Singapore, China lift FCL's first-quarter earnings

Real estate company Frasers Centrepoint Limited (FCL) reaped strong earnings in the first quarter, due partly to sales in Singapore.

Revenue was $971.7 million for the three months to Dec 31, up by 44.7 per cent from a year earlier. That helped to send net profit up 90.1 per cent to $187.5 million, a figure that included an exceptional gain of $5.5 million.

FCL is the sponsor of three Singapore-listed real estate investment trusts - Frasers Centrepoint Trust, Frasers Commercial Trust and Frasers Logistics & Industrial Trust. A sponsor injects the properties that make up a Reit and usually remains as major shareholder. The company counts Singapore, Australia, China and Europe among its key markets.

Singapore's revenue jumped 74 per cent to $202 million in the quarter, boosted by the $97 million turnover from residential properties sold here. "This was mainly driven by the commencement of profit recognition at North Park Residences and the sale of a bungalow at Holland Park," FCL said in its results announcement yesterday.

In Australia, FCL's revenue dropped by 29 per cent to $216 million, "largely due to the lower level of completions and settlements of residential projects in the quarter".

Another international business unit, which deals with investments in China, South-east Asia and Britain, pulled in revenue of $346 million, thanks to completions at Suzhou's Baitang One project.


    NET PROFIT: $187.5 million (+90.1%)

    REVENUE: $971.7 million (+44.7%)

Hospitality turnover was slightly down amid currency fluctuations, coming in at $208 million on the back of maiden contributions from Frasers Hospitality Trust's newly acquired Novotel Melbourne and Maritim Hotel Dresden.

Earnings per share, at 6.39 cents, rose from 3.41 cents a year earlier after accounting for fair value change and exceptional items. Net asset value was $2.38 per share as at Dec 31, compared with $2.30 as at Sept 30.

FCL expects slow growth ahead but has plenty of developments on the cards this year, including launching Seaside Residences in Siglap in the coming months and the completion of Northpoint City by year end. In Australia, it has 2,210 more residential units to be released this year. It will also continue to replenish its residential land bank there, following the recent acquisition of a Melbourne site that will yield about 1,216 units.

FCL shares closed down half a cent at $1.60 ahead of the results announcement.

A version of this article appeared in the print edition of The Straits Times on February 10, 2017, with the headline 'Singapore, China lift FCL's first-quarter earnings'. Print Edition | Subscribe