Far East Orchard's net profit more than halves to $7.3 million from $16.1 million

Far East Orchard's second quarter net profit slumped by 54.7 per cent to $7.3 million.

Revenue for the three months to June 30 was up 35.2 per cent at $45.6 million.

The increase came mainly from property development, which contributed $27.8 million for the quarter, as compared to $19 million in the same period last year.

This is due to the initial recognition of revenue from the euHabitat project.

The group will continue to recognise revenue for this project on a progressive basis, based on the stage of completion.

Revenue from hospitality division increased by $4.2 million, mainly due to the hospitality management business that was acquired in August last year.

Revenue from property investment decreased by $1.1 million as most of the group's investment properties were divested last year as part of its restructuring.

Earnings per share dropped to 1.91 cents from 4.42 cents previously while net asset value per share eased to $2.85 compared to $2.92 as at Dec 31.