Page 99 - fc ifc

97 MACQUARIE MEAG PRIME REIT
ANNUAL REPORT 2007
The Trust is required to pay a one–off licence fee of $21.7 million (excluding GST, which shall also be borne by
the Trust) in consideration for the grant of the PILA Licence. Such licence fee shall be payable when:
(a) Macquarie ceases to have any interest (direct or indirect) in the issued and paid–up voting share capital of
the entity which is the then manager of the Trust (except where such cessation is due to a voluntary sale,
transfer or disposal by Macquarie of its interest); or
(b) the PILA Licence is terminated, without cause, by the Trust (except where such termination is required by
law or regulation or any relevant governmental authority) with a notice period of 30 days, by written notice
to such nominated subsidiary of Macquarie and shall be paid to such nominated subsidiary of Macquarie
within a period of 14 days from the date of termination of the PILA Licence.
28 Subsequent events
Subsequent to the year ended 31 December 2007;
(a) the Trust issued 1,313,630 new units on 31 January 2008, at the issue price of $1.0051 per unit as partial
satisfaction of the Manager’s base fee for the three months ended 31 December 2007.
(b) the Manager declared a distribution of 1.68 cents per unit in respect of the period from 1 October 2007 to
31 December 2007, and was paid on 29 February 2008.
29 Financial ratios
GROUP
2007 2006
% %
Ratio of expenses to weighted average net assets (1) 0.92 0.88
Portfolio turnover rate (2) – –
(1) The ratios are computed in accordance with guidelines of the Investment Management Association of Singapore. The expenses used
in the computation relate to expenses of the Group and exclude property related expenses, finance expense and the performance
component of the Manager’s fees.
(2) The 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.
30 Comparative information
The comparative information for the Group in 2006 relates solely to the financial statements of the Trust for
the year ended 31 December 2006, while 2007 comprises consolidated financial statements of the Trust and its
subsidiaries for year ended 31 December 2007.
31 New accounting standards and interpretations not yet adopted
The Group has not applied the following accounting standards (including its consequential amendments) and
interpretations that have been issued as of the balance sheet date but are not yet effective:
(i) FRS 23 Borrowing Costs
(ii) FRS 108 Operating Segments
The initial application of these standards (and its consequential amendments) and interpretations is not expected
to have any material impact on the Group’s financial statements. The Group has not considered the impact of
accounting standards issued after the balance sheet date.