Recurring income from investment properties continued to anchor Frasers Property's operating results as it posted attributable profit of $198.1 million for the third quarter, up 8.6 per cent from a year ago.
Revenue fell 2.7 per cent to $1.36 billion, but it continued to be supported by maiden contributions from the industrial and logistics parks in continental Europe and the business parks in Britain.
Earnings per share were 6.53 cents after fair value change and exceptional items, up from 6.26 cents a year ago. No dividend was declared for the period.
Commenting on the results, Mr Panote Sirivadhanabhakdi, group chief executive of Frasers Property, said: "Our strategy of strengthening our recurring income base continues to feature prominently in our results."
He added that maiden contributions from the group's industrial and logistics parks in continental Europe and business parks in Britain helped to "anchor operating results and provided stability against the inherent lumpiness of development income".
In Singapore, the group achieved "solid" pre-sales for existing launches, said the group. With the Parc Life executive condominium 97 per cent sold and Seaside Residences over 84 per cent sold, the group has around 150 unsold units in its inventory.
"Planning for a residential development in Jiak Kim Street that can yield around 500 units is in progress, with the project expected to be launched in the first half of 2019," said Frasers Property.
AT A GLANCE
$1.36 billion (-2.7%)
$198.1 million (+8.6%)
The group's portfolio of retail malls continues to be "resilient", recording rising occupancy rates and positive rental reversions. In the commercial space, pre-lease commitments of around 80 per cent for Frasers Tower, at 182 Cecil Street, have been obtained and tenants are in the process of fitting out at the building following its completion in May.
In the residential segment in Australia, the group released 1,250 units for sale in the first nine months of the current financial year to June 30, and plans to release over 600 more in the remaining quarter. The group said it was on track to complete around 3,000 units by the end of the financial year, having completed 1,955 units in the first nine months.
In the commercial and industrial and retail development space, the team is working on delivering 10 facilities spanning 131,000 sq m in aggregate, of which six, with an investment value on delivery of approximately $229 million, will be retained as part of the group's investment properties portfolio.
Looking ahead, the group will "maintain its efforts to build on its development activities in a measured manner" in its two biggest markets of Singapore and Australia. In key markets in Europe and the rest of Asia, it will continue to explore prospects to "deepen its presence by leveraging its core expertise".