117
116
STARHILL
GLOBAL
REIT
Annual
Report
FY 2014/15
Notes to the
Financial Statements
22. FINANCE EXPENSES
Group
Trust
18-month period
from 1 January 2014
to 30 June 2015
$’000
12-month period
from 1 January 2013
to 31 December 2013
$’000
18-month period
from 1 January 2014
to 30 June 2015
$’000
12-month period
from 1 January 2013
to 31 December 2013
$’000
Interest on borrowings
38,463
22,947
23,362
11,495
Interest on derivatives (net)
4,291
3,899
4,027
3,739
Amortisation of borrowing costs
4,120
3,306
2,954
2,670
46,874
30,152
30,343
17,904
23. INCOME TAX
Group
Trust
18-month period
from 1 January 2014
to 30 June 2015
$’000
12-month period
from 1 January 2013
to 31 December 2013
$’000
18-month period
from 1 January 2014
to 30 June 2015
$’000
12-month period
from 1 January 2013
to 31 December 2013
$’000
Current tax expense
Current year
3,790
4,185
–
–
Deferred tax
Origination and reversal of temporary
differences
(4,349)
(1,324)
–
–
(559)
2,861
–
–
Reconciliation of effective tax rate
Total return before tax and distribution
173,982
252,839
162,050
230,584
Income tax using Singapore tax
rate of 17%
29,577
42,983
27,549
39,199
Effect of different tax rates in
other countries
(6,980)
(1,992)
–
–
Effect of income not subject to tax
(1,103)
(23,486)
(5,496)
(24,555)
Tax transparency
(22,053)
(14,644)
(22,053)
(14,644)
(559)
2,861
–
–
24. EARNINGS PER UNIT
Group
Trust
18-month period
from 1 January 2014
to 30 June 2015
$’000
12-month period
from 1 January 2013
to 31 December 2013
$’000
18-month period
from 1 January 2014
to 30 June 2015
$’000
12-month period
from 1 January 2013
to 31 December 2013
$’000
Total return for the period/year after
tax, before distribution
174,541
249,978
162,050
230,584
Income distributed/distributable to
CPU holder(s)
(1,287)
(3,056)
(1,287)
(3,056)
Earnings attributable to unitholders
173,254
246,922
160,763
227,528
Basic earnings per unit (cents)
(1)
8.05
12.06
7.47
11.12
Earnings per unit on a fully
diluted basis (cents)
(2)
8.00
11.46
7.43
10.57
(1)
In computing the basic earnings per unit, the earnings attributable to unitholders and the weighted average number of units in issue of 2,153,525,807
(2013: 2,046,680,979) as at 30 June 2015 are used and have been calculated on a time-weighted basis.
(2)
In computing the fully diluted earnings per unit, the total return for the period/year after tax, before distribution is used and the weighted average
number of units in issue is adjusted to take into account the full conversion of the outstanding CPU into 27,986,168 ordinary units from the beginning
of the 18 months ended 30 June 2015 and 12 months ended 31 December 2013 at the conversion price of $0.7266 per unit.
25. OPERATING SEGMENTS
Segment information is presented in respect of the Group’s portfolio of investment properties. The investment properties are
managed separately because they require different operating and marketing strategies. This primary format is based on the
Group’s internal reporting structure for the purpose of allocating resources and assessing performance by the Group’s Chief
Operating Decision Maker (“CODM”) at least on a quarterly basis. This forms the basis of identifying the operating segments of
the Group under FRS 108
Operating Segments
.
All of the Group’s reportable segments are investment properties located in Singapore, Adelaide and Perth-Australia,
Kuala Lumpur-Malaysia, Chengdu-China and Tokyo-Japan. The segments are as follows:
•
Wisma Atria Property
•
Ngee Ann City Property
•
Australia Properties
•
Malaysia Properties
•
Renhe Spring Zongbei Property
•
Japan Properties
Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
Unallocated items comprise mainly finance income, non-property expenses, finance expenses and income tax expense.
Performance is measured based on the net property income of each operating segment, which is the gross revenue less
property operating expenses, as included in the internal management reports that are reviewed by the Group’s CODM. Segment
net property income is used to measure performance as such information is the most relevant in evaluating the results of certain
segments relative to other entities that operate within these industries. There are no transactions between reportable segments.
