Frasers Property H1 profit up 52.2% to $197.2m on residential development contributions
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Frasers Property saw net fair value gains from newly acquired Nex mall, among other assets.
PHOTO: MERCATUS CO-OPERATIVE
Chong Xin Wei
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SINGAPORE – Frasers Property posted a 52.2 per cent rise in attributable profit to $197.2 million for its first half ended March 31, from $129.6 million in the year-ago period.
The group’s revenue increased 15.6 per cent to $1.9 billion for the six-month period, from $1.7 billion a year earlier. The improved earnings were mainly driven by higher contributions from its residential development businesses in Singapore and China, the group said on Thursday.
Earnings per share stood at 5.02 cents for the first half, up 51.7 per cent from 3.31 cents previously.
No dividend was declared for the six months, unchanged from the previous year.
The Singapore residential development business benefited from increased sales of units and selling prices on the back of a buoyant residential market here, while the global easing of Covid-19 restrictions contributed to the group’s hospitality segment across various geographies, it added.
The improved earnings from operations were partially offset by a net fair value loss, Frasers Property noted.
The group’s portfolio of business park assets in Britain recorded fair value losses that were mostly offset by net fair value gains from a retail-cum-hospitality property in Singapore and the group’s newly acquired retail asset Nex,
Frasers Property group chief executive Panote Sirivadhanabhakdi said macro developments, especially higher inflation, interest rate hikes, volatile foreign currency movements and potential asset repricing, will continue to pose challenges for the real estate sector.
“We will maintain our astute and disciplined approach towards investment, asset and capital management and development execution as we navigate these macro headwinds,” he added.
Shares of mainboard-listed Frasers Property closed one cent, or 1.1 per cent, lower at 87.5 cents on Thursday after its earnings announcement. It reamined unchanged at closing. THE BUSINESS TIMES
