Property - Guthrie GTS Ltd

Chairman’s Message
FY2010 was an excellent year for the Guthrie Group. Profit attributable to the Company’s shareholders for the
year increased 68.8% to $116.6 million. This improvement can be attributed to the generally better operating
environment and a healthy increase in the fair value of our portfolio of investment properties.
I am pleased to inform shareholders, that for the financial year ended 31 December 2010, the Board of Directors
has proposed a total dividend payment of 2.5 cents; comprising a first and final ordinary dividend of 1.25 cents
per share and a special dividend of 1.25 cents per share, both tax exempt (one-tier). This is an increase from
1.25 cents per share in FY2009. The Board’s decision to increase the total dividend payout for the year in
review was made after taking into consideration the Group’s results, its strategic plans, and financial resources.
Corporate Review for 2010
The Property Division performed well in 2010 and accounted for 71.9% of the Group’s total segment
results. Including the fair value gains on investment properties held by the Group, the Division contributed
$109.2 million to the Group’s profit before income tax of $135.6 million.
The Group’s mall management, retail planning and development consultancy services were active throughout
the year. It was involved in the asset enhancement, retail planning, marketing and management of the Taimall
Nankan Family Entertainment and Shopping Centre in Taoyuan, Taiwan. Guthrie is the mall manager of nex,
the biggest suburban shopping centre in the north-east corridor of Singapore. It was also involved in the retail
consultancy, project management and marketing of the mall.
In May 2010, the Property Division, together with a joint venture partner, successfully tendered for a HDB
project under the Design, Build and Sell Scheme. The project is called Adora Green and was launched in
February 2011. Sales applications received to-date have been positive. This project is expected to be completed
in 2014.
During the course of the year, the Group divested its investments of 5 units of shophouses at Amoy Street and
6 office units in Guthrie Building at Changi Road. In December 2010, the Group entered into a joint venture to
acquire 163 strata-titled units in The Adelphi. The units are a mixture of office and retail units and represent
55% of the total share value of The Adelphi.
“
I am pleased to inform
shareholders, that for
the financial year ended
31 December 2010, the
Board of Directors has
proposed a total dividend
payment of 2.5 cents...
This is an increase from
1.25 cents per share in
FY2009.
“
The Engineering Division performed well, contributing higher profits in FY2010, as compared to the
previous financial year. It contributed $14.5 million to the Group’s segment results despite lower revenue of
$172.2 million. The Division accounted for 22.5% of the Group’s segment results.
During the year, the Engineering Division secured several local engineering projects including air-conditioning
works at d’Leedon, a condominium project at Farrer Road and an integrated civic, cultural, retail and
entertainment hub located at Vista Exchange Green and Rochester Drive. The Division also secured several
airfield lighting projects at Seletar Airport.
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