18. UNITS IN ISSUE AND NET ASSETS VALUE ATTRIBUTABLE TO UNITHOLDERS (CONTINUED)
18A. Movements in Components of Unitholders’ Funds (continued)
Capital Management:
The objectives when managing capital are: to safeguard the Trust’s ability to continue as a going concern, so that it can
continue to provide returns for unitholders and benefits for other stakeholders, and to provide an adequate return to
unitholders. The Manager sets the amount of capital to meet its requirements. There were no changes in the approach
to capital management during the reporting year.
The Manager manages the capital structure and makes adjustments to it where necessary or possible in the light of
changes in conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital
structure, the Manager may adjust the amount of distributions paid to unitholders, return capital to unitholders, issue
new units, or sell assets to reduce debt. The distribution policy is disclosed in Note 11.
The Group’s long-term policy is that net debt should be in the low range of the amount in the statement of financial
position. This policy aims to ensure that the Group both maintains a good credit rating and lowers its weighted average
cost of capital. Net debt is calculated as total debt (as shown in the statement of financial position) less cash and cash
equivalents. Adjusted capital comprises all components of equity (i.e. issued equity and retained earnings).
NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2014
Group
Trust
2014
2013
2014
2013
S$’000
S$’000
S$’000
S$’000
Net debt:
All external non-current borrowings
396,575
353,798
396,575
353,798
Less: Cash and cash equivalents
(28,230)
(29,331)
(26,708)
(25,091)
Net debt
368,345
324,467
369,867
328,707
Net capital:
Issued equity
423,792
414,109
423,792
414,109
Retained earnings/(Accumulated losses)
320,207
268,170
(29,519)
(21,936)
Foreign exchange reserve
951
620
–
–
Net capital
744,950
682,899
394,273
392,173
Debt-to-adjusted capital ratio
49.45%
47.51%
93.81%
83.82%
80
FIRST REIT
ANNUAL REPORT 2014
