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Australian leasing backbone of Frasers Property Industrial results

Frasers Property Industrial has reported a “solid” FY24 performance off the back of the strength of its Australian assets
A National Tiles site at Frasers Property Industrial's Canvas West site.

Strong performance in Australian industrial real estate markets have underlined Frasers Property Industrial’s FY2024 full-year performance, with the company registering an overall profit before interest and tax of $460.7 million.

Frasers operates a non-REIT portfolio consisting of 45 completed assets with a total value of $3.2 billion in Australia. Its non-REIT European portfolio consists of 18 completed assets at a value of $0.7 billion.

11 development projects were completed across Australia at a total of 319,000 sqm, while the company also acquired four greenfield sites totalling roughly 585,000 sqm in Australia and the Netherlands.

Frasers’ Australian portfolio is currently 97.9 per cent occupied with a weighted average lease expiry of 5.2 years.

Frasers Property Industrial CEO Reini Otter says the company is poised to continue its strong growth due to current industrial and logistics market conditions across its Australian and European operations.

“Our landbanks, located in prime core markets with robust rental growth, have delivered strong momentum in lease renewals and new lease signings,” Otter says.

“While yields have softened, our business remains resilient with the majority of capital invested in income-producing assets supplemented by a significant development pipeline.

“Our premium industrial and logistics assets are developed to not only enhance business productivity but also prioritise the wellbeing of the people who work in them, incorporating architectural and design concepts provide outdoor space, natural light and high-quality finishes with best-in-class sustainability and technology at their core.”

Frasers Property Industrial’s assets under management totals at a value of $13.5 billion and comprises of 175 completed properties across five countries, equating to 4.6 million of net lettable area.

It currently has 12 assets under development, including 96,000 sqm across three projects at Rubix Connect at Dandenong South in Victoria and 99,000 sqm across four projects at ‘THE YARDS’ at Kemps Creek in NSW.

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