Divestment gains bolster Q1 bottom line of Perennial Real Estate Holdings

Singapore

PERENNIAL Real Estate Holdings posted a more than four-fold jump in first-quarter net profit to S$38.7 million from a year ago, bolstered by divestment gains from the sale of a 20.2 per cent stake in TripleOne Somerset and the remeasurement gain from the retained 30 per cent stake in the same property.

Revenue for the January-March quarter was 31.4 per cent lower at S$20.2 million, largely owing to lower project management fees and lower rental revenue from TripleOne Somerset as the property commenced asset enhancement works to facilitate the strata sale of the office space and medical suites. Q1 also saw the net share of results of associates and joint ventures fall from S$10.3 million to S$698,000, "mainly due to the absence of share of fair value gain on the revaluation of Chengdu East High Speed Railway Integrated Development Plot D2 in Q1 2016 and a one-off adjustment from a lease restructuring with Shenyang Red Star Macalline Furniture Mall".