FUNDING AND BORROWINGS
Ascott Reit adopts a prudent and disciplined approach towards capital management and actively
seek diversified funding sources.
On 27 October 2014, Ascott Reit issued S$150.0 million fixed rate perpetual securities. These
perpetual securities are classified as equity instruments and recorded as equity in the Statements of
Movements in Unitholders’ Funds. The net proceeds from the issue of the perpetual securities were
mainly used to fund the Tokyo and Greater Sydney acquisitions. The issuance has strengthened
Ascott Reit’s balance sheet and enhanced its financial flexibility to tap any future growth
opportunities to optimise returns for the unitholders.
In December 2014, Ascott Reit made its maiden issuance of a 10-year unsecured Euro-denominated
medium term notes at a fixed rate of 2.75% to extend its debt maturity from 3.8 years at 30 September
2014 to 4.4 years at 31 December 2014.
As at 31 December 2014, Ascott Reit’s outstanding borrowings was S$1,550.9 million (2013:
S$1,197.1 million), with an interest rate averaging 3.0% per annum for FY 2014 (2013: 3.2% per
annum). The gearing of the Group as at 31 December 2014 was 38.5% (2013: 34.0%), well below the
60.0% gearing limit allowed by the Monetary Authority of Singapore for property trusts in Singapore
with a credit rating. Ascott Reit has been assigned a Baa3 corporate family investment grade rating
by Moody’s Investors Service.
Debt Maturity Profile
2013
Maturity
S$’m
%
2014
50.2
4
2015
312.0
26
2016
247.2
21
2017
52.8
4
2018 & after
534.9
45
Total
1,197.1
1
100
2014
Maturity
S$’m
%
2015
249.3
16
2016
261.8
17
2017
140.0
9
2018
221.3
14
2019 & after
678.5
44
Total
1,550.9
1
100
1 Net of unamortised fees and expenses incurred for debt raising exercise.
Financial Review
58 | Ascott Residence Trust Annual Report 2014
