Frasers Property - Resilient Operations
- In its 9MFY22 business update, Frasers Property (SGX:TQ5) reported that its residential portfolio continued to enjoy healthy sales across its geographic footprint, while there was strong leasing demand for its industrial & logistics (I&L) segment in Australia, Europe and Thailand. Meanwhile, its hospitality portfolio benefited from improved resilience and operational efficiency on the back of a recovery in global travel.
- Frasers Property's unbilled residential revenue in Singapore rose q-o-q to S$0.7bn on higher take-up rate of 65.1% at Riviere and Parc Greenwich (100% sold). With its ongoing projects largely pre-sold, we believe plans for the launch of Sky Eden @ Bedok are underway.
- In Australia, Frasers Property sold 1,296 units and settled 703 units in 9MFY22. Unbilled revenue in Australia remained stable at S$1.3bn as at end-Jun.
- In Thailand, there were 8 new projects launched in 9MFY22 and 3,404 units were sold during this period. As at Sep, Thailand and UK have a total of S$0.3bn unrecognised revenue.
- The industrial & logistics (I&L) portfolio remained robust, with a high occupancy rate of 97.8-100% as at 9MFY22, amid strong leasing activity. Frasers Property is developing 16 new assets totalling 476k sq m in Australia and Europe.
- The hospitality portfolio, particularly in Asia Pacific (ex-North Asia) and Europe enjoyed a 28.4-209.2% surge in RevPAR, led by a recovery in global travel and pick-up in long-stay demand (in Singapore), partly offset by weaker portfolio performance in North Asia.
- Frasers Property's balance sheet metrics held steady q-o-q in 3Q/9MFY22. Recovery in all segments, except for its Australian commercial portfolio. We leave our FY22-24F estimates for Frasers Property unchanged, and maintain our RNAV at S$2.56 and target price for Frasers Property at S$1.41 (still based on a 45% discount to RNAV).
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2022-08-10 2022-08-10
Previous report by CGS-CIMB:
2022-06-13 Frasers Property - Proposes To Take Frasers Hospitality Trust Private
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