Frasers Centrepoint full-year earnings down 11.8%

Panote Sirivadhanabhakdi, group CEO-designate of Frasers Centrepoint Limited (FCL). FCL's attributable profit was down 11.8 per cent year on year to S$479.86 million. PHOTO: ST FILE

SINGAPORE - Frasers Centrepoint Ltd (FCL) reported on Wednesday (Nov 9) a fall in earnings for the full year ended Sept 30, a period where lower fair value gain hurt the property giant's overall performance.

FCL's attributable profit was down 11.8 per cent year on year to S$479.86 million. Including fair value change and exceptional items, overall profit for the year fell 24.3 per cent to S$766.15 million. This came on the back of S$3.44 billion in revenue, down 3.4 per cent compared with a year ago.

A final dividend of 6.2 Singapore cents a share was proposed, bringing the total dividend for the year to 8.6 cents, unchanged from a year ago.

Mainboard-listed FCL manages Frasers Centrepoint Trust, Frasers Commercial Trust and Frasers Logistics and Industrial trust, giving the group presence against Asia, Australia and Europe.

"In Singapore, the impact from a shrinking portfolio of residential development projects was partially offset by maiden recognition of profits from North Park Residences and completion of Twin Fountains executive condominium," FCL said in its results statement.

But the group had to recognise impairment losses on residential projects mostly in western Australia, FCL added, while earnings in China was dragged down by delay in Baitang Phase 3C1.

Despite the volatility, chief executive Panote Sirivadhanabhakdi noted that FCL's push to grow recurring income has yielded results.

"Including the group's fee income stream from its REIT platforms, FCL derived over 60 per cent of the year's profit before interest and tax from recurring sources.

"Another key figure of note is the group's net debt to equity ratio, which has gone down to 64.4 per cent as at Sep 30 2016 from 83.6 per cent a year ago."

FCL will selectively tender for sites in Singapore and Australia to replenish its land bank, while staying on track to its hospitality business to 30,000 units under management by 2019.

FCL shares gained half a cent or 0.33 per cent to S$1.50 by 11am, following the results announcement.

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