Despite revenue declining 55.9 percent to S$55.7 million, Wheelock Properties managed to achieve a 3.2 percent year-on-year increase in net profit to S$121 million in the fourth quarter of last year.
However, gross profit for the quarter dropped 52.3 percent to S$34.8 million, offset by an 81.8 percent increase in fair value on investment properties to S$100.3 million.
In terms of full year results, the company recorded a 10.6 percent decline in net profit to S$291.2 million, while revenue slipped 31.7 percent to S$390.5 million.
"This was largely due to the lower revenue recognition from Scotts Square based on the progress of construction works in financial year 2011. The completion of Ardmore II and Orchard View in the second quarter of 2010 also contributed to the lower revenue in the current year," it said.
The company ended 2011 with cash and cash equivalents of around S$1.08 billion, attributed to sales proceeds from property development projects.
"With consistent good rental rates and high occupancy at both Wheelock Place and Scotts Square, we expect a strong recurring income from our investment properties this year," noted David Lawrence, Chief Executive at Wheelock Properties.
Meanwhile, its 36-storey Orchard View high-end development has sold a total of 13 units with an average price of S$3,210 psf. Scotts Square sold 262 units as of end-2011, representing 84 percent of the net saleable area sold at an average price of S$4,000 psf.
The developer noted that construction for the 36-storey Ardmore Three development is expected to be completed by 2014.
It added saying, "We look forward to Marks & Spencer launching their new flagship at level 1 of Wheelock Place, while the basement undergoes a refurbishment for a new retail and dining experience." Related Stories:
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