Tag Archives: Property firm Frasers Centrepoint is looking to expand its portfolio with assets that can increase its recurring income.

Property firm Frasers Centrepoint is looking to expand its portfolio with assets that can increase its recurring income.

Recurring income refers to stable and continual turnover, and can be derived from regular payouts to property owners such as through rent or hotel bookings.

The firm has residential, commercial and hospitality developments around the world, with most in Singapore, Australia and China. It aims to expand its assets through various ways, such as through investments, developments and upgrading.

Revenue for the three months to March 31 came in at $442 million, unchanged from the previous year, but contributions from Australand, a subsidiary of Frasers Centrepoint, and acquisition of six hotels by Frasers Hospitality Trust lifted turnover.

But that was offset by weaker performances by other developments in Australia and Britain.

Last year, recurring income made up 47 per cent of the group’s half-year profit before interest and taxes, while developments made up the rest.

This year, the acquisition of Australand and the listing of Frasers Hospitality Trust sent that up to 59 per cent.

Frasers Centrepoint group chief executive Lim Ee Seng said: “Our strategic objective is to have a portfolio of investment properties. We use the Reit (real estate investment trust) platform to supply assets to the Reit, where we can free up capital for investment in other areas at the same time, to increase our recurring income by managing the Reits.”

Frasers Centrepoint announced yesterday that it has entered into a sale and leaseback agreement on hotel Sofitel Sydney Wentworth with Frasers Hospitality Trust for A$224 million (S$237 million). Frasers Centrepoint sold a 75-year lease.

Ms Eu Chin Fen, chief executive of Frasers Hospitality Trust’sReit management, said: “Sydney was one of the strongest-performing hospitality markets in Australia in 2014 and the outlook remains Property firm Frasers Centrepoint is looking to expand its portfolio with assets that can increase its recurring income.positive in 2015.”

Although Frasers Centrepoint’s venture into Australia has brought significant returns, Singapore still remains the foundation of its activities. Mr Lim said: “Singapore will always be our base. We have established a significant presence in Singapore.”

Frasers Centrepoint recently launched Northpark Residences, an integrated development in Yishun that will feature a library, childcare centre and an underpass to Yishun MRT station. Frasers Centrepoint shares closed down 0.5 cent at $1.830 yesterday.

http://business.asiaone.com/news/frasers-aims-boost-recurring-income#sthash.cCNKiKEe.dpuf