SEO Version
SABANA
96
Ratio of expenses to weighted average net assets
(1)
– including performance component of Manager’s fees
– excluding performance component of Manager’s fees
Portfolio turnover rate
(2)
(1) The annualised ratios are computed in accordance with the guidelines of Investment Management Association of Singapore. Th
computation relate to expenses of the Group, excluding property expenses, proft rate expense and income tax expense.
(2) The annualised ratio is computed based on the lesser of purchases or sales of underlying investment properties of the Group expre
daily average net asset value.
27
FINANCIAL RISK MANAGEMENT
(a)
Capital management
The Group reviews its capital management policy regularly so as to optimise the Group’s and
structure. The Group also monitors its exposures to various risk elements and externally impos
closely adhering to clearly established management policies and procedures. The primary objec
capital management is to safeguard its ability to continue as a going concern and to maintain an opti
so as to maximise Unitholder’s value. In order to maintain or achieve an optimal capital structure, t
will endeavour to employ an appropriate mix of debt and equity in fnancing acquisitions and assets
utilise proft rate and currency hedging strategies where appropriate. The Manager reviews this poli
basis.
The Trust and its subsidiary are subject to the aggregate leverage limit as defned in the Property
the CIS Code. The CIS Code stipulates that the total borrowings and deferred payments (toget
Leverage”) of a property fund should not exceed 35.0% of its deposited property except that the A
of a property fund may exceed 35.0% of its deposited property (up to a maximum of 60.0%) if a
property fund from Fitch Inc., Moody’s or Standard and Poor’s is obtained and disclosed to the pu
The property fund should continue to maintain and disclose a credit rating so long as its Aggregate
35.0% of its deposited property. For this fnancial period, Standard and Poor’s has assigned a l
credit rating of “BBB-” and ‘axA-‘ ASEAN scale rating with a stable outlook for the Trust. The Trust
the Aggregate Leverage limit during the fnancial year. There were no changes in the Group’s a
management during the fnancial year.
As at balance sheet date, the gross amounts of borrowings and retention sums as a percentage of t
assets are 34.1% and 54.1% respectively.
Sabana AR 2011 Financial V9.indd 96
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