105
104
STARHILL
GLOBAL
REIT
Annual
Report
FY 2014/15
Notes to the
Financial Statements
8. DERIVATIVE FINANCIAL INSTRUMENTS
30 June 2015
31 December 2013
Contract
notional amount
$’000
Fair
value
$’000
Contract
notional amount
$’000
Fair
value
$’000
Group
Non-current assets
Interest rate swaps and caps
718,800
4,454
549,800
2,647
718,800
4,454
549,800
2,647
Current assets
Foreign exchange forwards
2,400
121
2,300
29
2,400
121
2,300
29
721,200
4,575
552,100
2,676
Non-current liabilities
Interest rate swaps
374,600
1,042
–
–
374,600
1,042
–
–
Current liability
Foreign exchange option
1,600
17
–
–
1,600
17
–
–
376,200
1,059
–
–
Trust
Non-current assets
Interest rate swaps and caps
571,200
4,357
459,400
2,389
571,200
4,357
459,400
2,389
Current assets
Foreign exchange forwards
2,400
121
2,300
29
2,400
121
2,300
29
573,600
4,478
461,700
2,418
Non-current liabilities
Interest rate swaps
225,000
705
–
–
225,000
705
–
–
Current liability
Foreign exchange option
1,600
17
–
–
1,600
17
–
–
226,600
722
–
–
The Group’s derivative transactions are entered into under International Swaps and Derivatives Association Master Agreements
(“ISDA Master Agreements”) with various bank counterparties. The derivative financial instruments presented above are not
offset in the balance sheet as the right of set-off of recognised amounts is enforceable only following the occurrence of a
termination event as set out in such ISDA Master Agreements. In addition, the Group and its counterparties do not intend to
settle on a net basis or to realise the assets and settle the liabilities simultaneously.
As at 30 June 2015 and 31 December 2013, the Group’s derivative financial assets and liabilities do not have any balances that
are eligible for offsetting under the enforceable master netting arrangements.
The net fair value of the derivative financial instruments represents 0.2% (2013: 0.1%) of the Group’s unitholders’ funds as at
30 June 2015. The Group’s and the Trust’s contractual maturities analysis for derivative financial liabilities is disclosed in Note 13.
9. TRADE AND OTHER RECEIVABLES
Group
Trust
30 June 2015
$’000
31 December 2013
$’000
30 June 2015
$’000
31 December 2013
$’000
Non-current
Lease incentives
3,674
6,053
2,344
3,533
3,674
6,053
2,344
3,533
Current
Trade receivables
641
626
351
90
Deposits
254
291
254
231
Prepayments
642
1,030
171
256
Other receivables
2,118
6,185
2,686
10,240
Lease incentives
1,529
2,060
1,391
1,697
5,184
10,192
4,853
12,514
8,858
16,245
7,197
16,047
Concentration of credit risk relating to trade receivables is limited due to the Group’s and the Trust’s varied mix of tenants
and credit policy of obtaining security deposits from tenants for leasing the Group’s and the Trust’s investment properties.
As at 30 June 2015, the Group and the Trust have security deposits received in cash of approximately $30.4 million
(2013: $29.8 million) and $23.4 million (2013: $22.6 million) respectively (Note 11).
There is no impairment loss arising from the Group’s other receivables balances, none of which are past due at the
reporting date. Included in other receivables of the Trust are dividend and interest income receivable from its subsidiaries of
approximately $2.6 million (2013: $8.5 million) as at 30 June 2015.
The maximum exposure to credit risk for the loans and receivables at the reporting date by geographic region was:
Group
Trust
30 June 2015
$’000
31 December 2013
$’000
30 June 2015
$’000
31 December 2013
$’000
Singapore
666
852
3,291
10,561
Australia
736
1,028
–
–
Malaysia
196
418
–
–
China
1,324
4,619
–
–
Japan
91
185
–
–
3,013
7,102
3,291
10,561
