Perennial Real Estate Holdings' first-quarter net profit surged owing to a divestment gain from the sale of a partial stake in a property asset near Orchard Road.
Earnings for the three months to March 31 jumped to nearly $38.7 million, more than quadruple the $8.5 million booked in the year before.
"The increase was mainly due to the divestment gain from the sale of a 20.2 per cent stake in TripleOne Somerset and the re-measurement gain from the retained 30 per cent stake in the same property," the firm said yesterday.
However, first-quarter revenue fell by 31.4 per cent year-on-year to $20.2 million due to lower project-management fees and lower rental revenue from TripleOne Somerset, which was undergoing renovation works for strata sale. Refurbishment works are also under way for the strata sale of space at its other property, AXA Tower in Shenton Way.
Perennial said the main revenue contributors during the quarter were Chijmes and TripleOne Somerset here as well as Perennial Jihua Mall, Foshan and Perennial Qingyang Mall, Chengdu in China.
Its assets in Singapore contributed to about half of its first-quarter revenue at $10.2 million; over a third of the share or $7.6 million came from China, with the remaining from its fee-based management businesses, the firm added.
AT A GLANCE
REVENUE: $20.2 million (-31.4%)
NET PROFIT: $38.7 million (+356.4%)
In an update on the strata sale of space at its two properties, Perennial said some strata office units have been transacted at an average price of about $2,700 psf at TripleOne Somerset, and at $2,559 psf at AXA Tower, since the sales launch in the third quarter of 2016.
"To date, the total strata sales at TripleOne Somerset and AXA Tower amount to about $17.7 million and $41 million respectively," it said.
Quarterly earnings per share was 2.32 cents, up from 0.51 cent a year ago. Net asset value per share came in at $1.61 as at March 31, down from $1.631 at the end of December 2016.
The firm said it expects Singapore and China's economic growth to be modestly paced amid global uncertainties. "The group will continue to focus on expanding the base of stable and recurring income and growing its healthcare business while remaining diligent on execution of development assets," it noted.
The counter fell by half a cent to 85.5 cents yesterday, before the earnings were announced.