- Dividend surprise of S$0.045 (+50% y-o-y) an insight into Frasers Property management’s comfort level as to financial position. Resilient operational performance for FY23F masked by non-cash valuation adjustment in UK, Europe.
FY23 financial highlights
- - Read this at SGinvestors.io -
- The stronger operational performance was mainly led by improvements in the hospitality business (+c.28% y-o-y in FY23) and residential business and contribution from NEX in Singapore (+2.6% y-o-y), offsetting the declines from Australia (-6.6% y-o-y) and industrial (-23.4% y-o-y) due to divestments.
- - Read this at SGinvestors.io -
Our view
- We remain comfortable with Frasers Property’s financial standing as of Sept 23, with a slight uptick in its net debt/equity ratio to 0.76x (from 0.65x a year ago) and net debt/property asset ratio of 0.4x (vs. 0.375x as of Sep 22), but these have generally held steady through the course of FY23.
- Overall interest costs inched higher to 3.5% y-o-y (vs. 2.7%) while the interest coverage ratio dipped to 3x, which is within the range. Net asset value per share declined by ~5% to S$2.52/share.
A “high yield” developer again?
- Read more at SGinvestors.io.
