Frasers Centrepoint Q1 profit down 47.2% to S$98.7m

FRASERS Centrepoint on Wednesday posted a 47.2 per cent drop in first quarter net profit to S$98.7 million, weighed down by lower profits from its development portfolio in Singapore, China and Australia, which more than offset the income stream from the newly-acquired Malmaison Hotel du Vin group in the United Kingdom.

Net profit was also weighed down by the absence of a fair value gain on investment properties in Q1 2015, compared to the gain of S$41.5 million in Q1 2014.

Earnings per share for the quarter fell to 3.41 Singapore cents, from 6.24 Singapore cents a year ago.

Revenue for the three months ended Dec 31, 2015, fell 37.3 per cent to S$671.6 million.

Cost of sales in Q1 fell 45 per cent to S$419.6 million.

Correspondingly, profit before interest, fair value, taxation and exceptional items dropped 24.4 per cent year on year to S$211 million for the quarter.

Frasers Centrepoint said that exceptional items for the quarter was a net loss of S$1.3 million compared to a gain of S$17.5 million in the corresponding quarter last year.

The net loss comprised mainly of costs incurred on the acquisition of subsidiaries under the Malmaison Hotel du Vin group, it said, adding that the net gain in the corresponding quarter last year was largely due to a gain on divestment of a Thailand joint venture and associate.

In its outlook, the group said that it expects a "tepid growth environment" and will continue to grow its business and asset portfolio in a prudent manner across geographies and property segments.

"We will also focus on optimising capital productivity and strengthening the income base through our real estate investment trust (Reit) platform. In Singapore, the group will selectively tender for sites to replenish its landbank. In Australia, the group will leverage the Frasers Property Australia platform and grow the Australian business. As for China, the group will continue to look at opportunities in Shanghai, Suzhou and Chengdu and explore opportunities in the neighbouring cities."