Frasers Property Limited announces results for FY23
Frasers Property Limited (FPL) has announced its results for the full year ended 30 September 2023 (“FY23"), reporting profit before interest and tax of S$1,313.2 million.
Frasers Property Australia reported profit before interest and tax of S$75.5 million (A$84.1 million) for FY23. Key highlights for the year include:
- In FY23, 761 residential units were released for sale and 818 were sold.
- 1,517 residential units were completed and settled in FY23.
- S$0.7 billion (A$0.8 billion) in unrecognised revenue as at 30 September 2023.
- Residential development pipeline comprises ~11,000 units as at end FY23.
- Investment portfolio of S$2.0 billion (A$2.3 billion) with a weighted average lease expiry of 3.6 years and occupancy at 70.5%.
- Improved Average Occupancy Rate year-on-year for our retail assets.
- Maintained the highest possible five-star GRESB rating for the seventh consecutive year.
- Frasers Property became entirely financed by sustainability-linked sources in Australia in FY23.
- Higher contribution from Real Utilities, driven by increasing wholesale electricity prices and a growing customer base, which currently stands at ~2,200 customers.
Anthony Boyd, Chief Executive Officer, Frasers Property Australia says the company has successfully navigated dynamic market conditions in Australia in FY23.
“Sharp increases in interest rates, as experienced throughout the year, typically weaken residential demand and prices, however the market continues to experience a housing shortage with strong demand from population growth driven by significant immigration,” says Mr Boyd.
“Demand for office space however remains subdued and in retail, with the rising cost of living impacting discretionary spending, our strong representation of non-discretionary tenants is underpinning the robust performance of our shopping centres.
“Australian Governments are focused on the need to increase housing supply significantly across geography and typology, including affordable and community housing and build-to-rent projects. The National Housing Accord was created in 2022 to bring together all levels of Government to address the housing supply shortage, but the persistent challenges faced by the building industry are affecting its targets.
“Against this backdrop, large-scale, top-tier developers like Frasers Property Australia, with the proven ability to deliver mixed-use, sustainable communities and partner with governments, are in a prime position to contribute. Our projects such as Midtown MacPark in Sydney and Brunswick & Co. in Brisbane reinforce our reputation as a quality partner of governments, capable of delivering complex projects involving multiple stakeholders.
“As we look forward to celebrating our 100th anniversary in Australia in FY24, we are proud that 24% of our total residential sales in FY23 were to repeat and referred customers through our Care & Rewards Program. This level has been consistent over the past few years and reflects our strong focus on customer experience, creating connection and a sense of belonging in our communities.“To this end, we have partnered with Ending Loneliness Together, a national network that addresses loneliness as a critical and current issue with significant social and economic consequences. This commitment has already resulted in the production of ‘The Great Separation’, a ground-breaking documentary exploring the causes and impacts of loneliness, and the potential solutions to this widespread issue.
“We expect the partnership to present further opportunities for us to incubate ideas and pilot programmes that enhance connection on our communities and contribute to reducing the incidence of loneliness across Australia,” Mr Boyd says.
1 Profit before interest, fair value change, tax and exceptional items
2 Profit after interest, fair value change, tax and exceptional items attributable to owners of the company