Frasers Property (TQ5) H2 2024 earnings summary

Executive summary

• Revenue for FY24 reached S$4,214.8 million, up 6.8% year-over-year, with PBIT rising 3.0% to S$1,352.2 million and attributable profit increasing 19.2% to S$206.3 million, driven by strong residential contributions in China and Australia despite higher interest expenses.

• Performance was supported by net fair value gains on Singapore and industrial/logistics properties in Australia and the EU, offsetting unrealised fair value losses in UK and Australian commercial properties.

• 88% of property assets are in recurring income classes, and 80% of assets are in developed markets (Singapore, Australia, EU & UK).

• Dividend per share maintained at 4.5 cents, with a payout ratio of ~81% based on core earnings.

• Strategic priorities include increasing development exposure, boosting recurring and fee income, and unlocking asset value for capital efficiency.

Financial highlights

• Revenue grew 6.8% year-over-year to S$4,214.8 million; PBIT up 3.0% to S$1,352.2 million.

• Attributable profit rose 19.2% to S$206.3 million; basic EPS after FV change and exceptional items increased 35.5% to 4.2 cents.

• Net fair value losses narrowed to S$27.3 million from S$153.3 million in FY23.

• Total assets at S$39.6 billion, down 0.4% year-over-year; cash and deposits at S$2.7 billion, up 2.2%.

• Proposed dividend of 4.5 Singapore cents per share, unchanged from FY23.

Outlook and guidance

• Focus remains on sustainable value creation through measured residential development, recurring income growth, and capital recycling.

• Plans to gradually increase development exposure in both residential and selected non-residential asset classes for better risk-adjusted returns.

• Ongoing capital partnerships and asset recycling to drive capital efficiency and returns.

• Continued capital recycling and asset divestments to support deleveraging and capital efficiency.

• Focus on enhancing recurring income streams, which comprised 88% of property assets and contributed 74% of FY24 PBIT.