Frasers Australand provides strong profit for Frasers Centrepoint
Frasers Centrepoint achieved a 55% surge in first-quarter profit from the corresponding period, after a boost from new contributions following the acquisition of Australand in Australia.
FCL reported the increase came primarily from contribution from Australand Property Group, which was acquired in August 2014.
Australand’s residential business received a boost from a significant level of completions at the Clemton Park and Discovery Point residential projects.
For the three months ending 31 December, net profit totalled S$186.9 million (A$177.58 million), up from S$120.8 million (A$114.77 million) in the same period earlier, as revenue nearly doubled to S$1.07 billion (A$1.02 billion) from S$552.1 million (A$524.55 million), Frasers Centrepoint said.
Frasers Australand, comprising Australand that was acquired last August and Frasers Property Australia, almost doubled its year on year profit before interest and tax to S$127 million (A$120.66 million), mainly as a result of a significant level of completions at the Clemton Park and Discovery Point residential projects.
“This first quarter of FY14/15 marks the maiden full-quarter contribution from Australand, which has not only enlarged our income base but also enhanced the sustainability of our earnings through an increase in recurring income,” Frasers Centrepoint chief executive Lim Ee Seng said.
The Australian residential market continued to be strong, providing a positive environment for Frasers Australand’s planned release of around 1,500 dwellings over the remainder of the fiscal year.
Lim Ee Seng said it was important to continue to focus on the smooth integration of Australand into the group.
Bob Johnston heads the combined Frasers Property Australia and Australand Property Group operations.
The report noted completion and settlement of over 750 apartments in 1Q FY14/15, including at two major residential projects – Clemton Park and Discovery Point
Released 658 land lots and apartments across five projects for sale in 1Q F14/15.
Frasers Australand, comprising Australand and Frasers Property Australia (“FPA”), recorded 156% and 99% year on year increases in revenue and PBIT to S$692 million (A$657.47 million) and S$127 million (A$120.66 million), respectively, in 1Q FY14/15.
Of these, Australand contributed S$568 million (A$539.66 million) in revenue and S$108 million (A$102.61 million) in PBIT mainly as a result of a significant level of completions at the Clemton Park and Discovery Point residential projects during the reporting quarter.
Gains from Australand were partially offset by lower contributions from FPA as sales at the One Central Park and Parklane projects in Sydney, which were completed in 2014, tapered off.
FPA’s lower revenue and PBIT in 1Q FY14/15 was also due to the absence of a one-off gain from the sale of an undeveloped site in the previous corresponding quarter.