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FORTERRA
ANNUAL REPORT 2013
CHAIRMAN’S STATEMENT
4
On behalf of the Board of
Directors of the Trustee-Manager,
I am pleased to present the results
for Forterra Trust (the “Trust”) for
the year ended 31 December 2013.
STRENGTHENING FUNDAMENTALS
In 2013, with the dedicated efforts
of the management team and a
portfolio of premium properties,
Forterra experienced a solid year
with respect to its commercial real
estate operations and attained
operational and financial results
as targeted. Gross revenue in
FY 2013 reached S$77.28 million,
decreased by 22.0% year-on-year
mainly attributable to the sale
of Central Plaza settled in May
2013 and the absence of retail
rental from The Place Phase 1
(formerly known as The HQ 1)
amid refurbishment work during
the year. Net property income
declined by approximately S$9.96
million to S$48.87 million. The fall
in net property income was less
than that of the gross revenue,
due to the proactive cost control
and eff iciency enhancement
program implemented during the
year.
Basic net asset value (“NAV”)
per unit as at 31 December 2013
was S$4.68 (versus S$4.44 as at
31 December 2012), after factoring
in deferred tax liability equivalent
to S$1.55/unit. The increase in
NAV per unit across 2013 was
predominantly due to foreign
exchange rate volatility which
witnessed a 6.5% appreciation
of the Chinese Renminbi (“RMB”)
against the S$ across the 12 month
period ended 31 December 2013.
On 23 May 2013, the Trust
completed the sale of Central
Plaza to a company affiliated
with the Carlyle Group at a sale
Eric CHUNG Chun Kwong
Chairman of the Board
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