Singapore remains the home market of Frasers Centrepoint (FCL) despite the struggles of the residential sector, it said on Friday.

One of the big projects it is working towards is the launch of a private condominium in Siglap Road next year.

It is also upbeat about suburban malls, which are expected to continue attracting steady shopper traffic despite a tough retail scene.

The new Northpoint City mall is expected to be up and running in 2018. Also, renovation at The Centrepoint is slated to be done by September.

"Vacancy levels in the office market, however, are expected to rise as new developments are completed, and prime Grade A rentals continue to face pressure," said FCL.

Lower contributions from FCL's development portfolio in Singapore, Australia and China, hurt its bottom line in the third quarter.

Net profit for the three months to June 30 fell 15.1 per cent to $154 million, while revenue slumped 32.5 per cent to $682.1 million compared with the same period a year ago.

However, the property firm said the falls were partly cushioned by the recognition of profits from the Twin Fountains executive condominium following its completion, as well as new income streams from the Malmaison Hotel du Vin group of 29 hotels that were acquired in June 2015 and the group's share of profits from an associate in Thailand.

It added the results also included a fair value gain of $77 million, "due to an uplift in the value of investment properties that were injected into Frasers Logistics & Industrial Trust (FLT) during the quarter".

Revenue at the commercial properties segment inched up 2 per cent to $102 million on the back of better results from Frasers Commercial Trust. FCL said this was from the acquired property at 357, Collins Street in Melbourne in August last year, and "positive rental reversions and economies of scale" at Alexandra Technopark.

But gains in the segment were partly offset by the lack of contributions from One@Changi City, which was sold, and softer operating results at Northpoint, which is being renovated.

Revenue from the development properties segment plunged 69 per cent to $200 million in the quarter.

Hospitality revenue was 63 per cent higher at $194 million, on the back of the acquired Malmaison Hotel du Vin hotels in Britain and Maritim Hotel Dresden in Germany.

FCL group CEO Lim Ee Seng said: "Amid the tapering off of contributions from Singapore development projects, coupled with timing differences in completions of overseas projects, the role of our recurring income base in providing stability and mitigating the impact of lumpy completion timelines has been clearly demonstrated."

On the capital management front, the listing of its fourth sponsored Reit FLT has lowered the firm's net debt to equity to 70.8 per cent, which he said gave the group "enhanced financial flexibility".

Quarterly earnings per share was 5.31 cents, slightly down from 5.71 cents a year ago after fair value change on investment properties and exceptional items. Net asset value per share was $2.19 as at June 30, compared with $2.25 as at Sept 30.

FCL shares closed half a cent up at $1.53 on Friday.