Frasers Property Affirms Dividend of SGD0.045, Reflecting Strong Financial Performance

Frasers Property Limited (SGX:TQ5) has affirmed its dividend of SGD0.045 for the year ended 30 September 2023, reflecting the company's strong financial performance and commitment to shareholder returns. The dividend, which is up from SGD0.03 in the previous year, is in line with the company's historical payout ratios and dividend growth trends.



The company's dividend affirmation comes on the heels of its full-year 2023 results, which showed a 5.1% increase in profit before interest and tax (PBIT) compared to the previous year. Despite a decrease in attributable profit due to net fair value losses on investment properties and higher borrowing costs, Frasers Property's strong financial performance has enabled it to maintain and even increase its dividend payout.

Here are the key takeaways from Frasers Property's dividend affirmation:
- Dividend Yield: Frasers Property's dividend yield of 4.84% is higher than its historical average of 4.1% and is in line with some of its peers in the real estate sector, such as EMAAR Properties and Sun Hung Kai Properties Limited.
- Payout Ratio: The company's payout ratio in 2023 was 108%, which is higher than its historical average. This indicates that Frasers Property is distributing a larger portion of its earnings as dividends, reflecting its strong financial performance.
- Dividend Growth: Frasers Property's dividend growth rate is -1.5%, which is lower than its peers. However, the company's dividend affirmation indicates that it is committed to maintaining its dividend payouts despite the challenging macroeconomic environment.



Frasers Property's dividend affirmation is a positive sign for the company's financial health and commitment to shareholder returns. The company's strong financial performance, healthy cash flow position, and financial flexibility suggest that it will be able to maintain and potentially increase its dividend payouts in the future. However, investors should consider the trade-off between a higher current dividend yield and the potential for future dividend growth when evaluating Frasers Property's dividend policy.

In conclusion, Frasers Property's dividend affirmation of SGD0.045 reflects the company's strong financial performance and commitment to shareholder returns. The company's dividend policy aligns with its overall financial strategy and growth prospects, as it maintains a balance between distributing cash to shareholders and reinvesting in the business for future growth. Frasers Property's diverse portfolio of properties and business units plays a crucial role in sustaining its dividend payouts, and the company's expansion into industrial and logistics further strengthens its portfolio and contributes to its earnings.