Page 81 - TreasuryChinaTrust

Treasury China Trust Annual Report 2010 16

TRUSTEE-MANAGER’S REPORT

TCT has aggregated a high quality commercial real estate portfolio that provides both asset class and geographic diversification. Organic growth in net asset value and revenue is provided through the combination of income producing real estate and development projects in key markets that are expected to provide significant yield improvement as they move towards completion in 2012.

With regard to existing income flows, TCT’s portfolio exhibited solid improvement in 2010 as outlined in the table below which illustrates a 7.3% increase in occupancy from 83.6% as at 31 December 2009 to 90.90% at the end of 2010. This strong result has been matched through a focus on the quality of the underlying rent roll which has witnessed Casio, Johnson & Johnson, Powerlong, Crimson Asia Capital take occupation in various properties, whilst MetLife doubled their space commitment at Central Plaza, which was influenced by the completion of its high-quality refurbishment during the year, thus delivering a committed occupancy of 97.7% by year-end.

Committed Occupancy

70%

75%

80%

85%

90%

95%

100%

83.6%

85.9%

90.9%

84.8% 85.5%

89.3%

79.9%

84.8%

97.7%

82.2%

92.9%

88.4% 1

Stabilised Portfolio City Center Central Plaza Treasury Building

31-Dec-09 30-Jun-10 31-Dec-10

Note: 1 Treasury Building has achieved 100% occupancy in March 2011 as a result of the signing of a major lease with Eastern Life Insurance

TCT has delivered an institutional quality rent roll across its portfolio that provides significant risk mitigation as to the certainty of its recurrent income, evidenced by its almost non-existent level of bad and doubtful debts. Furthermore, 22% of TCT portfolio is represented by Fortune 500 companies across a broad spectrum of industry sectors, further protecting TCT’s rental revenue from broad based deterioration.

Major Clients Fortune 500 Tenants by Industry

Healthcare Consumer products Mechanical & Manufacturing Finance&Insurance

45%

28%

4%

22%