Frasers Property (TQ5) H2 2025 earnings summary

Executive summary

• Revenue for FY25 was S$3,403.5 million, down 19.2% year-over-year, with PBIT at S$1,186.2 million, a 12.3% decrease, mainly due to lower residential contributions and impairments, partially offset by stronger industrial and retail performance.

• Attributable profit rose 17.8% to S$243.1 million, driven by net fair value gains and reversal of tax provisions; excluding this, profit was 50% lower year-over-year due to lower PBIT and higher net interest expense.

• Recurring income underpinned 86% of PBIT, supported by healthy leasing demand and positive rental reversions across asset classes.

• Dividend per share remained at 4.5 cents, with a payout ratio of ~74% and a yield of 4.3%.

• Strategic focus remains on increasing development exposure, driving recurring income, and capital efficiency.

Financial highlights

• Total assets stood at $39.7b, up 0.3% year-over-year; cash and deposits were $2.4b, down 13.3%.

• Basic EPS before fair value change and exceptional items was 5.8 cents (+29.1%), and after adjustments was 5.9 cents (+40.5%).

• Net debt/total equity increased to 89.2% from 83.4% due to acquisitions and capital expenditure; net debt to property assets ratio rose to 43.7%.

• Net interest cover was 2.1x, and net asset value per share was S$2.37, down from S$2.45 due to currency translation losses.

• Excluding one-off tax reversal, attributable profit was 50% lower year-over-year due to lower PBIT and higher net interest expense.

Outlook and guidance

• Focus remains on increasing development exposure in resilient residential and industrial/logistics markets, strengthening recurring income, and active capital recycling.

• Residential development pipeline provides S$1.4 billion in unrecognised revenue as at 30 September 2025.

• Continued emphasis on extending debt maturities, green and sustainable financing, and natural hedge strategies to mitigate FX risks.

• Climate and Nature Transition Plan guides proactive climate risk management.

• Sustained demand for industrial and logistics assets expected to support future returns.