SINGAPORE - Frasers Property Limited (FPL) announced second-quarter profit of $124.09 million after fair value change and exceptional items, a rise of 74.2 per cent from the same year-ago period.
The group, formerly known as Frasers Centrepoint, clocked similarly higher revenue for Q2 of $841.74 million, a rise of 19.3 per cent from the previous year.
Earnings per share similarly rose to 3.17 cents from 1.36 cents last year.
Before fair value change and exceptional items, profit came in at $124.25 million, a 74.5 per cent rise.
The group declared an interim dividend of 2.4 cents per share to be paid on June 12, 2018, the same as the previous corresponding period.
The rise in revenue was mainly due to contributions from Singapore residential developments, profit recognition from projects in China and Australia following sales settlements, as well as the maiden contributions from Geneba Properties in Europe and business parks in the United Kingdom.
For its Singapore residential properties, FPL reported a rise in revenue of 17 per cent to $77 million, and an increase in PBIT (profit before interest, fair value change, taxation and exceptional items) of 144 per cent to $18 million, driven by higher progressive profit recognition of North Park Residences and maiden profit recognition from Seaside Residences.
Revenue and PBIT for its Singapore commercial properties rose respectively by 9 per cent to $116 million, and 7 per cent to $75 million, mainly due to commencing operations at the newly completed south wing of Northpoint City as well as the completion of the asset enhancement initiatives at the mall's north wing.
On a half-year basis, FPL generated revenue of $1.58 billion and PBIT of $519 million for the first half of fiscal 2018, compared to $1.68 billion and $510 million respectively a year ago, when there were more development project completions and settlements, especially in China.
"Enlarging our recurring income base remains a key pillar of our strategy for achieving sustainable growth in view of the inherent lumpiness of development income," said Fraser's group chief executive Panote Sirivadhanabhakdi.
"The agreement with Frasers Logistics & Industrial Trust to acquire 21 of our European stabilised assets further grows and diversifies our Reit platform while the properties remain under the management of our team in Europe. This model of actively deploying and recycling capital is a core strategy for Frasers Property that enables us to optimise capital productivity," Mr Sirivadhanabhakdi added.
Looking ahead, the group will maintain efforts to replenish its Singapore and Australia landbanks in a "measured" fashion, it said. In Europe and the rest of Asia, FPL added it will continue to explore prospects to deepen its presence in these areas.