Perennial Real Estate Holdings records profits of $8.772 million

SINGAPORE - Perennial Real Estate Holdings recorded a net profit of S$8.772 million for the fourth quarter over income from its assets in Singapore and China.

The company, which was formed through a reverse takeover of St James Holdings last year, recorded a revenue of S$39.3 million for the three months ended June 30, it said in a release on Tuesday.

Net profit for the period of about eight months since the takeover was S$33.5 million. Profits were affected by transaction costs, one of which came during the reverse takeover, the company said.

For the three months to June 30, Singapore assets contributed around 40.7 per cent of the group's total revenue. Assets in China contributed about 16.3 per cent.

The main revenue contributors in Singapore were CHIJMES and TripleOne Somerset in Singapore, the release said. The main contributors in China were perennial Jihua Mall in Foshan and Perennial Qingyang Mall in Chengdu.

For the period from October 28, 2014 to June 30, 2015, Singapore assets contributed approximately S$41.6 million, representing 51.2 per cent of the company's real estate revenue. Assets in China contributed 20.3 per cent of revenue.

The company's earnings per share for the three months ended June 30 is 0.54 cents. Net asset value per share for the three months ended June 30 is S$1.695.

It did not declare dividends.

The company also said that it had received approval for enhancement plans to TripleOne Somerset and AXA Tower.

Looking ahead, the company said that its assets in Singapore are expected to provide recurrent income. It said that it would optimise the performance of its assets in Shenyang, Foshan and Chengdu through "strategic" tenant mixes, growing shopper traffic and improving tenant sales.

It has also established a 50-50 joint venture with IJM Land Berhad to acquire a freehold waterfront site in Penang, Malaysia and develop it into an integrated mixed-use development comprising of residential, commercial and hospitality components. The project is expected to be completed in phases, starting from 2018, it said.

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