Perennial posts robust $3.4m Q3 profit

PROPERTY group Perennial Real Estate Holdings (PREH) posted a strong set of results for the third quarter, with a net profit of $3.42 million.

This is a turnaround from the net loss of $3.65 million from the same period a year ago, incurred by the entertainment businesses of St James Holdings.

PREH completed the reverse takeover of St James on Oct 27 last year.

The group recorded a profit after tax and minority interests (Patmi) of $24.7 million for the five months from last October following the completion of the reverse takeover.

Patmi for the period after the reverse takeover – excluding the one-off transaction cost of $11.4 million from the deal and the group’s voluntary general offer for Perennial China Retail Trust – amounted to $36.1 million.

Revenue for the three months to March 31 came in at $27.05 million, well up on the $4.36 million previously, thanks to contributions from assets in Singapore – Chijmes and TripleOne Somerset – as well as malls in China, said PREH in a statement yesterday.

Net profit for the nine months to March 31 jumped to $24.4 million, compared with the net loss of $5.78 million previously, while revenue climbed to $48.8 million over last year’s $14.4 million.

Earnings per share for the quarter came in at 0.27 cent, higher than the -0.95 cent previously, while net asset value per share stood at $1.628 as at March 31, well above the $0.003 as at June 30 last year.

Earnings per share for the nine months to March 31 was at 3.66 cents, up from the -1.51 cents previously.

PREH said that Capitol Piazza, the retail component of Capitol Singapore in North Bridge Road, received temporary occupancy permits in February and March this year.

Capitol Piazza has achieved a committed occupancy of close to 80 per cent, of which 65 per cent are flagship stores or new-to-market brands. It is also connected to the City Hall MRT station via an underground pedestrian link which opened last month.

The group added that its acquisition of a 31.2 per cent stake in AXA Tower in Tanjong Pagar, completed last month, will mean a one-off fee of about $11.7 million, which will be recognised in this quarter. The acquisition will provide the group with a “new source of recurrent income”.

PREH added that its China projects have made “good progress”.

Three 35-storey apartment blocks with some retail units at the Chengdu East High Speed Railway Integrated Development, for instance, have topped out.

The development comprises three towers of commercial apartments and some retail units.

One of two wings at the Perennial Dongzhan Mall, the retail component of the development which spans more than 3 million sq ft, has also topped-out.

The mall is expected to commence operations by the second quarter of next year.

The group’s net debt to equity ratio stood at 0.6 times as at the end of March.

PREH shares closed 2.5 cents up at $1.09 yesterday.


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