Diversified property and retail group Metro Holdings Singapore has reported a dip in overall third quarter profit – but its retail business improved.

The company says overall revenue fell 1.3 per cent to S$41 million in the three months to December 31. Net profit was $55.9 million, down from $63.9 million.

“Notwithstanding a subdued retail environment, the Retail Division’s sales increased marginally by $0.2 million to $39.1 million. Moving out sales of Metro City Square more than offset the impact from an absence of sales from the closed Metro Sengkang department store,” Metro said in a statement.

The property division’s revenue decreased from $2.7 million to $1.9 million in the quarter, largely due to the disposal of Frontier Koishikawa Japan last August.

Metro Chairman Winston Choo described the quarter as “somewhat challenging” but said the company’s diversification across property and retail had ensured resilience.

“Looking ahead, with the net proceeds from our recent divestments of Frontier Koishikawa in Japan and our 50 per cent effective interest in EC Mall, Beijing, we will be well-positioned to reinvest our capital and drive higher returns for our shareholders.”