SINGAPORE (Feb 8): Perennial Real Estate Holdings, the integrated real estate and healthcare company, reported 37.8% lower earnings of $25.6 million in 4Q16.
This was mainly due to lower share of operating results from joint ventures, lower net fair value gains on revaluation of investment properties and impairment provision.
FY16 earnings came in at $35.1 million, 39.6% lower than the $58.1 million posted a year ago.
The group’s 4Q16 revenue of $21.5 million was lower than the $28.4 million registered in the same period last year.
The decrease was mainly due to lower rental revenue from TripleOne Somerset as expiring leases were not renewed due to asset enhancement works which have started since 2Q16.
Revenue for FY16 of $110.2 million was marginally lower than FY15 of $117.7 million due to the absence of the acquisition fee of AXA Tower earned in FY15 and lower rental revenue from TripleOne Somerset, but was mitigated by strata sales of office units in TripleOne Somerset.
As at Dec 31 2016, the group’s net debt to equity ratio was 0.66 times. The ratio is expected to improve significantly to 0.46 times, assuming the divestment of the 20.2% stake in TripleOne Somerset is completed as at Dec 31 2016.
A first and final dividend of 0.4 cents per share has been proposed and will be payable on May 19.
Pua Seck Guan, Chief Executive Officer of Perennial, said, “FY16 has been an eventful year as we commenced strata sales of the office and medical suites at TripleOne Somerset and AXA Tower for trading profit, and recycled our capital to increase our investment in a higher yielding asset, Chinatown Point mall, in Singapore.”
On the healthcare business front in China, Pua said Perennial intends to scale up its eldercare business where it aims to become one of the largest eldercare operators in Yangtze River Delta Region in the next few years, expand its medical/hospital business and actively explore the acquisition of prime integrated real estate and healthcare projects.
Shares of Perennial closed 1 cent higher at 75 cents on Tuesday.
