SINGAPORE (Nov 5): Perennial Real Estate Holdings reversed into the red with a net loss of $9.9 million for the 3Q19 ended September, compared to earnings of $48.3 million a year ago.
This translated to loss per share of 0.60 cents for 3Q19, compared to earnings per share of 2.90 cents in 3Q18.
The decline was largely due to lower other income, which plunged to $13.1 million in 3Q19, compared to $242.8 million a year ago.
This was due to the absence of other income recognised in 2Q18 on fair value gain of two plots on Beijing Tongzhou Phase 1.
In 2Q19, the other income comprised mainly the on divestment of its 20% stake in Aidigong.
2Q19 revenue surged 74.0% to $38.7 million, mainly attributable to improved revenue contribution from Perennial International Health and Medical Hub (PIHMH) in Chengdu and Capitol Singapore, as well as the sale of a unit in Eden Residences.
The higher revenue was partially offset by lower management fee due to the absence of a one-off acquisition fee.
Excluding the fair value gain in 3Q18 and divestment gain in 3Q19, earnings before interest and tax (EBIT) would have been $5.8 million higher in 3Q19.
This was primarily due to improved performances of PIHMH and Perennial Qingyang Mall in Chengdu, as well as higher share of results from healthcare associates and joint ventures.
As at end-September, cash and cash equivalents stood at $99.6 million.
Looking ahead, Perennial says the revamp at Capitol Singapore is “taking shape” as total committed occupancy reached 91.5%.
Meanwhile, it reports that CHIJMES’ occupancy continued to edge up close to 100%.
In China, Perennial saw the soft opening of the 350-bed Gleneagles Chengdu Hospital anchoring PIHMH in late October, while construction works at its three other HSR healthcare and commercial hubs have reached various stages of progress.
Shares in Perennial closed flat at 55 cents on Tuesday.
