SINGAPORE (Feb 9): Frasers Centrepoint Limited (FCL) has announced 1Q17 earnings of $187.5 million, nearly double from the $98.7 million declared a year ago.
Revenue grew 44.7% to $971.7 million from $671.6 in 1Q16, while profit before interest, fair value change, taxation, and exceptional items (PBIT) increased 56.9% to $331 million from $211 million a year ago.
The higher revenue and PBIT were mainly fuelled by higher contributions from FCL’s Singapore strategic business unit (SBU) and international business unit.
“During this quarter, completions in China boosted contributions from the International business unit. Meanwhile, the Singapore SBU benefitted from the sale of our last remaining bungalow at Holland Park,” recalls group CEO Panote Sirivadhanabhakdi in a Thursday filing to the SGX.
In Singapore, FCL will be launching Seaside Residences at Siglap Road in 2Q17 and intends to selectively tender for sites to replenish its landmark.
The group also notes steady shopper traffic in its suburban malls, which it expects to contribute to the sustainability of rental income and occupancy rates despite headwinds in Singapore’s retail scene – as well as positive rental reversions for the office market despite the challenging leasing market.
FCL says it will continue to look at opportunities for growth in the secondary markets, although it expects a slow growth environment going forward. It adds that it will look to grow its business and asset portfolio in “a prudent manner across geographies and property segments”.
Shares of FCL closed 0.3% lower at $1.60 on Thursday.
