Wheelock Properties

Wheelock Properties: Results below Street estimates- earnings missed by 3%; FY12 results released; revenues down 47% to $209m, earnings down 78% to $63m. The decline was mainly due to the high base in FY11 from the selling of units in Scotts Square. Retail/ office space: Wheelock Place retail occupancy at 98%, office occupancy at 100%; Scotts Square occupancy of 93%; Mgmt expectations on rental reversions are flat for 2013. Residential space: Scotts Square is 79% sold as at 31 Dec 2012; Ardmore Three saw 1-unit sold from its 84-units, with a public launch date pending; Group plans to launch a 700-unit condo project in AMK ave 2 this year, but is cautious on the recent property cooling measures and subdued luxury market segment, as well as the slowing global economy. Gearing increased to 8.9% from 5.5% in FY11, mainly due to the financing of sites at Fuyang City, China, and the construction costs for Ardmore Three; NAV/ share at $2.61 as at 31 Dec 2012, Group trading at 25% discount to NAV currently; Group proposed dividend of 6¢/ share; indicative yield of 3% CIMB is NEUTRAL and reduces TP to $1.95;