Frasers Property proposes FHT portfolio optimisation to advance its hospitality strategy and enhance capital efficiency

SINGAPORE, 25 JUNE 2026

Frasers Property Limited (“Frasers Property”, and together with its subsidiaries, the “Group”) today announced a proposed optimisation of FHT’s portfolio involving approximately S$2.1 billion of assets (“Proposed FHT Portfolio Optimisation”). The proposed transaction is expected to reshape the Group’s hospitality portfolio, enhance capital efficiency and deliver long-term shareholder value.

Advancing the next phase of the Group’s hospitality strategy

The Proposed FHT Portfolio Optimisation builds on the 2025 privatisation of Frasers Hospitality Trust (“FHT”), which gave the Group greater flexibility over any restructuring of the ownership and management of the portfolio. It reflects Frasers Property’s disciplined approach to creating, sustaining and unlocking value through active capital allocation and portfolio management.

This transaction involves:

• reversing certain legacy arrangements previously put in place for FHT’s listing, including the removal of minimum fixed rental and corporate guarantee obligations by Frasers Property;

• aligning ownership of property and operating companies, and unifying carved-out lease and reversionary interests for single title ownership to provide flexibility for asset value maximisation while i) maintaining platform scale; and ii) remaining selectively invested for value creation opportunities alongside TCC Group Investments Limited (“TCCGI”), the existing co-owner of the FHT portfolio assets.

The Proposed FHT Portfolio Optimisation will effectively allow Frasers Property to:

• unlock capital from stabilised assets while the Group continues to manage them for third-party capital and earns recurring fee income;
• retain exposure to assets with upside potential;
• hold the remaining non-core assets for future opportunistic divestment; and
• consolidate full ownership of Fraser Suites Singapore, facilitating a potential redevelopment of the Valley Point site.

Mr Loo Choo Leong, Group Chief Financial Officer of Frasers Property, said, “We have been disciplined in improving capital efficiency, lowering gearing and enhancing returns for the Group. The Proposed FHT Portfolio Optimisation reflects that discipline in action. It frees up capital for higher-returns opportunities while maintaining our recurring income base by co-investing alongside our capital partner. This delivers clear positive effects on our balance sheet and key financial metrics.”

Ms Eu Chin Fen, Chief Executive Officer of Frasers Hospitality, added, “Following the privatisation of Frasers Hospitality Trust in 2025, we conducted a comprehensive review of the hospitality portfolio and reached clear conclusions on how each asset is best managed going forward. The Proposed FHT Portfolio Optimisation is the outcome of that review which strengthens our platform while we continue to drive performance through our operating capabilities.”

Proposed FHT Portfolio Optimisation secures an attractive, above-valuation pricing for FPL shareholders

The Proposed FHT Portfolio Optimisation will be transacted with TCCGI at approximately 6.7% premium to Latest Independent Valuation¹ and 1.6% above the Implied Take-Private Valuation levels². This is an attractive price for FPL shareholders. As TCCGI is the existing co-owner of the FHT portfolio assets, this provides strong execution certainty on the required terms.

Enhancing capital efficiency while maintaining platform scale

Following completion, Frasers Property is expected to emerge with a more focused and capital-efficient hospitality platform.

On-balance sheet hospitality assets are expected to decrease from approximately S$3.7 billion³ to S$2.5 billion, while AUM maintains at S$4.2 billion⁴. Frasers Property will continue to generate recurring income through its operating capabilities across the portfolio.

In addition, full ownership of Fraser Suites Singapore will enable the Group to pursue potential redevelopment of the entire Valley Point site, providing further opportunities for value creation over the longer term.

Strengthening financial metrics and shareholder outcomes

The Proposed FHT Portfolio Optimisation is expected to enhance FPL’s key financial metrics (on a pro forma FY2025 basis):

• Earnings per share increased by 3.4%
• Return on equity improved by 0.1 percentage points
• Net asset value per share increased by 1.3%
• Net gearing reduced by 3.3 percentage points

These improvements reflect the combined effect of capital recycling, pricing outcomes and a more efficient capital structure.

Next steps

The Proposed FHT Portfolio Optimisation is subject to approval by shareholders entitled to vote at an EGM to be convened, as well as other conditions being fulfilled. The Group will make further announcements on the EGM in accordance with SGX-ST listing requirements. The Proposed FHT Portfolio Optimisation, if approved at the EGM, is expected to complete before the end of FY2026.

1   As at 30 April 2026.

2   Refers to the implied valuation of the FHT Properties at the Scheme (based on the take-private price of S$0.71 per Stapled Security).

3   As at 31 March 2026.

4   As at 31 March 2026. S$3.9b with S$0.3b (Fraser Suites Singapore) reallocated for redevelopment.