Perennial posts quarterly net profit of S$4.78m

20151107-bt-perennial-posts-quartery-net-profit-$4.78m-pic PERENNIAL Real Estate Holdings posted a net profit of S$4.78 million for the quarter ended Sept 30 from income-producing assets in Singapore and operational assets held by Perennial China Retail Trust, which was consolidated with effect from November 2014.

Revenue recorded for the quarter was S$22.9 million, due mainly to strong performance at CHIJMES and TripleOne Somerset in Singapore and Perennial Jihua Mall, Foshan, and Perennial Qingyang Mall, Chengdu, in China.

Singapore assets contributed about 65.1 per cent of the group's revenue, while Chinese assets accounted for 30.6 per cent. The remaining 4.3 per cent of group revenue came from the fee-based management businesses.

The group achieved S$18.8 million of Ebit (earnings before interest and tax) for the quarter ended Sept 30, largely driven by contribution from TripleOne Somerset, the operational malls in China as well as fee-based management businesses.

Perennial was formed through a reverse takeover (RTO) of St James Holdings, which was completed on Oct 27, 2014. The group's real estate business commenced from Oct 28, 2014, after the RTO, which is why the year-ago period figures are non-comparable due to the different nature of business.

It had on July 7 announced a change in financial year-end from June 30 to Dec 31. The group's financial year for fiscal 2015 comprises six quarters ending Dec 31, 2015.

Giving an update on its business, Perennial said that TripleOne Somerset and AXA Tower have both obtained planning permits for their respective enhancement works, which are expected to commence in the first quarter of next year. The sales gallery and office show suite for TripleOne Somerset have been set-up ahead of the official launch of the strata offices.

In China, the construction of Perennial International Health and Medical Hub at the Chengdu East High Speed Railway (HSR) Integrated Development is expected to be completed next year. The group has secured as an anchor tenant ParkwayHealth Chengdu Hospital, a 350-bed tertiary hospital that is expected to open in the second half of 2017.

The land use planning permits have also been obtained for plots 4 and 5 of Xi'an North HSR Integrated Development, while the construction planning permit has been obtained for both Phases 1 and 2 of Beijing Tongzhou Integrated Development.

Source: Business Times, 7 Nov 2015