Frasers Property (TQ5) Q1 2025 TU earnings summary

Executive summary

• Achieved strong residential sales in Singapore and Australia, with The Orie in Singapore selling 86% of units at launch and a 27% year-over-year increase in units sold in Australia.

• Proactive capital management included divestment of Coorparoo Square Retail Centre in Australia and ongoing redevelopment projects in Singapore.

• Hospitality segment saw improved portfolio performance, with new openings in Vietnam and Japan and year-over-year RevPAR growth in both Asia Pacific and EMEA.

Financial highlights

• Net debt increased 2.4% to S$14,921 million as at 31 December 2024, with a net debt-to-equity ratio of 86.4%.

• Cash and deposits stood at S$2.4 billion, and pre-sold revenue across key markets totaled S$1.0 billion.

• High proportion of fixed rate debt helps mitigate interest rate risk, though cost of debt remains elevated.

Outlook and guidance

• Anticipates continued resilience in Singapore’s residential market, supported by easing interest rates and new launches.

• Australian residential market expected to remain robust, with future earnings underpinned by a strong contract pipeline.

• Industrial and logistics demand remains strong in Australia, EU, Thailand, and Vietnam, with significant development pipelines and high occupancy rates.

• Hospitality sector outlook positive, driven by urbanization and flexible work trends, though geopolitical and inflationary risks persist.