Forterra Trust (formerly: Treasury China Trust)

[Boon]

Was it really profit?

REAL solid capital gain - If it is not REAL profit, then what is it ?

I thought the trust incurred loss on its book value?

As at 31-December-2013, Net Asset = SGD 1,323 million (FY2012 = SGD 1,257 million) = +5%

It also depends on how often they can do such deal. How long has the BLP been on the market? two years?

it depends on what prices the Mangement is willing to dispose of the asset for.
NAV=SGD 4.68 per unit
if they are wlilling to let go of ALL assets at say 25% discount (SGD =3.51), I believe many REPE funds including ARA would buy. If the disposal is structured in simailar way to Central Plaza disposal - could save SGD 1.55 per share in Deffered Tax Liability.
That said - my take on BLP is it would be disposed at +/- 10% of its BV.

At the end of the day, what matters is the cash flow generated from the asset or operation minus all the cost incurred.

Agreed.
In real estate investment, gains are made in the forms of Capital Gain + Rental Income
Cash flows generated from Capital Gain are REAL too

In the last 12 months, this trust generated negative profit. Your positive cash profit probably does not take financial cost into account? You can choose to ignore it, but financial cost is as real cost as any other cost.

In the last 12 months the trust generated negative ACCOUNTING profit.
Of course, financial cost is REAL and has been take into consideration. The point I am highlighting is the Trust has generated Cash Profit and has money off shore (in Singapore) to make distribution to unit-holders if the Management chooses to do so

If we are talking about balance sheet, it has to spend a great deal of its cash holding to finish the HQ. So you can say how much cash they have in their bank account today, however, they have to spend it very soon. Is it there or isn't it there?

Financing for the HQ had been obtained long time ago. As at 31-Dec-2013, they need another SGD90 million to complete the HQ

During subprime crisis, everybody was hoping someone else will come and buy my CDOs at a higher price thus ignored the cash flow generating ability of the underlying mortgage. What happened eventually?

Property valuations are cash-flow based (DCF) . In the case of Forterra, MOS is plenty

(vested)