OCBC Securities 2015-08-17: Wheelock Properties - No surprises in 2Q15 numbers. Maintain BUY.

WHEELOCK PROPERTIES (S) LTD M35.SI

No surprises in 2Q15 numbers 

  • Wheelock’s 2Q15 topline increased 232.9% YoY to S$80.1m mainly due to progress recognition at the Panorama and Scotts Square sales, partially offset by lower rental income from Scotts Square retail. 
  • Contributions from share of results from associates, however, dipped dramatically from S$109.4m in 2Q14 to a loss of S$0.1m in 2Q15. This was due to the absence of a one-time gain from the mandatory conditional offer for Hotel Properties Limited last year. 
  • As a result, 2Q15 PATMI decreased 85.3% to S$17.7m which we judge to be broadly in line with expectations. 
  • As at end 2Q15, the 698-unit Panorama condominium project was 64.6% sold with an ASP of S$1,250 psf and we understand active marketing is on-going at the showflat. 
  • For the group’s retail mall segment, management reports that operations at the Scotts Square retail mall remains challenging and the retenanting exercise continues to be underway. 
  • At Wheelock Place, occupancy was a firm 97% with a blended monthly rent of ~S$14 psf. 
  • Maintain BUY with an unchanged S$2.27 fair value estimate.

Eli Lee | http://www.ocbcresearch.com/ OCBC Investment Research 2015-08-17
BUY Maintain BUY 2.27 Same 2.27


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