125
124
STARHILL
GLOBAL
REIT
Annual
Report
FY 2014/15
Notes to the
Financial Statements
The Group’s foreign exchange contracts, interest rate swaps and interest rate caps have been recognised as derivative financial
instruments in the balance sheet and are stated at their fair values, as disclosed in Note 8.
Other financial assets and liabilities
The carrying amounts of financial assets and liabilities with a maturity of less than one year (including trade and other
receivables, cash and cash equivalents, and trade and other payables) are assumed to approximate its fair values because of the
short period to maturity. All other financial assets and liabilities are discounted to determine its fair values.
Fair value hierarchy
The Group’s derivative financial instruments (Note 8), which are carried at fair value as at 30 June 2015 and 31 December 2013,
are classified in Level 2 of the fair value hierarchy. The different levels of the fair value hierarchy have been defined as follows:
•
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
•
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).
•
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
27. OPERATING LEASES
The Group leases out its investment properties. Non-cancellable operating lease rentals are receivable as follows:
Group
Trust
30 June 2015
$’000
31 December 2013
$’000
30 June 2015
$’000
31 December 2013
$’000
Within one year
196,915
179,971
127,752
124,709
After one year but within five years
372,369
380,562
263,967
277,111
After five years
443,127
406,263
204,750
266,970
1,012,411
966,796
596,469
668,790
Except for one long-term lease in David Jones Building and Myer Centre Adelaide respectively, as well as the master lease
arrangements in the Malaysia Properties and Ngee Ann City Property respectively, the Group’s leases generally range from one
to five years.
28. CAPITAL COMMITMENTS
Group
30 June 2015
$’000
31 December 2013
$’000
Capital commitments:
– contracted but not provided
42
–
– authorised but not contracted for
12,490
1,935
12,532
1,935
Capital commitments as at 30 June 2015 relate mainly to asset redevelopment initiative, renovation works and reconfiguration,
as well as purchase of plant and equipment for the Group’s investment properties.
29. RELATED PARTIES
For the purposes of these financial statements, parties are considered to be related to the Group if the Group has the ability,
directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating
decisions, or vice versa, or where the Group and the party are subject to common significant influence. Related parties may be
individuals or other entities.
Other than related party information shown elsewhere in the financial statements, the following were significant related party
transactions carried out in the normal course of business:
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
Property rental income from the
Manager and Property Manager
1,581
1,041
1,581
1,041
Property rental income from related
parties of the Manager
45,727
31,530
1,963
1,282
Leasing commission fees paid to the
Property Manager
(1,235)
(2,162)
(1,235)
(2,162)
Property management fees paid to the
Property Manager
(5,992)
(3,978)
(5,992)
(3,978)
Management fees paid to the Manager
(20,792)
(13,088)
(20,792)
(13,088)
Acquisition fee paid to the Manager
(3,048)
(607)
(3,048)
(607)
Divestment fee paid to the Manager
(64)
(47)
(64)
(47)
Trustee fees paid to the Trustee
(683)
(438)
(683)
(438)
Reimbursements paid to the Property
Manager
(1,239)
(901)
(1,239)
(901)
Servicer fees paid to a wholly owned
subsidiary of the Manager
(1,487)
(1,028)
–
–
30. SUBSEQUENT EVENTS
Subsequent to the 18 months ended 30 June 2015:
(a) The Group has utilised the remaining $150 million of its three-year unsecured loan facility of $250 million (Note 13) on
7 July 2015.
(b) The Group has fully redeemed its $124 million 3.405% Series 001 Notes upon maturity. The Series 001 Notes were cancelled
on 13 July 2015 pursuant to such redemption.
(c) The Group has early refinanced its unsecured JPY6.3 billion term loan (maturing in September 2016) with the same banks
on 16 July 2015, with a new maturity in July 2020.
(d) The Manager declared a distribution of 1.29 cents per unit in respect of the period from 1 April 2015 to 30 June 2015, which
was paid on 28 August 2015.
31. FINANCIAL RATIOS
Group
18-month period
from 1 January 2014
to 30 June 2015
%
12-month period
from 1 January 2013
to 31 December 2013
%
Ratio of expenses to weighted average net assets
(1)
1.31
0.93
Portfolio turnover rate
(2)
0.63
0.49
(1)
The ratio is 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 expenses 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.
