Frasers Centrepoint Q2 profit falls 42.2% due to timing of property completion

Mr Panote Sirivadhanabhakdi, group chief executive officer of Frasers Centrepoint Limited.
Mr Panote Sirivadhanabhakdi, group chief executive officer of Frasers Centrepoint Limited.PHOTO: ST FILE

SINGAPORE - Frasers Centrepoint Ltd (FCL) reported on Thursday (May 11) a 42.2 per cent fall in second-quarter net profit to S$71.2 million from S$123.3 million a year ago.

This came as revenue for the three months to end-March 2017 fell 21.4 per cent to S$705.8 million, mainly due to the absence of contribution from the Twin Fountains executive condominium in Singapore, which was completed in the corresponding period last year, said FCL.

On a half year basis, revenue rose 16.6 per cent year-on-year to S$258.8 million as revenue climbed 6.9 per cent to S$1.68 billion. The increases were underpinned by a higher level of settlement of residential projects in Australia compared to last year, as well as earnings recognition from the completion of Phase 3C1 of Baitang One Suzhou, China, said the company.

An interim dividend of 2.4 Singapore cents per share was declared, to be paid out on June 9.

Mr Panote Sirivadhanabhakdi, group chief executive officer of FCL, said, "The merits of our longstanding strategy of growing our asset portfolio in a balanced and sustainable manner, across geographies and property segments were evident from our first half results. Profits from the completion of development projects in Australia and China supported FCL's performance amid lower contributions from Singapore.

"We will continue to make selective investments in overseas and recurring income assets as we work towards our strategic objective of achieving earnings sustainability."