SINGAPORE - Fragrance Group reported a 6.7 per cent rise in third quarter net earnings to $24.3 million on the back of a 17.5 per cent jump in turnover to $133.3 million.

Property development sector contributed $128.7 million or 96.5 per cent of total revenue.

This is an increase of about 21.2 per cent from the $106.2 million contribution in the same period last year.

The main contributor to the revenue during this period was the progressive recognition of income from development projects: Urban Vista, Novena Regency and Kensington Square.

Other projects that made significant revenue contribution included Le Regal, Suites @ East Coast and Icon @ Pasir Panjang,

Property investment sector contributed $4.6 million or 3.5 per cent to total turnover. This represents a decrease of 36.5 per cent, mainly due to the commencement of asset enhancement works to its investment property at Alexandra Road during the quarter, which saw no rental income generated.

This decrease was partly offset by the rental income from the newly completed investment property at Punggol Point.

Gross profit margin from property development fell to 28.1 per cent from 34.2 per cent. This was mainly due to lower selling prices of units.

Earnings per share inched up to 0.4 cent from 0.3 cent previously while net asset value per share shrank to 13.4 cents compared to 17.9 cents as at Dec 31.

City Gate, a newly launched project in which Fragrance has a 50 per cent interest, has received warm response from the market with good take-up rates.

Situated on the former Key Point land site, it comprises of 311 residential units and 188 commercial units.

Asset enhancement works at its Alexandra Road property are expected to be completed in the first half of 2015 and marketing efforts are currently ongoing to lease out the commercial space in the building.