SINGAPORE (Aug 8): Perennial Real Estate Holdings has announced 2Q17 earnings surged to $17.1 million compared to $0.6 million a year ago.

The increase was mainly due to the fair value gain of $16.6 million from the revaluation of Xi’an North High Speed Railway Integrated Development Plot 4.

Revenue of $17.9 million in 2Q17 was lower than the $24.1 million registered in the same period last year, largely due to lower project management fees as well as the absence of revenue from TripleOne Somerset as a result of the deconsolidation following the divestment of a 20.2% stake in March.

The remaining 30% stake held in TripleOne Somerset is now recognised under the share of results. The decrease in 2Q17 revenue was partially offset by a one-off divestment fee received in respect of TripleOne Somerset.

As at end June, the group’s Net Debt to Equity Ratio stood at 0.51 times, unchanged from the position as end March.

For 1H17, earnings surged to $55.8 million from $9.1 million a year ago.

In its outlook, Perennial says in Singapore, major enhancement works continued to progress at TripleOne Somerset and AXA Tower, and the full suite of works are expected to be completed progressively by 2019.

In China, construction works at Chengdu East High Speed Railway Integrated Development, Beijing Tongzhou Integrated Development and Xi’an North HSR Integrated Development continued to make good progress.

At Perennial International Health and Medical Hub, part of Chengdu East HSR Integrated Development, the committed occupancy now stands at about 62%.

On Chengdu East HSR Integrated Development Plot D2, the last of six towers is undergoing façade cladding works.

Pua Seck Guan, CEO of Perennial, says, “Our portfolio of large scale integrated developments which are close to transportation hubs in Chengdu, Xi’an and Beijing are starting to take shape as construction works progress, allowing us to recognise their immense capital value and income yield in stages over time.”

“With the growing demand for quality medical, healthcare and eldercare services, our signature developments are opening up significant growth opportunities in both the real estate and healthcare fronts which we can pursue to deliver long-term growth to shareholders,” Pua adds.

In July, Perennial, in a consortium with Yanlord, offered to acquire a 33.5% stake in United Engineers, triggering mandatory offers for the remaining shares in United Engineers.

Shares in Perennial closed 1 cent lower at 91 cents on Monday.