WHEELOCK Properties yesterday reported a fourth-quarter net profit of $169.4 million, boosted by a $129.4 million fair-value gain on its investment properties.
That reversed a $63.8 million loss in the same quarter of 2008, when it suffered an impairment loss on investments of $114.7 million.
Gross profit was higher for the October-December quarter, up two-thirds to $48.9 million, from $29.2 million. Revenue increased 24 per cent to just over $90 million, from $72.4 million, due to higher recognition from its Scotts Square development.
The fair-value gains boosted earnings per share to 14.15 cents, from a loss of 5.33 cents in the same quarter of 2008. The company is proposing a first and final dividend of six cents a share, the same as last year.
For the full year, Wheelock reported net profit of $262.3 million, up almost 160 per cent from $100.9 million in 2008. Net fair value changes in investment properties were $127.7 million but the company took a $23.2 million impairment loss on investments.
By contrast, property fair-value gains in 2008 were just shy of $89 million, while there was a $200 million impairment loss to investments. Full-year turnover fell 15 per cent to $386.6 million from $454.6 million.
The company said Scotts Square Retail was revalued from cost to $258 million while Wheelock Place was revalued from $790 million to $794.5 million.
An increase in investment properties of $263 million was mainly due to the reclassification of property under development to investment properties and the increase in fair value of Scotts Square Retail and Wheelock Place.
And an increase in investments of $192 million was mainly due to the increase in market value of the group’s investments in Hotel Properties Limited and SC Global Developments.
Wheelock said that the company will continue to recognise profits from its development projects, Scotts Square, Orchard View and Ardmore II this year. Ardmore II is 100 per cent sold and TOP is expected in the first half of this year. TOP for Orchard View is targeted for the first half of 2010 as well and construction is almost completed, Wheelock said. Scotts Square, meanwhile, is 70 per cent sold and is scheduled for completion next year.
Wheelock’s stock price closed down one cent yesterday to $1.87 a share.
Source: Business Times, 24 Feb 2010