Low residential market exposure a plus for Frasers Property: analyst

It also offers the highest dividend yield of over 5% amongst developers.

Frasers Property (FPL) could fare well due to its low exposure to Singapore residential property market, taking into consideration the government’s cooling measures, DBS Equity Research said.

“In addition, with the recent de-rating in share price, FPL currently offers a dividend yield of over 5%, the highest amongst the developers and comparable to the real estate investment trusts (REITs),” the bank added.

However, the bank noted that FPL’s significant exposure to the Australian real estate market could get hurt by the weakening currency exchange rate between Australia and Singapore. With this consideration, DBS thinks that the firm could be buoyed from its improved property sales, asset monetisation, and improving free float and liquidity.

In Q3, the firm’s profits fell by 8.6% to $166.8m from $182.41m in the same period last year whilst revenue dipped by 2.7% to $1.36b from $1.4b last year.

According to its financial statement, the revenue was hurt due to the timing of sales and settlements of development projects in the UK, China, Australia, and Singapore.