The net profit of Frasers Centrepoint Ltd dropped by 15.1% to S$154m in Q3 ended on 30 June 2016 while the revenue slumped by 32.5% to S$682.1m.
According to the group, the decline was due to reduced contributions from its Singapore, China, and Australia development portfolio. However, the losses were partly eased by profits from Twin Fountains EC, new income from the British-based hotel chain acquired in 2015 and profits share from a Thailand’s associate.
“The results are a confirmation of why the FCLs drive to sustain its earnings by increasing income from overseas and recurring sources is important,” said Lim Ee Seng, FCL Group chief executive.
He added that despite the reduced income from development projects in Singapore and differences in timing of overseas projects completion, the role of the group’s recurring income base has been demonstrated, that of providing stability and reducing the impact caused by late completion timelines.
For the nine months, FCL posted a net profit of S$375.9m and revenue of S$2.251 billion, a drop of 26.5% and 10.8% respectively.
In its forecast, the group intends to retain Singapore as its home market despite the headwinds being faced by the residential market.
The group’s recent launch is Parc Life Executive Condominium in April and it intends to have another launch in 2017 of a private condo in Siglap Road.
Residential developments by FCL are well received in China with its financial year 2015/2016 launches of Gemdale Megacity 3A and 3B selling 47% and 97% of the 278 and 575 units respectively.
In its Australia residential business, FCL sold 2,090 of its 2,575 units that were released in the three quarters up to 30 June. It intends to release 1,175 more units in quarter four of its financial year 2015/2016.
Read on another FCL property launch, the North Park Residences, a integrated development at Yishun.