Page 88 - TreasuryChinaTrust

Treasury China Trust Annual Report 2010 9

CHAIRMAN’S STATEMENT

Outlook

With its many years of experience in China’s commercial property sector, supported by its strong management platform, TCT is well positioned to maximise the strengths of its 2010 performance which delivered:

• Cashflow certainty over the medium term with a year-end occupancy of more than 90%;

• Strong prospects for balance sheet growth with geographic diversity in the increasingly important retail sector; and

• Balance sheet security with a healthy year-end cash balance and the successful completion of its debt refinance and development loan programme.

TCT remains committed to its “Total Return Vehicle” philosophy that will be enhanced through the successful execution of its City Center Extension and Beijing Logistics Park developments, which will be a particular focus for 2011. TCT is also confident of securing a substantial level of leasing pre-commitments for both projects, the prospects for which are extremely encouraging given the strong level of enquiry received during 2010.

In respect of further balance sheet growth, TCT will seek to secure maximum advantage from the Strategic Partnership Agreements executed in 2010 with the TRIO and Ginwa groups, whilst maintaining its core representation in the key markets of Shanghai and Beijing. The drive to secure further balance sheet growth will be balanced with TCT’s existing commitment to deliver accretive acquisitions in terms of net asset value and net property income and having regard for the performance of TCT in a capital markets context.

Our board looks forward to 2011 with strong anticipation and realistic expectation for an operating performance that builds upon the very substantial foundations laid during 2010.