Frasers Property (TQ5) H1 2025 earnings summary

Executive summary

• Revenue for 1H FY25 rose 2.7% year-over-year to S$1,591.5 million, with PBIT up 3.8% to S$599.3 million and attributable profit surging 147.6% to S$142.2 million, driven by higher residential contributions in Singapore, absence of prior year impairment, and a one-off tax provision reversal.

• Recurring income underpinned over 80% of PBIT, supported by a diversified portfolio across asset classes and geographies, with 88% of property assets in recurring income classes and 67% outside Singapore.

• S$1.4 billion in unrecognised pre-sold residential revenue and a robust pipeline of ~15,600 units across ~110 projects provide strong earnings visibility.

• The group remains focused on sustainable value creation, strengthening its balance sheet, and maintaining operational agility amid global uncertainties.

• ESG progress continues, with a commitment to net zero carbon emissions by 2050, a 24% reduction in Scopes 1 and 2 emissions since FY19, and operational milestones like Singapore's first brownfield district cooling network.

Financial highlights

• Attributable profit: S$142.2 million, up 147.6% year-over-year, boosted by a one-off tax provision reversal; excluding this, attributable profit was 13% lower due to higher net interest expense.

• Revenue: S$1,591.5 million, up 2.7% year-over-year; PBIT: S$599.3 million, up 3.8% year-over-year.

• Cash and deposits: S$2.2 billion, down 18.2% from FY24.

• Net asset value per share: S$2.38, down from S$2.45 at FY24.

• Net interest cover: 2.1x, down from 2.3x year-over-year.

Outlook and guidance

• S$1.4 billion in unrecognised pre-sold residential revenue and a robust pipeline support future earnings visibility.

• The group will focus on financial discipline, cost management, and capital recycling to mitigate risks from high interest rates, inflation, and currency volatility.

• Heightened geopolitical tensions, inflation volatility, and higher-for-longer interest rates are expected to persist; strategies include extending debt maturities, focusing on green financing, and natural hedging for FX risks.

• ESG and sustainability remain central, with a 24% reduction in Scopes 1 and 2 emissions since FY19 and over 65MW of renewable energy capacity installed.

• The group is confident in navigating macroeconomic challenges with a diversified portfolio and disciplined capital management.