Treasury China Trust (TCT) has posted a net profit after tax of S$18.675 million for the quarter that ended September 30 2010, which resulted in a net distributable income of S$0.845 million, said Treasury Holdings Real Estate Pte. Ltd, the trust’s manager.
TCT, which focuses exclusively on the acquisition, development and management of commercial real estate assets in China, posted a distribution per unit of SGD2.5 cents in Q3, translating to an annualised yield of 6.54 percent.
With a property portfolio worth RMB9.42 billion, TCT recorded RMB94.845 million in gross rental income and RMB52.067 million in net property income, both in line with estimates.
The trust’s proactive asset management saw a growth in portfolio occupancy to 86.9 percent, a 3.3 percent increase year to date. Average rental per square metre also rose 3.5 percent.
“We are pleased to have delivered a strong operating performance in our maiden results since our listing in June. We believe that TCT not only offers investors the opportunity to access China’s fast-growing commercial real estate sector, but our hands-on approach also maximises our property yield and enhances value for our unitholders,” said Richard Barrett, chairman of TCT.
The higher occupancy and rental rates were boosted by new leasing transactions with blue-chip tenants, which include Casio, Micron, Rockwell Collins and Adani Power, as well as lease renewals for over 15,000 sq m of the trust’s office and retail space.
Looking ahead, the trust’s manager believes TCT has a strong brand in commercial property and is well positioned among existing and prospective tenants. The trust is also optimistic on the outlook and expects to improve occupancy rates from the current level of 87 percent by the end of the year.