FRASERS HOSPITALITY TRUST ANNUAL REPORT 2015
187
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL PERIOD FROM 20 JUNE 2014 (DATE OF CONSTITUTION) TO 30 SEPTEMBER 2015
28.
CAPITAL MANAGEMENT
The primary objective of the Stapled Group’s capital management is to ensure that it maintains an optimal
capital structure to support the business and maximise Stapled Securityholders’ value.
Under the Property Fund Guidelines of the CIS Code, the aggregate gearing should not exceed 45.0% of the
deposited property.
The gearing ratio is calculated as gross borrowings divided by total assets, based on the latest valuations.
FHT and FH-REIT Group
30 Sep 2015
Total borrowings (gross) (Note 17) ($’000)
790,620
Total assets ($’000)
2,031,707
Gearing ratio (%)
38.91
FHT is in compliance with all externally imposed capital requirements for the financial period ended 30
September 2015.
29.
OPERATING SEGMENTS
Segment information is presented in respect of the Stapled Group’s geographical segments. For the purpose
of the assessment of segment performance, the Stapled Group’s CODMs have focused on its investment
properties which in turn are segregated based on geographical areas. This forms the basis of identifying
operating segments of the Stapled Group under FRS 108
Operating Segments.
The accounting policies of the reportable segments are as described in Note 2.24. Segment property income
represents income generated from its tenants/sub-lessees and income earned by each segment after allocating
property operating expenses. This is the measure reporting to the CODMs for the purpose of assessment of
segment performance.
For the purpose of monitoring segment performance, the CODMs monitor the non-financial assets as well as
financial assets attributable to each segment.
Segment results and assets include items directly attributable to a segment as well as those that can be allocated
on a reasonable basis. Unallocated items comprise mainly interest income, finance expenses, trust expenses and
non-capitalisable expenses in relation to IPO, asset acquisition and Private Placement. Information regarding
the Stapled Group’s reportable segments is presented in the following tables.
Segment information in respect to the Stapled Group’s business segments is not presented, as the Stapled
Group’s activities for the financial period ended 30 September 2015 relate wholly to investing in real estate and
real estate-related assets in the hospitality sector in Singapore, Australia, Malaysia, Japan and the UK.
