100
LIPPO MALLS INDONESIA RETAIL TRUST ANNUAL REPORT 2014
20. TOTAL UNITHOLDERS’ FUNDS (CONT’D)
Capital management:
The objectives when managing capital are: to safeguard the entity’s ability to continue as a going concern, so that
it can continue to provide returns for unitholders and benefits for other stakeholders, and to provide an adequate
return to unitholders by pricing services commensurately with the level of risk. The Manager sets the amount of capital
in proportion to risk. The Manager manages the capital structure and makes adjustments to it where necessary or
possible in the light of changes in economic conditions and the risk characteristics of the underlying assets. Please
refer to Note 12 on the distribution policy.
The only externally imposed capital requirement is that for the Group to maintain its listing on the SGX-ST it has to
have issued equity with a free float of at least 10% of the units. Management receives a report from the registrars
frequently on substantial unit interests showing the non-free float and it demonstrated continuing compliance with
the SGX-ST requirement on the 10% limit throughout the year.
In accordance with the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore,
the total borrowings and deferred payments of the Group should not exceed 35% of the Group’s deposited property.
It was 31.1% (2013: 34.3%) as at the end of the reporting year. The aggregate leverage of the Group may exceed
35% of the Group’s deposited property (up to a maximum of 60%) only if the credit rating of the Group is obtained
and disclosed to the public. The Group met the aggregate leverage ratio as at the end of the reporting year.
21. UNITS IN ISSUE
Group and Trust
2014
2013
Units at beginning of the year
2,453,307,080 2,191,798,619
Manager’s management fees settled in units
12,427,536
11,937,621
Manager’s acquisition fees settled in units
–
2,657,840
Issuance of new units (Note 20)
236,068,052
246,913,000
Units at end of the year
2,701,802,668 2,453,307,080
Notes to the Financial Statements
(Cont’d)
31 December 2014
