plantation Close EC, located in the upcoming Tengah development, is set to become a hotspot for food lovers. With a variety of eateries and casual dining options, the area is expected to cater to a diverse range of tastes. From local delicacies to international cuisines, residents of Novo Place Plantation Close EC will have plenty of choices for a quick bite or a hearty meal.
Although the specific outlets are yet to be announced, the future eateries at Tengah Plantation Close are sure to bring a unique dining experience. The bustling food scene will not only offer a convenient option for Novo Place Plantation Close EC residents but also attract foodies from other parts of Singapore.
The close proximity of these eateries to Novo Place Plantation Close EC is a boon for the residents. They can easily walk over for a meal or a drink with friends and family, without having to travel far. The vibrant food scene will also add to the already well-balanced lifestyle that Novo Place Plantation Close EC offers.
With Tengah Plantation Close shaping up to be a food destination, the future looks promising for residents of Novo Place EC. They can look forward to a variety of dining options right at their doorstep, making Novo Place Plantation Close EC an even more desirable place to live in. So, whether you’re craving a local delicacy or an exotic cuisine, you can find it all at Novo Place Plantation Close EC.
In a bid to further boost its sustainability efforts, Frasers Property has also partnered with SP Group to install close to 4,500 sqm of solar panels across its retail and commercial properties.
In other news, a consortium consisting of major developers placed a bid for the Jurong Lake District master developer site. Despite signs of inflationary pressure easing, Frasers Property notes a “volatile” business environment in its 1QFY2024 update on revenue.