NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2014
18. UNITS IN ISSUE AND NET ASSETS VALUE ATTRIBUTABLE TO UNITHOLDERS (CONTINUED)
Capital Management (continued)
The unfavourable change in the Group’s debt-to-adjusted capital ratio for the reporting year resulted primarily from the
increase in borrowings. This was partially offset by a favourable change from improved retained earnings.
The only externally imposed capital requirement is that for the Group to maintain its listing on the SGX-ST, it has to have
issued equity with a free float of at least 10% of the units. Management receives a report from the registrars frequently
on substantial share interests showing the non-free float and it demonstrated continuing compliance with the SGX-ST’s
10% limit throughout the reporting year.
In accordance with the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore, the total
borrowings and deferred payments of the Group should not exceed 35% of the Group’s deposited property. It was 33.1%
(2013: 32.3%) as at end of the reporting year. The aggregate leverage of the Group may exceed 35% of the Group’s
deposited property (up to a maximum of 60%) only if the credit rating of the Group is obtained and disclosed to the
public. The Group met the aggregate leverage ratio as at the end of the reporting year.
The Manager monitors the level, nature of debt and leverage ratios, along with the compliance with debt covenants
continuously to ensure that sufficient resources exist.
19. Financial Ratios
(1) The annualised ratios are computed in accordance with the guidelines of the Investment Management Association
of Singapore dated 25 May 2005. The expenses used in the computation relate to expenses excluding any interest
expenses, foreign exchange losses, tax deducted at source and costs associated with the purchase of investments.
(2) Turnover ratio means the number of times per year that a dollar of assets is reinvested. It is calculated based on
the lesser of purchases or sales of underlying investments of a scheme expressed as a percentage of daily average
net asset value.
(3) The Manager has given an undertaking to the SGX-ST that for so long as it remains the Manager of the Trust
and PT Lippo Karawaci Tbk. in Indonesia and/or any of its related corporations remains a controlling shareholder
of the Manager, it will disclose the Rent/EBITDA ratio of the Indonesia properties, except for Siloam Hospitals
Purwakarta and Siloam Sriwijaya. The EBITDA (unaudited) for the operations renting the Indonesia properties,
except for Siloam Hospitals Purwakarta and Siloam Sriwijaya, is calculated before the rental expenses.
N/M – Not meaningful as the ratio is Nil for 2014 and 2013 as there was no sale of investment property.
Group
Trust
2014
2013
2014
2013
Expenses to average net assets ratio -
excluding performance related fees
(1)
1.59%
1.63%
2.71%
2.57%
Expenses to average net assets ratio -
including performance related fees
(1)
0.95%
0.97%
1.54%
1.50%
Portfolio turnover ratio
(2)
N/M
N/M
N/M
N/M
Rent/EBITDA ratio of Indonesia properties
(3)
67.30%
68.06%
–
–
81
FIRST REIT
ANNUAL REPORT 2014
