PCRT: Distributable income at $6.3m missed forecast by $4m (approx 39.0%) but able to meet distribution forecasted ($10.4m) through amendment of an earn-out deed. 1Q rev was 2k with a net loss of 719k for the quarter. The shortfall was lower revenue from the Shenyang Longemont Shopping Mall due to its delayed opening by three months as a result of a longer than expected timing to secure mall’s fire safety permits. The result of Shenyang Red Star Macalline Furniture Mall was also lower than forecast due to the above which brought abt lower shopper traffic and govt policies restricting residential properties affecting furniture sales.
The earn-out deed was in relation to an agreement with Shenyang Summit that if the actual net income of the properties for each relevant period falls below a threshold, deposits from an escrow account (currently $46.5m) could be drawn down for payments to unitholders. The amendment was to allow co to draw upon this deposit to support any period of weaker performance.
PCRT’s first distribution will be for 9 June to 31 Dec 2011 so no distribution has been declared for the quarter.
PCRT has waived its mgmt fees for the quarter in light of the results.
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