Frasers Property Limited, along with its subsidiaries, has reported a 19.2% increase in attributable profit to S$206.3 million for the full year ended 30 September 2024. The company’s financial highlights show a growth in revenue to S$4,214.8 million, a 6.8% increase from the previous year, and a Profit Before Interest and Tax (PBIT) of S$1,352.2 million, a 3.0% increase from FY23.
The boost in earnings for FY24 was driven by higher contributions from residential projects in China and Australia, despite facing higher interest expenses. However, the company recorded significant unrealized fair value losses on certain commercial properties in the UK and Australia. This was somewhat offset by net fair value gains on Singapore properties, as well as industrial and logistics properties in Australia and the EU.
Mr. Panote Sirivadhanabhakdi, the Group Chief Executive Officer, expressed caution about the macroeconomic environment but highlighted the steps taken to enhance agility and strategic focus in navigating challenges ahead. The company aims to continue unlocking value to recycle capital, supporting deleveraging initiatives and increasing development exposure for better risk-adjusted returns.
Looking at the financial ratios, the Group’s net debt to total equity ratio stood at 83.4% for FY24, higher than the previous year, driven mainly by capital expenditure and redemption of perpetual securities. The board of directors has proposed a first and final dividend of 4.5 Singapore cents per share for FY24, maintaining the same level as FY23.
Frasers Property plans to increase its development exposure in residential and non-residential asset classes to deliver better risk-adjusted returns over the medium to long term. The company also aims to boost recurring income streams, optimize capital efficiency, and focus on advancing its ESG commitments for sustainable value creation.
With a focus on sustainability and value creation, Frasers Property will continue to drive returns from its investment properties portfolio and unlock value through strategic partnerships and asset transactions. The company remains committed to ESG goals and aims to enhance business resilience against climate risks.
In conclusion, Frasers Property’s financial performance for FY24 reflects growth and strategic initiatives to navigate challenges and create sustainable value in the real estate sector. The company’s focus on unlocking asset value, optimizing capital efficiency, and advancing on ESG commitments positions it well for long-term success in the market.