Frasers Centrepoint's profits surge 56% on back of overseas project completions

Revenue jumped by 41%.

Despite the lacklustre domestic property market, Frasers Centrepoint Limited still reported sterling results as profit before interest and tax jumped 56% year on year to $160.3 million in the third quarter of its fiscal year.

Revenue also jumped 41% to $575.4 m. The strong growth was driven by revenue recognition from overseas markets as a result of project completions in China, sale of completed units in Australia and the United Kingdom during the quarter, as well as proceeds from the sale of Changi City Point to Frasers Centrepoint Trust as the Group continued to execute on its REIT strategy.

“FCL achieved strong operating results in the first nine months of the financial year. This was on the
back of strong contributions from our overseas markets, as well as from the execution of our REIT
strategy,” noted Lim Ee Seng, Group CEO of FCL .

Here’s more from FCL:
FCL’s strong operational performance in 3Q FY13/14 was partially offset by the absence of fair value gain on investment properties that were recorded in the corresponding period last year.

The fair value gains arose from an additional valuation exercise taken as at 30 June 2013 in connection to the Group’s listing; the Group would otherwise normally revalue its investment properties at the end of each financial year.

Consequently, attributable profit for the quarter was S$109.2 million, down 60% year-on-year. Excluding fair value change and exceptional items, the Group’s attributable profit for 3Q FY13/14 would have surged by 77%, from S$67.7 million a year ago to S$120.0 million.

In 9M FY13/14, FCL’s revenue and PBIT grew 58% and 50% year-on-year to S$1.7 billion and S$480.3 million respectively. In line with the Group’s strong operating performance, attributable profit (before fair value change and exceptional items) rose to S$346.2 million, up 62% compared to the previous corresponding period.