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Frasers Centrepoint's Q3 profit down 62.4% on lower development profits

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FRASERS Centrepoint (FCL) on Friday posted a 62.4 per cent drop in its attributable profit to S$68.2 million (before fair value change and exceptional items) for its third quarter ended June 30, 2016.

FRASERS Centrepoint (FCL) on Friday posted a 62.4 per cent drop in its attributable profit to S$68.2 million (before fair value change and exceptional items) for its third quarter ended June 30, 2016.

After fair value change and exceptional items, net profit still fell - but a milder 15.1 per cent drop to S$154 million, while revenue fell 32.5 per cent to S$682.1 million.

The real estate developer said that its performance was mainly due to lower profits from the group's development portfolio in Singapore, Australia and China.

The decline was mitigated by profits from the completion of Twin Fountains executive condominium, new streams of income from the Malmaison Hotel du Vin group of 29 hotels bought in June 2015, and share of profits from a newly acquired associate in Thailand.

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There was a fair value gain due to an uplift in the value of investment properties that were injected into the newly-listed Frasers Logistics and Industrial trust during the quarter.

Earnings per share was 2.35 Singapore cents, halved from 5.71 Singapore cents a year ago.

Lim Ee Seng, Group CEO of FCL, said: "This quarter's results continued to attest to the importance of FCL's drive to achieve sustainable earnings by growing income from recurring as well as overseas sources.

"Amid the tapering off of contributions from Singapore development projects, coupled with timing differences in completions of overseas projects, the role of our recurring income base in providing stability and mitigating the impact of lumpy completion timelines has been clearly demonstrated. We expect stronger contribution from development income next quarter as several projects in Australia and China are due to be completed."

The counter rose half a cent to end at S$1.53 on Friday's stock market.

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