Its earnings were hit by the partial divestment of TripleOne Somerset.
Perennial Real Estate Holdings' (PREH) net profit in the first quarter of 2018 crashed 86.7% to $5.14m from $38.66m last year.
According to its financial statement, revenue fell 26.1% to $14.95m from $20.23m last year as the company lost revenue from TripleOne Somerset. This followed PREH's divestment of a 20.2% equity stake on March 2017.
"The Group continues its strategy of strata sales and asset enhancement on AXA Tower and TripleOne Somerset," PREH said. "It is also actively seeking opportunities to grow the Singapore portfolio through acquisitions or participation in land tenders."
Excluding the property's contribution, revenue would have gone up 10.1% thanks to Perennial Qingyang Mall, Chengdu. The rest of PREH's revenue comprised rental income from CHIJMES and Perennial Jihua Mall in Foshan.
Singapore assets contributed revenue of approximately $3.2m, representing 21.1% of total revenue. This is significantly lower than their 50.4% contribution last year at $10.2m. The operational assets in China contributed revenue of $8.9m, which represents 59.7% of the total.
Meanwhile, the remaining 19.2% came from the fee-based management businesses.
The share of results of associates and joint ventures jumped from $698,000 to $22.77m thanks to Yanlord Perennial Investment Singapore (YPIS), Perennial Chinatown Point, and Shenyang Summit Real Estate Development in China.
YPIS bought an additional 19.9% stake in WBL Corporation and recognised a gain between the acquisition price and the fair value of the acquired net assets. PREH increased its stake in Chinatown Point to 5.49%, whilst Shenyang recognised a one-off adjustment from a lease restructuring in one its malls in Q1 2017.
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