13 UNITS IN ISSUE AND TO BE ISSUED (CONTINUED)
On 1 April 2014, the Trust introduced and implemented the DRP whereby the Unitholders have the option
to receive their distribution in Units instead of cash or a combination of Units and cash.
5,609,340 new Units at the issue price range of $0.9808 to $1.0220 per Unit were issued pursuant to
the DRP.
14 NET ASSET VALUE PER UNIT
Group
Trust
2014
2013
2014
2013
Net asset value per Unit ($)
1.06
1.09
1.06
1.09
Net asset value per Unit is based on:
$’000
$’000
$’000
$’000
Net assets
772,585
756,504
771,800
757,431
’000
’000
’000
’000
Total Units issued and to be issued at
31 December (Note 13)
725,983
691,959
725,983
691,959
15 FINANCIAL RISK MANAGEMENT
15.1 Capital management
The Group reviews its capital management policy regularly so as to optimise the Group’s funding structure.
The Group also monitors its exposures to various risk elements and externally imposed requirements by
closely adhering to clearly established management policies and procedures. The primary objective of the
Group’s capital management is to safeguard its ability to continue as a going concern and to maintain an
optimal capital structure so as to maximise Unitholder’s value. In order to maintain or achieve an optimal
capital structure, the Group will endeavour to employ an appropriate mix of debt and equity in financing
acquisitions and assets enhancements, and utilise profit rate and currency hedging strategies where
appropriate. The Manager reviews this policy on a continuous basis.
The Group is subject to the aggregate leverage limit as defined in the Property Funds Appendix. The CIS
Code stipulates that the total borrowings and deferred payments (together the “Aggregate Leverage”) of
a property fund should not exceed 35.0% of its Deposited Property except that the Aggregate Leverage
of a property fund may exceed 35.0% of its Deposited Property (up to a maximum of 60.0%) if a credit
rating of the property fund 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 its Deposited Property. For this financial year, Standard and Poor’s has
maintained a long-term corporate credit rating of “BBB-” and “axA-” ASEAN scale rating with a stable
outlook for the Group. The Group has complied with the Aggregate Leverage limit during the financial
year. There were no changes in the Group’s approach to capital management during the financial year.
As at the reporting date, the gross amounts of borrowings and retention sums as a percentage of the
Group’s Deposited Property is 38.0% (2013: 36.9%).
Year ended 31 December 2014
NOTES TO THE FINANCIAL STATEMENTS
SABANA REIT
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ANNUAL REPORT 2014
124
