CGS International

May 9, 2025

Frasers Property Limited (FPL SP): 1HFY25 Earnings Surpass Expectations, “Add” Rating Reaffirmed

1HFY25 Performance Overview

• Frasers Property Limited (FPL) reported a strong 1HFY25, with EPS reaching 3.5 Singapore cents, exceeding forecasts at 74.6% of the full-year estimate. [[1]]
• The robust performance was driven by stronger contributions from Singapore and Thailand, partially offset by weaker results in Australia, China, and the hospitality sector. [[1]]
• The “Add” rating is reiterated with an unchanged target price of S\$1.41. [[1]]

Financial Highlights

• Revenue increased by 2.7% year-over-year to S\$1.59 billion. [[1]]
• PATMI (Profit After Tax and Minority Interests) surged by 147.7% year-over-year to S\$57.4 million, primarily due to higher residential contributions from Singapore, the absence of impairments, and reversal of tax provisions. [[1]]
• EPS significantly improved to 3.5 Singapore cents compared to 0.9 cents in 1HFY24. [[1]]
• Singapore, Thailand, and Vietnam showed improved year-over-year performance, boosted by residential projects in Singapore and newly completed industrial properties in Thailand. [[1]]
• These gains were partially offset by lower contributions from China and Australia, as well as the industrial and hospitality segments. [[1]]
• The net debt-to-equity ratio increased to 88.5% by the end of 1HFY25, attributed to capital expenditure in Australia, Thailand, and Vietnam, and the acquisition of a Singapore industrial property by Frasers Logistics & Commercial Trust (FLT SP). [[1]]

Strategic Focus

• FPL remains focused on executing its value creation pillars: creating, sustaining, and unlocking value to deliver long-term returns across property cycles. [[2]]

Singapore Residential Market

• Residential sales in Singapore were a significant driver, particularly from “The Orie” project. [[2]]
• Unbilled residential revenue stood at approximately S\$1.4 billion as of the end of 1HFY25, with Singapore accounting for S\$0.4 billion. [[2]]
• “The Orie,” launched in January 2025, is 89% sold to date at an average price of S\$2,704 per square foot. [[2]]
• FPL plans to launch the 348-unit Robertson Walk/Fraser Place redevelopment in 2HFY25F. [[2]]

International Residential Projects

• In Australia, 478 units were handed over in 1HFY25, with a remaining unrecognised revenue balance of S\$0.5 billion. [[2]]
• China has S\$0.4 billion of unbilled revenue. During the period, the Upview Hongqiao residential project in Shanghai was delivered, and capital was recycled through the sale of retail units at Chengdu Logistics Hub. [[2]]
• A residential site in Songjiang District was acquired in February 2025 to replenish the land bank. [[3]]
• Thailand has remaining unbilled revenue of S\$0.06 billion at the end of 1H. FPL aims to broaden its customer base with products targeting younger buyers, planning six launches with a total Gross Development Value (GDV) of S\$385.3 million in FY25F. [[3]]

Industrial & Logistics (I&L) Segment

• The I&L segment demonstrated robust performance with high occupancy rates in Europe and Australia, ranging from 95.4% to 99.5% at the end of 1HFY25. [[3]]
• Strong leasing activity was noted, with 503.1k square meters leased in 1HFY25 (2Q: 232.5k square meters). [[3]]
• Industrial properties in Thailand continue to experience high demand, with occupancy rates between 86.2% and 86.8% for warehouse and factory portfolios. [[3]]

Hospitality Business

• The EMEA (Europe, Middle East, and Africa) portfolio performed well in 1HFY25, driven by increased demand in the UK, with a 2% improvement in revenue per available room (RevPAR). [[3]]
• However, Asia Pacific RevPAR decreased by 1.9% due to the impact of foreign exchange rates, particularly the weakening of the Yen and Australian Dollar. [[4]]

Forecasts and Rating

• FY25-27F EPS forecasts are maintained, with an unchanged RNAV (Revalued Net Asset Value) of S\$2.56 and TP (Target Price) of S\$1.41, applying a 45% discount to RNAV. [[4]]
• Potential re-rating catalysts include active capital recycling and improvements in free float and trading liquidity. [[4]]
• Downside risks include slower value unlocking activities due to a weaker macro outlook and reduced demand for logistics and industrial space, which could moderate rental income growth. [[4]]

Key Financial Metrics and Ratios

The following table summarizes key financial forecasts:

Peer Comparison

The following table provides a peer comparison of Singapore developers:

ESG Analysis

• FPL received a B- score for its overall ESG performance in 2023, according to LSEG. [[3]]
• The breakdown includes Environmental (A+), Social (A+), and Governance (A+). Its ESG Controversies stood at A+. [[3]]
• FPL’s sustainability framework focuses on acting progressively, consuming responsibly, and focusing on people. Key targets include: [[3]]
  • Becoming a net-zero carbon corporation by 2050. [[3]]
  • Establishing climate-resilient adaptation and mitigation plans by 2024. [[3]]
  • Green-certifying 80% of owned and managed assets by 2024. [[3]]
  • Financing the majority of sustainable asset portfolios with green and sustainable financing by 2024. [[3]]
• The company achieved an overall improvement in the 2023 GRESB Real Estate Assessment, with its Industrial and Singapore business units recognized as Regional Sector Leaders. [[3]]

ESG Concerns

• LSEG ranked FPL’s environmental innovation low (D) and product responsibility weakened to D+ in 2023. [[4]]

ESG Strengths

• FPL ranks well for resource use (A), emissions score (A+), workforce (A-), and CSR strategy (A+). [[4]]
• FPL ranked 15th among Singapore companies and 3rd among Singapore real estate companies, according to LSEG. [[4]]
• In FY23, FPL arranged 12 green and sustainability-linked loans totaling S\$3.5 billion, bringing its green and sustainability-linked financing to S\$11.4 billion as of end-FY23. [[4]]
• As of September 2023, 51% of its owned or asset-managed operating properties and 90% of new development projects by floor area were green-certified or pursuing certification. [[4]]
• FPL’s total Scope 1 and Scope 2 location-based carbon emissions saw a 29% decrease versus its base year of FY19. [[4]]
• More than 18 GWh of renewable energy was generated on-site, a 16% increase from FY22. [[4]]
• Almost all employees are trained on sustainability. [[4]]

RNAV Breakdown

The following table summarizes FPL’s RNAV breakdown: