Net gearing increased by 3 percentage points q-o-q to 86.4% as at Dec 31, 2024. However, the pre-sold revenue in Singapore, Australia, Thailand and China is at $1 billion. In Australia on the residential front, the group reported a 27% y-o-y increase in the number of units sold, a 17% y-o-y increase in units settled. . Sale of land lots accounted for 95% of sales. Future earnings are underpinned by 1,308 contracts at hand with unrecognised revenue of $400 million.
Frasers Property (FPL) reiterated its focus on creating value, sustaining value and unlocking value – for the medium term to build greater resilience as one enterprise, in its business updates for 1QFY2025, for the three months to Dec 31, 2024.
As a case in point, FPL indicates it is well-positioned to repay and refinance all of its debt due in the next 12 months with plans to retain a high proportion of fixed debt to mitigate the effects of high interest rates. Cost of debt is likely to remain elevated in 2025 due to the higher-for-longer interest rate environment, FPL says. The group will also continue to maintain its natural hedge strategy for overseas assets to mitigate the effect of foreign currency volatility.
