Forterra Trust net property income slides 17% to S$48.9m

Revenue down as refurbishment work commences.

Forterra Trust recorded a net property income of S$48.87 million for the 12 months ended 31 December 2013, as gross revenue of RMB381.03 million or S$77.28 million was recorded. The reduction in revenue as compared to FY 2012 was mainly attributed to the sale of Central Plaza in May 2013 and nil occupancy of the retail podium at The HQ as a consequence of the on-going refurbishment work.

Net Asset Value (NAV) of S$4.68 per unit as at 31 December 2013 (S$4.44 per unit as at 31 Dec 2012) As an owner of commercial real estate in China, Forterra’s revenues are predominately in RMB and in this context Gross Revenue Income of RMB381.03 million and Net Property Income of RMB241.22 million was recorded during the year.

Committed occupancy for The HQ office towers and Forterra House as at 31 December 2013 was 91.7% and 92.9% respectively, while Beijing Logistics Park remained at 100.0% level. The re-development of The HQ is well underway. The refurbishment work of The HQ 1 is substantially complete and discussions with tenants for their fit-out works have commenced since February 2014. The structure topping out of The HQ 3 was successfully completed on 16 January 2014.

Retail market showed a moderate recovery during Q4 2013. As at 31 December 2013, The HQ 1 retail pre-commitment remained in excess of 50.0%, of which written confirmation of interest, including leases under detailed negotiation was approximately 42.1% with the balance represented by work in progress. 14 leases were successfully negotiated in the office portfolio represented by Forterra House and The HQ1 office towers for the quarter encompassing both new lettings and renewals producing an aggregate per square metre rental which represents a 3.6% increase over the expiring leases.