114
PERENNIAL REAL ESTATE HOLDINGS LIMITED
Annual Report 2015
FINANCIAL REVIEW
PERFORMANCE REVIEW
The performance for the 18-month financial period ended
31 December 2015 reflected mainly the operating results
of the real estate business of Perennial Real Estate
Holdings Limited (the “
Company
”) and its subsidiaries
(collectively, “
Perennial
”) as the Company was transformed
into an integrated real estate owner, developer and
manager following the successful completion of the
reverse takeover (“
RTO
”) of St. James Holdings Limited
(“
St. James
”) on 27 October 2014. The Company was
renamed as Perennial Real Estate Holdings Limited on
28 October 2014 to better reflect its business and
Perennial’s real estate business commenced immediately
thereafter. Perennial's financial year end was also
changed from 30 June to 31 December.
For the financial period from 1 July 2014 to 31 December
2015, the reported revenue was S$139.4 million while
the Earnings Before Interest and Tax (“
EBIT
”) and
Profit after Tax and Minority Interests (“
PATMI
”) were
S$196.9 million and S$79.0 million respectively. Prior to
the RTO, St. James was engaged in the entertainment
business and the Company ceased these operations on
27 October 2014 when the RTO was completed.
Excluding the operating results of St. James prior to
completion of the RTO, Perennial achieved a revenue
of S$132.6 million, an EBIT of S$197.1 million and a
PATMI of S$79.4 million for the financial period from
28 October 2014 (being the date of commencement of
the real estate business) to 31 December 2015 (“
Period
”).
REVENUE
Perennial’s real estate revenue of S$132.6 million was
derived mainly from two main business activities, namely
(i) the real estate development and investment and
(ii) the real estate management businesses. Management
businesses include asset and property management,
project and development management, project and design
management, as well as investment advisory services.
The revenue comprised mainly rental revenue generated
by CHIJMES and TripleOne Somerset in Singapore,
Perennial Jihua Mall and Perennial Qingyang Mall in
Foshan and Chengdu. Both Perennial Jihua Mall and
Perennial Qingyang Mall are held by Perennial China Retail
Trust (“
PCRT
”) which became a subsidiary of Perennial
following the successful completion of the conditional
Voluntary Offer (“
VO
”) in February 2015.
Perennial's real estate assets are located in Singapore,
China, Malaysia and Ghana. The operational assets are
in Singapore and China which are Perennial’s two core
markets. For the Period, Singapore assets contributed
approximately S$71.8 million of revenue, representing
54.1% of Perennial’s real estate revenue. The assets in
China (“
PRC
”) contributed revenue of S$31.2 million
(or 23.6% of Perennial’s real estate revenue), with the
remaining coming from the fee-based management
business which included a one-off acquisition fee of
S$11.7 million from the acquisition of AXA Tower in April
2015.
1 Perennial's real estate business commenced from 28 October 2014 as the RTO of St. James was completed on 27 October 2014.
Revenue
28 October 2014 to
31 December 2015
S$M
Percentage
(%)
Singapore
71.8
54.1
China
31.2
23.6
Management Businesses
27.9
21.0
Corporate and Others
1.7
1.3
132.6
100
Revenue by Segment
From 28 October 2014
1
to 31 December 2015
