Reini Otter, Chief Executive Officer, Frasers Property Industrial says that the company’s continued growth and strong results reflect the effectiveness of its long-term strategy of unlocking value within its portfolio.

“Sustained growth in the industrial and logistics sector continues to be fuelled by extremely strong tenant demand from the growth in e-commerce, which is driving low vacancy rates and rental growth in key markets across Europe and Australia. Institutional demand for industrial assets also continues to increase and drive yield compression,” said Mr Otter.

“Harnessing these industry drivers, we’ve embedded our strategy of developing quality, future-ready industrial and logistics facilities in the past year. We’ve more than doubled our assets under management within the past two years and recently announced our industry-first Premium Estates concept that will create next-generation industrial estates. This concept brings together leading innovations in wellbeing, sustainability and technology, and supports our net-zero carbon by 2030 target.

“Building on our current S$751 million (A$765 million) development pipeline, we’re rapidly investing in Europe to establish a strong market position there and unlock opportunities for our customers that benefit from our multi-national reach. In Australia, five of nine developments underway include innovative Premium Estates, such as The YARDS at Kemps Creek and Vantage Yatala, QLD, which will set a global benchmark for the industrial experience.”  

Frasers Property Industrial: key performance highlights as at 30 September 2021:

• In FY21, Frasers Property Industrial achieved a profit before interest and tax of S$829.5 million (A$826.4 million).
• Earnings boosted by an enlarged property portfolio.
• Frasers Property Industrial’s total assets under management comprises 154 properties across six countries, equating to 4.1 million sqm of gross floor area (GFA). Valued at S$11.3 billion (A$11.5 billion) Frasers Property Industrial’s total assets under management more than doubled from S$5.2 billion (A$5.3 billion) at the point of formation in 2019.
•  Frasers Property Industrial’s multi-national expertise delivered a platform to support customers’ businesses across geographies, fuelling high quality tenant demand:
• Completed eight assets totalling S$406 million (A$414 million) (GDV) for customers, six in Australia including CEVA (Westpark VIC), Mazda (Epping VIC), Hino and Crown and Andrew, (Horsley Park NSW), Ozito & EFM (Dandenong South VIC), William Sonoma (Horsley Park NSW) and Pacific Optics (Yatala) 
• Currently developing 11 projects totalling S$751 million (A$765 million) GDV and 356,000 sqm, including nine in Australia and two in Europe, planned for completion within the next two financial years
• Strategic initiative to grow industrial & logistics asset base, including the transfer of a portfolio of industrial properties held for sale in Australia and Europe to investment properties
• A strategically positioned landbank area of 2.9 sqm across Australia and Europe, including landbank additions of 424,000 sqm in Europe and 400,000 sqm in Australia this financial year.
• Australian portfolio 100% occupied with a weighted average lease expiry (WALE) of 5.3 years and 98% occupancy in Europe with 6.2 years WALE – attesting to strong rental growth in key markets and high occupancy with quality tenants.
• The robust results performance achieved during FY21 by Frasers Property Industrial reflects the Group’s continued strategy to leverage its multi-national platform and diverse collective experience and scope across development, and asset and investment management.