SINGAPORE (Aug 13): Frasers Property reported 3Q19 earnings of $333.9 million, up 68.2% from a year ago on higher fair value change and exceptional items.
Gross profit for 3Q19 fell 27.3% to $298.1 million from a year ago as revenue fell 53.1% to $638.8 million while cost of sales fell a steeper 64.2% to $349.7 million.
Revenue and PBIT from Singapore residential properties fell by $559 million and $70 million to $2 million and $10 million, respectively. Frasers Property says the decline was mainly due to fewer settlements in Parc Life EC and the absence of profit contributions from North Park Residences following its TOP last Oct and full revenue recognition in 1Q ended Dec 2018.
Revenue and PBIT from Singapore commercial properties increased by $12 million and $58 million to $131 million and $139 million. Excluding the group’s share of fair value change of joint ventures and associates, PBIT grew by $31 million to $112 million.
These increases were mainly attributed to maiden contributions from the newly acquired PGIM Real Estate AsiaRetail Fund (PGIM ARF), full quarter’s contributions from Frasers Tower following the start of operations in May 2018 and higher occupancies at the south wing of Northpoint City.
Revenue and PBIT from Australia decreased by 29% and 47% to $204 million and $38 million. Frasers Logistics and Industrial Trust reported higher revenue and PBIT by $8 million and $11 million to $57 million and $38 million, respectively.
Including other losses of $4.5 million and 16.3% higher administrative expenses of $110.3 million, trading profit came in 42.3% lower at $183.3 million.
Profit before fair value change, taxation and exceptional items fell 42.3% to $166.8 million.
However, share of results of JVs and associates more than doubled to $85.5 million and there was a fair value change on investment properties of $263 million compared to $39.9 million a year ago while exceptional items grew to $16.1 million compared to $0.97 million.
In its outlook, Frasers Property says it will continue to manage and grow its businesses and asset portfolio in a prudent manner across geographies and business segments.
As at 12.06pm, shares in Frasers Property are down 4 cents at $1.78.
