Perennial’s net profit surges 148% to $8.5m in Q1

Thanks to a boost from its Chengdu HSR project.

Perennial Real Estate Holdings (PREH) posted a net profit of $8.5m in 1Q16, reflecting a 148% YoY surge in the first quarter of the year.

According to a report by CIMB, the uplift is thanks to a $7.5m revaluation gain from the Chengdu High Speed Railway (HSR) development, which has been reclassified as investment property.

In addition, PREH enjoyed increased associate contributions during the quarter.

CIMB notes that Singapore revenue dipped 5% YoY to $14.8m in Q1 as TripleOne Somerset is prepared for asset enhancement works and strata sales. However, operating profit inched up 2% thanks to raised contribution from AXA Tower. Both properties have been green-lit to boost the retail segment and sales of strata and medical suites.

PREH also saw a 19% growth in China turnover to $7.6m. Stripping out a revaluation gain of $7.5m, operating profit for the quarter climbs to about $6.7m on better performance from operational assets.

Meanwhile, PREH has sealed the deal on a 20% stake in Shenzhen Aidigong in April 2016 for RMB135m. The facility operates two maternal/newborn health centres in Shenzhen and a post-natal treatment centre in Beijing. Aidigong’s contributions will likely be felt 2Q16 onwards.

Further, part of plot D2 at the Chengdu HSR mixed-use development has been converted to an eldercare and retirement home, with operations seen to begin in 2017.