Frasers Property - CGS-CIMB Research 2024-02-05: Staying Nimble With A Robust Balance Sheet

• Frasers Property (SGX:TQ5)'s balance sheet remains strong, with end-Sep 2023 net debt to equity ratio up 2.2% points q-o-q to 78%, due mainly to capex, partly offset by Frasers Centrepoint Trust (SGX:J69U)’s divestment of Changi City Point.

1QFY24 business update highlights

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• Overall retail portfolio occupancy improved 0.1% pt q-o-q to 98.7% while commercial segment occupancy dipped 0.5% pt to 95.1%.

End-1QFY24 unbilled residential revenue at S$2.4bn, slight dip q-o-q

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• In Singapore, residential pre-sales stood at S$0.9bn, mainly from Parc Greenwich EC (100% sold) and Sky Eden @ Bedok (92% taken up as at end-1QFY24). Frasers Property has replenished its Singapore residential landbank through the acquisition of a 25% stake in the Lorong 1 Toa Payoh land parcel.
• In Australia, robust demand enabled FPL to sell 286 units and hand over 235 units during the quarter. Unbilled revenue in Australia amounted to S$0.8bn at end-1QFY24.
• In China, Frasers Property handed over 640 units in 1QFY24 and has remaining S$0.7bn of unrecognised revenue. It selectively replenished its residential portfolio in 1QFY24 through an acquisition of an effective 34% stake in two projects in Shanghai (total 1,611 units).
• Although unbilled residential revenue in Thailand dipped to S$0.03bn as at end-1QFY24, Frasers Property plans to launch seven new single-detached, townhome/twin home and condominium segments in the country during the rest of FY24.

Robust leasing demand for I&L segment amid positive reversions

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LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2024-02-05 SGinvestors.io

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