Wheelock to withstand escalating property market headwinds despite current share price weakness
It has a strong balance sheet and diversified investments.
Despite its current share price weakness, Mainboard-listed Wheelock Properties is set to withstand the unabated headwinds that the the weak local residential market is currently experiencing.
According to OCBC, Wheelock is its top pick amongst the mid-sized developers, with a stable 3.3% yield underpinned by prime Orchard investment assets, a strong balance sheet (7.3% net gearing) that will likely buttress the group through the domestic residential downtrend, and potential upside from its 22.6% stake in Hotel Properties Limited.
“We advocate that investors buy on its recent price weakness, particularly as it finds technical support near S$1.76 levels,” OCBC stated.