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Frasers Centrepoint achieves record revenue, but profit falls

SINGAPORE — Frasers Centrepoint (FCL) yesterday reported that annual revenue rose by 33 per cent to an all-time record, driven largely by its overseas businesses, but that net profit slumped because of one-off items arising from listing and acquisition costs.

SINGAPORE — Frasers Centrepoint (FCL) yesterday reported that annual revenue rose by 33 per cent to an all-time record, driven largely by its overseas businesses, but that net profit slumped because of one-off items arising from listing and acquisition costs.

Revenue for the fiscal year ended Sept 30 jumped to S$2.73 billion from S$2.05 billion a year earlier, as the property giant completed development projects in Australia, China and the United Kingdom. During the year, the divestment of Changi City Point to Frasers Centrepoint Trust also contributed to the increase, FCL said.

However, net profit fell 31 per cent to S$500.7 million, after accounting for an exceptional loss of S$127 million, compared with the gain of S$46 million last year. The one-off expenses were due mostly to Australand acquisition costs of S$70 million as well as restructuring costs of S$42 million arising from the repayment of related company ahead of FCL’s listing early this year. Lower fair-value gains also contributed to the profit decline.

FCL — which made its debut on the Singapore Exchange in January following the split of Fraser and Neave’s drinks and property businesses — completed its A$2.6 billion (S$2.94 billion) buyout of Australian property developer Australand in September.

If the exceptional items and fair-value changes were not included, FCL’s net profit would have surged 25 per cent to S$501 million. The company announced a final dividend of 6.2 cents a share, taking its total dividend for the year to 8.6 cents.

On the domestic front, FCL said cooling measures implemented last year and the large supply entering the market continued to hurt sentiment.

However, it added: “Demand for projects with the right location, pricing and offerings remains. Land acquisition opportunities could surface given the moderation of land bidding at Government Land Sales sites.”

It said it expected its malls in Singapore to do well despite concerns persisting over a manpower shortage and slowing retail sales growth.

“Rising average household income and low unemployment will continue to underpin non-discretionary expenditure, which will benefit our well-located suburban malls,” it said.

Down Under, demand for high-quality assets remains very strong, FCL said, adding that its Australand investment portfolio would benefit from high occupancy, with a large proportion of income being subject to fixed rental increases and a long weighted average lease expiry.

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