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reporter2
12-11-13, 17:28
http://www.straitstimes.com/premium/money/story/wheelocks-q3-profit-falls-revenue-fluctuates-20131112

Wheelock's Q3 profit falls as revenue fluctuates

Published on Nov 12, 2013

By Cheryl Ong


FLUCTUATING revenue figures from property sales over the past 12 months pummelled earnings at Wheelock Properties (Singapore) in the third quarter.

Net profit came in at $11.9 million, down 63.4 per cent from the same period a year earlier.

Revenue for the three months to Sept 30 was also hit, falling 26.8 per cent to $27.6 million.

The firm said revenue recognised from its luxury condominium project Ardmore Three, which is based on the progress of construction, was much lower than the revenue recognised from the sales of Orchard View and Scotts Square in the same period last year.

This was partially offset by higher interest income and dividend income from the group's investments and revenue from its malls.

Earnings per share for the same period shrank to 0.99 cents from 2.71 cents previously, while net asset value per share eased to $2.59 compared with $2.61 as at Dec 31.

Wheelock reported healthier botttom line numbers for the nine months to Sept 30, with earnings up 39.6 per cent to $131.4 million although revenue fell 51.2 per cent to $88.1 million.

Net profit for the nine months to Sept 30 was also bolstered by a one-off gain of $93 million in the first quarter, from the sale of its entire stake in SC Global Development to the firm's chairman and chief executive Simon Cheong.

Wheelock said three units at Ardmore Three had been sold at an average price of $3,158 per sq ft (psf). The freehold project comprises 84 three-bedroom units, each spanning about 1,800 sq ft. Construction is expected to be completed by next year.

It added that 79 per cent of 338 residential units have been snapped up at Scotts Square at an average price of $4,004 psf.

The firm acquired a 198,942 sq ft site in Ang Mo Kio Avenue 2 in April for more than $550 million, or $789.89 per square foot per plot ratio.

The site can yield 698 units with the project, The Panorama, expected to launch in the first quarter of next year.

Its retail and office investment Wheelock Place is 96 per cent occupied at an average monthly rental of about $13.50 psf. The firm said it had renewed 14 leases at the mall, while 11 tenants had signed new leases.

The overall occupancy rate at Scotts Square retail units was 95 per cent, with an average monthly rental of about $23 psf.

Wheelock said it had obtained approval to build phase one of a residential development in Fuyang city in China.

The 3.2 million sq ft residential site will comprise villas, townhouses, duplexes and apartments.

Wheelock shares closed unchanged at $1.685 yesterday.

[email protected]

reporter2
12-11-13, 17:43
http://www.businesstimes.com.sg/premium/companies/others/development-loss-weighs-wheelocks-q3-20131112

Published November 12, 2013

Development loss weighs on Wheelock's Q3

By Kenneth Lim [email protected]


WHEELOCK Properties (Singapore) posted another quarter of lower profits as sales and construction progress contributed less turnover.

The property developer said yesterday that net profit fell 63.4 per cent year-on-year for the third quarter ended Sept 30 to $11.9 million, or 0.99 cent per share, as revenue slid 26.8 per cent to $27.6 million.

For the nine-month period, net profit was up 39.6 per cent at $131.4 million, or 10.98 cents per share.

Net asset value dipped to $2.59 per share as at Sept 30, from $2.61 as at Dec 31, 2012.

The smaller volume of sales was due to less revenue recognised from Ardmore Three based on the progress of construction works and sales of Scotts Square, compared to sales of Orchard View and Scotts Square in the year-ago period.

The property development segment incurred a Q3 pre-tax loss of $374,000, compared with a year-ago profit of $10.3 million.

Wheelock recognises revenue from projects sold in Singapore on a percentage-of-completion basis, but recognises revenue upon completion for projects in China, in line with current accounting standards.

The company is building a showflat for its Panorama 99-year leasehold residential project along Ang Mo Kio Avenue 8, with a target launch date in the first quarter of next year.

Wheelock has also received first-phase approval from a project in Fuyang, with sales expected to begin in 2014.

The company said that for leases expiring in 2013 at the Wheelock Place investment property, lease renewal has been completed. For current-year reversions, 14 tenants have renewed their lease and 11 are new leases. Renewals were negotiated at mostly higher rents.

Shares in Wheelock closed unchanged at $1.685 yesterday, before the results were announced.