Wheelock Properties’ revenue plummets 56% to $56m in 4Q11

As Scotts Square generated lower than expected revenue last year.

Wheelock Properties Limited reported revenue of $390 million and profit before tax of $333 million for the full year ended 31 December 2011.

Revenue for the 4th quarter ended 31 December 2011 saw a decrease of 56% to $56 million when compared to the same period last year. This was largely due to the lower revenue recognition from Scotts Square based on the progress of construction works in financial year 2011. The completion of Ardmore II and Orchard View in the 2nd quarter of 2010 also contributed to the lower revenue in the current year.

Profit before tax for the 4th quarter ended 31 December 2011 increased 2% to $128 million as compared to the same period last year. Gross profit margin for the 4th quarter and year ended 31 December 2011 increased to 62% and 64% respectively from 58% last year, largely due to the higher profit margin for Scotts Square compared to our other developments.

The Group reported an increase in investment properties of $118 million and this was mainly attributed to the increase in fair value of Scotts Square retail and Wheelock Place, which were revalued to $360 million and $900 million respectively.

Cash and Cash equivalents position as at 31 December 2011 stands at a strong $1.08 billion, up $221 million from $861 million held as at 31 December 2010. This significant increase was largely due to sales proceeds received from the development properties projects. NAV per share rose 2.5% to $2.42 as at 31 December 2011 from $2.36 at the end of 2010.

Gearing ratio increased from 3.7% as at 31 December 2010 to 5.5% as at 31 December 2011, mainly attributed to the drawdown of bank loans to finance the acquisition of sites in Fuyang City in the People’s Republic of China, as well as payment of construction costs for Ardmore Three.

As at 31 December 2011, Scotts Square is 78% (262 units) sold, representing 84% of the net saleable area sold at an average of $4,000 psf. Handover of the sold units commenced on 10 October 2011 and about 92% of the sold units have been successfully handed over as at 31 December 2011. At Orchard View, 13 units have been sold at an average price of $3,210 psf. As both developments are completed, the Group will recognise 100% of the profits on any additional units sold in Scotts Square and Orchard View.

Scotts Square retail has committed 92% of the net lettable area as at 31 December 2011 with key tenants including Hermès, Michael Kors, Anne Fontaine, On Pedder, United Overseas Bank and airprice Finest. Wheelock Place continues to achieve high occupancy of 89% as at 31 December 2011.