Frasers Property Thailand (FPT) reported a sharp year-on-year decline in net profit for its fiscal third quarter (April-June 2020) on a slight drop in revenue to 4.88 billion baht, partly due to a rental relief programme for tenants affected by the Covid-19 outbreak.
Net profit was 399 million baht in the fiscal third quarter, down 49.9% from 797 million baht a year earlier, because of lower sales of industrial land property and the coronavirus lockdown, which delayed transfers of residential properties.
Revenue fell 3% to 4.88 billion baht from 5 billion baht in the fiscal 2019 third quarter.
FPT's tender offer period to de-list Golden Land Property Development Plc from the Stock Exchange of Thailand has been completed, pending an administrative process by the SET to conclude this month.
FPT's board of directors also appointed Thanapol Sirithanachai as country chief executive, effective Aug 17.
FPT successfully raised 3.21 billion baht via a rights offering of 1.21 billion shares. Its board of directors approved divestment of industrial assets worth 6 billion baht last month to Frasers Property Thailand Industrial Freehold & Leasehold REIT, which will provide funding for future business growth.
Of total revenue, industrial property business posted a 5.5% year-on-year drop of 441 million baht for the fiscal third quarter this year.
Residential property business reported a 12.8% year-on-year increase in revenue to 3.88 billion in the fiscal third quarter, thanks to ongoing demand for townhouses in Bangkok and upcountry.
As of June 30, the residential business recorded total pre-sales value of 8.82 billion baht, a jump of 19% quarterly and 61% year-on-year from a total of 58 active projects.
The overall backlog awaiting transfer was worth 2.29 billion baht as of the fiscal third quarter.
The commercial property business showed a decrease of 236 million baht in the same period as a result of rental relief granted to tenants affected by the viral outbreak.
The hospitality business, which contributed less than 3% of total revenue, was hit hard by travel restrictions.
Office AUM occupancy rate was 94% as of June. Occupancy at the mixed-use Samyan Mitrtown climbed to 91% with the opening of several new stores.
Overall, FPT is maintaining a cautious outlook in the near term in light of ongoing uncertainty surrounding macro factors, despite a better-than-expected performance in selective real estate sub-sectors.