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

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 1H FY21?

The COVID-19 pandemic continues to have a significant impact on our performance. In 1H FY21, Group revenue decreased by 27% to S$1,566 million. Profit before interest, fair value change, taxation and exceptional items ("PBIT") and attributable profit were S$837 million and S$275.8 million, respectively.



As part of our strategic initiatives to grow our industrial and logistics asset base, a portfolio of industrial properties in Australia and Europe has been transferred from properties held for sale to investment properties. Arising from this transfer, a gain on the change in use, representing the difference between the fair value at the date of transfer and its previous carrying amount, was recognised. Excluding this gain on the change in use, PBIT and attributable profit would be S$479 million and S$23 million, respectively.



The decreases in revenue and PBIT were largely due to lower contributions from development projects in China, Australia and Thailand, as well as poorer operating results from the Group's hospitality properties in light of the COVID-19 pandemic.



Our hospitality business remains the hardest hit segment as occupancies and room rates are severely affected due to widespread travel restrictions and lockdowns. On the other hand, our industrial business segment continues to be a bright spot, benefiting from the trends of retailers moving towards omnichannel platform as well as increasing logistics demand. This has helped to partially reduce COVID-19's adverse impact on our earnings.

Why has the Board decided to continue the suspension of interim dividend?

In keeping with its efforts to enhance financial flexibility, the Board has decided to maintain the suspension of its interim dividend.

How is Frasers Property Limited's balance sheet position?

We 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 balance sheet remain healthy and we have clear visibility over future cash flows. We are well-positioned to repay or refinance all debts due in FY21.



Our net debt over total equity was 97.6% as at 31 March 2021, down from 105.0% as at 30 September 2020. We have been proactively managing our gearing ratios downwards. Taking into account the financial effects from our recent rights issue (assuming that the rights issue was completed on 31 March 2021), our pro forma net gearing would have been 84.6%. 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 embarked on several key initiatives to enhance our business resilience, build financial agility and strengthen our balance sheet. We raised approximately S$1,159 million in net proceeds through a renounceable rights issue exercise that was completed on 5 April 2021. The proceeds are expected to allow us to capture growth opportunities through acquisitions and investments in sectors that have showed resilience amidst the challenges of the COVID-19 pandemic, with a specific focus on industrial, logistics and business park assets. We also intend to use part of the net proceeds from the rights issue as seed capital to establish private funds, joint ventures or similar arrangements with partners to invest in property assets, including commercial and ancillary assets.



As announced on 19 April 2021, we have secured an A$300 million five-year syndicated sustainability linked loan in Australia, in line with our strategy to focus on green or sustainable financing as part of our commitment to be a purpose-driven organisation. This marks the fifteenth green or sustainability linked financing secured by our Group since we raised our first green loan in September 2018, bringing our total amount of green or sustainable financing secured to date to approximately S$4.7 billion.



Our REIT platforms have continued to strengthen in recent months, providing the Group with enhanced flexibility for further growth. Frasers Logistics & Commercial Trust ("FLCT") has been included as a constituent of the FTSE Straits Times Index from 13 April 2021, a testament to its increased scale as a result of the merger of the former Frasers Commercial Trust into the enlarged FLCT. In April 2021, FLCT obtained a ‘BBB+ with Stable Outlook' rating from S&P Global Ratings, which reflects S&P's view that FLCT will maintain highly predictable cash flows and good asset quality over the next 12-24 months. In addition, Frasers Centrepoint Trust embarked on the divestments of Bedok Point, Anchorpoint and YewTee Point, in line with its efforts to rebalance its portfolio to optimise returns.

What will Frasers Property focus on in 2H FY21?

While the global economic activity continues to recover from depressed levels as many governments partially ease lockdown restrictions, resurgent COVID-19 outbreaks in some countries pose downside risks. Significant uncertainties will therefore remain in the macro and business environment. Amid such volatility, it is critical to sharpen our focus on delivering long-term shareholder value by actively looking for ways to strengthen our Group's foundation and position ourselves for sustainable growth.



Following the completion of the Seaside Residences private condominium project in Singapore, which has been fully sold, we are targeting to launch a 496-unit executive condominium project at Fernvale Lane - Parc Greenwich - in the fourth quarter of FY21. We have also been granted provisional permission from the Urban Redevelopment Authority to redevelop the recently acquired Bedok Point from Frasers Centrepoint Trust into a residential development with commercial units on the ground floor. Asset enhancement initiatives for Alexandra Point commenced in February 2021 and include upgrading works that will reinforce its position as a landmark commercial building. The suburban mall business remains resilient and relevant, with tenants' sales recovery continuing to outpace shopper traffic recovery. Frasers eStore was launched in January 2021 as part of Frasers Property Retail's omnichannel approach to enhancing user experience. Strengthening of its retail management capabilities will continue to be a key focus area.



In Australia, over 1,300 residential units are scheduled for settlement over the remainder of FY21. In April 2021, Burwood Brickworks was formally recognised as the most sustainable shopping centre in the world when it achieved the Living Building Challenge® Petal Certification. In the same month, the Group launched its Ed.Square Town Centre Stage 1 mall, with specialties and food & beverage tenants joining major retailers Coles and Liquorland, which have been open for trade since September 2020. Meanwhile, stabilisation continues to progress for the Group's recently completed retail assets, Burwood Brickworks and Eastern Creek Quarter Stage 1, while active leasing efforts are underway to drive office occupancy.



On the industrial and logistics front, Frasers Property Industrial has ten assets in Australia and three in Europe spanning ~391,000 sqm in aggregate that are planned for completion over the next two years. Four of these assets in Australia have already been sold to third parties and will be delivered to them upon completion. In addition, Frasers Property Industrial replenished its land bank, with two sites in Australia totalling ~187,000 sqm, a site in Germany spanning ~79,000 sqm, and two sites in the Netherlands totalling ~204,000 sqm. On the back of strong leasing activity with renewals and new leases for ~346,000 sqm of space secured across the Group's Australia and Europe industrial and logistics portfolio in 1H FY21, Frasers Property Industrial's portfolio is approximately 98.3% occupied.



Frasers Hospitality is actively managing its portfolio and continually refining plans amid the evolving pandemic situation. Its stronger long-stay corporate and domestic travel base provides a degree of stability while it executes on marketing strategies focused on brand-building within each region, with attention particularly on a potential surge in domestic travel within China. Frasers Hospitality's productivity and cost management measures remain in place to aid business recovery. The team will also continue on their digital roadmap that would enhance current marketing platforms and improve operational efficiencies.



Health, well-being and safety will remain our top priorities as we work hard to drive operational enhancements to improve productivity and efficiency while actively managing our portfolio to optimise performance. With our focus on building business and financial resilience, and further developing core capabilities through innovation, digitalisation and sustainability, we are poised to continue growing a future-ready business.

Get in touch with our IR representative