119
118
STARHILL
GLOBAL
REIT
Annual
Report
FY 2014/15
Notes to the
Financial Statements
Segment assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a
reasonable basis. Unallocated items comprise mainly cash and cash equivalents, derivative financial instruments, borrowings,
income tax payable and deferred tax liabilities. Segment capital expenditure is the total cost incurred during the period/year
to acquire segment assets that are expected to be used for more than one year. Information regarding the Group’s reportable
segments is presented in the tables below.
Information about reportable segments
Wisma Atria
Property
(Singapore)
Ngee Ann City
Property
(Singapore)
Australia
Properties
(Australia)
Malaysia
Properties
(Malaysia)
Renhe Spring
Zongbei Property
(China)
Japan
Properties
(Japan)
Total
18
months
ended
30
June
2015
$’000
12
months
ended
31
December
2013
$’000
18
months
ended
30
June
2015
$’000
12
months
ended
31
December
2013
$’000
18
months
ended
30
June
2015
$’000
12
months
ended
31
December
2013
$’000
18
months
ended
30
June
2015
$’000
12
months
ended
31
December
2013
$’000
18
months
ended
30
June
2015
$’000
12
months
ended
31
December
2013
$’000
18
months
ended
30
June
2015
$’000
12
months
ended
31
December
2013
$’000
18
months
ended
30
June
2015
$’000
12
months
ended
31
December
2013
$’000
Group
Revenue and
expenses
External revenue
103,462
65,768
94,778
66,277
32,384
18,722
43,764
30,248
13,802
13,918
6,599
5,683
294,789
200,616
Depreciation of
plant and
equipment
367
–
–
–
–
–
–
–
639
489
–
–
1,006
489
Reportable
segment
net
property
income
79,735
49,278
77,780
53,365
25,121
14,740
42,233
29,370
7,468
8,308
5,292
2,795
237,629
157,856
Other material
non-cash
item:
Change in fair
value of
investment
properties
26,000
58,841
10,000
73,000
(9,257)
18,258
717
(2,274)
(18,318)
(6,058)
(22)
(4,239)
9,120
137,528
Unallocated
items:
Finance income
1,551
541
Fair value
adjustment
on security
deposits
(505)
38
Non-property
expenses
(26,460)
(17,615)
Finance
expenses
(46,874)
(30,152)
Change in fair
value of
derivative
instruments
(479)
4,643
Total return for
the period/
year before
tax
173,982
252,839
Wisma Atria
Property
(Singapore)
Ngee Ann City
Property
(Singapore)
Australia
Properties
(Australia)
Malaysia
Properties
(Malaysia)
Renhe Spring
Zongbei Property
(China)
Japan
Properties
(Japan)
Total
30
June
2015
$’000
31
December
2013
$’000
30
June
2015
$’000
31
December
2013
$’000
30
June
2015
$’000
31
December
2013
$’000
30
June
2015
$’000
31
December
2013
$’000
30
June
2015
$’000
31
December
2013
$’000
30
June
2015
$’000
31
December
2013
$’000
30
June
2015
$’000
31
December
2013
$’000
Group
Assets and
liabilities
Reportable
segment
assets
991,869
967,409
1,084,488
1,074,287
501,653
210,076
397,496
430,909
79,472
98,050
82,132
101,568
3,137,110
2,882,299
Unallocated
assets
56,284
60,854
Total assets
3,193,394
2,943,153
Reportable
segment
liabilities
(19,562)
(24,543)
(16,542)
(13,098)
(4,488)
(3,579)
(5,030)
(4,962)
(7,757)
(11,904)
(2,309)
(2,468)
(55,688)
(60,554)
Unallocated
liabilities
(1,154,915)
(872,455)
Total liabilities
(1,210,603)
(933,009)
Other segmental
information
Capital
expenditure
790
659
–
–
–
–
656
545
8
20
66
–
1,520
1,224
Non-current
assets
990,197
964,823
1,084,071
1,074,210
500,529
208,124
397,223
430,346
78,146
93,430
81,898
101,314
3,132,064
2,872,247
Geographical segments
The Group’s operations and its identifiable assets are located in Singapore (consisting of Wisma Atria Property and
Ngee Ann City Property), Adelaide and Perth-Australia (consisting of Myer Centre Adelaide, David Jones Building and
Plaza Arcade (2013: David Jones Building and Plaza Arcade)), Kuala Lumpur-Malaysia (consisting of Starhill Gallery and Lot 10
Property), Chengdu-China (consisting of Renhe Spring Zongbei Property) and Tokyo-Japan (consisting of five properties in
Japan (2013: six properties in Japan)). Accordingly, no geographical segmental analysis is separately presented.
Major tenants
Revenue from two tenants located respectively at Ngee Ann City Property and Malaysia Properties represent 21.1% (2013: 22.8%)
and 14.8% (2013: 15.1%) of the Group’s total revenue for the 18 months ended 30 June 2015.
26. CAPITAL AND FINANCIAL RISK MANAGEMENT
Capital management
The Group’s objective when managing capital is to optimise unitholders’ return through a mix of available capital sources. The
Group monitors capital on the basis of both the gearing ratio and interest service coverage ratio and maintains them within the
approved limits. The Group assesses its capital management approach as a key part of the Group’s overall strategy, and this is
continuously reviewed by the Manager. The Group’s gearing as at 30 June 2015 is 35.5% (2013: 29.0%) and the Manager intends
to continue with its prudent capital management.
The Property Fund Appendix stipulates that the total borrowings and deferred payments (together the “Aggregate Leverage”)
of a property fund currently should not exceed 35.0% of the fund’s deposited property. The aggregate leverage of a property
fund may exceed 35.0% of the fund’s deposited property (up to a maximum of 60.0%) only if a credit rating from Fitch Inc.,
Moody’s or Standard and Poor’s is obtained and disclosed to the public. The property fund should continue to maintain and
disclose a credit rating so long as its aggregate leverage exceeds 35.0% of the fund’s deposited property. Effective from
1 January 2016, the Property Fund Appendix stipulates that the Aggregate Leverage of a property fund should not exceed
45.0% of the fund’s deposited property, with or without a credit rating.
