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.
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.
As part of FPL’s capital recycling initiative, Coorparoo Square Retail Centre was divested in December 2024.
On the industrial front, FPL completed one development project in Victoria, with a pipeline of 12 projects comprising 343,000 sq m planned for completion in FY2025 and FY2026.
The Orie, in which FPL holds a 25% stake in a joint residential development with City Developments and Sekisui House was 86% sold on its launch weekend. The Orie is located in Toa Payoh, and part of FPL's strategy to increase development exposure over the medium to long-term.
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In Thailand, FPL has six planned launches in FY2025 with a total gross development value of $385.3 million. In the first quarter, 357 units were settled, 312 units were sold and FPL has $30 million of unrecognised revenue from 143 contracts as at Dec 31.
