COMMERCIAL PROPERTY | Staff Reporter, Singapore

Frasers Property Q2 profits up 74.5% to $124.25m

Its revenue was boosted by sales in China and Australia and contributions from UK business parks.

Frasers Property's profits for the second quarter of 2018 ballooned by 74.5% from $71.21m last year to $124.25m. Revenue also rose by 19.3% from $705.76m last year to $841.74m.

According to its financial statement, its revenue was higher due to revenue recognition on sales settlements in China and Australia and maiden contributions from business parks in the UK.

For the company's Singapore business, profits from residential properties were up 144% to $18m thanks to higher progressive profit recognition of North Park Residences and maiden profit recognition from Seaside Residences. Profits from commercial properties jumped 7% to $75m due to the start of operations in Northpoint City's south wing as well as the completed revamp of its north wing.

"These gains were partially offset by lower contributions from Frasers Commercial Trust’s (FCOT) Singapore and Australia properties, which experienced lower occupancies and a weaker Australian dollar, respectively," the firm said.

Profits in Australia jumped 61% to $88m as residential properties saw high levels of sales settlements with better profit margins at Tailor’s Walk in Botany, New South Wales and Avondale in Avondale Heights, Victoria.

Hospitality profits fell by $10m to $23m, due to lower contributions from UK properties on "weak consumer sentiments in the food and beverage segment."

Meanwhile, profits in Europe and the rest of Asia rose to $94m due to profit recognition on sales settlements of Phase 3B Baitang One, Suzhou, China.

For the first half year, however, profits were down 23.6% from $253.2m last year to $193.44m as they were " affected by the timing of development income." Revenue dipped 5.7% from $1.68b to $1.58b.

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