08 August 17 The Straits Times by RACHAEL BOON
Good performances from its Australia and international business units boosted third-quarter numbers at property firm Frasers Centrepoint (FCL), it reported yesterday.
Net profit rose 18.4 per cent to $182.4 million compared with the same period a year earlier, while revenue soared 105 per cent to $1.4 billion for the three months to June 30.
FCL said the Australia strategic business unit was boosted by the "sale and settlement of two student accommodation components at Central Park in Sydney, and a higher level of settlements from residential projects in this quarter compared with the previous period".
The international business unit reaped profit contributions from the Vauxhall Sky Gardens project in Britain and an associate's development, Gemdale Megacity, in Songjiang, China.
FCL added that the share of results coming from joint ventures and associates increased by $20 million to $44 million in the quarter.
Besides the Gemdale Megacity project, there was also a higher share of profits from Frasers Property Australia's joint ventures.
However, the rise was partly offset by joint venture projects in Singapore such as eCO, RiverTrees Residences and Watertown.
AT A GLANCE
Q3 REVENUE: $1.4 billion (+105%)
Q3 NET PROFIT: $182.4 million (+18.4%)
The firm pointed to a "lower percentage of construction achieved". The absence of contributions from QBay Residences, which got its temporary occupation permit in the previous financial year, further reduced the share of results.
Quarterly earnings per share was 6.26 cents compared with 5.31 cents a year earlier. Net asset value a share was $2.36 as at June 30, compared with $2.30 as at Sept 30.
Group chief executive Panote Sirivadhanabhakdi said the firm now has a portfolio of logistics assets with scale across multiple geographies, giving it more opportunities.
The firm said it plans to release more than 1,300 residential units in Australia for sale over the rest of the financial year.
It also is focusing "on the leasing and upcoming soft opening" of Northpoint City - retail - in the last three months of this year, and is on track to lease out almost 90 per cent of its retail space by the time it opens.
FCL shares closed down 1.5 cents at $1.90 yesterday.