 |
February 7, 2008 |
|
|
|
 |
ALLCO REIT: Total Return Amounts to SGD118 Mil. in 4th Qtr. 2007 Allco Commercial Real Estate Investment Trust reported SGD118.3 million total return in the fourth quarter ended December 31, 2007, as compared to SGD105.6 million total return in the same quarter of 2006. Gross revenue for 4Q2007 was 125.8% higher to SGD26.63 million from the reported SGD11.8 million of revenues in the fourth quarter of 2006. This was mainly due to: -- higher revenue achieved from Central Park of SGD8.9 million (2006: SGD6.7 million) as a result of higher rentals achieved from rent renewals, higher outgoing recoverables and carpark income in 2007; -- full year revenue contribution from 55 Market Street of SGD1.8 million (55 Market Street was acquired in November 2006 with vacant possession. Its contribution to revenue commenced in 2007); -- contributions from properties that were acquired in 2007, being Centrelink Headquarters (SGD2.9 million contribution to gross revenue), Cosmo Plaza (SGD1.9 million contribution to gross revenue), Azabu Aco, Galleria Otemae and Ebara Techno-Serve (SGD2.3 million collective contribution to gross revenue) and KeyPoint (SGD3.9 mil. contribution to gross revenue). In line with the increased revenue from the addition of properties in 2007, property operating expenses have also increased in 4Q2007 when compared to 4Q2006. This was mainly due to higher property management fees of SGD0.8 million (2006: SGD0.3 million) and the additional property operating expenses of the properties acquired in 2007. 55 Market Street, Centrelink Headquarters and KeyPoint incurred expenses of SGD0.6 million, SGD0.5 million and SGD0.7 million respectively while Cosmo Plaza, Galleria Otemae, Azabu Aco and Ebara Techno- Serve incurred expenses of SGD0.7 million, SGD0.5 million, SGD0.1 million and SGD0.1 million, respectively, for the quarter. In addition, the property operating expenses for Central Park were also higher in 4Q2007 due to higher tenant rechargeable expenses. Trust expenses for 4Q2007 were SGD4.3 million higher than that for 4Q2006 mainly due to management fees paid to the Manager amounting to SGD2.9 million (management fees were waived in the prior year) and a write-off of expenses amounting to SGD1.0 million associated with the proposed capital raising not proceeded in December 2007. Finance costs were SGD5.0 million higher in 4Q2007 as compared to 4Q2006 due mainly to additional bank borrowings utilised to fund the acquisitions of Cosmo Plaza, Galleria Otemae, Azabu Aco, Ebara Techno- Serve and KeyPoint. Valuations of Central Park, China Square Central and 55 Market Street were completed as at December 28, 2007, resulting in an increase in the fair values of the properties of SGD120.8 million. Net change in fair value of other investment and derivative financial instruments for 4Q2007 arose from unrealised losses of SGD7.5 million from the derivative financial instruments entered into by Allco REIT to manage interest and foreign exchange risks, partially offset by a gain in the fair value of the investment in AWPF of SGD5.3 million. Allco REIT had entered into interest rate swaps to fix the interest rates on its bank loans when it acquired each of its properties. As market interest rates have declined during 2007, this resulted in unrealised losses on the interest rate swap Allco Commercial Real Estate Investment Trust is a real estate investment trust. The Trust invests in a diverse portfolio of real estate and real estate-related assets. Its Singapore assets include a 100% interest in the China Square Central Property and a 100% interest in 55 Market Street. As reported by the Troubled Company Reporter-Asia Pacific on February 4, 2008, Moody's Investors Service has downgraded Allco Commercial's corporate family rating to Ba1 from Baa3 and has continued to place the rating on review for possible downgrade. First published in the Government Gazette, Electronic Edition, on 1st February 2008 at 5.00 pm. |
|
|
||
|
Today's Top Stories have been selected from the Troubled Company Reporter - Asia Pacific. To receive the Full TCR-AP please CLICK HERE.
