Frasers Property (TQ5) Q3 2024 TU earnings summary

Executive summary

• Focused on disciplined capital recycling, recurring income growth, and increasing development exposure, with S$1.1 billion in asset transactions in 9M FY24, up from S$0.4 billion in FY23.

• Investment properties NLA reached ~9.5 million sqm and ~16,900 hospitality units in operation as of 30 June 2024.

• Unrecognised residential revenue stood at S$1.9 billion, with ~490,000 sqm of completed non-residential development projects in 9M FY24.

Segment performance

• Singapore residential: New pipeline secured, with 777-unit project to launch in 1H 2025; Parc Greenwich obtained TOP and Sky Eden @ Bedok 99% sold.

• Singapore investment properties: High retail occupancy (98.6%), strong leasing demand, and successful divestment of 24.5% stake in NEX.

• Australia residential: 75% YoY increase in units sold and 92% YoY increase in units settled; 1,639 contracts on hand as of 30 June 2024.

• Australia retail/commercial: Retail portfolio stable (96.3% occupancy), but office metrics weak (47.7% occupancy) due to strategic vacancy.

• Industrial & Logistics (I&L): Completed nine projects (~277,000 sqm) in Australia/EU; 14 projects (~435,000 sqm) in pipeline; high occupancy in Australia (98.9%) and EU (96.8%).

• Hospitality: 8 new management agreements, 4 new properties opened; total units reached 16,237; EMEA ADR and RevPAR improved, Asia Pacific slightly down.

• Thailand residential: 14% QoQ sales growth in high-end segment; 1,241 units settled, 1,131 units sold.

• Thailand commercial: Office/retail occupancy ~91%/95%; hospitality AOR at 62.9%.

• Thailand I&L: Warehouse/factory occupancy ~87%; Indonesia portfolio occupancy surged to 99.7%.

• Vietnam: ~100,000 sqm I&L completed in 3Q FY24; commercial occupancy stable at 89.5%.

• China: 3,474 units settled, 1,115 units sold; S$0.6 billion unrecognised revenue.

• UK: Business park occupancy 88.9%, WALE 5.8 years; impairment recorded on commercial property.

Capital allocation and financing

• Net debt increased 6.6% QoQ to S$15.27 billion as of 30 June 2024, mainly due to redemption of perpetual securities and capex.

• Net debt-to-equity ratio rose to 86.7%; net debt-to-property assets at 43.1%.

• S$2.0 billion in cash and deposits; well positioned to refinance all debt due in next 12 months.