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Far East Orchard's Q2 profit plunges 97.3%
HOSPITALITY player Far East Orchard Limited marked a 97.3 per cent plunge in net profit to S$1 million for the second quarter ended June 30 mainly due to a slump in share of profit of joint ventures.
The group's share of results of joint ventures fell to S$57,000 from S$36.7 million a year ago mainly due to the absence of a one-time recognition of profits from the sale of units in a joint venture project SBF Center, which obtained its temporary occupation permit in June 2016.
Group revenue slipped 19.4 per cent to S$36 million mainly due to the completion of certain onerous lease agreements in Australia and New Zealand in late 2016, and weaker performance from the two hospitality assets in Perth, Australia.
"The group plans to continue to grow its hospitality businesses by increasing the number of management contracts, acquiring strategic assets and divesting properties to recycle capital for re-deployment towards higher yielding growth opportunities," Far East Orchard said.