SINGAPORE (May 8): Perennial Real Estate Holdings posted earnings of $38.7 million for the first quarter ended March, more than four times higher than earnings of $8.5 million a year ago.
This was mainly due a one-off gain on divestment of its 20.2% equity stake and the resultant remeasurement gain for the 30% retained stake in TripleOne Somerset.
Revenue fell 31.4% to $20.2 million in 1Q, from $29.5 million a year ago.
This was attributable to lower project management fees as well as lower rental revenue from TripleOne Somerset due to asset enhancement works for strata sale.
Finance income more than tripled to $3.9 million, from $1.1 million a year ago, mainly due to higher interest income on loans extended to joint ventures and interest income from junior bonds issued by an associate.
Share of results of associates and joint ventures fell to $698,000, compared to $10.3 million a year ago.
This was mainly due to the absence of share of fair value gain on the revaluation of Chengdu East High Speed Railway Integrated Development Plot D2 in 1Q16, and a one-off adjustment from a lease restructuring with Shenyang Red Star Macalline Furniture Mall.
Cash and cash equivalents stood at $165.0 million as at March 31, 2017.
Looking ahead, Perennial says economic growth in the Singapore and China markets where it operates in are likely to be modestly-paced amid the global uncertainties.
“The group will continue to focus on expanding the base of stable and recurring income and growing its healthcare business while remaining diligent on execution of development assets,” it says in a filing to SGX.
Shares of Perennial Real Estate Holdings closed half a cent lower at 85.5 cents on Monday.
