Since Mar 31 this year, the economies that FPL has a presence in - mainly Australia, Singapore and Southeast Asia have started reopening to a post-Covid world. Europe - where FPL has mainly a logistics and industrial presence - has already opened after Covid.
Frasers Property (FPL) announced a 7.5% growth in revenue to $1.68 billion for 1HFY2022, for the six months to Mar 31. However, profit before interest, fair value change, taxation and exceptional items (Pbit) fell by 37.1% to $526.1 million; as a result, attributable profit after tax and minority interests fell by 42.6% to $158.2 million.
The decline in earnings is because of a one-off item in FPL’s FY2021 for the 12 months to Sept. A portfolio of industrial and logistics properties in Australia and Europe was reclassified from properties held for sale to investment properties, which is in line with the property group’s strategy to grow its industrial and logistics asset base, a media release states. A gain on the change in use was recognised as a result of the transfer, which boosted the group’s financial results in 1HFY2021. Excluding the impact of the gain on change in use, Pbit for 1HFY2022 would have increased 9.9% year-on-year from $478.9 million to $526.1 million while attributable profit would have jumped from $22.5 million to $158.2 million.
