Singapore listed retail and commercial property trust Forterra Trust (Forterra) (SGX:LG2U) has sunk into the red with a loss of S$2.34 million for the quarter compared to a profit of S$8.85 million from a year ago.
|Forterra Trust has a portfolio of 7 commercial and retail properties across China.
The trust reported a 24.3 per cent year-on-year fall in net property income for its 3Q 2013 which came in at S$11.56 million. The results come on the back of falling gross revenue which dipped 25.4 per cent to S$18.28 million for the quarter.
Forterra has attributed the weak numbers to the sale of the Central Plaza. The divestment completed in May 2013 and took a significant portion of the trust’s revenue. Forterra has also balmedthe “relative quietness of Shanghai Grade A office leasing market” for its woes but added that early signs of recovery were evident in the increased number of new inquiries from prospective tenants.
The trust is also looking forward to the spill over effects of the new Shanghai Free Trade Zone which it claims will bear positive outcomes for office rents in the city. Units of Forterra are currently trading flat at S$2.09 on the Singapore Exchange.