Frasers Centrepoint posts 12% decline in full-year earnings to S$480 mil

Including fair value change and exceptional items, earnings fell 23% to S$597.2 million for the year.

Revenue declined 3.4% to S$3,439.6 million, mainly because of lower contributions from the Singapore and Australia strategic business units.

In Singapore, the decreases were primarily due to absence of profits from development projects that had achieved Temporary Occupation Permit (TOP) in prior years. This was partially offset by the maiden recognition of profits at North Park Residences and the group’s completed Twin Fountains Executive Condominium (EC).

In Australia, the group recognised impairment losses on development properties, largely from residential projects in Western Australia, and a weaker Australian dollar. However, the losses were cushioned by profit recognition from Frasers Property Australia’s (FPA) commercial and industrial division.

FCL has proposed a final dividend of 6.2 Singaporean cents, which will be paid to shareholders on Feb 16, 2017. This brings the proposed total dividend for FY15/16 to 8.6 Singaporean cents per share, unchanged from the previous two years.

Following the listing of Frasers Logistics Trust (FLT), the group’s net debt/equity ratio has decreased to 0.64x as at Sept 30.

“FCL’s commendable performance in FY15/16, despite market challenges attests to the effectiveness of FCL’s strategy of growing its recurring income base. Recognising the inherent volatility in the development business, FCL has been on a journey to grow recurring income for some years now,” says group CEO Panote Sirivadhanabhakdi.

“With a strong income base and balance sheet, the group is well-equipped to allocate capital dynamically as we continue to pursue our strategies of growing overseas and recurring income, while constantly assessing opportunities to optimise capital productivity,” he adds.

FCL says it will continue to grow its business and asset portfolio across geographies and property segments “in a prudent manner”, while evaluating opportunities to unlock value in its portfolio via asset enhancement or repositioning, as well as through injection of stabilised assets into its REITs.

Shares of FCL closed flat at S$1.50 on Tuesday. — theedgemarkets.com.sg