SINGAPORE (May 14): Wheelock Properties announced 1Q18 earnings increased more than threefold to $30.8 million, compared to $9.19 million in 1Q17 on higher share of profit of associates.

Revenue for the quarter saw a 40.3% dip to $56.0 million from $93.7 million last year, as The Panorama and Ardmore Three have been completely sold last year, as well as lower interest income from the group’s investment in quoted securities.

Cost of sales halved from the previous year to $39.3 million, bringing 1Q18 gross profit to $16.7 million, 9.7% higher than $15.2 million a year ago.

Other income increased by 73.8% to $2.62 million from $1.51 million in the previous year, due mainly to the bank interest income from higher cash balances.

Selling and marketing expenses dropped 57.5% y-o-y to $1.04 million, while administrative and corporate expenses declined by 28.9% to $2.73 million.

Other operating expenses surged almost fourfold to $1.74 million, compared to $0.45 million last year, due mainly to the loss on early redemption of the group’s investment in quoted securities.

Share of profit of associates, net of tax saw a significant increase to $19.9 million from $1.01 million a year ago, mainly attributable to recognition of profits from development in London (Holland Park Villas) and sale of completed units from the Singapore development (Tomlinson Heights).

On the outlook, the group’s rental income from Wheelock Place and Scotts Square Retail, as well as its investments in quoted securities, will continue to contribute to the its recurring income.

Share of profit of associates will continue with the marketing of their remaining completed residential properties in Singapore and London. Their hotels and resorts are also expected to continue to provide a recurring income stream.

Shares in Wheelock closed 3 cents higher at $1.80 on Monday.