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This is a simple Finance 101 question which gotten an incomplete answer, suggesting either ignorance or avoidance.
61st ANNUAL GENERAL MEETING TO BE HELD ON 16 JANUARY 2025 RESPONSES TO SUBSTANTIAL AND RELEVANT QUESTIONS
Question: What is the cost of capital and is management closely tracking the important metric?
Answer: Through the disciplined execution of the Group’s multi-pronged approach, Frasers Property's average cost of debt on a portfolio basis as at 30 September 2024 stood at 3.9% per annum. This also reflects the Group's ability to secure competitive interest rates despite prevailing market conditions. The Group’s cost of debt is tracked on an on-going basis as part of our financial discipline. Where there are substantial changes to the market environment, part of our response would include reviewing the cost of capital.
The Group actively manages its interest rate exposure by maintaining a balanced mix of fixed and floating rate borrowings, with 72.9% of its total debt on fixed rates as at 30 September 2024. This approach helps mitigate the impact of interest rate volatility while providing the flexibility to capitalise on market opportunities.
https://links.sgx.com/FileOpen/FPL_Respo...eID=830272
61st ANNUAL GENERAL MEETING TO BE HELD ON 16 JANUARY 2025 RESPONSES TO SUBSTANTIAL AND RELEVANT QUESTIONS
Question: What is the cost of capital and is management closely tracking the important metric?
Answer: Through the disciplined execution of the Group’s multi-pronged approach, Frasers Property's average cost of debt on a portfolio basis as at 30 September 2024 stood at 3.9% per annum. This also reflects the Group's ability to secure competitive interest rates despite prevailing market conditions. The Group’s cost of debt is tracked on an on-going basis as part of our financial discipline. Where there are substantial changes to the market environment, part of our response would include reviewing the cost of capital.
The Group actively manages its interest rate exposure by maintaining a balanced mix of fixed and floating rate borrowings, with 72.9% of its total debt on fixed rates as at 30 September 2024. This approach helps mitigate the impact of interest rate volatility while providing the flexibility to capitalise on market opportunities.
https://links.sgx.com/FileOpen/FPL_Respo...eID=830272
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.