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 FY21?

With sector tailwinds, our industrial and logistics business continues to be a bright spot, which strongly contributed to the Group’s financial performance in FY21. Revenue increased 4.6% Y-o-Y to S$3,764 million, while profit before interest, fair value change, taxation and exceptional items (“PBIT”) rose 14.4% Y-o-Y to S$1,425 million. However, several business segments remain affected by the COVID-19 pandemic, especially our hospitality business, although it is starting to show some signs of recovery.



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. The one-time accounting gain arising from this reclassification, as well as fair value gains from our industrial and logistics properties, boosted the Group’s attributable profit in FY21. We ended the financial year with an attributable profit of S$833 million.

Why has the Board decided to propose a first and final dividend of 2.0 Singapore cents per share for FY21?

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.



We are mindful dividends need to be a function of sustainable earnings. In keeping with the Group’s efforts to maintain financial flexibility in light of the ongoing pandemic, the Frasers Property Board of Directors has decided to propose a first and final dividend of 2.0 Singapore cents per share for FY21. This is higher than the 1.5 Singapore cents per share declared for FY20. Based on core earnings, this translates to a payout ratio of approximately 20%3, including a one-time non-cash accounting gain in FY21 from change in use of a portfolio of industrial and logistics properties. The payout ratio excluding this one-time accounting gain is approximately 53%.

How is Frasers Property Limited's balance sheet position?

Real estate is a capital-intensive industry. To maximise value generated from our platforms and capabilities, we need a strong capital base and diversified capital structure to allow us to scale up and embark on new opportunities whenever the timing is right. As such, capital and liquidity management have always been top priorities for the Group.



We have a track record of taking proactive actions to optimise our capital structure. In FY21 alone, we lowered the Group’s net debt over total equity by 31.3 percentage points to 73.7% as at 30 September 2021 from 105.0% as at 30 September 2020. These numbers reflect positions at specific points in time, but importantly, we have been able to prove, repeatedly, our ability to maintain our net gearing within our comfort zone of between 80% to 100% over time. This is a clear testament of the effectiveness of our active capital management.



Managing our debt maturities profile is also an important aspect of effective capital management. We also continued to expand our sustainable financing portfolio to diversify our funding resources. With our larger recurring income base, S$3.8 billion of cash and bank deposits as well as unrecognised residential sales revenue of S$1.8 billion, we have adequate resources to repay or refinance all debts due in FY22.

What are some key developments during the financial year?

We completed around 313,000 square metres of industrial and logistics, as well as commercial and business park development projects in FY21 and currently have a development pipeline of approximately 663,000 square metres in these two asset classes, to be delivered over the next two financial years. In addition, to support our industrial and logistics pipeline and grow our investment properties portfolio, we restocked close to 1.3 million square metres of industrial and logistics land bank. Around a third of that came from an industrial site in Binh Duong Province, the Group’s first industrial project in Vietnam.



In April 2021, we completed a rights issue exercise, raising approximately S$1.16 billion in net proceeds. The use of proceeds includes funding a development pipeline that will give the Group increased exposure to industrial and logistics as well as commercial and business parks assets. The rights issue also allowed us to enhance our financial agility and resilience. To date, approximately S$171 million of the proceeds from the rights issue have been utilised.



Tapping into the rising appetite for green and sustainable financing, we continued to expand our green and sustainable financing portfolio. Beyond diversifying our funding sources, sustainable finance is incidental to our sustainability journey, and henceforth forms one of the pillars of our sustainability strategy. In FY21, approximately S$1.9 billion of green or sustainable financing was raised across the Group, including the recent issuance of the S$300 million sustainable notes4 by Frasers Property Australia in September 2021, as well as the A$300 million five-year syndicated sustainability linked loan in April 2021. To date, we have raised over S$6 billion of green and sustainability linked loans and bonds since our first green loan in September 2018.



In addition to actively managing our funding, the Group’s REITs platform is a key element in our capital management framework. In October 2020, Frasers Centrepoint Trust completed the acquisition of Frasers Property’s 63.1% stake in AsiaRetail Fund Limited for approximately S$1.1 billion5. In addition, approximately S$382 million of industrial and logistics properties were recycled through our REITs over the course of the financial year.

What will Frasers Property Limited focus on in FY22?

Amidst the prolonged uncertainties around global economic recovery, it remains critical for us to continuously strengthen our business platforms and build our core capabilities, to ensure we have the right aptitude and fortitude to ride through the challenging operating environment. We will continue to focus on investment discipline and portfolio value enhancements, and will actively assess opportunities for enlarging our development base and unlocking value where feasible.



In Singapore, the Group saw strong response to our 496-unit Parc Greenwich executive condominium (“EC”) project. Over the launch weekend in September 2021, 65% of the units were sold6, making Parc Greenwich the best-selling EC launch year-to-date. We will focus on delivering all our residential projects as we identify new development opportunities. We will also focus on the redevelopment of Bedok Point, which received provisional permission from the Urban Redevelopment Authority in February 2021. Meanwhile, the suburban mall business remains resilient through the various phases of COVID-19 control measures and is well-positioned for the eventual relaxation of curbs.



In Australia, selective replenishment of our residential pipeline remains a key focus. In FY21, in partnership with the Queensland Government, the Group entered into our first build-to-rent project for 366 apartments, target for completion in FY24. In 1Q FY22, the Group will complete the acquisition of 263,000 square metres of land bank across two sites, which will add around 1,150 units to our residential pipeline. Whilst we are mindful of the inherent lumpiness, residential development is, and will continue to be, an important part of our business. Our ability to develop a range of asset classes allows us to deliver complex, larger-scale or master-planned projects, and in many of these mixed-use projects, residential development is an integral part.



Frasers Property Industrial remains well-placed to leverage the shift towards e-commerce, with a stable development pipeline that is supported by sustained and strong demand from high quality tenants. We currently have ongoing development projects totalling S$751 million in gross development value, with gross floor area of approximately 356,000 square metres across eleven projects in Australia and Europe, scheduled for completion over the next two financial years. To further grow our development pipeline, Frasers Property Industrial added more than 800,000 square metres of land across Australia, the Netherlands and Germany in FY21.



While hospitality remains the most challenged sector, the Group’s stronger long-stay corporate and domestic travel base has provided a degree of stability as we focus on optimising business processes, cost structures and operations for enhanced agility and resilience. With market dynamics gradually improving, Frasers Hospitality will continue to execute its recovery plans that are centred around capturing and maximising returns from pockets of demand as well as a sharpened focus on customer experience. The Group has seen encouraging results in the UK. Other than hotels in the major cities that are more dependent on business travel, the Group’s Malmaison & Hotel du Vin portfolio achieved improved rates and higher levels of occupancy after the UK ended domestic lockdown restrictions in July 2021.



Amid the difficult operating environment, we will carry on building capabilities in key focus areas to reinforce the foundation and future-readiness of our businesses. Meanwhile, capital and liquidity management remain top priorities for the Group. This will underpin our ability to deliver value over the long term and through business cycles.

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. Based on core earnings before distribution to perpetual securities holders
  4. Inaugural issuance under the A$2 billion multicurrency debt issuance programme established in February 2020
  5. As per Frasers Property’s announcement dated 3 September 2020
  6. Including options signed

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