Frasers Property Limited (FPL) has announced its results for the full year ended 30 September 2022 (“FY22").
Frasers Property Industrial: Key performance highlights as at 30 September 2022:
In FY22, Frasers Property Industrial achieved a profit before interest and tax (“PBIT”) of S$460.4 million (A$473.0 million). Lower contributions were due to the absence of an accounting gain of S$355.7 million on the change in use of a portfolio of industrial assets transferred from properties held for sale to investment properties in FY21.
- Frasers Property Industrial’s assets under management valued at S$11.2 billion (A$12.2 billion).
- Frasers Property Industrial’s total assets under management comprises 161 completed properties across six countries, equating to 4.2 million sqm of net lettable area (NLA):
- Australia:
- Non-REIT portfolio consisting of 31 completed assets with a total value of S$1.8 billion (A$2.0 billion).
- Europe:
- Non-REIT portfolio consisting of 25 completed assets with a total value of S$1.0 billion (A$1.1 billion).
- Frasers Property Industrial’s multi-national expertise delivered a network to support customers’ businesses across geographies, with continuing high-quality tenant demand driving a stable pipeline of development projects:
- Completed seven development projects, two in the Netherlands and five in Australia in FY22 with combined GDV of S$376 million (A$409.2 million).
- Roermond and Breda, the Netherlands, totalling ~45,000 sqm.
- Braeside, Epping and Tarneit (two projects) in VIC and Yatala in QLD totalling ~185,000 sqm for customers IVE Group, Caravan Crusader, Intel Engineering, and Vida XL’s HB Commerce.
- Continued to bolster development pipeline with 15 projects totalling 437,000 sqm, 14 in Australia and 1 in Europe, with a GDV of S$1.3 billion (A$1.4 billion) planned for completion in the next two years.
- A strategically positioned landbank totalling 2.7m sqm across Australia and Europe, with 516,000 sqm of land acquired across four sites in Australia.
- Realised strong leasing activity in FY22 with 799,000 sqm of renewals and new leases, comprising 463,000 sqm in Australia and 336,000 sqm in Europe, respectively. Australian portfolio 100% occupied with a weighted average lease expiry (WALE) of 4.8 years and 97.8% occupancy in Europe with 5.9 years WALE.
- The strong FY22 performance by Frasers Property Industrial reflects the 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 strongly positions Frasers Property Industrial to create high-quality, sector-leading and sustainable real estate facilities for the market.
Market overview and CEO commentary:
Reini Otter, Chief Executive Officer Frasers Property Industrial, says that the business’ long-term value creation strategy has driven its leading results performance and positions it well to navigate market conditions ahead.
“The industrial and logistics sector in Australia and Europe continued to outperform the broader property market in the past year. Our strategic approach to capital deployment has allowed us to leverage these favourable market conditions to expand the scale of our business and continue to deliver strong results.
“In the past year the Frasers Property Industrial portfolio has grown to S$11.2 billion (A$12.2 billion) and the current development pipeline remains stable at S$1.3 billion (A$1.4 billion). The landbank has increased to 2.7 million square metres.
“The shortage of zoned land, population growth, increasing urbanisation, evolution of supply chains and ongoing e-commerce growth continues to tighten industrial vacancies to historic lows. Strong demand for new and existing facilities is driving healthy rental growth which is a strong contributor to industrial valuations as the current yield compression cycle starts to moderate.
“We continue to create long-term value as an integrated, multi-national and resilient business prioritising customer-centricity and sustainability. Strategically, we are well positioned to leverage increased customer demand for high-quality spaces in our markets and will be prioritising the development of our strategic landbank to capitalise on our end-to-end ability to acquire, develop and manage assets.”
Please refer to the attached announcement from Frasers Property Limited for further details: https://www.frasersproperty.com/press-releases/2022/november/FPL-reports-928-million-attributable-profit-FY22
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