Wednesday, February 22, 2012

Wheelock Properties rated 'neutral' by CIMB

CIMB in a Feb 21 research report says: "4Q core EPS is below expectations at 10%/13% of our/consensus forecasts (FY2011 at 91%) due to vacancy at Wheelock Place and higher taxes.

"Lower recognition of development sales in 4Q11 was a drag on FY2011 revenue, as Scotts Square was the only property completed in the year and new sales remained slow. Development profits were down 30% y-o-y. No new units at Orchard View and Scotts Square have been sold since Dec 11.

"Despite a stronger net-cash position ($921 million) from proceeds from development properties, we see limited opportunities for tapping its strong balance sheet. We still see little upside at 0.7x P/BV, given policy headwinds.

"We introduce FY2014 and adjust FY2012-2013 EPS on slower sales and higher rents. Target price of $1.67. MAINTAIN NEUTRAL."

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