31 FINANCIAL RATIOS
Group
2014
2013
%
%
Ratio of expenses to average net asset value
(1)
– including performance component of Manager’s
management fees
1.07
1.13
– excluding performance component of Manager’s
management fees
0.76
0.80
Portfolio turnover rate
(2)
0.25
–
Notes:
(1)
The annualised ratio is computed in accordance with guidelines of Investment Management Association of Singapore.
The expenses used in the computation relate to expenses at the Group level, excluding property related expenses,
borrowing costs and foreign exchange gains/(losses).
(2)
The annualised ratio is computed based on the lesser of purchases or sales of underlying serviced residence properties
of the Group expressed as a percentage of weighted average net asset value.
32 OPERATING SEGMENTS
Segment information is presented in respect of the Group’s geographical segments. The
operations of each of the Group’s geographical segments are separately managed because of
the different economic environments in which they operate in. For each of the reportable
segments, the CEO of the Manager reviews internal management reports on at least a monthly
basis. This forms the basis of identifying the operating segments of the Group.
Performance measurement based on segment gross profit and non-financial assets as well as
financial assets attributable to each segment is used as the Manager believes that such
information is most relevant in evaluating the results of certain segments relative to other entities
that operate within these industries.
Segment results, assets and liabilities include items directly attributable to a segment as well as
those that can be allocated on a reasonable basis. Unallocated items comprise mainly finance
costs, corporate assets and expenses, and income tax expense. Segment capital expenditure
is the total cost incurred during the year to acquire segment assets that are expected to be used
for more than one year. Information regarding the Group’s reportable segments is presented in
the following tables.
Notes to the Financial Statements
Year ended 31 December 2014
186 | Ascott Residence Trust Annual Report 2014
