FAQs

Frequently asked questions

General

What are Frasers Property Limited's core businesses?

We are a multi-national owner-operator-developer 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. We have businesses in Southeast Asia, Australia, Europe and China, and our well-established hospitality business owns and/or operates serviced apartments and hotels in over 70 cities 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 Limited is also the sponsor of two real estate investment trusts ("REITs") and one stapled trust listed on the SGX-ST. Frasers Centrepoint Trust ("FCT") and Frasers Logistics & Commercial Trust ("FLCT") are focused on retail, and industrial & commercial properties respectively. Frasers Hospitality Trust ("FHT", 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 Land Property Development Public Company Limited ("GOLD") is the sponsor of Golden Ventures Leasehold Real Estate Investment Trust ("GVREIT"), which is focused on commercial properties. FPT, FTREIT, GOLD 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

What is Frasers Property Limited's strategic priority and how does that guide the company’s areas of focus?

Against a backdrop of challenging global economic and geopolitical conditions, we recognise change and uncertainty will be a constant. We want to thrive and we can only do so by successfully evolving and reinventing ourselves. Since Frasers Property’s listing in January 2014, we have invested in three key areas to enhance the Group’s organisational agility and tenacity:



  1. People – We believe strong leadership and a shared positive culture amongst all employees are the bedrock of an agile and adaptive organisation, so we have further built upon our organisational culture and structure.
  2. Investments and returns – We have been taking steps to enhance Frasers Property’s portfolio resilience amid elevated volatility across economies and industries. Following a series of strategic initiatives, we have been increasing the Group’s investment properties exposure in sectors supported by strong fundamentals resulting in 80% of its property portfolio generating recurring income today. In addition, the portfolio is constantly being reviewed to enhance the returns of each asset and to unlock capital and value at the right time.
  3. Customer centricity – We are focusing on building innovation as a core capability, in line with the human-centric design-thinking instinct we are infusing into our culture. This will allow us to generate not only solutions desired by our customers but also out-of-the-box real estate-related solutions that are relevant for the future.


Continuing to build our foundation to enable us to evolve and reinvent Frasers Property in the post-COVID-19 world is a key priority. We will maintain our business and financial discipline, giving equal focus to building a long-term and sustainable business and meeting immediate priorities. Through this pandemic, we have seen the importance of having resilient business platforms with the right focus, relevant scale as well as strong local expertise. We will remain focused on building the Group’s platforms to give Frasers Property a sustained competitive advantage and place us in a stronger position to deliver long-term shareholder value.

What are your growth strategies over the next five years?

As we look ahead, change and uncertainty are constants. We must be agile and tenacious as an organisation to sustain our business over the long term. Frasers Property’s business model is aimed at generating meaningful and sustainable long-term shareholder returns. Having platforms with the right focus, relevant scale, and strong local expertise have been critical to how we have navigated through business challenges. These platforms have given Frasers Property a sustained competitive advantage, while placing the Group in a stronger position to deliver long-term shareholder value. We will continue to strengthen the foundation needed for Frasers Property to be a purpose-driven company.



Over the next five years, we will be focused on:

  • a rigorous and disciplined approach towards active management of the Group’s portfolio to ensure that strategic platforms and assets are optimised for the long-term benefit of shareholders – and capitalising on opportunities for value creation;
  • maintaining financial discipline and effective capital management; and
  • operational enhancements that drive productivity and efficiency.


The COVID-19 outbreak has accelerated many changes that were happening even before the pandemic. We will continue to enhance Frasers Property’s agility and customer centricity by further developing capabilities needed in this new environment. Sustainability, innovation and digitalisation are focus areas - even as we work towards recovering from the effects of the pandemic. In addition, we will continue to evolve and reinvent the organisation and develop our people to better align with and support our strategic objectives, whilst enhancing productivity and exercising financial prudence to further strengthen the Group’s base.

Frasers Property has undertaken a series of corporate developments around its Singapore retail, Industrial & Logistics and Thailand businesses in the past few years. Can you share more about the thinking behind these developments and how these businesses are positioned amid the COVID-19 pandemic?

From Frasers Property’s listing on the SGX-ST in January 2014, the focus of the corporate developments in the first four years was on expansion and diversification. Thereafter, we have been on a journey to consolidate Frasers Property’s businesses while unlocking synergies within the Group through the creation of focused and scalable business platforms. Much of the corporate developments undertaken were around our Singapore retail, industrial & logistics, and Thailand businesses.



Singapore retail
We have built a substantial portfolio of suburban malls that are well located above or next to transportation nodes around Singapore and benefit from having a high proportion of tenants who provide essential services valued by consumers, factors which contribute to portfolio resilience. We are dedicating resources to be more responsive and agile in the fast-evolving retail landscape and to strengthen our retail footprint in Singapore.



Although Singapore retail may continue to experience the lingering effects of the pandemic for some months to come, we believe the fundamentals of Singapore suburban retail remain intact. With safe management measures in place, footfall at our suburban retail malls is returning. The recovery in tenants’ sales has outpaced the recovery in footfall and attests to the resilience of suburban malls given their focus on non-discretionary spending.



Click here for more information on Frasers Property Singapore.



Industrial & Logistics
Frasers Property entered this sector in 2014 through the acquisition of our Australia business unit. Since then, we have scaled up our investment in this sector significantly through a series of strategic acquisitions. Many of our industrial & logistics customers are global, and a multi-national industrial-focused business unit was a logical next step for us to manage our exposure outside Thailand holistically to better build upon natural synergies.



Industrial & logistics, with strong structural fundamentals and longer weighted average lease expiries, is a sector that continues to be stable amid the pandemic. In fact, strong tenant resilience was exhibited with minimal rental support required.



Click here for more information on Frasers Property Industrial.



Thailand
Frasers Property first entered the Thailand market in a meaningful way through the acquisition of an approximate 40.0% stake in Golden Land Property Development Plc in 2016 and from that first entry, we expanded into the industrial & logistics segment in 2017 via the acquisition of a 41.0% stake in TICON Industrial Connection Plc, which was subsequently renamed Frasers Property Thailand. We recognised a country-focused business unit will give us a broader and deeper set of expertise to better unlock the value of our landbank and property holdings in Thailand. Together with a larger network across the country, we can also offer our customers an enhanced value proposition.



The combination of Frasers Property Thailand and Golden Land in 2020 created a leading fully integrated real estate business that is among the top five property developers in Thailand by asset size. Its scaled, balanced and diversified portfolio spanning the residential, industrial & logistics, commercial, retail and hospitality sectors has helped cushion the economic impact of the pandemic. A new integrated structure has also been put in place to enable Frasers Property Thailand to better drive business synergies and capture opportunities from having an integrated business. This is in addition to the ongoing focus to leverage Frasers Property’s collective experience for growth. In particular, tapping on Frasers Property Industrial’s existing strong industrial sector connections in Europe and Australia can better position Frasers Property Thailand to benefit from the rising demand for industrial properties in Thailand, due to supply chain reconfigurations amid the US-China trade war and COVID-19-related disruptions.



Click here for more information on Frasers Property Thailand.

How does Frasers Property view technology and digitalisation in relation to how it innovates to better respond to the disruptions it is seeing in its environment?

The pandemic has accelerated the pace of demand shifts in terms of customer requirements and behavioural changes. We are seeing a convergence of sectors, which makes our mixed-use and placemaking capabilities even more valuable. Retail and industrial are converging in some ways by virtue of e-commerce. Residential, commercial and retail are converging because working from home has become a ‘new normal’ and the future of work has rapidly evolved. Many of these forms of real estate sector convergence existed before COVID-19 but have since gathered speed.



As sectors converge and customers’ expectations evolve, we must continue to adopt a human-centric design thinking ethos to innovate and further enable Frasers Property and our people to add value through real estate spaces and services, be it through strengthening revenue, enhancing efficiency for customers and the business, or heightening real estate users’ experiences. While innovation can be broad in its approach, a digital mindset is imperative given the digitally-savvy world we live in today. With that in mind, we have launched a number of initiatives with the aim of creating an ecosystem that aggregates property technologies, or Proptech.



The Proptech initiatives we have rolled out result from our focus on the digital customer experience and how we can innovate with our customers to provide better experiences and services. Layered on that is the leveraging of data-driven insights to constantly refine our offerings. We are also actively exploring outside-in innovation, which means keeping pulse with global innovation, new technology and new business models, and constantly challenging ourselves to adapt and adopt new ideas.



Click here for more information about Frasers Property’s Proptech initiatives in the commercial space.



Click here for more information about Frasers Property’s Proptech initiatives in the retail space.



The many digitalisation initiatives we kick-started before the pandemic have put us in good stead during this period. Moving forward, we believe we can play a key role in the creation of a Proptech ecosystem. We will be looking to adopt and invest in technology solutions that not only address industry disruption, but can complement the business and extend new strategic capabilities.

What is Frasers Property Limited doing to ensure that its business is sustainable?

While the world has developed and evolved to be a better place to live and work in, we continue to face significant environmental challenges brought upon by climate change, and social issues are becoming more pronounced. It has become increasingly clear that Frasers Property must not only deliver financial performance, but we also need to understand our role in society and show how we make a positive contribution.



A sense of purpose can help us better achieve our full potential. Delivering sustainable impact – for our planet, people and communities – has never been more important. We want to continue to demonstrate progress. Hence, we put sustainability at the core of our business and our purpose is to inspire experiences and create places for good with quality products and services. This allows us to create lasting shared value, for our people, the businesses and communities we serve, within the ecosystem in which we will live for generations. While pursuing our business goals, we aim to demonstrate our commitment to positively impact the environment and society by acting progressively, producing and consuming responsibly, and focusing on people.



Raising sustainability ideals across our value chain, in partnership with our stakeholders, to build a more resilient business aligned with national and international sustainability standards and regulations, is a key aspect of how we embed purpose into our business. With that in mind, we are working on our roadmap to incorporate sustainability practices throughout the property lifecycle – from investment to design, development and operation – with an emphasis on carbon reduction, energy efficiency and sustainable technology.



We have a sustainability framework that sets out our sustainability priorities through 2030. It is driven by three pillars, namely Acting Progressively, Consuming Responsibly, and Focusing on People. These three pillars form a multi-disciplinary approach that recognises 13 corresponding environment, social and governance focus areas.



The sustainability framework also provides common ground upon which we will direct our efforts to manage and deliver our sustainability priorities across the value chain, while providing individual business units and listed REITs with sufficient flexibility to develop and implement strategies and action plans tailored to their business model, operations and plans.



Click here for more information on our sustainability efforts.

 

Our latest announced financial results

How did Frasers Property Limited perform in FY20?

We have done a lot of work around building the foundation of a business that aims to deliver value over the long-term and through market cycles. As a result of this groundwork, while our earnings in FY20 have been impacted by the COVID-19 pandemic, there were bright spots in certain segments, particularly industrial and logistics, Thailand and, to a certain extent, China. Positive contributions from these segments helped to partially offset the adverse impact of the pandemic. Our hospitality business has unsurprisingly been hardest hit, registering significantly lower contributions and accounting for the bulk of the impairments and fair value losses we recorded. The extension of tenant support across the Group has also affected our bottom line.



While there are near-term challenges, Frasers Property's fundamentals remain intact. Recognising that we must continue to respond with agility and demonstrate tenacity in order to sustain growth over the long term, we have put in place strong leadership, competent teams and robust processes across our business, and built up a resilient, well-diversified portfolio over the years. We will continue to build upon our foundation to enable the Group to evolve in the post-COVID-19 world.

Why has the Board decided to propose a 1.5 Singapore cents final dividend?

As previously disclosed in the introductory document in connection with the listing of Frasers Property (then known as Frasers Centrepoint) on the Singapore Exchange, we intend to recommend dividends of up to 75% of our net profit after tax, after considering factors such as our level of cash and reserves, operations, business prospects, capital requirements and surplus, financial condition, contractual restrictions, the absence of any circumstances which might reduce the amount of reserves available to pay dividends, and other factors relevant to the Board (including our expected financial performance).



In view of the COVID-19 pandemic's impact on earnings and in keeping with our conservation of financial resources given the unprecedented crisis and uncertainties ahead, for FY20, the Board has proposed to pay out a dividend of 1.5 Singapore cents per share to be approved at a general meeting of shareholders to be held in January 2021.

How is Frasers Property Limited's balance sheet position?

Our balance sheets remains healthy. We currently have cash and bank deposits of around S$3.3 billion, sufficient unutilised banking facilities, as well as unrecognised residential sales revenue of S$1.4 billion. We have sufficient liquidity to meet our obligations and remain well within our debt covenants.



Our net debt over total equity was 105.0% as at 30 September 2020. Taking into account Frasers Centrepoint Trust's acquisition of our stake in AsiaRetail Fund Limited and its related equity fund raising, which were completed on 27 October 2020, our pro forma net gearing would have been 95.7%. Our ability to bring down our net gearing to our comfort range of between 0.8x and 1.0x is a clear testament of the effectiveness of our active capital management strategy.

What are some key developments during the reporting period?

We announced several corporate developments across our various business units in FY20, in line with our strategy to build scalable platforms. In Singapore, we formed Frasers Property Retail, a retail-focused platform with S$9.1 billion of assets under management (“AUM”), in October 2019, and acquired property manager AsiaMalls Management in February 2020. In addition, we formed Frasers Property Industrial, a multi-national integrated industrial and logistics strategic business unit with S$8.7 billion of AUM, in October 2019. In January 2020, we expanded our business park portfolio in the UK via the acquisition of the Lakeshore Business Park in Heathrow, and in September 2020, Frasers Property Thailand ("FPT") merged with Golden Land Property Development Public Company Limited after the latter's delisting, creating a leading fully integrated real estate platform in Thailand.



Our REITs have scaled up as well following a number of transformative transactions. Frasers Logistics & Industrial Trust merged with Frasers Commercial Trust in April 2020, and created Frasers Logistics & Commercial Trust (“FLCT”), which has S$6.2 billion of AUM and is well-positioned to provide synergistic end-to-end enterprise solutions to a wider customer base. More recently, Frasers Centrepoint Trust (“FCT”) entered into a sale and purchase agreement for the acquisition of our stake in AsiaRetail Fund Limited (“ARF”). Following the completion of the acquisition on 27 October 2020, FCT is now one of Singapore's largest suburban mall owners. As a result of both transactions, FLCT and FCT are now among the top 10 listed REITs in Singapore.



Assets valued at around S$2.4 billion were recycled through our REITs over the course of the financial year, supporting the growth of the REITs whilst bolstering our balance sheet. These comprise the divestment of our stake in ARF to FCT, our stake in three properties to FLCT; and FPT's divestment of factories and warehouses to Frasers Property Thailand Industrial Freehold & Leasehold REIT. This virtuous cycle of growth and value creation has featured prominently in our capital management strategy since Frasers Property's listing in January 2014, with assets valued at a total of around S$7.7 billion recycled through our REITs over the past seven financial years.

What will Frasers Property focus on in FY21?

We continue to maintain a high level of business and financial discipline even as we continue to manage the operational challenges posed by the COVID-19 pandemic. Our overall business and financial position remains healthy, and the business platforms that have been built up over the years will position Frasers Property in good stead to grow in a post-COVID-19 environment.



In Singapore, Seaside Residences is on schedule for completion in end 2020, and planning is progressing well for the Fernvale Lane executive condominium site, which is expected to yield 496 units. The suburban malls business continued to demonstrate its resilience and relevance, with recent tenant sales having recovered to near pre-COVID-19 levels, outpacing the recovery of shopper traffic. Following the acquisition of AsiaRetail Fund's property management company in February 2020, Frasers Property Retail, with its enlarged retail management platform, is even better positioned to meet the needs of the portfolio's catchment population of more than three million Singapore residents.



Frasers Property Australia has around 1,955 residential units due for settlement over the coming financial year, of which around 89% have already been sold. On the retail front, it completed three retail assets this year, of which one was sold to a third party. Burwood Brickworks and Eastern Creek Quarter Stage 1 will both be retained on the Group's balance sheet, pending stabilisation. Ed.Square Town Centre, which partially opened this year with major retailers like Coles and Liquorland already operational, is on track for full completion next year. These are all super neighbourhood centres that are weighted towards the non-discretionary sector and anchored by major supermarket tenants.



Frasers Property Industrial (“FPI”) has eight new assets spanning more than 204,000 sqm across Australia and Germany that are planned for completion over the next two financial years. Over the course of the year, FPI replenished its land bank, adding approximately 700,000 sqm in Australia and 40,000 sqm in Germany, bringing its total industrial land bank to 2.8 million sqm. Its industrial investment portfolio in Australia is fully occupied while its portfolio in Europe is 99% occupied, on the back of strong leasing activity with renewals and new leases for over 710,000 sqm of lettable area secured during the year.



Frasers Hospitality is actively capitalising on the uptick in domestic travel in various markets amid the gradual easing of some pandemic-related restrictions, while its base of long-stay corporate guests in China and Southeast Asia provide some stability. It added four new properties over the course of FY20 to capture opportunities from the resumption of domestic tourism. In the UK and Europe, it is cautiously calibrating the re-opening of its properties alongside possible cost containment strategies to account for prevailing COVID-19 related measures imposed by governments.



The COVID-19 pandemic has accelerated the pace of demand shifts as customer requirements and behaviours change to adapt to the new norm. As real estate segments converge amid trends such as the rise of e-commerce and working from home, our capabilities in mixed-use property development and management, as well as placemaking are becoming more important. To add further value, we have been accelerating our digitalisation initiatives to create an ecosystem that aggregates property technologies and value-added services. We will continue to put resources into meeting these demand shifts to navigate through to recovery.

Get in touch with our IR representative