® Frasers Property Thailand announced record-breaking results for fiscal year 2019, transforming into a leading provider of Integrated Real Estate Platform, post acquisition of Golden Land Property Development Public Company Limited (“GOLD”).
® Consolidated revenue for fiscal year ended September 2019 increased 56% year-on-year to 21,545 million baht, whilst consolidated net profit recorded a robust 62% y-o-y growth to 3,484 million baht.
® Earnings per share more than doubled to 0.96 baht, translating to a return on equity of 9%.
Frasers Property (Thailand) Public Company Limited or “FPT”, a leading provider of integrated real estate platform, today announced its financial results for the full year ended September 30, 2019.
Following FPT’s acquisition of GOLD through voluntary tender offer in August 2019, FPT’s real estate platform has been broadened to cover 3 main asset classes – industrial, commercial, and residential. For FY19, total revenue amounted to 21,545 million baht with recorded net profit at 3,484 million baht. Consequently, earnings per share more than doubled to 0.96 baht while return to equity came in at 9%.
Mr. Sopon Racharaksa, President of FPT, said “Our full-year performance reflects the successful execution of our strategy to strengthen business fundamentals of FPT, having come together with GOLD earlier this year. FPT’s multi-asset class platform and capabilities reinforces our unique value proposition and ability to deliver integrated real estate solutions to our customers.
FPT’s industrial property business including factory and logistics warehouse continued to deliver strong results with revenue of 3,508 million baht for FY2019, an increase of 88% yoy. Occupancy rate FPT’s industrial assets under management was 82%, the highest on record, against 74% last year. Revenue was also due to sale of more than 100,000 sqm of industrial property to Frasers Property Thailand Industrial & Freehold REIT (FTREIT) as well as rise in rental income. Demand for high quality logistics warehouses from FMCG, e-commerce and automotive industries in the year drove new take-ups in key strategic locations of Bangplee, Laemchabang and Eastern Economic Corridor (EEC) areas. FPT also further built on its built-to-suit development capabilities having secured a development pipeline with major corporates of 135,000 sqm in FY2019. Upon completion, the built-to-suit portfolio is expected to generate stable recurring revenue to FPT and lengthen its portfolio Weighted Average Lease Expiry (WALE).
The residential property business under GOLD achieved residential revenue growth of 51% to 15,515 million baht in FY2019 with 22 new residential projects launched worth more than 25 billion baht. As at September 2019, total pre-sales value was 31 billion baht whilst total backlog awaiting to be transfer was 4,537 million baht.
On the commercial property front, the opening of Samyan Mitrtown added 222,000 sqm of commercial space comprising Grade A office, hotel, residential and retail components. The Project became a popular retail destination reflecting its unique placemaking design resonating with the communities and its strategic location. Occupancy of overall commercial portfolio under management comprising Park Venture Ecoplex, Sathorn Square, FYI Center, Golden Land Building and Samyan Mitrtown also remained healthy.
Disciplined capital management and asset recycling will remain an important part of FPT’s strategy to ensure sustainable shareholder growth. In FY2019, FPT divested 3,610 million baht worth of assets to FTREIT and raised 3,269 million baht from a private placement which further provides financial flexibility to FPT to seize future growth opportunities.
This year, FPT was named Thailand’s Best Provider of Real Estate Products and Services by Euromoney Real Estate Award for 2019 for its achievement in industrial property business. This reflected its legacy and rich experience in developing high-quality industrial properties of international standard. FPT continue to build on this success, focusing on customer-centric initiatives and technology solutions to meet evolving operational requirements of its customers across industries.
Mr. Racharaksa added, “Throughout the year, we have formed strategic partnerships with partners in the property, data centre, co-working, robotics and automation space to enhance our real estate solutions. These investments are key to how we deliver real estate value, with the potential for further earnings contributions over the next few years. We believe our customers’ experience matters, and we are fully committed to delivering best-in-class real estate developments and related services.”