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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