SINGAPORE (Feb 9): Frasers Property reported a 59% fall in 1Q earnings to $76.9 million from $187.5 million a year ago. Revenue fell 23.8% to $740 million. PBIT fell 31% to $228.6 million.
Revenue from its Singapore Strategic Business Unit (SBU) increased by 25% to $253 million to progressive revenue from North Park Residences while PBIT decreased by 12% to $93 million from the absence of share of profit contributions from fully completed and sold joint venture projects this quarter.
Revenue from Australia SBU decreased by 4% to $207 million while PBIT increased by 65% to $65 million. The decrease in revenue was mainly due to the lower level of completions and settlements of residential projects in the quarter. PBIT, however, increased mainly due to share of profits of joint venture residential projects.
Revenue from Hospitality SBU increased by 2% to $211 million, while PBIT decreased by 25% to $37 million. The increase in revenue was mainly contributed by maiden revenue contribution from Capri by Fraser, Berlin which started operations last May and a full quarter’s revenue from Frasers Hospitality Trust’s Novotel Melbourne on Collins, acquired in October 2016.
The decrease in PBIT was largely due to the absence of a mark-to-market gain of $11 million on a cross-currency interest rate swap recorded in the corresponding quarter last year.
Looking ahead, Frasers Property says it will continue to focus on growing its portfolio in a balanced and sustainable manner across geographies and asset classes.
In Singapore, the group has replenished its land bank with its successful bid for the Jiak Kim Street site under the Government Land Sales programme in December 2017.
In Australia, the group plans to release around 2,500 residential units for sale over the course of the financial year ending Sept 30, mainly in New South Wales and Victoria.
Shares in Frasers Property closed 3 cents lower at $2.00 on Friday.
