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Published February 22, 2011

Wheelock Q4 profit falls 36% to $107.8m

Revenue for the period is 40.1% higher but drop in fair value gains drag down earnings

By EMILYN YAP


WHEELOCK Properties (Singapore) posted a higher revenue but a lower bottom line in the fourth quarter as fair value gains on investment properties shrank.

The property developer plans to start construction of Ardmore III in the middle of the year, and expects Scotts Square to be completed in the second half.

For the quarter ended Dec 31, 2010, Wheelock's turnover rose 40.1 per cent year on year to $126.2 million.

There was higher revenue recognised from Scotts Square based on the progress of construction works in FY2010.

This helped offset lower revenue recognised from Ardmore II and Orchard View - projects which were completed in the second quarter last year.

Changes in the fair value on investment properties came up to $55.2 million in Q4. This was 57 per cent less than the gain a year ago.

Consequently, net profit for the period came up to $107.8 million, falling 36 per cent.

Earnings per share was 9.01 cents, down 36 per cent from 14.15 cents.

Wheelock's results improved for the full year. Revenue was $571.7 million, up 48 per cent from the previous year.

Apart from higher revenue recognition from Scotts Square, unit sales at Orchard View also contributed to the rise.

The absence of any impairment loss on investments in the year supported earnings.

Last year, Wheelock took on an impairment loss of $23.3 million.

For the full year, net profit was $316.2 million, up 21 per cent.

The group is proposing a first and final dividend of six cents per share, unchanged from a year ago.

Wheelock expects Scotts Square to be completed in the second half of the year.

'Shops in Scotts Square will open by this Christmas and will contribute to the group's recurring income,' said Wheelock CEO David Lawrence.

Meanwhile, the developer has started piling works for Ardmore III and construction will begin in the middle of the year.

It will be building a showflat, which should be ready in the fourth quarter.

As at Dec 31, Wheelock had cash and cash equivalents of $860.7 million.

'We continue to be in a strong financial position with cash . . . allowing us to take advantage of investment and acquisition opportunities which may arise,' Mr Lawrence said.

Wheelock lost three cents on the stock market yesterday to close at $1.84.