Perennial posts 42% fall in 4Q earnings to $16 mil; dividend drops 60% to 0.4 cent per share

SINGAPORE (Feb 13): Real estate and healthcare company Perennial Real Estate Holdings (PREH) saw its earnings fall 42.0% to $16.0 million for the 4Q18 ended December, from $27.6 million a year ago.

This brings full-year earnings for FY18 to $78.1 million, some 22.2% lower than earnings of $100.3 million a year ago.

The decline was mainly due to the absence of divestment gain, higher finance costs arising from the consolidation of Capitol Singapore’s debt post-acquisition of the 50% stake to take full ownership of the asset, new loans to fund investments, higher interest rate, and the non-capitalisation of interest expenses for Perennial International Health and Medical Hub (PIHMH) in Chengdu upon its completion of works.