One time, big time: Wheelock profits up a whopping 750%

Gain amounts to $109.4 million.

Accounting gains, recurring income from retail assets and a strong balance sheet are on Wheelock’s boast list this quarter.

A report by OCBC says that Wheelock Properties reported a 2Q profit of $121 million, up 750% year on year, mostly due to a one-time accounting gain of $109.4 million as the group’s investment in Hotel Properties Limited (“HPL”), previously recorded as available-for-sale assets, is now recorded as an interest in an associate valued at S$417m based on HPL’s market price as at 30 May.

The group’s Orchard retail assets – Wheelock Place and Scotts Square Retail – continued to pull in steady figures. OCBC adds that as at end June 2014, Wheelock Place was 100% occupied with an overall monthly rental of above $13 psf per month. Scotts Square Retail was 93% occupied, with an average rental of above $22 psf per month, and management reports that they are actively looking at rejuvenating the mall with stronger international luxury labels and F&B concepts.

Here’s more from OCBC:

For the group’s domestic residential projects, Scotts Square (338 total units), The Panorama (698 total units) and Ardmore Three (84 total units) are 79%, 29% and 4% sold, respectively. We understand that Ardmore Three will likely attain TOP status by the end of FY14. The group is also in the midst of constructing Phase 1 of their residential project in Fuyang City, Hangzhou, China.

As at end 2Q14, Wheelock’s balance sheet continued to be shored up by a healthy cash
balance (S$410.0m) and low gearing of 7.3%. We continue to see solid value in Wheelock shares given its current undemanding valuation, quality assets and strong balance sheet.