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Frasers Centrepoint net profit down 60% on-year in Q3

The lack of increase in the valuation of properties held by the company, or fair value gains, contributed largely to the third quarter result, says Frasers Centrepoint.

SINGAPORE: Property giant Frasers Centrepoint (FCL) on Monday (Aug 11) reported a 60 per cent drop in fiscal third quarter net profit on-year due to a lack of fair value gains.

FCL, which was spun off from Fraser & Neave earlier this year, earned S$109 million in the three months ended June, down from S$271 million in the same period a year ago. This was despite a 41 per cent rise in revenue to S$575 million.

The company booked S$2 million in fair value gains for the quarter, down from the S$205 million a year ago, it added. Fair value gains refer to the increase in the valuation of properties held by the firm.

Looking ahead, FCL said its hospitality arm is on track to manage more than 10,000 apartments by the end of this year. It also said it is positive about the Singapore office market, where Central Business District (CBD) rents are expected to continue growing due to limited new supply in the next two years as well as low vacancy levels.

Over the medium term, FCL said it plans to replenish its Singapore land bank for development projects in the mass and mid-market segments.

Outside Singapore, the firm is targeting annual sales of more than 1,000 housing units in Australia and China collectively, it added.