Page 8 - TreasuryChinaTrust2011

This result was achieved during a year of high uncer tainty with external factors, par ticularly in Europe, prevailing
negatively on the TCT share price in a period in which the Strait Times Index fell 18.2%1.
However by year end, the TCT portfolio through organic growth and acquisitions had increased by 13.1% in value to
RMB12.054 billion (after minority interests) and extended TCT’s geographic reach into the Chinese coastal city of Qingdao.
This delivered net asset value2 and net property income3 growth across the year of 23.5% and 28.8% respectively.
It is also very pleasing to report that in February 2012 TCT was awarded an Equity Investment Management Licence to
raise and manage domestic Renminbi capital for investment. This is a major and exciting step in TCT’s evolution as a
significant entity in the Chinese business sector, giving TCT access to China’s huge and growing reserves of domestic
savings. The opportunity to expand our sources of equity through a direct link to domestic pools of capital is a rare and
significant opportunity to fund growth into the long term.
For 2011, as set out in the 2010 Annual Report as expectations for 2011 and consistent with the government’s aims of
stimulating domestic demand, TCT has expanded its exposure to the retail sector and has been rewarded with strong
rental growth and deeper access to the burgeoning domestic economy which for the 6th year running witnessed growth
in national retail sales of more than 15% per annum.
In this context TCT achieved a number of milestones in 2011:
• 27% leasing pre-commitment (as at March 2012) for its flagship The HQ project (formerly City Center);
• Acquisition of Huai Hai Mall located in one of Shanghai’s strongest and highest profile luxury goods precincts, set
for refurbishment in 2014, subsequent to the expiry of all existing leases in 2013, and expected to deliver strong net
property income growth and net asset value accretion;
• Acquisition of Central Avenue Mall in Qingdao providing immediate access to a cash generating retail property and
future development pipeline providing the opportunity for TCT to garner a dominant sub-market position in this fast-
maturing 2nd tier city of more than 8.0 million residents;
• Completed the repositioning of its Central Plaza retail podium following completion of the successful refurbishment
in 2010; and
• Received an associated benefit with dominant domestic e-retailer Taobao committing to lease almost 90% of TCT’s
Beijing Logistic Park development.
1 Source: Share Investor
2 NAV on a fully diluted basis : S$3.69/unit as at 31 Dec 2010 and S$4.31/unit as at 31 Dec 2011, representing a 16.8% increase
3 Based on annualised NPI for FY10
5.0
4.5
4.0
3.0
3.5
2.5
2.0
1.0
1.5
0.5
0.0
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
23.5%
3.74
4.62
NAV Growth (%) NAV (S$)
As at 31 Dec 2010 As at 31 Dec 2011
70
60
50
40
30
20
10
0
25.0%
30.0%
35.0%
20.0%
15.0%
10.0%
5.0%
0.0%
As of 31 Dec 2010
45.1 M
(annualised)
28.8%
58.1 M
NPI Growth (%) NPI (S$M)
As of 31 Dec 2011
Net Asset Value Net Property Income
06
Chairman’s Statement
SAR1112034_TCT_AR_().indb 06 3/23/2012