Perennial Real Estate's 1Q earnings more than double on fair-value gain

SINGAPORE (May 13): Perennial Real Estate Holdings 2Q earnings more than doubled to $8.5 million in 1Q16 from $3.4 million in 1Q15, boosted by a fair value gain of $7.5 million.

The gain came from the reclassification of Chengdu East High Speed Railway (HSR) Integrated Development Plot D2 as an investment property. This occurred after the group entered into a deal with Shanghai Summit and Shanghai RST Chinese Medicine Co., to establish a 40-40-20 joint-venture management company to operate Chengdu Xiehe International Eldercare and Retirement Home.

Perennial’s 1Q16 revenue of $29.5 million was marginally higher than the $27.1 million registered in the same period last year, mainly due to higher project management fee and higher revenue recorded by Perennial Qingyang Mall in Chengdu.

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