http://www.businesstimes.com.sg/arch...anges-20130227

Published February 27, 2013

Wheelock Q4 hit by fair-value changes

By Lee Meixian


LOWER revenue combined with fair-value changes dragged Wheelock Properties into the red for the fourth quarter.

The group yesterday reported a net loss of $30.8 million for the three months ended Dec 31, 2012, compared with a net profit of $121 million a year ago.

In Q4 2012, Wheelock registered a fair-value loss on investment properties of $48 million, against a fair-value gain of $100.3 million a year earlier.

Absence of progressive recognition of profits from sold units in Scotts Square, completed in Q3 2011, as well as lower sales from Scotts Square also dragged down its revenue, although these were partially offset by higher sales from its Orchard View condominium.

For the quarter, the luxury property developer's revenue fell 49.5 per cent to $28.1 million from $55.7 million a year ago.

Full-year net profit fell 78.3 per cent year-on-year to $63.3 million, on the back of a 46.6 per cent decline in revenue to $208.5 million and the reversal in fair-value gain.

As at Dec 31 last year, 267 units or 79 per cent of Scotts Square had been sold. This is equal to 85 per cent of its net saleable area, sold at an average of $4,000 per sq ft, said Wheelock.

Scotts Square Retail had an occupancy rate of 93 per cent at an average rent of $22 psf per month as at Dec 31.

Nearby, Wheelock Place's occupancy rate stands at 99 per cent, at an average rent of $12 psf per month. Its reconfigured Basement 1 and 2, now fully leased, were completed and resumed business from last November.

Wheelock is now planning for the launch of a 700-unit condominium project in Ang Mo Kio Ave 2, slated for this year; construction of the Ardmore Three condominium is underway and will be launched when the time is right, given the property cooling measures and a subdued luxury market. One unit was sold at a private preview last year.

Meanwhile, construction is to start at its Fuyang project in China in Q2 2013; it will be ready for launch later this year.

Wheelock's senior executive director Tan Bee Kim said: "In view of the slowing global economy and cautious sentiment in the retail and office sectors, we expect rentals to stay largely flat ... We maintain a cautious outlook as we seek out attractive investment and development opportunities locally or overseas."

For FY2012, the group proposed a first and final dividend of 6 cents per share.

Wheelock's counter closed one cent up at $1.97 yesterday before its results announcement.