Press release: Frasers Property Limited announces results for financial year 2023

Overview of FY2023 results:

Frasers Property Industrial reports FY2023 earnings before interest and tax of €244.3 million (S$352.5 million) on assets under management of €7.6 billion (S$11.0 billion).

Frasers Property Industrial: First-class assets, growth rates in lettings and a stable project pipeline ensure reliable performance

Caption: the tube - sustainable pilot project by Frasers Property Industrial. Copyright: Frasers Property Industrial.

Frasers Property Industrial: key results as at 30 September 2023:

Frasers Property Industrial reports earnings before interest and tax of €244.3 million (S$352.5 million) in FY2023.

• Frasers Property Industrial manages a portfolio worth €7.6 billion (S$11.0 billion)
• Frasers Property Industrial's portfolio comprises 165 completed properties in five countries with a total lettable area of 4.3 million square metres
• In Europe: Non-REIT (Real Estate Investment Trust) portfolio comprising 22 completed assets with a total value of €500 million (S$0.8 billion).
• Frasers Property Industrial supports clients across geographies with its multinational network and expertise, with continued high tenant demand driving a solid pipeline of development projects:
  
  • Strategic land bank totalling 2.4 million square metres of space secures a solid development pipeline
  • Strengthening the project development pipeline with 17 projects totalling around 609,000 square metres and scheduled for completion in the 2024 (13 projects) and 2025 (4 projects) financial years
  • Netherlands, approx. 81,000 square metres in total, two projects
  • Germany, approx. 78,000 square metres in total, The Tube in Düsseldorf
  • Victoria, approx. 132,000 square metres in total, four projects
  • New South Wales, approx. 250,000 square metres in total, eight projects, in particular "The YARDS" project in Kemps Creek
  • Queensland, approx. 68,000 square metres in total, two projects
    
    • Acquisition of four areas for greenfield projects in Germany and Australia with a total area of approx. 388,000 square metres in the 2023 financial year
    • Including 56,600 square metres in Landsberg, Germany, in the fourth quarter of the 2023 financial year
    • Including Australian sites of around 18,000 square metres in Horsley Park (New South Wales), around 48,000 square metres in Stapylton (Queensland) and around 337,000 square metres in Craigieburn (Victoria)
• Completion of seven projects with an area of around 174,000 square metres across Australia in the 2023 financial year
• Strong letting activity with renewals and new leases totalling around 843,000 square metres in the 2023 financial year, of which around 696,000 square metres in Australia and 147,000 square metres in Europe
• The Australian portfolio is 100% let with a weighted average lease term (WALE) of 5.3 years; in Europe, the occupancy rate is 97.5% with a WALE of 5.3 years.
• Frasers Property Industrial's solid performance in the 2023 financial year reflects Frasers Property Group's continued strategy of leveraging its multinational platform and extensive development, asset and investment management expertise in the industrial and logistics sectors. This enables Frasers Property Industrial to create high-quality, industry-leading and sustainable properties.
• Frasers Property Industrial has received Science Based Targets Initiative (SBTi) endorsement of its near-term emissions reduction targets and has achieved the first 6-star Green Star Communities rating for an industrial estate in Australia for The YARDS in Western Sydney.

Market overview and commentary from the CEO:

Reini Otter, Chief Executive Officer of Frasers Property Industrial, says the company is well positioned for the 2024 financial year with world-class assets and expertise to capitalise on customer demand in key markets.

"We have a solid development pipeline and high-quality existing properties. Our earnings remain strong despite high inflation. Our business model remains resilient and the continued low vacancy rates allow for steady rental income growth, which will continue to drive core earnings.

"The supply of industrial and logistics properties is expected to be constrained by land scarcity and increasing regulation, particularly in prime locations, creating a supply/demand imbalance that will continue to favour rental growth and low vacancy rates.

"At the end of the financial year, Frasers Property Industrial's portfolio size remained stable at EUR7.6 billion (S$11.0 billion) and our strategic landbank remained unchanged at 2.4 million sq ft, giving us a competitive edge to capitalise on market conditions.

"Seven developments were completed in FY2023, three of which were recently finalised in the fourth quarter. Our pipeline is also well filled with 17 properties under development and a total area of around 609,000 square metres for the 2024 and 2025 financial years."

Reini Otter added that the company will continue to create long-term value as a resilient, integrated and multinational organisation focused on customer centricity and sustainability.

"We continue to achieve industry-leading sustainability results and take a forward-thinking approach to ensure our assets are future-proofed, innovative and cost-efficient.

"This sustainable innovation was demonstrated by achieving the Green Building Council of Australia's first 6-star Green Star Communities rating for a commercial precinct and maintaining our leading position in GRESB results.

"Our solar panel installations in Europe, the UK and Australia, totalling 24MW, not only reduce our own carbon footprint but also contribute significantly to our customers' sustainability goals.

"This year we have also transformed the design of our buildings to create spaces that not only increase the productivity of the business but also prioritise employee wellbeing. We are proud to have realised 13 buildings with this new design, which seamlessly integrates elements such as natural light, outdoor spaces and lush greenery into our high-quality sites."

About Frasers Property Industrial

Frasers Property Industrial is a strategic business unit of Singapore SGX-listed Frasers Property Limited (together with its subsidiaries, the "Group"), a multinational company that owns, develops and manages a diverse and integrated property portfolio with total assets of approximately €27.8 billion (S$40.1 billion) as at 31 March 2023.

Frasers Property Industrial owns and manages industrial and logistics properties in Australia and Europe, and its portfolio includes logistics centres, warehouses and manufacturing facilities in strategic locations. Frasers Property Industrial has approximately €7.7 billion (S$11.1 billion) of assets under management as at 31 March 2023 and has integrated development, asset management and third-party capital management capabilities in the Group's industrial and logistics markets in Australia, Germany and the Netherlands.

In addition, Frasers Property Industrial provides property management services for the logistics and industrial properties of Frasers Logistics & Commercial Trust ("FLCT") in the largest logistics and industrial markets of Australia, Germany and the Netherlands. FLCT is a REIT (Real Estate Investment Trust) listed on the Singapore Exchange, SGX, with a portfolio valued at approximately €4.8 billion (S€6.8 billion) comprising 107 logistics, industrial and commercial properties in five developed markets - Australia, Germany, Singapore, the United Kingdom and the Netherlands. FLCT is funded by the Group and operated by Frasers Logistics & Commercial Asset Management Pte. Ltd.

For more information about Frasers Property Industrial, please visit FrasersPropertyIndustrial.com or follow us on LinkedIn.

About Frasers Property Limited

Frasers Property Limited ("Frasers Property" and together with its subsidiaries, the "Frasers Property Group" or the "Group") is a multinational developer, owner and operator of property products and services across the property value chain. Listed on the Main Board of the Singapore Exchange Securities Trading Limited ("SGX-ST") and headquartered in Singapore, the Group has total assets of approximately €27.8 billion (S$40.1 billion) as at 31 March 2023.

Frasers Property's multinational businesses span across five asset classes, namely residential, retail, industrial and business parks, industrial and logistics, and hospitality. The Group operates in Southeast Asia, Australia, Europe and China, and its well-established hospitality business owns and/or operates serviced flats and hotels in over 70 cities and 20 countries in Asia, Australia, Europe, the Middle East and Africa.

Frasers Property is also the sponsor of two Real Estate Investment Trusts ("REITs") and one Stapled Trust listed on the SGX-ST. Frasers Centrepoint Trust and Frasers Logistics & Commercial Trust specialise in retail and industrial and commercial properties respectively. Frasers Hospitality Trust (comprising Frasers Hospitality Real Estate Investment Trust and Frasers Hospitality Business Trust) is a stapled trust specialising in hospitality properties. In addition, the Group has two REITs listed on the Stock Exchange of Thailand. Frasers Property (Thailand) Public Company Limited is the sponsor of Frasers Property Thailand Industrial Freehold & Leasehold REIT, which focuses on industrial and logistics properties in Thailand, and Golden Ventures Leasehold Real Estate Investment Trust, which focuses on commercial properties.

The Group is committed to creating inspiring environments and places for the well-being of its customers and partners. By acting progressively, producing and consuming responsibly and focussing on people, Frasers Property strives to strengthen sustainability thinking throughout its value chain and build a more resilient business. Frasers Property is committed to being a carbon-free company by 2050. Building on its heritage and utilising its knowledge and skills, the Group strives to create lasting shared value for its employees, the businesses and communities it serves. Frasers Property believes in the diversity of its people and is committed to fostering a progressive, collaborative and respectful culture.

For more information about Frasers Property, please visit frasersproperty.com or follow us on LinkedIn.
 
CONTACT FOR PR INQUIRIES:
teamtosse. Agency for Communication
Dr Dennis Kalde
T +49 (0) 89 41 41 75 290
E dennis.kalde@teamtosse.de