The absence of a one-off gain from the partial divestment of TripleOne Somerset last year hit first-quarter earnings at Perennial Real Estate Holdings.
Net profit dived 86.7 per cent to $5.14 million in the three months to March 31. Revenue came in at $14.95 million, down 26.1 per cent in the absence of turnover from TripleOne Somerset, which Perennial now accounts for as an associate.
Excluding TripleOne Somerset's revenue contribution last year, Perennial's revenue was 10.1 per cent higher in the first quarter, mainly attributable to Perennial Qingyang Mall, Chengdu.
Revenue of around $8.9 million came from the China retail and office portfolio, up 17.8 per cent from the same period a year earlier.
Turnover from Singapore assets such as Chijmes was $3.2 million, down 69.1 per cent from a year earlier as TripleOne Somerset did not add to the topline.
First-quarter earnings before interest and tax was $24.4 million, but would have been $15.8 million higher than a year ago excluding the TripleOne Somerset divestment gain.
AT A GLANCE
REVENUE: $14.9 million (-26.1%)
NET PROFIT: $5.1 million (-86.7%)
This was due to a higher share of results from Yanlord Perennial Investment Singapore (YPIS), Chinatown Point in Singapore and Shenyang in China. In February, YPIS acquired an additional 19.9 per cent stake in WBL and recognised a gain between the acquisition price and the fair value of the acquired net assets.
The higher contribution of Chinatown Point was attributable to Perennial's increased stake of 5.49 per cent acquired in November last year. For Shenyang, there was a one-off adjustment from a lease restructuring in the first quarter last year.
Perennial completed the acquisition of Chesham Properties' 50 per cent stake in Capitol Singapore yesterday at a cash consideration of $129 million. It now owns 100 per cent of Capitol Singapore.
The firm is now finalising the appointment of the operator for the hotel component from a shortlisted group of established five-star brands/operators, it said.
In China, the Perennial International Health and Medical Hub in Chengdu is slated to officially open on June 1. Committed occupancy stands at 87.6 per cent.
Earnings per share were 0.31 cent, down from 2.32 cents in the same period last year.
Net asset value per share was $1.692 as of March 31, up from $1.663 as of Dec 31.
Perennial shares closed up one cent, or 1.17 per cent, to 86.5 cents yesterday before the results were released after market close.