FAQs

Frequently asked questions

General

What are Frasers Property Limited's core businesses?

We are a multi-national developer-owner-operator of real estate products and services across the property value chain.



Our multi-national businesses operate across five asset classes, namely, residential, retail, commercial & business parks, industrial & logistics as well as hospitality. The Group has businesses in Southeast Asia, Australia, Europe and China, and its well-established hospitality business owns and/or operates serviced apartments and hotels in over 70 cities and 20 countries across Asia, Australia, Europe, the Middle East and Africa.



Listed on the Main Board of the Singapore Exchange Securities Trading Limited ("SGX-ST") and headquartered in Singapore, Frasers Property is also the sponsor of two real estate investment trusts ("REITs") and one stapled trust listed on the SGX-ST. Frasers Centrepoint Trust and Frasers Logistics & Commercial Trust are focused on retail, and industrial & commercial properties, respectively. Frasers Hospitality Trust (comprising Frasers Hospitality Real Estate Investment Trust and Frasers Hospitality Business Trust) is a stapled trust focused on hospitality properties.



In Thailand, Frasers Property (Thailand) Public Company Limited ("FPT") is the sponsor of Frasers Property Thailand Industrial Freehold & Leasehold REIT ("FTREIT"), which is focused on industrial & logistics properties in Thailand, and Golden Ventures Leasehold Real Estate Investment Trust ("GVREIT"), which is focused on commercial properties. FPT, FTREIT and GVREIT are listed on the Stock Exchange of Thailand.

What is Frasers Property Limited's dividend policy?

As disclosed in the Introductory Document when Frasers Property Limited (then named Frasers Centrepoint Limited) was relisted on the Main Board of the Singapore Exchange Securities Trading Limited in January 2014, the Board intends to recommend dividends of up to 75% of Frasers Property Limited's net profit after tax after considering a number of factors, including the level of cash and reserves, results of operations, business prospects, capital requirements and surplus, general financial condition, contractual restrictions, the absence of any circumstances which might reduce the amount of reserves available to pay dividends, and other factors the Board considers relevant, including the Group's expected financial performance.

How often does Frasers Property Limited disclose its financial results?

Following the amendments to Rule 705(2) of the Listing Manual of the Singapore Exchange Securities Trading Limited which took effect from 7 February 2020, Frasers Property Limited changed to half-yearly reporting with immediate effect as of 13 May 2020.



We remain committed to engaging the investment community through clear, timely, as well as consistent communications, and will provide first and third quarter business updates. We will continue to keep shareholders updated on material developments relating to the Group in compliance with our continuing disclosure obligations.

How can I get a copy of Frasers Property Limited's annual report?

Online versions of published annual reports can be accessed here.



The mailing of annual reports to shareholders en masse has been discontinued in line with our sustainability strategy, and we hope you will join us in our sustainability efforts and embrace e-communications. Nonetheless, if you would like a hard copy of the annual report, you can request for one via the "Contact us" page or write in to ir@frasersproperty.com.

Where can I get information about Frasers Property Limited's retail bonds?

Information on our retail bonds can be found on the "Retail bonds" page.

 

The big picture

How does Frasers Property remain relevant and continue to be a positive contributor in an ever-changing world?

Frasers Property and our business platforms must keep evolving to ensure we are always well-placed to deliver value through business cycles. As the world changes rapidly, it is clear that while we strive to be a returns-driven company, we must first be purpose-led because it is good for business, society and the planet. That is why we are committed to - Inspiring experiences, creating places for good. We have a responsibility and can make a difference.



Our purpose is 'why' we are in business and 'why' we do things the way we do. Our purpose, culture and values enable us to conduct our business. Each day, we focus on delivering inspiring experiences for our people, customers, and partners. We believe we 'create places for good' in our workplaces, negotiations, business interactions and in the physical spaces we create. It is important we always deal fairly and ethically, while encouraging innovative thinking and creating opportunities for people. Our purpose challenges us to innovate and reinvent ourselves as we continue building a more resilient, future-ready business, which is helping to deliver a more sustainable, inclusive, and healthier world for all.



Enhancing customer-centricity with purpose and innovation, and equipping our people with future-ready skills, will allow us to prioritise value creation and not only generate solutions desired by our customers, but also real estate-related solutions that are relevant for the future.



We keep sight of the future even as we stay focused on our near-term priorities. We want to ensure we are evolving to have a business model that is driven by a disciplined 'investor mindset'. As we recover from the pandemic, we are focusing on improving our returns and evolving our people skillsets to be aligned with strategy. With our focus on building business and financial resilience, and further developing core capabilities through innovation, digitalisation and technology, as well as making progress with environmental, social and governance practices, Frasers Property is laying the foundation for a future-ready business. Our ongoing evolution for future readiness remains a priority for the Group.

What is Frasers Property's strategic focus amid COVID-19?

We have been focusing on three key areas to strengthen our fundamentals while navigating through evolving challenges:



  1. Building robust business platforms
  2. Investing in future-ready capabilities
  3. Implementing proactive capital management


Our robust business platforms have been critical to our ability to successfully navigate business challenges. We have spent the last few years evolving our business platforms with good people, sound organisational structure and processes, as well as relevant and quality offerings. Importantly, our people are united in our strong commitment to the Group's purpose - Inspiring experiences, creating places for good. We have a firm foundation to weather the uncertainties that will persist as the world transitions to an endemic COVID-19 environment.



We understand shareholders wish to see total shareholder returns increase over time. We will keep strengthening our business platforms and building core capabilities to reinforce the foundation of our business. Meanwhile, capital and liquidity management remain top priorities for the Group. This helps ensure we have the right aptitude and fortitude to tide through difficult times and be ever ready to capture suitable growth opportunities as they arise. This will underpin our ability to deliver value over the long-term and through business cycles.

How is Frasers Property positioned to capture suitable growth opportunities as they arise?

Real estate requires a long-term view and is cyclical in nature. We will take advantage of opportunities when they arise as we have the right capabilities, right focus and relevant scale, and these do not happen overnight. Our focus on building robust business platforms allows us to be ever-ready to benefit from positive market dynamics and we see this as an important competitive advantage.



A case-in-point is our industrial and logistics platform. From the time we extended our capabilities into industrial and logistics in 2014, we have taken deliberate steps to build our capability in this sector into the scaled and multi-geographic platform that it is today. The same goes for our commercial and business parks platform. We reshaped and grew our portfolio through a series of strategic initiatives, most noteworthy of which was our entry into the UK business park sector in 2017.



COVID-19 accelerated many structural trends that were taking place even before the pandemic, particularly, the secular shift towards e-commerce and evolving workplace expectations. As a result of the years of effort that we had put into building our industrial and logistics unit, as well as our commercial and business parks platform, we are well-positioned to capitalise on the opportunities that have emerged.



We have a healthy development pipeline that will allow us to capture opportunities, providing visibility of delivering further growth of our industrial and logistics, and commercial and business parks portfolio. Our ability to create value through development, in addition to acquiring, operating and recycling capital well, is an important differentiator for us.

How is Frasers Property adapting to the rise in digitalisation and what are its plans in terms of driving technological innovations?

The pandemic has altered the way we live, work and play and as a result, we are seeing many forms of convergence in the real estate sector. While the constantly evolving market environment poses challenges, we have always approached challenges as opportunities to provide better solutions for our stakeholders. Matching our design and technological capabilities, fostering a culture of innovation enables us to add value to our stakeholders and stay relevant to their evolving needs, testbed new business models, and differentiate ourselves as an employer of choice.



With COVID-19 accelerating several trends, such as digital adoption and changing consumer behaviours, the need to innovate and identify new growth opportunities has become even more urgent. At Frasers Property, we recognise that innovation should be purposeful to help strengthen our business performance, enhance efficiency and heighten customer experiences. Rapid innovation in technology and new solutions can also help us to meet our net-zero carbon goal, become more agile in problem-solving, as well as incorporate features for more inclusive and purposeful places that delight our customers.



We will proactively seek new ways to stay ahead of the digitalisation curve in order to maximise the value we deliver to our customers and use data-driven insights to constantly refine our services. We remain committed to our role and purpose, and will continue to innovate, adapt and evolve to provide a smart, safe and sustainable environment for all.

What are Frasers Property's sustainability commitments?

As the impact of climate change intensifies across the world, many governments are prioritising mitigation efforts in their policies. At the same time, the COVID-19 pandemic has further accelerated the imperative for businesses to be agile and resilient in order to stay relevant.



Cognisant of this, we have leveraged the strong foundation and sustainability core we have built over the years to deliver positive impact to our stakeholders. The three pillars of our Sustainability Framework — Acting Progressively, Consuming Responsibly and Focusing on People — continue to align us with our key priorities through to 2030. Branching off from the key pillars are 13 focus areas, spanning a diverse range of interconnected environmental, social and governance topics, where we can make the biggest impact.



Over the years, we have made significant progress towards our five Group-wide goals including our commitment to attaining net-zero carbon across the entire value chain by 2050. Across our global portfolio, our businesses are on track to developing net-zero carbon roadmaps and carbon reduction targets by 2022 using a science-based approach to targets, strategies and priorities. We have also begun a Group-wide assessment of climate risks material to our business, in line with our goal to carry out climate risk assessments and implement asset-level adaptation and mitigation plans across our entire business by 2024. To date, our listed vehicles are the only real estate entities on the SGX-ST to make a commitment towards tackling all three scopes of carbon emissions. Not only will we monitor, directly reduce and offset carbon emissions from owned or controlled sources, we are also examining emissions generated indirectly as a result of our business.



We implemented a Group Responsible Sourcing Policy and a Group Corporate Functions Procurement Procedure as we recognise that our supply chain makes up a substantial proportion of our social and environmental impact, and that our position in the real estate value chain gives us a unique responsibility and opportunity to address this. We believe that adopting a partnership-based approach with our suppliers will drive positive change, strengthening our supply chain and the businesses within it, and that this will be integral to the success of our net-zero carbon goal and the resilience of our business in the long term.



Creating lasting shared value for stakeholders and communities in a responsible manner will require a sustained, collective effort from our leadership to our employees, customers, suppliers and the many partners we collaborate with and serve. We are confident that the strong shared desire of our people to create a positive impact on our business, people, society, and the planet through our properties, coupled with the structure and investments put in place, will propel our sustainability journey and help us to achieve our goals.



Click here for more information on our sustainability efforts.

 

Our latest announced financial results

How did Frasers Property Limited perform in FY22?

The Group's revenue for the financial year ended 30 September 2022 (FY22) increased 3% year-on-year to S$3,877 million, while profit before interest, fair value change, taxation and exceptional items (“PBIT”) and attributable profit stood at S$1,249.2 million and S$928.3 million, respectively.



As part of our strategic focus on growing our exposure in the industrial and logistics sector, a portfolio of industrial and logistics properties in Australia and Europe was reclassified from properties held for sale1 to investment properties2 a year ago. An unrealised valuation gain on the change in use was recognised as a result of the transfer. Excluding the impact of the unrealised valuation gain on change in use, PBIT for FY22 would have increased 16.9% year-on-year from S$1,069.0 million2 to S$1,249.2 million, while attributable profit would have increased 59.6% year-on-year from S$581.6 million2 to S$928.3 million.



Higher contributions from the Group's Singapore and Australia residential businesses supported earnings in FY22. The Group's hospitality business contributed to the improved earnings as well, as it benefitted from the gradual return of business travel and tourism following the reopening of borders. The Group's earnings were further boosted by higher fair value gains, primarily from industrial and logistics properties. This is a result of the Group's strategy over the years to increase its exposure to investment properties, particularly industrial and logistics assets, which have been benefitting from sectoral tailwinds in recent years.



Click here for Frasers Property Limited results announcements.

Why has the Board decided to propose a first and final dividend of 3.0 Singapore cents per share for FY22?

Taking into consideration the Group's financial performance, and in keeping with the Group's efforts to maintain financial flexibility amid macro developments, Frasers Property's board of directors has decided to propose a first and final dividend of 3.0 Singapore cents per share for FY22. This is up from the 2.0 Singapore cents per share declared for FY21.

How is Frasers Property Limited's balance sheet position?

Real estate is a capital-intensive industry where we see financial strength and agility as critical success factors. To support our strategic initiatives and business operations, we have always been proactively managing our capital structure while maintaining financial discipline and prudence.



As a result of the proactive steps taken to manage gearing as part of our active capital management, we ended the financial year with net debt over total equity down to around 64.8%. 74.5% of the Group's debts were fixed rate or hedged as at 30 September 2022. Consequently, average cost of debt on a portfolio basis was 2.7% per annum as at 30 September 2022, slightly higher than the 2.3% per annum as at 30 September 2021. As the Group refinances debt moving forward, higher interest rates may have a larger impact on average cost of debt on a portfolio basis.



To help mitigate the effects of foreign currency movements on Frasers Property's balance sheet, where possible, the Group funds foreign currency assets with debt in the same currency for a natural hedge. The Group's foreign currency translation reserve, which reflects the effects of unrealised foreign currency movements on the Group's net assets in the form of its long-term equity position, was lower by S$456.8 million on a net basis in FY22. It is not practicable to hedge long-term equity positions.



We have strong working relationships with our principal bankers and coupled with S$3.3 billion in cash and bank deposits, as well as unrecognised residential sales revenue of S$2.6 billion, we have ample liquidity headroom to meet our near-term and long-term operational needs.



We will maintain our focused and disciplined drive toward value creation by being astute and purpose-led in the way we manage our assets and capital.



Click here for Frasers Property Limited results announcements.

What are some key developments during the financial year?

Over the course of FY22, the Group's active management of assets and capital has enabled it to continually sharpen its competitive edge across its asset classes and geographies. As expectations of live, work, play spaces evolve and sustainability values become more entrenched in a corporate culture that is purpose-led, the Group has been taking active steps to create opportunities from these changes and convert these opportunities into sustainable earnings.



Over 80% of the Group's property assets are in recurring income-based asset classes. In FY22, the Group completed approximately 454,000 square metres of industrial and logistics, commercial and business parks, and retail development projects. The Group expects to deliver around 697,000 square metres from its non-residential development pipeline, primarily in Australia, Thailand and Vietnam, in FY23. The Group's ability to develop and create spaces that value-add within a range of asset classes will continue to support the organic growth of these asset classes.



In addition to being able to introduce innovative concepts at our developments to meet customer needs, the Group's ability to develop a range of asset classes allows Frasers Property to deliver complex, larger-scale or master-planned projects. Frasers Property will fully apply our mixed-use capabilities to the joint redevelopment of the upcoming Central Place Sydney, which received development approval in October 2022. Upon completion, the A$3 billion innovative tech hub will form a significant part of the complete transformation of Sydney's southern central business district.



Meanwhile, our Singapore suburban retail portfolio has been benefitting from a boost in tenants' sales and shopper traffic with the resumption of atrium activities and the lifting of safe management restrictions following Singapore's transition to an endemic environment.



While the hospitality sector is seeing a slow recovery progress, strong headwinds remain and the eventual recovery trajectory may be bumpy. The Group takes a long-term view of the returns from its investments and is cautiously optimistic about the long-term growth potential of the hospitality sector. Cost containment measures continue to guide operations and there are signs of improvement in the performance of the Group's hospitality portfolio in many markets.



On the residential front, we continue to adopt a prudent approach, with a strategic focus on markets with robust underlying demand. Across our markets, settlements and construction costs are key focus areas amid the increasing interest rates and inflationary environment. On the back of the Group's active management of developments, launches and settlements, the Group achieved sales of over 9,800 residential units and settlement of close to 4,000 residential units in FY22. The Group continued to selectively replenish its residential land bank in FY22, including a residential site in Queensland that can yield around 2,150 lots. Boosted by well-received sales launches such as Singapore's Sky Eden@Bedok, which achieved 75% sales on the first day of launch in September 2022, the Group's unrecognised residential revenue reached S$2.6 billion as at 30 September 2022. In addition, the Group invested in three joint venture projects in prime residential locations in Shanghai with a combined total of around 3,700 units.



The Group's disciplined capital management enables it to support its businesses. In September 2022, building on the Group's track record of active capital management and green financing, Frasers Property launched our first corporate green retail notes in Singapore, which was 1.64 times subscribed. The offer size was increased from an initial offering size of S$420 million to S$500 million on the back of strong demand. We also launched our first sustainability-linked loan and first green development loan in the United Kingdom. Since FY18, we have raised a total of over S$9 billion from green and sustainable financing.



In addition, as part of efforts to optimise its capital structure and diversify funding sources, the Group set up Frasers Property Capital to work with like-minded capital partners to leverage the Group's strategic business platforms to jointly pursue opportunities.



Click here to view a webcast of Frasers Property Limited's results briefing.

What will Frasers Property Limited focus on in FY23?

With assets under management of S$43.6 billion as at 30 September 2022, we will maintain a focused and disciplined drive toward value creation. Efforts will be concentrated on optimising the Group's portfolio to deliver performance over time, being astute and purpose-led in the way the Group's assets and capital are managed, and investing in Frasers Property's core capabilities and organisational agility.



In recognition of the Group's ESG3 efforts, Frasers Property was awarded Runner-Up for the Most Transparent Company Award 2022 in the real estate category at the SIAS Investors' Choice Awards 2022 and recognised as Equileap's top three most gender-equitable companies listed in Singapore and amongst the world's top 12%. In addition, the Group posted stronger performance in the 2022 GRESB results with over half of its relevant entities in the respective categories recording improved scores in this year's assessment.



Going forward, rising interest rates and inflation as well as volatility of foreign currency will continue to weigh on the Group's businesses. In addition, the looming spectre of global stagflation or recession coupled with prevailing geopolitical tensions will test organisational discipline, agility and resilience. Despite these challenges, opportunities from structural shifts exist, particularly from evolving expectations for integrated live, work and play spaces. The Group will carefully navigate the challenging macro developments and continue to take active steps to capture value creation opportunities.

Notes
  1. Properties held for sale are held at lower of cost and net realisable value
  2. Investment properties are stated at fair value based on independent external valuations
  3. Environmental, social and governance

Get in touch with our IR representative