Singapore-listed property business trust Forterra Trust (SGX:LG2U) has reported in a S$20.5 million for its 2Q2013. The figure represents a steep drop of about 22.4 percent when compared to the S$26.4 million reported for the corresponding period in 2012.

Forterra Trust has a mixed portfolio of commercial and retail properties across China in cities such as Shanghai. 

The drop in revenue has come about largely due to the divestment of a the property known as Central Plaza in May this year. As a consequence, net property income fell accordingly to S$13.4 million from S$16.9 million from a year ago, a year-on-year drop of about 20 percent.

Unlike REITs, Forterra is established as a business trust that does not have an obligation to pay out dividends to unit holders. However for this quarter, Forterra has indicated that it will pay unit holders 9.5 Singapore cents per unit for 2Q2013, up from 6.7 Singapore cents a year ago.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.