Frasers Property Singapore Reports Strong Profit Growth
Frasers Property, Singapore’s third-largest listed developer, controlled by Thai billionaire Charoen Sirivadhanabhakdi, posted a robust profit jump of 19.2% for the fiscal year ending Sept. 30, reaching a net profit of S$206.3 million, up from S$173.1 million the previous year. This surge stemmed from solid residential contributions across China and Australia. Valuation gains from properties in Singapore and industrial and logistics assets in Europe and Australia further boosted earnings. These gains helped offset valuation losses in commercial real estate in the United Kingdom and Australia.
Revenue for Frasers Property climbed almost 7% to S$4.2 billion, exceeding analysts’ expectations of S$3.65 billion. Despite these impressive gains, the company remains vigilant about the uncertain macroeconomic climate. Panote Sirivadhanabhakdi, the son of Mr. Charoen and the company’s CEO, emphasized a cautious outlook. He highlighted Frasers Property’s commitment to expanding its development portfolio in residential and select non-residential asset classes. This approach, he said, would aim to deliver improved risk-adjusted returns over time.
In a strategic restructuring move, Thai Beverage exited its significant stake in Frasers Property in July, consolidating Mr. Charoen’s control through TCC Assets, which now holds almost 87% of the developer. This is close to the 90% trading suspension threshold set by the Singapore Exchange. Despite speculation, the 80-year-old billionaire has refuted reports that he plans to relinquish his control over Frasers Property.
Amid a changing landscape, Frasers Property is betting on marquee projects, such as One Bangkok, a massive integrated development in Thailand’s capital, as well as a joint residential project in Singapore alongside City Developments and Japanese developer Sekisui House. However, expansion in Singapore has not been without setbacks, as recent bids for a rental pilot site and an alternative business district were declined by authorities due to underpricing.
Frasers Property’s stock remains largely unchanged for 2024. This performance contrasts with the Straits Times Index, which has risen nearly 15% this year. Despite these market challenges, Frasers Property stays resilient. The company focuses on long-term growth through strategic investments. Its diversified portfolio is poised to deliver value across key markets.
