UPMARKET developer Wheelock Properties yesterday reported a 77.6 per cent drop in second-quarter net profit to $30.4 million.

UPMARKET developer Wheelock Properties yesterday reported a 77.6 per cent drop in second-quarter net profit to $30.4 million.

But profit from continuing operations was up 90.3 per cent from $16 million previously.

The reason for the drop in bottom-line profit was that Wheelock had booked a one-off gain of $116 million in the second quarter last year from the sale of its British-based Hamptons Group.

Revenue for the three months ended Sept 30 slipped 9.8 per cent to $97.6 million.

The company attributed this mainly to lower revenue recognition of units that had been sold in The Sea View and The Cosmopolitan condominium projects.

This was partly offset by higher dividend income from the group’s 20 per cent stake in Hotel Properties.

Second-quarter earnings per share were 2.55 cents, down from 11.38 cents previously while net asset value per share stood at $1.71 compared with $1.69 as at March 31.

Six-month net profit slipped by 65.6 per cent to $55.9 million on revenue of $191.6 million.

Wheelock said the prospects for improved rental rates are good for both office and retail space at its commercial property, Wheelock Place.

Its 338-unit Scotts Square, a luxurious condominium project, was well received during its soft launch. Half of the development has been sold at an average price of $3,986 per sq ft. Sales of the remaining units are ongoing.

Source : Straits Times - 6 Nov 2007