Frasers Property Limited: 2025 Value Creation, Portfolio Moves, and Market Insights

Overview: Anchoring Growth and Value Continuity

Frasers Property Limited continues to drive its integrated operating model with a strong focus on value creation, operational excellence, and sustainability. The Group is reinforcing its core capabilities under the “OneFrasers” approach, boosting development exposure, recycling capital through asset divestments, and strengthening recurring as well as fee income. All these strategies are embedded in a long-term vision of creating value for shareholders while sustaining and unlocking value in a rapidly evolving real estate landscape.

Key Financial and Strategic Highlights

• Recurring Income Dominates Earnings: Recurring income underpins a robust 86% of profit before interest and tax (PBIT) for FY25, ensuring strong earnings visibility for investors.
• Significant Capital Recycling: From FY21 to FY25, the Group successfully recycled S\$1.9 billion to its listed REITs and divested S\$2.2 billion of assets to third parties and capital partners. This disciplined capital management enhances liquidity and capital efficiency.
• Development Pipeline and Asset Enhancement: The Group boasts a non-residential development pipeline of approximately 843,000 sqm GFA as at 30 September 2025, with an additional 7.1 million sqm of non-residential land bank. Moreover, around 21,700 residential units are in the pipeline across 104 active projects, providing ample future development opportunities.
• Leasing Momentum: Around 1,984,000 sqm of renewals and new leases were completed in FY25, reflecting the Group’s strong leasing capabilities and market demand.
• Asset Enhancement Initiatives (AEI): Noteworthy AEIs include the completed enhancement of Tampines 1 (with ROI outperforming its 8% target) and Alexandra Point. The Hougang Mall AEI, with over 80% lease pre-commitment and a targeted 7% ROI on S\$51 million capex, is expected to complete by September 2026.
• Residential Sales Success: Sky Eden@Bedok achieved 100% sales before Temporary Occupation Permit (TOP), while The Orie (Toa Payoh) and The Robertson Opus (District 9) enjoyed considerable buyer interest, with 94% and 55% sold respectively as of November 2025.
• Acquisitions and Pipeline Growth: Recent acquisitions include a residential site in Jing’an, Shanghai via a 14%-owned joint venture, and the Yishun 10 site, which offers long-term redevelopment potential. The Group is also poised to launch the Dunearn Road site under the Bukit Timah Turf City masterplan in 2H 2026.
• International Expansion and Synergies: In emerging markets (Thailand, Vietnam, China), the Group’s industrial and logistics platform has a combined NLA of over 4 million sqm and a substantial land bank, with major build-to-suit deals for key e-commerce clients such as Shopee (SPX).

Retail and Commercial Portfolio Strength

• Dominant Suburban Mall Owner: Frasers Property manages 12 retail malls, including 9 under Frasers Centrepoint Trust (FCT), covering approximately 50% of Singapore’s population and boasting over 316,000 sqm of NLA at more than 98% occupancy.
• Top-Performing REIT Platform: FCT, established in 2006, is among the top 10 S-REITs by market capitalization with an AUM of S\$8.3 billion.
• Best-in-Class Commercial Assets: The Group’s commercial portfolio includes award-winning properties such as Frasers Tower and Alexandra Point, both holding the rare WiredScore Platinum certifications for digital connectivity. Alexandra Technopark is recognized for its excellence in digitalization and asset management.
• Retail Centre of Excellence: The Group’s formalized Retail Centre of Excellence drives cross-border synergies, data-driven decision-making, and sustainability initiatives, enhancing long-term value and resilience across Australia, Singapore, and Thailand.

Emerging Markets and Industrial & Logistics Expansion

• Southeast Asia Focus: The group has a strategic footprint in Thailand, Vietnam, and China, with a combined NLA of approximately 4 million sqm and an expanding development pipeline.
• Strategic E-commerce Collaboration: The Group’s ongoing partnership with Shopee (SPX) has delivered multiple built-to-suit facilities across Thailand and Vietnam, with a total secured pipeline of 345,000 sqm NLA, including Shopee’s largest BTS development in Northern Vietnam (153,000 sqm).

Shareholder-Impacting Information and Potential Price Sensitivity

• High Recurring Income: The emphasis on recurring income (86% of PBIT) greatly enhances earnings stability, reducing exposure to cyclical risks and supporting steady dividends.
• Active Capital Recycling: Ongoing divestments and asset recycling activities improve the Group’s capital efficiency and ability to re-invest in higher-yielding opportunities—potentially supporting future NAV and dividend growth.
• Strong Pre-Sales and Unrecognised Revenue: The Group has S\$1.4 billion in unrecognised revenue and about 4,100 contracts on hand as at end-September 2025, providing solid forward revenue visibility.
• Strategic Partnerships and Expansion: The partnership with major e-commerce players like Shopee (SPX) and expansion into high-growth Southeast Asian markets position the Group for accelerated growth and diversification.
• Asset Enhancement Initiatives: Successful AEIs with high pre-commitment and above-target ROIs point to management’s execution strength and contribute to NAV accretion.
• Potential Price Sensitivity: Any significant underperformance in development sales, a slowdown in capital recycling, or adverse changes in market demand could affect earnings forecasts and, hence, the share price. However, the Group’s diversified and recurring-income-driven model offers some downside protection.

Additional Notes and Disclaimers

This article is based on the latest available information from Frasers Property Limited’s 2025 investor presentation. Forward-looking statements involve risks and uncertainties, and actual performance may differ materially due to various factors. Investors are advised to consult their own financial advisors before making investment decisions.

Disclaimer: This report is for informational purposes only and does not constitute investment advice. The writer accepts no liability for investment decisions based on this article. Readers are advised to perform their own due diligence or seek professional advice before acting on any information herein.

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