Page 23 - TreasuryChinaTrust

Treasury China Trust Annual Report 2010 74

NOTES TO THE FINANCIAL STATEMENTS

Period from 19 May 2010 (date of constitution) to 31 December 2010

16 TCT Substitution Option Scheme (Continued)

The fair values of the options were calculated using the binominal option pricing model. The original currency of the options under the CREO Share Option Scheme was GBP. Following the listing of the Trust, options under TCT Substitution Option Scheme are measured in S$ at $17.6 million, being the higher of the fair value of the options under the CREO Share Option Scheme at grant date or modified fair value under the TCT Substitution Option Scheme on modification date as follows:

Tranches One Two Three Four Five

Exercise price ($) 0.35 3.10 3.10 3.30 2.60 Number of options 3,825,000 3,810,000 75,000 150,000 2,000,0000 Expected volatility 20.95% 22.21% 22.21% 21.87% 53.89% Expected life (years) 3.8 4.5 4.5 4.5 6.0 Risk free rate 5.24% 5.50% 5.50% 4.33% 4.47% Earliest exercise date 21/6/2010 21/6/2010 21/6/2010 21/6/2010 10/9/2013 Expiry date 24/4/2014 4/6/2014 2/12/2014 23/1/2015 10/9/2015

The number of unit options outstanding at 31 December 2010 are summarised as follows:

Tranches One Two Three Four Five

Outstanding at 21 June 2010 and

31 December 2010 3,825,000 3,810,000 75,000 150,000 2,000,000 Exercisable balance at 21 June

2010 and 31 December 2010 3,825,000 3,810,000 75,000 150,000 –

During the period the Trust recognised compensation expenses of $368,000 relating to the equity-settled unit-based awards. The fair value of unit-based payment awards is expensed over the vesting period, together with a corresponding credit in unit option reserve in the Unitholders’ funds.

17 Gross rental income

Period from 19/5/2010 to 31/12/2010 $’000

Base rent 31,463 Service charge income 8,069

39,532

18 Trustee-Manager’s management fees

Period from 19/5/2010 to 31/12/2010 $’000

Base management fee 5,040 Performance management fee 764 Trustee fee 201 Others 420

6,425