Perennial's net profit tumbles 25.6% to $594,000

On back of the absence of a one-off gain.

Perennial Real Estate Holdings' (Perennial) total profit after tax and minority interest (PATMI) sank 25.6% YoY to $594,00 in Q2.

According to the company's media release, the plunge in earnings is due to the absence of a one-off acquisition fee in respect to the the company's AXA Tower acquisition in 2Q15.

Revenue for Q2 sank 38.7% YoY to about $25.09m as TripleOne Somerset's rental revenue for the quarter fell. This is due to expiring leases not being renewed in preparation for asset enhancement works and strata sales that began in Q2.

Meanwhile, earnings before interest and tax (EBIT) tumbled 25.7% YoY to roughly 18.63m. Perennial noted that stripping out the one-off acquisition fee of AXA Tower, EBIT for the quarter would be higher thanks to investment income received, higher foreign exchange gain, and higher share of results on account of the company’s share of results from operational malls and newly acquired medical and healthcare businesses.