In its business update for the 1QFY2021 ended December, Frasers Property Limited (FPL) has reported lower revenue per average room (RevPAR) across its hospitality properties globally.

In North Asia, RevPAR declined 24.9% y-o-y to $67.4, while RevPAR in Asia Pacific ex North Asia fell 43.9% y-o-y to $99.

RevPAR in Europe for the 1QFY2021 plunged 68.7% y-o-y to $54.3.

The group also registered lower average occupancy rate (AOR) across the board, with Europe in the lead at 54.1 percentage points lower to 29.4%.

AOR in North Asia fell 16.1 percentage points to 52.9% while Asia Pacific ex North Asia fell a mere 7.6 percentage points to 75.7% in comparison.

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According to FPL, the long-stay base for apartments cushioned the weak transient market in Asia Pacific ex North Asia.

In North Asia, AOR of properties in China remained relatively resilient supported by the long-stay base.

AOR in Europe was severely affected due to the recent months of lockdown as well as travel restrictions and quarantine measures.

The group says it is “actively planning” for regional and global campaigns to prepare for upcoming travel corridors. At the same time, it is reviewing cost management measures, as well as targeting domestic tourism and preparing for its upcoming openings in Guangzhou, Nanjing, Hanoi and Bukit Bintang.

FPL’s investment properties in Singapore have remained resilient with healthy retail and commercial portfolio metrics.

For the 1QFY2021, the group reported retail occupancy of 94.4% on an enlarged portfolio. Commercial occupancy grew 14.1 percentage points to 92.9% during the quarter following lease sign-ups on the completion of asset enhancement initiatives (AEIs) at Alexandra Technopark and Cross Street Exchange.

For its residential portfolio, the group sold 48 units with unrecognised revenue of $100 million.

In Australia, the group reported a “resilient” development business despite the economic volatility.

It has sold 600 units during the quarter with unrecognised revenue of $1.3 billion driven by Burwood Brickworks, Shell Cove, Midtown, Brookhaven, and Mambourin in the states of Victoria, New South Wales and Queensland.

FPL has reported weighted average lease expiry (WALE) of 4.0 years for its Australia office portfolio, and WALE of 8.8 years for its retail portfolio in the country.

In its industrial and logistics portfolio, FPL said it is developing 11 new assets totalling 304,923 sqm, that’s planned for completion over the next two years.

It has also accumulated industrial land banks including a 115,000 sqm site in Australia and 64,000 sqm across two sites in the Netherlands.

In Thailand and Vietnam, FPL’s residential properties remain in-demand.

In 1QFY2021, FPL sold 1,636 units in Thailand with unrecognised revenue of $71 million while the development of Thao Dien in Vietnam is moving ahead of schedule. It is expected to be completed by 2QFY2021.

In his note, FPL’s Group CEO Panote Sirivadhanabhakdi says the group’s well-diversified platforms will help it tide through the macroeconomic uncertainties and challenges.

He adds that the portfolio provides FPL with a “sustainable competitive advantage and the ability to deliver long-term shareholder value”.

“We will continue to strengthen the foundation needed for Frasers Property to be a purpose-driven company and are embracing our shared purpose – inspiring experiences, creating places for good. As we execute our strategic action plan, we will remain agile and tenacious, evolving the group to capitalise on opportunities and continue to grow a future-ready business,” he says.

Shares in FPL closed flat at $1.22 on Feb 5.