Perennial posts 93% fall in Q2 profit on absence of one-off gain, lower rental revenue

SINGAPORE - Perennial Real Estate Holdings reported its net profit for the second quarter ended June 30, 2016, tumbled 93.2 per cent to S$594,000 from S$8.77 million a year ago.

Revenue fell 38.7 per cent to S$24.1 million during the quarter. This was was mainly due to the absence of one-off acquisition fee from the acquisition of AXA Tower in the corresponding quarter a year ago and lower rental revenue from TripleOne Somerset as expiring leases were not renewed in preparation for the asset enhancement works and strata sale.

For the first half-year, earnings fell 25.6 per cent to S$9.07 million from S$12.19 million previously.

Looking ahead, Perennial said it expects challenges given the market volatility. However, it said it remains optimistic about the prospects in the longer term and is confident of its quality portfolio of prime and iconic properties in Singapore and China which are well-connected to public transportation.