The parent platform — listed in Singapore and managing S$43.6 billion (US$47.6 billion) in assets across five asset classes — reported attributable profit of S$928.3 million, up 11, 4 percent compared to the previous year’s result.
The comparison between the 2022 result and the previous year is somewhat distorted by the fact that in financial year 2021 a portfolio of industrial and logistics properties in Australia and Europe was reclassified from properties held for sale to investment properties. As a result, an unrealized valuation gain from the change in use was recorded.
In Australia, overall development profits rose, helped in part by one-off sales of residential developments in Brisbane and Sydney’s Macquarie Park.
This increase was partially offset by a decrease in the number of units completed and invoiced. At 2519, the number of contracts is higher than a year ago. That gives Mr Boyd confidence that Frasers can navigate through the conflicting factors that underpin the housing market, with the impact of rising interest rates being offset by low vacancy rates and population growth.
“Our sales rates and prospects based on the contracts I have are actually pretty strong,” he said.
At the top of Frasers’ commercial pipeline is the $3 billion Central Place Sydney project, which it is developing with Dexus. Approval for the twin tower project was granted last month, but Frasers would be “reasonable” to win sufficient upfront lease commitments before construction begins, Boyd said.
Pre-tax profit at Frasers Property Industrial fell to S$460.4 million, below the prior year profit which was impacted by the accounting gain of S$355.7 million on the transfer of the industrial property portfolio to the investment pool real estate held had been increased.
Reini Otter, chief executive of Frasers Property Industrial, said the combination of a lack of gated land, low population growth, increased urbanization, developing supply chains and the growth of e-commerce has pushed industrial vacancy rates to historic lows.
“Strong demand for new and existing facilities is driving healthy rental growth, which is contributing strongly to industry valuations as the current yield compression cycle begins to ease,” he said.