Top 10 frequently asked questions

Top 10 frequently asked questions

When was Frasers Property Limited listed?

Frasers Property Limited was listed on the Main Board of the Singapore Exchange Securities Trading Limited (“SGX-ST”) on 9 January 2014 by way of introduction under the ticker TQ5.SI.

What are Frasers Property Limited's core businesses?

Frasers Property Limited is a multi-national company that owns, develops and manages a diverse, integrated portfolio of properties. Headquartered in Singapore, we are organised around five asset classes, with assets totaling S$27 billion as at 30 September 2017.

Frasers Property’s assets range from residential, retail, commercial and business parks, to industrial and logistics in Singapore, Australia, China, and Southeast Asia. Our well-established hospitality business owns and / or operates serviced apartments and hotels in over 80 cities across Asia, Australia, Europe, the Middle East and Africa. We are unified by our commitment to deliver enriching and memorable experiences for customers and stakeholders, leveraging knowledge and capabilities from across markets and property sectors, to deliver value in our multiple asset classes.

Frasers Property is also a sponsor of three real estate investment trusts and one stapled trust listed on the SGX-ST. Frasers Centrepoint Trust, Frasers Commercial Trust, and Frasers Logistics & Industrial Trust are focused on retail properties, office and business space properties, logistics and industrial 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.

What are Frasers Property Limited's growth strategies?

Frasers Property Limited's strategies are geared towards:

  • Achieving sustainable earnings growth through our significant development project pipeline, investment properties and fee income
  • Growing our asset portfolio in a balanced manner across geographies and property segments to preserve earnings stability
  • Optimising capital productivity through REIT platforms and active asset management initiatives
How has the geographical and segmental mix of Frasers Property Limited’s portfolio changed over the past five years?

Diversifying our earnings geographically, strengthening Frasers Property Limited’s (Frasers Property) recurring income base, and improving capital productivity are central to the Group’s strategy. Our consistent application of this strategy over the past five years has enabled us to reshape Frasers Property’s portfolio by smoothening out earnings lumpiness that is inherent in the property sector.

In FY2012, nearly 60% of our total assets were in Singapore, while our development portfolio totalled more than 50% of our assets. Today, nearly 60% of our total assets are outside Singapore, while we have more than 80% of our total assets in recurring income property segments.

Meanwhile, our portfolio has also grown exponentially over the same period, as our portfolio more than doubled from S$10.4 billion in FY2012 to S$27.0 billion, which translates to a compounded annual growth rate of 21% per annum.

Does Frasers Property Limited plan to expand into any other countries?

We seek to grow Frasers Property Limited’s asset portfolio in a balanced manner across geographies and property segments, thereby enhancing our portfolio resilience, but we cannot be in all parts of the world and in all property segments. Real estate is a capital and management intensive business where scale and depth matter. Across the Group, we have capabilities in residential, retail, commercial and business parks, industrial and logistics, as well as hospitality sectors. We are focused on leveraging core competencies across the Group to deepen our presence in markets where we already have a foothold.

How is Frasers Property Limited managing its gearing ratio while pursuing acquisitions as part of its growth strategy?

We have consistently maintained a sound financial position. Our net debt-to-equity ratio of 70.6% as at 30 September 2017 is one that we are capable of supporting, in view of the Group’s strong recurring income base and healthy level of unrecognised residential pre-sales amounting to around S$3.4 billion. We have also diversified our funding sources with the issuance and redemption of a number of instruments over the years.

What is Frasers Property Limited's dividend policy?

Our Board of Directors intends to recommend dividends of up to 75% of our net profit after tax after considering a number of factors, including our 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 our Board of Directors considers relevant, including our expected financial performance.

Since our listing in January 2014, we have paid total dividends amounting to 8.6 Singapore cents each year.

Who owns Frasers Property Limited?

The TCC Group is the majority shareholder of Frasers Property Limited (Frasers Property), holding approximately 88% of Frasers Property's issued shares as at 12 December 2017.

The TCC Group is one of the largest businesses in Southeast Asia and is engaged in a variety of industries, including real estate. It invests in and develops a wide range of real estate projects globally, including hotels, office towers, retail centres, residences, serviced apartments, convention centres, golf courses and resorts.

How is Frasers Property Limited related to ThaiBev?

Thai Beverage Public Company Limited, which is part of the TCC Group, is one of Frasers Property Limited’s major shareholders.

How is Frasers Property Limited related to F&N?

Frasers Property Limited (Frasers Property) was formerly the real estate arm of Fraser and Neave, Limited (“F&N”). Through a dividend-in-specie exercise, Frasers Property was demerged from F&N and listed by way of introduction on the Main Board of the SGX-ST on 9 January 2014. F&N is not a shareholder of Frasers Property now.

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