Wheelock Properties’ H1 profit down 33%

Wheelock Properties’ profit before tax for its half year ended 30 June fell 33 per cent to S$107 million.

For the same period, revenue dropped 40 per cent to S$170 million.

Wheelock Properties attributed the decline in revenue largely to the completion of Ardmore II and Orchard View in the second quarter of last year, as well as lower revenue recognition from Scotts Square based on the progress of construction works in the current period.

On a quarterly basis, revenue for the April-June quarter fell 62 per cent on-year to S$68 million, while pre-tax profit went down 57 per cent to S$43 million.

Wheelock Properties said that at end-June, Scotts Square was 73 per cent sold at an average price of S$4,000 psf and it would be obtaining its Temporary Occupation Permit in the third quarter of this year.

It added that 100 per cent of profits would also be recognised on additional units sold at Orchard View and Scotts Square. As at 30 June, 12 units at Orchard View were sold.

Wheelock Properties’ CEO, David Lawrence, said: “Wheelock Place will continue to generate positive recurring income with high occupancy at good rental rates.

“Upon the completion of Scotts Square, rental receipts from the retail will further contribute to the group’s annual recurring income.

“With cash balance of S$611 million, the group remains well-positioned to take advantage of new investment and development opportunities locally or overseas.”

Source : Channel NewsAsia – 1 Aug 2011

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