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CapitaLand Malaysia Mall Trust
Annual Report 2015
Overview
Sustainability
Business
Review
Portfolio
Details
Corporate
Governance &
Transparency
Financials &
Additional
Information
Notes to the Financial Statements
24. Capital management
The Group’s objectives when managing capital are to maintain a strong capital base so as to maintain investor,
creditor and market confidence and to ensure optimal returns to unitholders, while maintaining flexibility in
respect of future capital expenditure and acquisitions. The Manager continues to rigorously monitor the cash
position and borrowings of the Group with the view of strengthening their capital structure and competitive
position.
The Manager is determined to maintain an optimal gearing ratio, which is defined as total borrowings divided
by total asset value, that complies with regulatory requirements and financing covenants. Under the SC’s
REITs Guidelines, gearing ratio of the Group should not exceed 50.0% at the time the borrowings are incurred.
However, the Group’s gearing ratio may exceed this limit with the sanction of its unitholders by way of an
ordinary resolution. The Group has complied with the SC’s requirement during the financial year. The gearing
level of the Group stood at 31.5% (2014 : 29.0%).
Note
2015
RM’000
2014
RM’000
Group
Total asset value (after income distribution)
4,011,028 3,326,758
Total borrowings (excluding unamortised transaction costs)
10 1,264,130 965,150
Gearing ratio (%)
31.5
29.0
There was no change in the Group’s approach to capital management during the year.
25. Related parties
Identity of and transactions with related parties
For the purposes of these financial statements, parties are considered to be related to the Group if the Group
or the Trust has the ability, directly or indirectly, to control the party or exercise significant influence over the
party in making financial and operating decisions, or vice versa, or where the Group or the Trust and the
party are subject to common control or common significant influence. Related parties may be individuals or
other entities.
During the financial year, other than those disclosed elsewhere in the financial statements, the following related
party transactions were carried out in the normal course of business under normal commercial terms:
