Frasers Property profits up 68.2% to $333.93m in Q3

Its recurring income from rents has boosted its profits.

Frasers Property saw its profits climb 68.2% YoY to $333.93m in Q3 from $198.56m in 2018, despite the 53.1% YoY plunge in revenue to $638.81m from $1.36b.

The revenue decline was mainly attributable to the timing of sales and settlements of development projects in Australia, Singapore and China. These also dragged on the company’s profit before interest, fair value change, taxation and exceptional items (PBIT) by 25% to $269m over the same period. Recurring income sources have boosted its profits and offset the decline in revenue.

Revenue and PBIT of Frasers’ Singapore operations declined by $547m and $12m to $133m and $147m, respectively. Revenue and PBIT from Singapore residential properties went down to $2m and $10m, due to fewer settlements in Parc Life Executive Condominium and the absence of profit contributions from North Park Residences following its achievement of temporary occupation permit (TOP) in October 2018.

On the other hand, revenue and PBIT of commercial properties in Singapore rose by $12m and $58m to $131m and $139m, respectively. These increases were mainly attributed to maiden contributions from the newly acquired PGIM Real Estate AsiaRetail Fund Limited (PGIM ARF), full quarter’s contributions from Frasers Tower and higher occupancies at the south wing of Northpoint City.

In Australia, Frasers Property recorded revenue and PBIT declines of 29% and 47% to $204m and $38m, respectively, no thanks to the lumpiness of revenue and profit recognition of residential development projects. This was countered by higher revenues and PBIT from Frasers Logistics and Industrial Trust of $57m and $38m.