Frasers Centrepoint's Q2 net profit falls 14%

PROPERTY developer Frasers Centrepoint Limited (FCL) on Tuesday posted a 13.8 per cent year-on-year decline in its second quarter net profit to S$123.3 million. However, net profit before fair value change and exceptional items rose 11.1 per cent to S$110.3 million for the three months ended March 31, 2016.

Revenue more than doubled to S$897.9 million.

Earnings per share fell to 2.7 Singapore cents, from 3.06 cents a year ago.

The developer said that the surge in revenue was mostly driven by maiden profit recognition from the completion of the Twin Fountains residential project and progressive development profits from North Park Residences in Singapore.

In the United Kingdom, profits from the completion and settlement of Riverside Quarter Blk 5C, and a new stream of income from the newly acquired Malmaison Hotel du Vin Group also added to the increase.

These gains were partly offset by lower contributions from the group's development portfolio in China and Australia.

The group has declared an interim dividend of 2.4 Singapore cents per share, payable on June 9, 2016.

Amendment note: An earlier version said that FCL posted an 11.1 per cent increase in net profit. This is before fair value change and exceptional items. After fair value change and exceptional items, net profit fell 13.8 per cent to S$123.3 million.