http://www.businesstimes.com.sg/prem...k-net-20130430

Published April 30, 2013

SC Global sale hikes up Wheelock net

$93m gain raises net profit to $105m; group will launch China project in Q4

By Felda Chay


WHEELOCK Properties posted a first-quarter net profit of $105.3 million, eight times that of $13.1 million a year ago, thanks to a $93 million accounting gain on its disposal of shares in SC Global Developments Ltd in January.

Earnings per share, in turn, jumped to 8.8 cents from 1.1 cents last year.

Revenue for the three months ended March 31, 2013, climbed 3.4 per cent to $27 million from $26.1 million. This, coupled with a 29.9 per cent fall in cost of sales, resulted in gross profit rising 18.7 per cent to $21.3 million.

The revenue increase stemmed from revenue recognised from condominium project Ardmore Three based on the progress of construction work, and interest income and dividend income received from the group's investments and revenue from the retail malls.

The group said yesterday that it remains in a strong financial position to take advantage of investment and development opportunities which may arise locally or overseas.

Locally, it is in the midst of planning and designing its project at Ang Mo Kio Avenue 2, which it acquired for $550 million earlier this year. In its financial statement, the group said that it has completed the acquisition of the plot after completing payment for it earlier this month.

Wheelock added that marketing of the remaining residential units at Scotts Square is ongoing. As at March 31, 79 per cent (267 units) of the 338 units have been sold, representing about 85 per cent of the net saleable area. The average selling price is $4,004 per square foot (psf).

It has sold two units at Ardmore Three, its high-end 84-unit development along Ardmore Park. The two units were sold at an average of $3,116 psf. The development is expected to be completed next year.

Overseas, Wheelock will be launching the first of four phases for its Fuyang project in China in the fourth quarter of this year, although profit from sold units for the project will only be recognised when the first phase is completed in 2016.

Net asset value per share as at March 31 was $2.64 compared with $2.61 in December last year. Cash and cash equivalents held at the end of Q1 was $720.2 million compared with $1 billion a year ago.

Wheelock shares closed 0.3 per cent higher at $1.95 yesterday.