Wheelock Properties

Wheelock Properties: 1Q13 revenues increased marginally 3.4% y/y to $27m, due to the absence of sales from Scotts Square and Orchard View which was recognized in 1Q12. Earnings increased 701% to $105.3m, boosted by the disposal of SC Global's shares of $93.8m. Excluding the gain, earnings declined 12.5% to $11.5m, mainly due to the exchange differences arising from hedging of assets and translation of bank loan denominated in foreign currency. On its Development Properties: Scotts Square obtained its TOP on 22 Aug 2011, Certificate of Statutory Completion was obtained on 8 Jan 2013. As at 31 Mar 2013, 21% or 71 units remain unsold, representing 15% of net saleable area at last selling price of $4,004 psf. Ardmore Three has not been launched (reportedly soon), development expected to be completed by 2014. Comprises of 82 units, with an average of 1,800 sq ft each. 2 unit were sold previously at an average of $3,116 psf. Using last reported psf, a 100% sale of the 82 remaining units would bring $459.9m in revenues. On its Investment Properties: Wheelock Place had overall occupancy rate of 97% (98% for retail, 96% for office); Scotts Square had 95% occupancy rate in its retail space; Going forward, Wheelock will be focusing on its project at the recently acquired land parcel at Ang Mo Kio Ave 2, with planning and design currently in progress. The Fuyang residential project will launch its first phase (total four) in 4Q2013, and is expected to complete in 2016, before the group will start recognizing profits on the sale of residential units. NAV/share of $2.64, implied P/B of 0.74x.