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10 Quick Things Investors Should Know About Frasers Centrepoint Ltd’s Latest Earnings

Frasers Centrepoint Ltd (SGX: TQ5) is a real estate company with interests in different geographies and different sectors in the real estate market.

Its focus is mainly on residential, commercial, retail, and industrial properties in Singapore and Australia, and hospitality assets in over 80 cities across Asia, Australia, Europe, and the MENA (Middle East and North Africa) region.

In early November, Frasers Centrepoint released its fourth quarter and full year results for its fiscal year ended 30 September 2017 (FY2017). Let’s look at 10 important things from the earnings announcement that investors should know:

1. Revenue for FY2017 improved by 17.1% to S$4.03 billion, on the back of increased contributions from the company’s Australia and International business units.

2. PBIT (profit before interest and tax) for the year grew 16.1% to S$1.09 billion.

3. Net profit attributable to shareholders improved 15.4% to S$689.1 million, mainly due to a S$215 million fair value gain on the company’s investment properties. Excluding the fair value gain, Frasers Centrepoint’s net profit attributable to shareholders would have improved by 1.7% to S$488.2 million.

4. As of 30 September 2017, Frasers Centrepoint had cash and bank balances of S$2.41 billion, and total debt of S$11.63 billion. This gives the company a net debt position of S$9.22 billion, up 21% from S$7.63 billion a year ago.

5. The company’s net asset value per share was up 6.9% to S$2.46, but its return on equity (ROE) declined from 6.3% in FY2016 to 6.1%.

6. Frasers Centrepoint’s Australia, Hospitality, and International business segments saw revenue growth of 13.3% to S$1.84 billion, 2.3% to S$807.3 million, and 183.0% to S$717.1 million, respectively.

7. The PBIT of the Australia, Hospitality, and International segments were also up by 33.2% to S$290.1 million, 14.2% to S$154.2 million, and 47.6% to S$274.1 million, respectively.

8. The Singapore business segment saw its revenue fall by 9.2% to S$859.2 million. Its PBIT declined by 4.7% to S$408.2 million.

9. The board of Frasers Centrepoint had proposed a final dividend of 6.2 Singapore cents per share, bringing the total dividend in FY2017 to 8.6 Singapore cents per share. Both the final and total dividends were unchanged from FY2016.

10. Going forward, Frasers Centrepoint has the following plan:

“The Group is looking to grow its recurring income from a geographically-diversified earnings base. The Group will also focus on optimising capital productivity and strengthening its REIT platform”

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.