Financial swing for Perennial Real Estate

Perennial Real Estate Holdings has reported a profit dip – but its CEO still finds reason for cheer.

The Singapore mall owner has registered a total profit after tax of S$594,000 (US$443,052) for its second quarter and S$9.1 million for its first quarter.

This was significantly lower than the $8.8 million for the second quarter last year, which included a one-off acquisition fee.

Its revenue of $24.1 million in the second quarter was largely contributed by Chijmes and TripleOne Somerset in Singapore, as well as Perennial Jihua Mall and Perennial Qingyang Mall in China. This is lower than the $39.3 million in the same period last year, mainly because last year’s second quarter included a one-off acquisition fee of $11.7 million, and lower rental revenue from TripleOne Somerset as expiring leases were not renewed in preparation upgrading and strata sales starting in the latest second quarter.

Earnings before interest and tax for the second quarter was $18.6 million, down from the$25.1 million recorded in same period last year.

Post-tax profit of $9.1 million for the first half was down from $12.2 million for the same period last year, again because of the one-off acquisition fee, and offset by a fair-value gain of $7.5 million on the revaluation of the Chengdu East High-Speed Railway integrated development site.

EBIT for the first half was, however, marginally higher at $44.7 million compared the $42.3 million achieved during the same period last year.

“Despite the relatively weak market sentiment, strata sales at TripleOne Somerset have started to gain momentum,” says Perennial CEO Pua Seck Guan.

“Our integrated real estate and healthcare business strategy is starting to take shape in China, particularly at Chengdu East HSR Integrated Development, where Perennial International Health and Medical Hub and Chengdu Xiehe International Eldercare and Retirement Home (Chengdu Xiehe Home) will start contributing to the top line next year.”

In Singapore, TripleOne Somerset started upgrading its retail podium, with a luxurious food market and food hall concept to be introduced.

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