Frasers Property Q1 profits surged 76.1% to $145.59m

It was boosted by the sales and settlements of its residential development projects in Australia and China.

Frasers Property kicked off the year on a high note after its Q1 profits skyrocketed 76.1% YoY to $145.59m from $82.68m in 2017, an announcement revealed. Revenue also jumped 44.7% YoY from $748.56m in Q1 2017 to $1.08b.

Profit before interest, fair value change, taxation and exceptional items (PBIT) also rose 51% YoY to $354.4m from $235.1m.

Also read: Frasers Property profits for FY 2018 up 10.1% to $759m

The strong performance was largely attributed to the sales and settlements of the firm’s development projects in Australia and China, which were further supported by contributions from its UK business parks and maiden contributions from Frasers Tower and the southwing of Northpoint City.

However, its Singapore strategic business unit (SBU) recorded a weaker performance with residential properties recording declines of $29m and $17m in revenue and PBIT to $117m and $14m, respectively. The decrease was primarily due to lower progressive profit recognition from its North Park Residences, the firm explained.

On the other hand, revenue and PBIT for its commercial properties in Singapore increased by approximately $18m following the start of operations at the south wing of NorthPoint City and Frasers Tower.

In Australia, Frasers Property acquired master planned community site The Grove in Melbourne in December 2018 for $195.49m (A$202.5m). The 1,780 units acquired are said to have a combined estimated gross development value (GDV) of $520m. The property is estimated to be completed in 2025.

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Likewise, the firm acquired three logistics properties in Austria in October, and another three in Germany in November 2018. These are reportedly part of the 22 logistics and light industrial assets Frasers Property Europe agreed to buy from Alpha Industrial, along with the latter’s project and asset management platform.

“Over the course of the coming year, we will be working on new residential property launches in Singapore and Australia, as well as enhancing the operating performance of the Group’s investment properties through asset value creation and enhancement,” Frasers Property’s CEO Panote Sirivadhanabhakdi said in a statement. “Strengthening our network of platforms remains a key focus as well.”

Frasers Property Singapore plans to launch Rivière which is an exclusive 455-unit private residential project along the Singapore River in H1 2019. The development will also include Fraser Residence Promenade which comprises of 80 serviced apartments that will be fully integrated with a conserved warehouse.