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Perennial Real Estate Holdings saw its net profit for Q4 2016 drop by 37.8 percent to $25.6 million from $41.1 million during the same period in 2015.
The group attributed the decline “to lower share of operating results from joint ventures, lower net fair value gains on revaluation of investment properties and impairment provision”.
Revenue also fell by 24.2 percent to $21.5 million, mainly due to lower rental revenue from TripleOne Somerset as expiring leases were not renewed due to asset enhancement works that commenced from Q2 2016.
For the full fiscal year 2016, net profit fell by 39.6 percent to $35.1 million, while revenue slipped by 6.4 percent to $110.2 million.
“FY2016 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,” said Pua Seck Guan, CEO of Perennial (pictured).
He noted that the group’s key focus in China was to “manage the development of Perennial International Health and Medical Hub (PIHMH) and Chengdu East High Speed Railway (HSR) Integrated Development Plot D2 (Chengdu Plot D2) to create the signature showcase of our integrated real estate and healthcare strategy”.
“This year, we remain focused on the core markets of Singapore and China with our efforts centred on accelerating the strata sales at TripleOne Somerset and AXA Tower, preparing PIHMH and Chengdu Xiehe International Eldercare and Retirement Home (Chengdu Xiehe Home) at Chengdu Plot D2 for the commencement of business, and strengthening the performance of our operating assets in Singapore and China, all of which will boost recurrent income streams,” he added.
Image source: Perennial
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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