Lower revenue recognition pares Wheelock Properties' Q2 profit by 71%

WHEELOCK Properties has suffered a 70.7 per cent decline in second quarter net profit to $14.2 million.

Revenue for the three months to June 30 was similarly hit, plunging 71.3 per cent to $33.5 million.

Revenue recognised from condominium project Ardmore Three, based on the progress of construction works, was much lower than the revenue recognised from the sales of Orchard View and Scotts Square in the same period last year.

This was partially offset by higher dividend income and interest income received from the group's investments and revenue from the retail malls.

Earnings per share shrank to 1.19 cents from 4.06 cents previously while net asset value per share eased to $2.57 compared to $2.61 as at Dec 31.

Giving an update on its projects, Wheelock said that it had collected the final 15 per cent of progress payment from 99 per cent of the buyers Scotts Square, which received its Certificate of Statutory Completion in January.

As at the end of the second quarter, it has sold 79 per cent or 267 units of the 338-unit development, representing 85 per cent of the net saleable area at an average price of $4,004 per square foot.

Marketing of the remaining units for sale is on-going.

As for Admore Three, construction is in progress and the development is expected to be completed by 2014.

Three units were sold at an average price of $3,158 psf.

Meanwhile, its retail and office investment, Wheelock Place, achieved overall occupancy rate of 94 per cent, average monthly rental of about $14 psf.

The occupancy rate and average monthly rental for the retail podium is 99 per cent and exceeds $16 psf respectively.

Office occupancy is 91 per cent and the average rent is more than $11 psf per month.

Leases totalling 16,000 sq ft will expire in the third quarter. Of this, 54 per cent is under advanced negotiations with two new tenants. Wheelock is looking for tenants for the remaining space.

Over at Scotts Square Retail, overall occupancy rate is 95 per cent, with an average rental of more than $22 psf.