SINGAPORE (Nov 10): Far East Orchard has reported earnings of $10.5 million for 3Q16, more than double the $4.1 million earnings in 3Q15.

For the quarter to Sept, revenue fell 12.7% to $45.7 million, owing to the absence of progressive revenue recognised in 3Q15 for the euHabitat residential development project, the early termination of the onerous lease agreement for Rendezvous Hotel Adelaide in

September 2015 and the end of the onerous lease agreement of Rendezvous Hotel Auckland in September 2016.

The group recorded net other gains of $3.6 million, compared with net other losses of $7.1 million in 3QFY15, which were attributed to gains from the translation of monetary assets and liabilities denominated in foreign currencies.

At the same time, the share of profit of joint ventures rose by 78.5% to $7.4 million from the progressive recognition of profits from joint venture property development projects.

Far East Orchard said in a filing to the Singapore Exchange that its hospitality division in Singapore is likely to remain challenging as revenue per available room is hit by higher hotel room supply and lower demand for corporate travel.

Demand for private residential property in Singapore is also expected to remain soft from property cooling measures and the challenging outlook, though the group’s two joint venture property development projects – RiverTrees Residences and Woods Square – remain  on track.

That said, the group added that it will continue to seek suitable real estate opportunities.

Shares in Far East Orchard closed unchanged at $1.51 on Thursday.