Notes to the financial statements
Year ended 31 March 2016
28 Commitments and contingencies
(a)
The Trust is required to pay JTC Corporation (“JTC”) and the Housing Development Board (“HDB”) annual land
rent (including licence fee payable for development projects) in respect of certain properties. The annual land rent
payable is based on the market land rent in the relevant year of the lease term. However, the lease agreement
limits any increase in the annual land rent from year to year to 5.5% of the annual land rent for the immediate
preceding year. The land rent paid/payable to JTC and HDB amounted to $38,780,000 (2015: $36,223,000) and
$2,202,000 (2015: $2,452,000), respectively, in relation to 77 (2015: 78) properties for the financial year ended 31
March 2016 (including amounts that have been directly recharged to tenants).
(b)
The Group and the Trust lease out their investment properties under operating lease agreements. Non-cancellable
operating lease rental receivables are as follows:
Group
Trust
2016
2015
2016
2015
$’000
$’000
$’000
$’000
Within 1 year
683,994
614,857
593,274
592,769
After 1 year but within 5 years
1,475,136
1,253,489
1,222,040
1,212,673
After 5 years
706,230
642,597
581,859
633,630
2,865,360
2,510,943
2,397,173
2,439,072
(c)
As at 31 March 2016, the Group and the Trust had $35.0 million (2015: $76.4 million) and $21.3 million (2015:
$61.0 million) of capital expenditure commitments that had been contracted for but not provided for in the
financial statements, respectively.
(d)
The Trust has provided a corporate guarantee amounting to $583.6 million (2015: $Nil) to banks for loans obtained
by a subsidiary.
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A-REIT ANNUAL REPORT
2015/2016
