Wheelock Properties (S) Ltd reported that its 1Q16 PATMI decreased 9.1% YoY to S$11.1m, which constitutes 31.0% of our full year forecast and is deemed to be within expectations. In terms of the topline, 1Q16 revenues similarly dipped 7.5% to S$91.8m mainly due to weaker recognition at the Panorama, lower rental income from Scotts Square Retail and the absence of dividend income from the group‟s investments.

Management reports that, as at end Mar 2016, 31 out of 38 units earmarked for leasing at Scotts Square has been leased at an average monthly rent of S$5k per unit, and that seven units has been sold at Ardmore Three at an ASP of S$3.3k psf after its re-launch on 14 April 2016.

In addition, 597 units have been sold at the The Panorama while 253 out of the 345 units launched for sale at the Fuyang City project in China has been sold. Maintain BUY with an unchanged S$2.27 fair value estimate.

Source: OCBC Research - 16 May 2016