Perennial Q2 profit drops 93.2% on lower rents, absence of year-ago fee

PERENNIAL Real Estate Holdings' second-quarter net profit fell 93.2 per cent to S$594,000, or 0.04 Singapore cent per share, in the absence of a year-ago acquisition fee and on lower rental revenue.

For the six months to June 30, net profit fell 25.6 per cent to S$9.1 million.

The real estate developer's revenue shrank by 38.7 per cent to S$24.1 million during the second quarter. Perennial said that the decline was due to the absence of a one-off acquisition fee earned in the year-ago period from the acquisition of AXA Tower, as well as due to lower rental revenue from TripleOne Somerset as expiring leases were not renewed in preparation for renovations and strata sale.

Perennial said that it is positive about the outlook for the healthcare industry in China. It also noted that its Chengdu Qingyang Mall has been turning in steadily improving performance since opening in April 2014.