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Published February 21, 2012
Wheelock Q4 profit up 3.2%; revenue down 55.9%
By MINDY TAN
WHEELOCK Properties yesterday posted a 3.2 per cent year-on-year increase in net profit to $121 million for the fourth quarter of 2011, up from a restated $117.3 million.
This was despite revenue slipping $70.5 million or 55.9 per cent to $55.7 million, from a restated $126.2 million.
Gross profit fell $38.1 million or 52.3 per cent to $34.8 million, with better margins helped by Scotts Square.
The gross profit fall was more than offset by a jump of $45.1 million or 81.8 per cent to $100.3 million in fair value on investment properties.
For the full year ended Dec 31, 2011, the group reported a 10.6 per cent drop in net profit to $291.2 million, and a 31.7 per cent fall in revenue to $390.5 million.
Wheelock said of the revenue fall: 'This was largely due to the lower revenue recognition from Scotts Square based on the progress of construction works in financial year 2011. The completion of Ardmore II and Orchard View in the second quarter of 2010 also contributed to the lower revenue in the current year.'
Earnings per share (EPS) for the quarter were 10.12 cents, up from a restated 9.8 cents a year earlier.
Full-year EPS came to 24.33 cents, down from 27.21 cents.
The group ended 2011 with cash and cash equivalents of $1.08 billion, largely due to sales proceeds received from development property projects. Net asset value (NAV) per share was $2.42.
Wheelock has proposed a first and final dividend of six cents per share.
Of the group's residential projects, 13 units at Orchard View, a 36-storey luxury development, were sold at an average price of $3,210 per square foot.
Scotts Square was also 78 per cent (262 units) sold, as at end-2011. This represents 84 per cent of the net saleable area, sold at an average of $4,000 psf.
Building construction for Ardmore Three, a freehold 36-storey development, is expected to be completed by 2014. Preparation for the launch is in progress.
In investment properties, Scotts Square retail has committed 92 per cent of its net lettable area; Wheelock Place continues to achieve an occupancy rate of 89 per cent as at end-2011.
'With consistent good rental rates and high occupancy at both Wheelock Place and Scotts Square, we expect a strong recurring income from our investment properties this year,' said Wheelock CEO David Lawrence.
'We look forward to Marks & Spencer launching their new flagship at level 1 of Wheelock Place, while the basement undergoes a refurbishment for a new retail and dining experience.'
The stock of Wheelock gained half a cent to close at $1.625 yesterday.
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