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In the Prospectus dated June 30, 2005 ("Prospectus"), the Trust projected an amount of RM 22.9 million of Earnings after Tax (realised) for the year ended 31 December 2006 whereas the unaudited results for the year ended 31 December 2006 were RM 26.4 million. The positive deviation of RM 3.5 million representing 15.3% between the projections and unaudited results were due to:-
1. Net Property Income for the original 5 IPO properties exceeded the Prospectus projections by RM 256,000;
2. Net Property Income contribution of RM 4,630,000 by 4 new properties acquired subsequent to the Prospectus dated 30 June 2005;
3. Funds deployed to purchase new properties thus a reduction in interest income in 2006 by RM 1,140,000;
4. Increase in non-property expenses consisting of an increase in Manager’s Fee from 0.70% per annum to 1.0% per annum effective 1 July 2006 as well as other expenditure such as revaluation fees of properties to comply with accounting standards and provision for bad and doubtful debts totaling RM472,000;
5. Reduction in tax expenses by RM 231,000 due to higher income distribution, 98.8% for 2006 as opposed to 95% as per the Prospectus.
For detailed computation of the deviation, please see attachment.
