IREIT Global.
annual report 2014
For the reporting period from 1 November 2013 (date of constitution) to 31 December 2014
Notes to the
Financial Statements
21.
CAPITAL RISK MANAGEMENT POLICIES AND OBJECTIVES
The Manager manages the capital of the Group to ensure that entities in the Group will be able to
continue as a going concern while maximising the return to unitholders through the optimisation
of debt and net assets attributable to unitholders, and to ensure that all other externally imposed
capital requirements are complied with.
The capital structure of the Group consists of debts, which include bank borrowings and net
assets attributable to unitholders comprising issued and issuable units, and reserves. IREIT and
the Group are required to maintain the aggregate borrowing not exceeding 35% of the gross asset
value of the Group in accordance with the CIS Code issued by MAS. As at 31 December 2014, the
Group’s aggregate borrowings amounted to EUR 96.6 million representing 31.5% of the gross
asset value of the Group.
The Manager’s strategy remains unchanged from the Listing Date. The Group is in compliance
with the bank covenants as at 31 December 2014.
22.
FINANCIAL INSTRUMENTS
(a) Categories of financial instruments
Group
IREIT
31 December
2014
31 December
2014
EUR’000
EUR’000
Financial assets
Loans and receivables
– Bank balances and cash
12,277
2,156
– Trade and other receivables
1,967
6,047
Total
14,244
8,203
Fair value
Derivative financial instruments
279
279
Financial liabilities
Amortised cost
– Trade and Other payables
4,528
737
– Distribution payable
6,417
6,417
– Borrowings
95,359
–
Total
106,304
7,154
