Tuesday, August 14, 2012

Wheelock Properties

Wheelock Properties: 1H12 core earnings came in slightly above on stronger sales at Orchard View. Strong rev was due to Orchard View, which was 90% sold with 11 units cleared in the quarter. Stronger vol came at the expense of lower ASP of $2,900psf, a 10% discount to FY11 selling price of $3,210psf. The remaining three units will continue to be marketed. Scotts Square saw slow sales with two units sold at an unchanged ASP of $4,000psf. Mgt has furnished more one-bedroom units for lease, with six out of 14 units leased out as of Jun-12 (1Q12: 4 out of 9 units). Achieved rentals were unchanged from 1Q at 5-6% yield-on-cost. The remaining two residential sites will be launched within the next 12 months. Ardmore Three (84 units) is slated for the current yr, with construction to be completed by 2014. CIMB remains watchful of the next projects up for launch. Expect slow sales at Ardmore Three while the high-end segment remains sluggish in the absence of price cuts. Wheelock’s net cash position dipped to S$470m (1Q12: S$780m) with the financing of the China sites and Ardmore Three construction. Rating as follows: CIMB maintains neutral with $1.81 TP

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