Page 86 - ar2013

In summary, the total borrowings
of CMT Group as at 31 December
2013 was S$3,567.21 million,
with gearing at 35.3%.
The loan maturity profile for CMT
Group as at 31 December 2013
was as follows:
As at 31 December 2013, 14.0%
or S$500.0 million of CMT Group’s
debt will mature in 2014. CMT has
sufficient internal resources and
existing bank facilities to cover
the repayments due in 2014.
The manager of CMT (Manager)
will continue to adopt a rigorous
and focused approach to capital
management.
In February 2014, CMT MTN issued
¥5.0 billion seven-year floating
rate notes under its MTN Programme
which was swapped into fixed
rate notes of S$62.0 million at
3.148% per annum.
In February 2014, CMT issued
S$350.0 million seven-year retail
bonds with an interest rate of 3.08%
per annum, under its S$2.5 billion
Retail Bond Programme.
The Manager is also committed
to diversifying funding sources in
order to optimise distributions to
Unitholders, and will continue to
review its loan profile to reduce
refinancing risk and extend
maturity profile.
Average cost of debt for CMT Group
for FY 2013 has increased slightly
to 3.4% per annum compared with
3.3% per annum for the FY ended
31 December 2012.
Cash Flows And Liquidity
The Manager takes a proactive
role in monitoring its cash flow
position and requirements to ensure
sufficient liquidity and adequate
funding is available for distribution
to Unitholders as well as to meet
any short-term obligations.
Operating Activities
Operating net cash flow for the
FY ended 31 December 2013 was
S$474.4 million, an increase of
S$15.1 million over the operating
cash flow of S$459.3 million in
the preceding FY. This was mainly
due to the increase in net income
offset by the recovery of Goods
and Services Tax in relation to the
tender price for Westgate under
Infinity Trusts from Inland Revenue
Authority of Singapore in 2012.
Investing Activities
Westgate commenced mall
operations on 2 December 2013.
As at 31 December 2013, there
were 16 properties under CMT
Group’s portfolio. The Manager
is on a constant look out for
new acquisition and greenfield
development opportunities.
Financing Activities
The Manager continued to adopt
a rigorous and focused approach
to monitor the cash position and
level of borrowings with a view to
strengthening its capital structure
and competitive position.
Cash and Cash Equivalents
As at 31 December 2013,
the value of cash and cash
equivalents of CMT Group stood
at S$832.7 million, compared
with S$1,118.3 million as at
31 December 2012. The lower
quantum was mainly due to the
redemption of S$300.0 million
retail bonds and the redemption
and cancellation of the remaining
S$98.25 million principal amount
of the Convertible Bonds due
2013 at 109.31% of the principal
amount upon maturity. As at
11 February 2014, out of the
S$245.7 million net proceeds
from the private placement
in November 2011 (Private
Placement), S$97.8 million
of the net proceeds (which
is equivalent to 39.8% and
39.1% of the net proceeds and
gross proceeds of the Private
Placement, respectively) from
the Private Placement has been
used to pay for certain committed
capital expenditure and asset
enhancement initiatives of the
portfolio of properties of CMT.
Such use is in accordance with the
percentage of the gross proceeds
of the Private Placement allocated
to such use.
ACCOUNTING POLICIES
The financial statements have
been prepared in accordance with
the Statement of Recommended
Accounting Practice 7 ‘Reporting
Framework for Unit Trusts’ issued
by the Institute of Singapore
Chartered Accountants and the
applicable requirements of the
Code on Collective Investment
Schemes issued by the Monetary
Authority of Singapore and the
provisions of the Trust Deed.
Capital
Management
S$ million %
Within 1 year 500.0 14.0
After 1 year but
within 5 years
2,203.5 61.8
After 5 years 863.7 24.2
3,567.2 100.0
1 Based on principal sums only.
CMT GROUP
– LOANMATURITY PROFILE 1
As at 31 December 2013
Clarity 84 CapitaMall Trust Annual Report 2013