Frasers Property Limited (FPL) has announced its results for the half year ended 31 March 2024 (“1HFY24").
Strategic land bank replenishment, strong leasing activity and a focus on a high-quality development pipeline delivers robust performance.
Frasers Property Industrial reports profit before interest and tax (“PBIT”) of S$204.4 million (A$232.3 million & EUR 140.4 million) for 1H FY24, with assets under management of S$11.5 billion (A$13.1 billion & EUR 7.9 billion).
Key performance highlights as at 31 March 2024:
- Frasers Property Industrial’s assets under management valued at S$11.5 billion (A$13.1 billion & EUR 7.9 billion)
- Frasers Property Industrial’s total assets under management comprises 172 completed properties across five countries, equating to 4.6 million sqm of net lettable area (NLA):
- Australia:
- Non-REIT portfolio consisting of 41 completed assets with a total value of S$2.5 billion (A$2.8 billion & EUR 1.7 billion)
- Europe:
- Non-REIT portfolio consisting of 19 completed assets with a total value of S$0.6 billion (A$0.7 billion & EUR 0.4 billion)
- Frasers Property Industrial’s multinational network and expertise supports customers across geographies, with continuing high-quality tenant demand driving a stable pipeline of development projects:
- Strategic land bank totalling 3.0 million sqm located in prime areas secures robust development pipeline
- Strengthened pipeline with 14 assets under development totalling ~420,000 sqm planned for completion in FY24 (6 assets) and FY25 (8 assets).
- VIC totalling ~55,000 sqm across two projects
- NSW totalling ~157,000 sqm across six projects, mainly from ‘The YARDS’ development in Kemps Creek
- QLD totalling ~47,000 sqm across three projects
- The Netherlands totalling ~83,000 across two projects
- Germany totalling ~78,000 sqm in The Tube, Dusseldorf
- Acquired four greenfield development sites totalling ~585,000 sqm in NSW and VIC, Australia and the Netherlands in 1H FY24.
- Including partnering in a 50:50 joint venture to secure ~500,000 sqm in Melbourne’s southeast in 2Q FY24
- Completed seven development projects ~244,000 sqm across Australia and the Netherlands in 1H FY24.
- Including four in Australia: TTI at The Yards, National Tiles at Canvas West, Primary Connect at Vantage Yatala, and MQX
- Realised strong leasing activity with renewals and new leases in 1H FY24 totalling ~187,900 sqm, comprising ~45,000 sqm in Australia and 142,900 sqm in Europe.
- Australian portfolio is 99.5% occupied with a weighted average lease expiry (WALE) of 5.1 years and 95.4% occupancy in Europe with 5 years WALE.
- The solid 1H FY24 performance by Frasers Property Industrial reflects Frasers Property Group’s (the “Group”) continued strategy to leverage its multi-national expertise in the industrial property sector with capabilities in development management, asset management and investment management and a network positioned to support customers’ businesses across geographies.
- Sustainability continues to be a core focus for the Group. Frasers Property Industrial was recognised as Regional Sector Leader for Oceania in the Industrial category for our Australian portfolio and has ranked first in 2023 GRESB results in the “Australia | Industrial: Tenant Controlled | Core category (out of 10) and “Industrial/Oceania (out of 28). While the European active development portfolio achieved a 5-star GRESB rating for the first time.
CEO commentary:
Reini Otter, Chief Executive Officer, Frasers Property Industrial says that despite the uncertainty of the macroeconomic environment, the company's earnings remain stable thanks to its robust leasing activity and the completion of several high-quality developments.
“We have one of the most strategically positioned land banks across Australia, Germany, and the Netherlands. Especially in Australia where we see high customer demand, this gives us a strong base for future earnings and growth.”
“Our focus on a customer-centric approach has made us the preferred property partner for many. We continue to see better results in our NPS and CSAT scores, which direct our efforts to improve the customer experience in the short and long term. The longevity of our partnerships across multiple facilities and countries shows the strength of our customer relationships.”
“The half yearly results report that the Frasers Property Industrial portfolio has grown since FY23 to S$11.5 billion (A$13.1 billion $ EUR 7.9 billion) and our strategic land bank has also grown to 3.0 million sqm, as we prioritise delivering our pipeline and focus on prudent reinvestment.”
“We maintained our pipeline with 14 assets under development totalling ~420,000 sqm planned for completion in FY24 and FY25 and acquired four greenfield development sites totalling ~585,000 sqm in NSW and VIC, Australia and the Netherlands in 1H FY24, this included partnering in a 50:50 joint venture to secure ~500,000 sqm in Melbourne’s southeast.”
Mr Otter added that the business will continue to strive to build better facilities that increase customer productivity, lower carbon emissions, and improve overall well-being.
“We also remain committed to creating healthy workplaces for our customers employees and have renewed our ongoing community partnership with Healthy Heads in Trucks and Sheds, as we proactively recognise and address mental health challenges within the logistics sector.”
Read the full announcement from Frasers Property Limited here: 1H FY24
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