It blamed the timing of the sales and settlements in four of its major markets.
For the third quarter of 2018, Frasers Property's profits fell by 8.6% to $166.8m from $182.41m in the same period last year. Revenue dipped by 2.7% to $1.36b from $1.4b last year.
According to its financial statement, revenue was down largely due to the timing of sales and settlements of development projects in the UK, China, Australia, and Singapore. This was offset by maiden contributions from the industrial and logistics parks in continental Europe and the business parks in the UK.
Singapore revenue grew by a whopping $437m to $680m, as profit from Parc Life Executive Condominium and Seaside Residences were recognised.
Profits from its commercial properties grew by 7% ro $81m mainly due to the commencement of operations at the newly completed south wing of Northpoint City as well as higher occupancies at the north wing. These 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.
Its Australian business unit missed the contributions of the sale of two student accommodation components. This was partially offset by higher levels of sales settlements and better profit margins at Tailor’s Walk in Botany and Fairwater in Blacktown, New South Wales. Revenue fell by 58% to $288m, whilst pre-tax profit crashed by 56% to $71m.
Revenue for Australia commercial and industrial properties and Frasers Logistics and Industrial Trust (FLT) was flat, whilst pre-tax profit fell by $11m, mainly due to unfavourable exchange movements.
For Europe and the rest of Asia, revenue fell by 29% to $195m whilst pre-tax profit jumped by 14% due to profit contributions recognised on sales settlements of Phase 3B of Baitang One, Suzhou and Phase 4 of the Chengdu Logistics Hub in China, as well as maiden contributions from the logistics and industrial parks in continental Europe and the business parks in the UK.
This increase was partially offset by the absence of profits from the completion and settlements of Vauxhall Sky Gardens in the UK and a lower share of an associate’s profits from Gemdale Megacity in China.
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