Frasers Property: FY21 half year results released

12 MAY 2021

Frasers Property: FY21 half year results released

Frasers Property Limited (FPL) today announced its results for the half year ended 31 March 2021. Frasers Property Industrial and Frasers Property Australia contributed positively to the Group’s overall result.



Frasers Property Industrial: continues to deliver strong results. Frasers Property Industrial, Frasers Property’s strategic business unit formed in FY2020 and led by Chief Executive Officer Reini Otter, develops, owns and manages industrial, logistics, and commercial properties in Australia and Europe.


It also provides asset and property management services to Frasers Logistics & Commercial Trust (FLCT), an SGX-listed REIT sponsored by the Group and managed by Frasers Logistics & Commercial Asset Management Pte. Ltd.

 

Frasers Property Industrial: Key performance highlights as at 31 March 2021:

  • In 1H FY21, Frasers Property Industrial achieved a profit before interest and tax of S$560.6 million.
  • Higher contributions from an enlarged REIT property portfolio boost earnings.
  • Frasers Property Industrial’s total assets under management comprises 148 properties across six countries, equating to 3.9 million sqm of GFA valued at S$9.5 billion.
  • Across Australia and Europe in 1H FY21, Frasers Property Industrial delivered a solid development forward workload driven by demand from high quality tenants:
    • Completed three assets, two in Australia which included Mazda, VIC and CEVA, VIC, and one in Europe at Egelsbach, Germany, totalling 105,000 sqm.
    • Commenced development of five assets, comprising two assets in Australia - Kemps Creek, NSW 74,000 sqm and Epping, VIC 38,000 sqm and three assets in Europe - Breda, Netherlands 11,000 sqm, Ede, Netherlands 15,000 sqm, and Roermond, Netherlands 33,000 sqm.
    • Completed divestment of four assets, two in Yatala, QLD, one at Tarneit, VIC and MQX4, NSW, comprising 116,000 sqm of lettable space; to be delivered to third parties upon completion.
  • A strategically positioned landbank of 2.9 million sqm and strong development pipeline, with developments totalling S$877 million GDV with 391,000 sqm across 13 projects planned for completion over the next two years (ten assets in Australia and three in Europe).
  • Frasers Property Industrial’s portfolio in Australia is 100% occupied while its portfolio in Europe is 96% occupied on the back of strong leasing activity, with a weighted average lease expiry in Australia and Europe of 5.4 years and 6.3 years respectively.
  • The strong results achieved during 1H FY21 by Frasers Property Industrial reflect the consolidation and implementation of its strategy to leverage its end-to-end capabilities of acquiring, operating and recycling capital, as well as creating value by capitalising on development opportunities.

 

In Australia, Frasers Property Industrial:

  • Leased 243,000 sqm, comprising 51,000 sqm of lease renewals and 192,000 sqm of new leases.
  • Commenced construction of MQX4, the first stage of the S$767 million Macquarie Exchange project in Macquarie Park.

 

In Europe, Frasers Property Industrial:

  • Secured development projects in key markets in the Netherlands and Germany, totalling 283,000sqm across three sites.
  • Realised strong leasing activity totalling 103,000 sqm of renewals and new leases.

Market overview and CEO commentary:

 

Reini Otter, Chief Executive Officer, Frasers Property Industrial is confident the company is poised to capitalise on the strong global outlook for the industrial sector by leveraging a well-positioned land bank and a strong development pipeline.



"The COVID-19 pandemic continues to accelerate existing trends such as omni-channel retailing and e-commerce, creating tailwinds for the global industrial and logistics sector. Healthy leasing demand is also being driven by the rationalisation and reconfiguration of supply chains to meet evolving customer needs and the diversification of inventory management to mitigate key market risks and onshoring of critical manufacturing," Mr Otter said.


"Frasers Property Industrial’s network is strategically positioned to support this growth. By replenishing land banks and capitalising on development opportunities for value creation across our Australian and European portfolio, we now have a robust development pipeline of S$877 million."

 

"Combining this with our multi-national reach and development expertise, we can deliver the quality places, support and competitive advantages in sustainability required by our customers to be future-ready," Mr Otter added.

Read the full 1H FY21 announcement here

 

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