Perennial Real Estate Holdings Q2 profits down 74.9% to $2.17m

However, revenue surged 52.4% thanks to contributions from Capitol Singapore and its hospital in China.

Perennial Real Estate Holdings’ (PREH) profits for the second quarter of 2019 crashed 74.9% to $2.17m from $8.65m in the same period last year. However, revenue climbed 52.4% to $27.63m.

According to its financial statement, the revenue boost was a result of Capitol Singapore and Perennial International Health and Medical Hub and higher fee income from PREH’s management businesses. The main revenue contributors are CHIJMES and Capitol in Singapore as well as Perennial Jihua Mall, Perennial Qingyang Mall and PIHMH in China.

Singapore assets contributed revenue of approximately $9.9m, representing 36% of the group’s revenue. The operational assets in China contributed revenue of $13.0m, which represents 46.9% of group revenue. The remaining 17.1% came from fee-based management businesses.

The significant increase in the share of results of associates and joint ventures was mainly due to the gain on divestment of Chinatown Point in Q2 2019. In addition, 111 Somerset and the healthcare associates and joint ventures reported improved results this quarter.

For the first half of 2019, PREH incurred losses of $24.76m and gained 58.7% in revenue to $52.49m.