Forterra Trust (formerly: Treasury China Trust)

[KopiKat]

1H12 Results,

Presentations
Financials

Don't quite understand the part of Minimum Payout (pg 2 of Financials),

Trust Deed Covenants
· Maximum debt to assets ratio of 45% - Actual 33.4% (30/06/11 – 35.4%)
· Maximum development assets to total assets of 30% - Actual 17.8% (30/06/11 – 17.3%)
· Minimum payout of Distributable Income of 80% - 0% (30/06/11 – 100%)

I check from pg 17 that Distributable Income,

1H12 = 0.4ct
1H11 = 2.6ct

So, how come they need not pay Div for 1H12 and how come they paid DPU = 5ct for 1H11 (more than Distributable Income)? I think I'll have to go read their IPO Prospectus (if any) in more detail to really understand this Biz Trust, especially on their definition of Distributable Income and Trust Deed Covenants!

<Not Vested>

[Nick]

The distributions in its first year of listing was financed by the profit from the sale of an development asset pre-IPO.

Prior to the listing of the Trust, CREO sold its interest in Tangdao Bay development site and realized a profit of approximately $22.6 million from the sale in December 2009. CREO sold its interest in units of RREEF China Commercial Trust in the first quarter of 2010 and realized a profit of approximately $4.2 million from the disposal. Such profits form part of the Unitholders’ earnings to the Group and a portion of such earnings amounting to $8.3 million was utilized to pay the distribution for the financial period ended 31 December 2010. The balance of realized gain of $18.5 million is available for distribution for FY2011

Source: http://www.treasurychinatrust.com/Pics/C..._final.pdf

If they sell Central Plaza and BLP, it is likely that the profit generated will be used to fund the dividends in 2H 2012 and 2013.

The current operation is not sufficient to finance any dividend since the NPI yield is low and barely covers the finance payment and management fees. Perhaps once the development assets are completed and the old leases are reverted, we might see NPI yield increasing.

(Not Vested)

[KopiKat]

The distributions in its first year of listing was financed by the profit from the sale of an development asset pre-IPO.

Prior to the listing of the Trust, CREO sold its interest in Tangdao Bay development site and realized a profit of approximately $22.6 million from the sale in December 2009. CREO sold its interest in units of RREEF China Commercial Trust in the first quarter of 2010 and realized a profit of approximately $4.2 million from the disposal. Such profits form part of the Unitholders’ earnings to the Group and a portion of such earnings amounting to $8.3 million was utilized to pay the distribution for the financial period ended 31 December 2010. The balance of realized gain of $18.5 million is available for distribution for FY2011

Source: http://www.treasurychinatrust.com/Pics/C..._final.pdf

If they sell Central Plaza and BLP, it is likely that the profit generated will be used to fund the dividends in 2H 2012 and 2013.

The current operation is not sufficient to finance any dividend since the NPI yield is low and barely covers the finance payment and management fees. Perhaps once the development assets are completed and the old leases are reverted, we might see NPI yield increasing.

(Not Vested)

Thx! That explains the 'extra' Distributable Income for 1H11. For 1H12? OK, I understand Distributable Income is rather tiny at 0.4ct, but, no need to follow Trust Deed Covenants?

[Nick]

The distributions in its first year of listing was financed by the profit from the sale of an development asset pre-IPO.

Prior to the listing of the Trust, CREO sold its interest in Tangdao Bay development site and realized a profit of approximately $22.6 million from the sale in December 2009. CREO sold its interest in units of RREEF China Commercial Trust in the first quarter of 2010 and realized a profit of approximately $4.2 million from the disposal. Such profits form part of the Unitholders’ earnings to the Group and a portion of such earnings amounting to $8.3 million was utilized to pay the distribution for the financial period ended 31 December 2010. The balance of realized gain of $18.5 million is available for distribution for FY2011

Source: http://www.treasurychinatrust.com/Pics/C..._final.pdf

If they sell Central Plaza and BLP, it is likely that the profit generated will be used to fund the dividends in 2H 2012 and 2013.

The current operation is not sufficient to finance any dividend since the NPI yield is low and barely covers the finance payment and management fees. Perhaps once the development assets are completed and the old leases are reverted, we might see NPI yield increasing.

(Not Vested)

Thx! That explains the 'extra' Distributable Income for 1H11. For 1H12? OK, I understand Distributable Income is rather tiny at 0.4ct, but, no need to follow Trust Deed Covenants?

Prospectus:

TCT’s distributable income in relation to a distribution period (“Distributable Income”) comprises Net Income from Operations and Realised Gains.

The realized gains was carried forward and used to finance the dividend.

[KopiKat]

The distributions in its first year of listing was financed by the profit from the sale of an development asset pre-IPO.

Prior to the listing of the Trust, CREO sold its interest in Tangdao Bay development site and realized a profit of approximately $22.6 million from the sale in December 2009. CREO sold its interest in units of RREEF China Commercial Trust in the first quarter of 2010 and realized a profit of approximately $4.2 million from the disposal. Such profits form part of the Unitholders’ earnings to the Group and a portion of such earnings amounting to $8.3 million was utilized to pay the distribution for the financial period ended 31 December 2010. The balance of realized gain of $18.5 million is available for distribution for FY2011

Source: http://www.treasurychinatrust.com/Pics/C..._final.pdf

If they sell Central Plaza and BLP, it is likely that the profit generated will be used to fund the dividends in 2H 2012 and 2013.

The current operation is not sufficient to finance any dividend since the NPI yield is low and barely covers the finance payment and management fees. Perhaps once the development assets are completed and the old leases are reverted, we might see NPI yield increasing.

(Not Vested)

Thx! That explains the 'extra' Distributable Income for 1H11. For 1H12? OK, I understand Distributable Income is rather tiny at 0.4ct, but, no need to follow Trust Deed Covenants?

Prospectus:

TCT’s distributable income in relation to a distribution period (“Distributable Income”) comprises Net Income from Operations and Realised Gains.

The realized gains was carried forward and used to finance the dividend.

Thx! I understand the 1H11 part.
I'll go read the Prospectus when I'm free (before FY12 ends) to see if they have to pay for FY12 (I think they can don't pay at 1H12).

[Nick]

The distributions in its first year of listing was financed by the profit from the sale of an development asset pre-IPO.

Prior to the listing of the Trust, CREO sold its interest in Tangdao Bay development site and realized a profit of approximately $22.6 million from the sale in December 2009. CREO sold its interest in units of RREEF China Commercial Trust in the first quarter of 2010 and realized a profit of approximately $4.2 million from the disposal. Such profits form part of the Unitholders’ earnings to the Group and a portion of such earnings amounting to $8.3 million was utilized to pay the distribution for the financial period ended 31 December 2010. The balance of realized gain of $18.5 million is available for distribution for FY2011

Source: http://www.treasurychinatrust.com/Pics/C..._final.pdf

If they sell Central Plaza and BLP, it is likely that the profit generated will be used to fund the dividends in 2H 2012 and 2013.

The current operation is not sufficient to finance any dividend since the NPI yield is low and barely covers the finance payment and management fees. Perhaps once the development assets are completed and the old leases are reverted, we might see NPI yield increasing.

(Not Vested)

Thx! That explains the 'extra' Distributable Income for 1H11. For 1H12? OK, I understand Distributable Income is rather tiny at 0.4ct, but, no need to follow Trust Deed Covenants?

Prospectus:

TCT’s distributable income in relation to a distribution period (“Distributable Income”) comprises Net Income from Operations and Realised Gains.

The realized gains was carried forward and used to finance the dividend.

Thx! I understand the 1H11 part.
I'll go read the Prospectus when I'm free (before FY12 ends) to see if they have to pay for FY12 (I think they can don't pay at 1H12).

They have suspended dividends since 2H 11. Doubt they will declare any dividends unless the two properties are sold hmm.

[KopiKat]

They have suspended dividends since 2H 11. Doubt they will declare any dividends unless the two properties are sold hmm.

Will be busy with our calculators or spreadsheet when that happens (to see how much the potential DPU could be). At current prices of $1.485 (seems like there was an expectation for DPU = 5ct and since none was declared, it went 'xd' ie. -4.5ct), the Yield = 6.73% won't be very fantastic (still something to drool over if all paid in one shot) if they pays 10ct (assuming DPU = 5ct/HY like 1H11). But, if they pay 15ct (for 3 HY of unpaid DPU), then that would be something to hmm about...

[KopiKat]

Trouble at the Parent of the Trustee-Manager but not supposed to affect TCT assets.

UPDATE RELATING TO ULTIMATE PARENT COMPANY OF TRUSTEE-MANAGER, TREASURY HOLDINGS – OUTCOME OF COURT CASE WITH NATIONAL ASSET MANAGEMENT AGENCY OF IRELAND (“NAMA”)

[KopiKat]

Going to see some 'Dirty Laundry' soon?

ANNOUNCEMENT RELATING TO THE CESSATION ANNOUNCEMENTS RELEASED ON 26 JULY 2012

[propertyinvestor]

Mr Mano is not happy with the management!