<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published September 3, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>JTC posts annual net surplus fall of 22% to $914m
Group restructures units into economic clusters to support key industries
By EMILYN YAP
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THE economic downturn has hit JTC Corporation, shaving its net surplus for the year ended March 31 by 22 per cent from a year earlier to $914 million.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Long-term thinking: To help tenants reduce business costs during the downturn, JTC cut its rents by up to 10% in January and offered a 15% rebate for 2009 </TD></TR></TBODY></TABLE>Keeping an eye on the longer-term nonetheless, the industrial landlord has restructured its divisions according to economic clusters to better support Singapore's major industries.
'FY 2008 was a challenging year,' JTC says in its annual report released yesterday. The net surplus of $914 million was lower than the $1.17 billion last year, as the group registered $384.9 million in impairment losses.
The devaluation was for properties and financial assets as both industrial property and stock markets suffered.
The impairment losses drove expenses up 64 per cent to $1.49 billion, eroding an increase in the top line.
Group income rose 14 per cent to $2.59 billion, as earnings from segments such as land rental and port operations grew.
There were also gains from the $1.71 billion divestment of high-rise ready-built properties to Mapletree Investments in July last year.
However, other earnings, such as developed property sales and fund management fees, fell.
JTC also leased or rented out less space in FY 2008. The net allocation of prepared industrial land plunged 72 per cent from the previous year to 101.3 hectares. And the net allocation of ready-built facilities dropped 50 per cent to 60,300 sq m.
To help tenants reduce business costs during the downturn, JTC cut its rents by up to 10 per cent in January and offered a 15 per cent rent rebate for 2009. The rebate will amount to $134 million in foregone revenue.
As part of a strategic review that began last year, JTC has restructured its business units. The units were previously grouped according to development types, such as industrial parks and specialised parks.
But to provide industries with integrated planning and infrastructural support, JTC has arranged the units around key clusters such as electronics, info-communication, media, aerospace, marine, clean technology, bio-medicals, chemicals, engineering and logistics. The new structure took effect in April this year.
'We will also deepen our cluster knowledge and enhance our capabilities to develop customised solutions for each strategic economic cluster,' JTC chairman Cedric Foo says in the annual report.
JTC will continue to drive innovative projects. For instance, it will build a 12-hectare offshore marine centre at Tuas View, allowing at least 10 offshore and marine companies to share a common wharf and jetty.
The centre could be ready by the first quarter of 2011 and will help meet rising demand for scarce waterfront land.
JTC will also redevelop Tukang Innovation Park, which aims to draw innovative and knowledge-driven companies in manufacturing, warehousing and assembly businesses.
Caterpillar's Singapore branch will be one of several companies setting up there.
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>JTC posts annual net surplus fall of 22% to $914m
Group restructures units into economic clusters to support key industries
By EMILYN YAP
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>THE economic downturn has hit JTC Corporation, shaving its net surplus for the year ended March 31 by 22 per cent from a year earlier to $914 million.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Long-term thinking: To help tenants reduce business costs during the downturn, JTC cut its rents by up to 10% in January and offered a 15% rebate for 2009 </TD></TR></TBODY></TABLE>Keeping an eye on the longer-term nonetheless, the industrial landlord has restructured its divisions according to economic clusters to better support Singapore's major industries.'FY 2008 was a challenging year,' JTC says in its annual report released yesterday. The net surplus of $914 million was lower than the $1.17 billion last year, as the group registered $384.9 million in impairment losses.
The devaluation was for properties and financial assets as both industrial property and stock markets suffered.
The impairment losses drove expenses up 64 per cent to $1.49 billion, eroding an increase in the top line.
Group income rose 14 per cent to $2.59 billion, as earnings from segments such as land rental and port operations grew.
There were also gains from the $1.71 billion divestment of high-rise ready-built properties to Mapletree Investments in July last year.
However, other earnings, such as developed property sales and fund management fees, fell.
JTC also leased or rented out less space in FY 2008. The net allocation of prepared industrial land plunged 72 per cent from the previous year to 101.3 hectares. And the net allocation of ready-built facilities dropped 50 per cent to 60,300 sq m.
To help tenants reduce business costs during the downturn, JTC cut its rents by up to 10 per cent in January and offered a 15 per cent rent rebate for 2009. The rebate will amount to $134 million in foregone revenue.
As part of a strategic review that began last year, JTC has restructured its business units. The units were previously grouped according to development types, such as industrial parks and specialised parks.
But to provide industries with integrated planning and infrastructural support, JTC has arranged the units around key clusters such as electronics, info-communication, media, aerospace, marine, clean technology, bio-medicals, chemicals, engineering and logistics. The new structure took effect in April this year.
'We will also deepen our cluster knowledge and enhance our capabilities to develop customised solutions for each strategic economic cluster,' JTC chairman Cedric Foo says in the annual report.
JTC will continue to drive innovative projects. For instance, it will build a 12-hectare offshore marine centre at Tuas View, allowing at least 10 offshore and marine companies to share a common wharf and jetty.
The centre could be ready by the first quarter of 2011 and will help meet rising demand for scarce waterfront land.
JTC will also redevelop Tukang Innovation Park, which aims to draw innovative and knowledge-driven companies in manufacturing, warehousing and assembly businesses.
Caterpillar's Singapore branch will be one of several companies setting up there.
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