SINGAPORE (Nov 24): OCBC Investment Research is maintaining its “buy” call on Wheelock Properties with an unchanged fair value estimate of $2.27, given the stock is attractively priced at 0.74 times FY16 book.

This comes after Wheelock reported 3Q17 results that were broadly in line with the research house’s expectations, indicating a strengthening of the group’s balance sheet in spite of lower 9M17 revenues due to decreased sales at Ardmore Three and The Panorama.

See: Wheelock Properties posts 72% rise in 3Q earnings to $49 mil

In a Friday report, lead analyst Eli Lee highlights Wheelock’s net cash position as at end 3Q17, as well as healthy occupancy rates for both Scotts Square Retail and Wheelock Pace at 99% and 94%, respectively.

“Boosted by the turnaround in the domestic residential market, Wheelock’s projects are now mostly sold. We understand that 93% (78 units) of Ardmore Three has been sold. At Scotts Square, 88% of the units (299 units out of 338 units) has been sold and, of the 28 unsold units earmarked for lease, 71% has been tenanted,” notes Lee.

“Since June 2017, all 698 units at the Panorama have also been sold and the project subsequently attained TOP in Sep 2017. In China, about 98% (765 out of 784 units) launched in Phase 1 and 2A of its Fuyang City project have been sold,” he adds.

As at 12.30pm, shares in Wheelock are trading flat at $1.91.