91
90
STARHILL
GLOBAL
REIT
Annual
Report
FY 2014/15
Consolidated
Cash Flow Statement
18 months ended 30 June 2015
The accompanying notes form an integral part of these financial statements.
Group
18-month period
from 1 January 2014
to 30 June 2015
$’000
12-month period
from 1 January 2013
to 31 December 2013
$’000
Cash flows from operating activities
Total return for the period before tax and distribution
173,982
252,839
Adjustments for:
Finance income
(1,551)
(541)
Fair value adjustment on security deposits
505
(38)
Depreciation
1,006
489
Finance expenses
46,874
30,152
(Gain)/Loss on divestment of investment property
(364)
300
Change in fair value of derivative instruments
479
(4,643)
Change in fair value of investment properties
(9,120)
(137,528)
Operating income before working capital changes
211,811
141,030
Trade and other receivables
7,390
(228)
Trade and other payables
(3,053)
3,789
Cash generated from operating activities
216,148
144,591
Income tax paid
(3,766)
(3,503)
Net cash from operating activities
212,382
141,088
Cash flows from investing activities
Net cash outflows on purchase of investment property
(325,336)
(1)
(65,243)
(2)
Net proceeds on divestment of investment property
12,428
9,068
Capital expenditure on investment properties
(3,683)
(3,208)
Purchase of plant and equipment
(798)
(20)
Interest received on deposits
1,549
533
Net cash used in investing activities
(315,840)
(58,870)
Cash flows from financing activities
Borrowing costs paid
(44,362)
(34,810)
Proceeds from borrowings
754,507
557,459
Repayment of borrowings
(446,470)
(519,099)
Distributions paid to CPU holder(s)
(1,549)
(5,092)
Distributions paid to unitholders
(162,354)
(100,252)
Net cash from/(used in) financing activities
99,772
(101,794)
Net decrease in cash and cash equivalents
(3,686)
(19,576)
Cash and cash equivalents at 1 January
58,038
79,376
Effects of exchange rate differences on cash
(2,781)
(1,762)
Cash and cash equivalents at 30 June/31 December
51,571
58,038
Notes:
(1)
Net cash outflows on the purchase of Myer Centre Adelaide include the purchase consideration of A$288 million ($303.1 million) and related acquisition costs of
approximately $22.2 million, but exclude settlement adjustments of approximately $0.9 million on completion in May 2015.
(2)
Net cash outflows on the purchase of Plaza Arcade include acquisition costs paid.
Significant non-cash transaction
On 25 June 2015 (2013: 5 July 2013), the remaining 20,334,750 CPU (2013: 152,727,825) were converted into 27,986,168 ordinary
units (2013: 210,195,189) at a conversion price of $0.7266 per unit.
Notes to the
Financial Statements
These notes form an integral part of the financial statements.
The financial statements were authorised for issue by the Manager and the Trustee on 28 August 2015.
1.
GENERAL
Starhill Global Real Estate Investment Trust (the “Trust”) is a Singapore-domiciled unit trust constituted pursuant to the trust
deed dated 8 August 2005 and any amendments or modifications thereof between YTL Starhill Global REIT Management
Limited (the “Manager”) and HSBC Institutional Trust Services (Singapore) Limited (the “Trustee”), governed by the laws of
the Republic of Singapore (“Trust Deed”). On 8 August 2005, the Trust was declared an authorised unit trust scheme under the
Trustees Act, Chapter 337.
The Trust was formally admitted to the Official List of the Singapore Exchange Securities Trading Limited (“SGX-ST”) on
20 September 2005 and was included under the Central Provident Fund (“CPF”) Investment Scheme on 14 June 2005.
The principal activity of the Trust and its subsidiaries (the “Group”) is to invest primarily in prime real estate used mainly for
retail and/or office purposes, with the objective of delivering regular and stable distributions to unitholders and to achieve
long-term growth in the net asset value per unit.
The Trust has entered into several significant service agreements in relation to the management of the Group and its operations.
The fee structure of these services is as follows:
(a) Property management fees and leasing commission
YTL Starhill Global Property Management Pte Ltd (the “Property Manager”) is entitled to receive a fee of 3.0% per annum
of gross revenue of the Wisma Atria Property and Ngee Ann City Property (“Singapore Properties”) (excluding GST) for
the provision of property management, lease management as well as marketing and marketing co-ordination services. The
Property Manager’s fee is to be paid on a monthly basis in arrears.
The Property Manager is also entitled to receive leasing commission at the rates set out below when it secures a tenant or
a tenancy renewal:
(i)
one month’s base rental for securing a tenancy of three years or more;
(ii) two thirds of one month’s base rental for securing a tenancy of two years or more but less than three years;
(iii) one third of one month’s base rental for securing a tenancy of one year or more but less than two years;
(iv) one quarter of one month’s base rental for securing a renewal of tenancy of three years or more;
(v) one eighth of one month’s base rental for securing a renewal of tenancy of two years or more but less than three years; and
(vi) one twelfth of one month’s base rental for securing a renewal of tenancy of one year or more but less than two years.
Property management fees also include fees payable to third party property managers of the Australia Properties, Renhe
Spring Zongbei Property and Japan Properties.
(b) Management fees
Management fees include fees payable to the Manager, third party asset manager of the Japan Properties, as well as
servicer of the Malaysia Properties.
Under the Trust Deed, the Manager is entitled to receive a base fee and a performance fee as follows:
Base fee
The Manager is entitled to receive a base fee of 0.5% per annum of the Value of Trust Property (excluding GST)
(“Base Fee”) or such higher percentage as may be fixed by an Extraordinary Resolution of a meeting of unitholders.
The Value of Trust Property means:
(i)
the value of all authorised investments of the Group other than real estate related assets;
(ii) the value of real estate related assets of any entity held by the Group if such holding is less than 30.0% of the equity
of such entity; and
