Frasers Property announce FY23 results

15 November 2023

Frasers Property Industrial: High-quality assets, leasing growth and robust pipeline delivers solid performance 

 
Frasers Property Industrial: Key performance highlights as at 30 September 2023:

In FY23, Frasers Property Industrial achieved a profit before interest and tax (“PBIT”) of S$352.5 million (A$392.3 million & EUR 244.3 million). 
 

  • Frasers Property Industrial’s assets under management valued at S$11.0 billion (A$12.5 billion & EUR 7.6 billion) 

  • Frasers Property Industrial’s total assets under management comprises 165 completed properties across five countries, equating to 4.3 million sqm of net lettable area (NLA): 

    • Australia:
      • Non-REIT portfolio consisting of 36 completed assets with a total value of S$2.0 billion (A$2.3 billion & EUR 1.4 billion)    

    • Europe:
      • Non-REIT portfolio consisting of 22 completed assets with a total value of S$0.8 billion (A$0.9 billion & EUR 0.5 billion)
         
  • Frasers Property Industrial’s multinational network and expertise supports customers across geographies, with continuing high-quality tenant demand driving a stable pipeline of development projects: 

    • Strategic landbank totalling 2.4m sqm secures robust development pipeline

    • Strengthened pipeline with 17 assets under development totalling ~609,000 sqm planned for completion in FY24 (13 assets) and FY25 (4 assets).
      • VIC totalling ~132,000 sqm across four projects 
      • NSW totalling ~250,000 sqm across eight projects, mainly from ‘The YARDS’ development in Kemps Creek 
      • QLD totalling ~68,000 sqm across two projects
      • The Netherlands totalling ~81,000 across two projects
      • Germany totalling ~78,000 sqm in The Tube, Dusseldorf
         
    • Acquired four greenfield development sites totalling ~388,000 sqm across Australia and Germany in FY23
      • Including 56,600 sqm acquired in Landsberg, Germany, in Q4 FY23
      • Including Australia sites of ~18,000 sqm in Horsley Park (NSW), ~48,000 sqm in Stapylton (QLD and ~337,000 sqm in Craigieburn (VIC). 
         
    • Completed seven development projects ~174,000 sqm across Australia in FY23. 
       
  • Realised strong leasing activity with renewals and new leases in FY23 totalling ~843,000 sqm, comprising ~696,000 sqm in Australia and 147,000 sqm in Europe in FY23.

  • Australian portfolio is 100% occupied with a weighted average lease expiry (WALE) of 5.3 years and 97.5% occupancy in Europe with 5.3 years WALE.  

  • The solid FY23 performance by Frasers Property Industrial reflects Frasers Property Group’s continued strategy to leverage its multi-national platform and deep capabilities across development, and asset and investment management in the industrial and logistics sector. This positions Frasers Property Industrial to create high-quality, sector-leading and sustainable real estate assets.  

  • Frasers Property Industrial has received approval from the Science Based Targets initiative (SBTi) for its near-term emission reduction targets and has received the first 6 Star Green Star Communities rating for an industrial estate in Australia at The YARDS in Western Sydney.

     

 

Market overview and CEO commentary:

 

Reini Otter, Chief Executive Officer, Frasers Property Industrial says the business is well positioned going in to FY24 with high-quality assets and capabilities that can take advantage of customer demand in key markets.

 

“We have a robust pipeline of developments and high-quality existing assets. Our earnings remain strong despite a high inflation economy. Our business model remains resilient, with sustained low vacancy rates supporting steady rental growth, which will continue to drive core earnings. 

 

“The supply of industrial and logistics developments is expected to be constrained by land scarcity and increased regulation, especially in prime locations, creating a supply-demand imbalance that will continue to support rental growth and low vacancy.  

 

“At the end of the financial year, Frasers Property Industrial portfolio size remained stable at S$11.0 billion (A$12.5 billion & EUR 7.6 billion) and our strategic landbank held firm at 2.4 million sqm – giving us a competitive advantage to capitalise on market conditions. 

“We had seven development projects complete during FY23 with three of those completing recently in Q4. Our pipeline is also healthy with 17 assets under development totalling ~609,000 sqm planned in FY24 and FY25.”

 

Mr Otter added that the business will continue creating long-term value as a resilient, integrated and multinational business that is focused on customer-centricity and sustainability. 

 

“We continue to achieve industry-leading sustainability outcomes and embrace a forward-thinking approach to ensure that our assets are future-proof, innovative, and cost-efficient. 

 

“This sustainable innovation was demonstrated through our achievement of the first-ever 6 Star Communities rating from the Green Building Council of Australia for an industrial estate, and by maintaining our leadership position in the GRESB results.

 

“Our solar panel installation in Europe, the UK and Australia totalling 24 MW not only reduces our own environmental footprint, but also contributes significantly to our customers’ sustainability goals too.

 

“This year, we have also transformed the design of our buildings to create spaces that not only enhance business productivity but also prioritise the well-being of employees. We're proud to have delivered 13 buildings featuring this new design, which seamlessly integrates elements like natural light, outdoor spaces, and lush greenery into our premium estates.

 

Please refer to the attached announcement from Frasers Property Limited for further details: https://www.frasersproperty.com/press-releases/2023/frasers-property-limited-reports-higher-fy23-pbit-of-s-1-313-2-m

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