Treasury China Trust (TCT) has posted a 14 percent increase in gross revenue to RMB100.13 million (S$19.45 million) in the first quarter of this year, while its net property income rose 3.5 percent to S$12.45 million.
“We are delighted with our first quarter results for 2011, posting a strong increase in revenue compared to Q1 of 2010,” said Mr. Richard David, Chief Executive of TCT.
“TCT’s portfolio of income-producing real estate has evolved into a phase of strong maturity demonstrating not only high occupancy of more than 93 percent, but also substantial rental growth, which secured more than 12 percent increase in rent for renewed and new leases for the quarter.”
The company has negotiated 33 leases within its portfolio in the first quarter, encompassing both new lettings and renewals and producing an aggregated psm rental uplift of 12.8 percent.
TCT also recorded major transactions, like Honeywell’s renewal of their office lease for 5,600 sq m and Hanes’ expansion of its office accommodation by 1,769 sq m, which are both in City Center. It also successfully obtained a new three-year lease to Eastern Life Insurance for 1,634 sq m, increasing the committed occupancy for Treasury Building to 100 percent.
Meanwhile, Beijing Logistics Park and City Center Extension, TCT’s two core development assets, made satisfactory progress in the first quarter and remained on track in terms of development schedule and budget.
Both projects continue to receive strong leasing enquires and most notably UK retail chain Marks & Spencer (M&S) has entered into a 3,768 sq m, 10-year lease pre-commitment at City Center Extension for a four-storey flagship store, offering the full range of M&S products.
Mr. Richard Barrett, Chairman of TCT, said “the optimism for 2011 previously expressed by the board of TCT is bearing fruit with a strong start to the new year producing a strong gross revenue andnet profit after tax outcome, which included a 7.0 percent reduction in property operating expensesevidencing TCT’s ongoing focus to create an efficient cost base to deliver maximum return to our unitholders.”
Source: SG Yahoo News 4th May 2011