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.

Source: OCBC Research - 17 Aug 2015