There was a gain on bargain purchase of $25.9 million arising from the acquisition on United Engineers (UEL) shares by the group’s associated company, Yanlord Perennial Investment (Singapore).
Revenue fell 41.8% to $20.4 million during the quarter, from $35.1 million in 3Q16.
The decrease was mainly due to the absence of revenue from TripleOne Somerset as a result of the deconsolidation following the divestment of a 20.2% equity stake on Mar 31, 2017.
The remaining 30% equity stake in TripleOne Somerset has since been accounted for as an associate.
Finance income doubled to $4.9 million in 3Q17, from $2.2 million a year ago, contributed mainly by interest income on loans extended to joint ventures and interest income from junior bonds issued by associates.
As at end September, cash and cash equivalents stood at $78.4 million.
Looking ahead, Perennial says it will continue the strata sales and asset enhancement works of TripleOne Somerset and AXA Tower while seeking opportunities for new investments. It is also exploring the enbloc sale of AXA Tower with a few interested parties.
Meanwhile, the group says its operational assets in China are expected to remain resilient as they are in locations with good connectivity to public transportation systems.
On the healthcare management business front, the Perennial International Health and Medical Hub will also be progressively opened by the end of 2017.
At the same time, the group is seeking new sites and strategic alliances to grow its eldercare operations through its associated company, Renshoutang.
“The strong demand for quality integrated eldercare facilities and supportive government policies are expected to put Perennial’s eldercare business on a strong growth trajectory,” the group says in a filing to SGX.
Shares of Perennial closed 1 cent higher at 88.5 cents on Tuesday.
