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 1H FY22?

The Group's financial performance for 1H FY22 was supported by our investment properties portfolio, which continued to deliver relatively stable returns. Revenue rose 7.5% to S$1,683.6 million, while profit before interest, fair value change, taxation and exceptional items (“PBIT”) and attributable profit was S$526.1 million and S$158.2 million, respectively.



In the last financial year, a portfolio of industrial and logistics properties in Australia and Europe was reclassified from properties held for sale1 to investment properties2, which is in line with the Group's strategy to grow its industrial and logistics asset base. A gain on the change in use was recognised as a result of the transfer, which boosted the Group's financial results in the preceding financial year. Excluding the impact of the gain on change in use, PBIT for 1H FY22 would have increased 9.9% year-on-year from S$478.9 million, while attributable profit would have jumped from S$22.5 million.



The improved earnings excluding the gain on the change in use were mainly due to higher contributions from our hospitality business following the gradual return of domestic travel in the UK, which led to an improvement in occupancies and room rates across our Malmaison Hotel du Vin portfolio. Higher contributions from residential settlements in Vietnam contributed to the improved earnings as well.

How is Frasers Property Limited's balance sheet position?

The Group is cognisant that, against a backdrop of rising geopolitical tensions as well as increasing inflation and interest rates, there remains significant headwinds ahead. The Group will maintain financial discipline and strengthen its capital structure, with a focus on green and sustainable financing, such as the Group's first sustainability-linked loan and first green development loan secured in the UK in January and March 2022, respectively.



Our net debt over total equity was 69.6% as at 31 March 2022, down from 73.7% as at 30 September 2021. 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 to the effectiveness of our active capital management.



Managing our debt maturities profile is also equally important, especially in a rising interest environment. With a high proportion of fixed rate debt at 76.2% as at 31 March 2022, the Group is well-positioned to cope with rising interest rates. Overall, the Group has ample resources to repay or refinance all debts due in FY22, supported by a larger recurring income base, cash and bank deposits of S$3.9 billion and unrecognised revenue of S$2.4 billion.

What are some key developments during the reporting period?

Over 80% of the Group's property assets are in recurring-income based asset classes, which provides a firm earnings foundation. Adopting a rigorous and disciplined approach to drive investment portfolio income, we achieved approximately 724,000 square metres of renewals and new leases in total in 1H FY22 across its investment properties portfolio.



Fuelled by the proceeds from the rights issue concluded in April 2021, the Group has been steadily growing its industrial and logistics development pipeline. As at 19 April 2022, the Group has utilised more than S$500 million out of the allocated S$700 million. We have 15 development pipeline projects across Australia and Europe with a total gross development value of S$1.2 billion to be delivered over the next 18 months. We have also been growing the Group's pipeline of industrial and logistics development projects in Thailand and Vietnam, and recently completed the acquisition of the second tranche of land at the Group's first industrial development project in Vietnam - Binh Duong Industrial Park.



Our development capabilities enable Frasers Property to deliver innovative, value-adding properties. Beyond the built-to-suit industrial and logistics developments tailored to the specifications of customers that we are known for, under the premium estates concept launched in November 2021, new industrial and logistics estates will be developed to industry-leading building design standards and guidelines that prioritise efficiency, sustainability, health and wellbeing. The first premium estates project will be delivered in Australia from FY23. In anticipation of growing customer demand for flexible workspaces, we have also introduced core and flex commercial space solutions as part of our focus on real estate as a service. To be completed by end FY22, Silom Edge is a mixed-use ~21,000 sqm net leasable area commercial development that is designed from the onset to offer core and flex commercial space. The Group's first commercial development in central London, The Rowe, will also be completed within FY22.



Meanwhile the Singapore suburban retail portfolio, which has demonstrated sector resilience over the course of the pandemic, is well-positioned to benefit from Singapore's decisive move towards an endemic environment. In particular, the resumption of atrium sales and lifting of safe management restrictions are expected to boost tenant sales and shopper traffic.



The pause in global travel gave us the opportunity to finish the work on enhancing Frasers Hospitality's organisational structure. With geographical clustering and improved cost structures, the Group's hospitality business can now be more responsive to changing market dynamics as the world progressively re-opens.



Through selective residential pipeline replenishment and a strong focus on markets with deep underlying demand, we were able to maintain steady progress in terms of project development sales and settlements of the Group's residential projects in Australia, China, Singapore and Thailand. As at 31 March 2022, the Group's residential pipeline is in excess of 18,000 units. Pre-sales from our projects, which reached S$2.4 billion3 at the end of 1H FY22, support the Group's earnings visibility.



As part of the Group's efforts to build upon its foundation, we recently strengthened our core with the addition of Soon Su Lin, as Chief Executive Officer for Frasers Property Singapore, to the leadership team.

What are some notable achievements on the sustainability front in 1H FY22?

Sustainability is core to our organisation and our businesses, and remains a priority area.



Over the course of 1H FY22, we received several accolades. We are proud to be recognised as one of Singapore's best employers in 2022, according to The Straits Times and Statista. This accolade speaks to the Group's focus on people. Some recent initiatives on this front include enhancements to parental leave policy, flexible working arrangements and employee assistance programmes to support employees' wellbeing. Meanwhile, Frasers Property Thailand received recognition for continuous innovation and was conferred the Thai Digital Champion for Rapid Business Digitisation, and “Funnel” app winning “GOLDPLUS” in BCA Integrated Digital Delivery Project Category Awards.



Consuming responsibly is a key pillar in our sustainability framework. The Group signed the Supply Agreement for Singapore's first of its kind brownfield district cooling solution, where two properties with superior energy efficiency factors will serve as injection nodes. In Australia, we continued to enhance our renewable energy supply and generation capabilities. Through Real Utilies, the Group's wholly-owned licensed energy retailing business in Australia, we will supply carbon-neutral energy to a residential development project, Minnippi Quarter in Brisbane, via the installation of a new embedded network, and to Mazda's industrial facility in Melbourne via a 900kW solar system.



One of the Group's sustainability goals is to finance the majority of the Group's new sustainable asset portfolio with green or sustainable financing by 2024. We have secured over S$7.5 billion of green or sustainable financing across the Group since our first green loan in September 2018. Earlier this year, we secured the Group's first sustainability-linked loan and first green development loan in the UK.

What will Frasers Property focus on in 2H FY22?

The Group is cognisant that, against a backdrop of rising geopolitical tensions as well as increasing inflation and interest rates, there remains significant headwinds ahead. We have been able to leverage our solid foundation to continue delivering earnings even as we navigated business challenges. This is a result of years of work to strengthen our core - prioritising portfolio resilience through exposure in sectors, such as industrial and logistics, and geographies supported by steady fundamentals, building upon our organisational structure and investing in our people and processes.



Supported by our solid foundation that provides clear earnings visibility, the Group is ready to take advantage of the next wave of opportunities. Leveraging the Group's multi-asset class capabilities and portfolio with S$42.8 billion4 of assets under management, we are well-placed to deliver real estate offerings and services that meet evolving customer demands amid structural changes as well as the entrenchment of environmental, social and governance (ESG) values in decision making among multiple stakeholders.

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. Includes the Group's effective interest of joint operations, joint ventures, associates and project development agreements
  4. Comprises property assets in which the Group has an interest, including assets held by its REITs, joint ventures and associates

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