In what it calls a "challenging environment", Frasers Property intends to continue increasing its development exposure, where it can achieve attractive risk-adjusted returns and quality earnings, while strengthening its recurring income stream from its properties, management fee income and improving cost efficiency.

The Singapore-listed real estate investor, developer and operator will also further unlock value with its capital recycling and capital partnership activities, according to its results announcement on May 8.

Frasers Property expects global growth to generally weaken this year amid the Middle East tensions, and will continue to mitigate risks from high interest rates, inflation and foreign currency volatility.

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Profit for the six months ending March 31 — the first half of its latest financial year — saw a boost thanks to its residential projects in Singapore, Australia and China, industrial estate land sales, non-core land sales in Australia, and higher retail contribution from Singapore.

The group posted a 13.2% y-o-y increase in its profit before interest, fair value change, tax and exceptional items, and non-controlling interests (PBIT) to $678.7 million, as compared to $599.3 million a year ago in 1HFY2025.

However, attributable profit fell by 37.8% to $88.4 million in 1HFY2026, due to a $38.2 million impairment on an investment in Thailand, according to its results announcement on May 8.

The group grew its development exposure selectively during the period, focusing on well-located sites in markets with strong underlying fundamentals.

Partnerships also continued to be central to its residential development strategy. This was shown in the acquisitions via joint ventures of a residential site at Suhewan in Shanghai, and the Kallang Close government land sales site, a city-fringe waterfront location in Singapore.

The residential development pipeline provided “strong earnings visibility”, with unrecognised revenue of $1.1 billion as at March 31, Frasers Property noted.

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Meanwhile, recurring income accounted for about 76% of PBIT in the half year, supported by active asset and portfolio management.

During the period, Frasers Property progressed asset enhancement initiatives (AEI) across selected hospitality and Singapore urban retail assets to support income quality.

From the Singapore retail portfolio, revenue and PBIT increased by 18% and 13% to $246 million and $177 million, respectively. These came amid a higher contribution from Northpoint City South Wing following the acquisition in May 2025, and better operational performance across the portfolio. However, they were partially offset by lower contributions from Hougang Mall due to the commencement of AEI works in April 2025.

Following the award of the collective sale tender for the leasehold rear block of The Centrepoint mall on Orchard Road, Frasers Property can now "assess broader rejuvenation opportunities for the area", the group said in the press release.

Panote Sirivadhanabhakdi, group CEO, noted that the collective sale award "opens exciting possibilities to unlock further value from this prime asset".

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