N o t e s t o t h e f i n a n c i a l s t a t e m e n t s
Year ended 31 March 2015
30 Financial ratios
Group
2015
2014
%
%
(Restated)
Ratio of expenses to weighted average net asset value
(1)
1.03
1.35
Ratio of expenses to weighted average net asset value
(2)
1.03
1.35
Portfolio turnover rate
(3)
0.21
1.48
(1)
The annualised ratio is computed in accordance with guidelines of the Investment Management Association of Singapore. The expenses used in
the computation relate to expenses at the Group level, excluding property related expenses, borrowing costs and performance component of
management fees.
(2)
The annualised ratio is computed in accordance with guidelines of the Investment Management Association of Singapore. The expenses used in the
computation are the same as in (1) above except that performance fee has been included.
(3)
The annualised ratio is computed based on the lesser of purchases or sales of underlying investment properties of the Group expressed as a percentage
of weighted average net asset value.
31 Financial risk management
Capital management
The Group’s and the Trust’s objective when managing capital is to optimise Unitholders’ value through the mix of available
capital sources which include debt, equity and convertible instruments, whilst complying with statutory and constitutional
capital and distribution requirements, maintaining gearing, interest service coverage and other ratios within approved limits.
The Board of Directors of the Manager (the “Board”) reviews the Group’s and the Trust’s capital management as well as
financing policy regularly so as to optimise the Group’s and the Trust’s funding structure. The Board also monitors the
Group’s and the Trust’s exposure to various risk elements and externally imposed requirements by closely adhering to clearly
established management policies and procedures.
The Group is subject to the aggregate leverage limit as defined in the Property Funds Appendix of the CIS Code. The CIS
Code stipulates that the total borrowings and deferred payments (together the “Aggregate Leverage”) of a property fund
should not exceed 35.0% of the Deposited Property. The Aggregate Leverage of a property fund may exceed 35.0% of
the Deposited Property (up to a maximum of 60.0%) only if a credit rating of the property fund from Fitch Inc., Moody’s or
Standard and Poor’s is obtained and disclosed to the public. The property fund should continue to maintain and disclose a
credit rating so long as its Aggregate Leverage exceeds 35.0% of the Deposited Property.
The Trust currently has an issuer rating of A3 by Moody’s (2014: A3). As at 31 March 2015, the Aggregate Leverage of the
Group is 33.5% (2014: 30.0%). The Group and the Trust are in compliance with the Aggregate Leverage limit of 60.0%
during the financial year.
There was no change in the Group’s and the Trust’s approach to capital management during the current financial year.
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