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Business
Review
59
KEY FINANCIAL INDICATORS
As at 31 December 2013
Unencumbered Assets to Assets as % of Total Assets 90.1%
Gearing 1 32.6%
Net Debt/EBITDA (times) 2 7.4
Interest Coverage (times)3 8.5
Average Term to Maturity (Years) 2.38
Average Cost of Debt 4 2.6%
1 The gearing is calculated based on total outstanding debt over total assets. Total assets included the hedging effects on net assets denominated in
Renminbi (RMB).
2 Net debt comprises gross debt less transaction costs and EBITDA refers to earnings before interest, tax, depreciation and amortisations excluding change
in fair value of financial derivatives, investment properties and unrealised foreign exchange gain or loss.
3 Ratio of net income before change in fair value of financial derivative, investment properties and unrealised foreign exchange gain or loss at CRCT Group
over interest expense incurred in FY 2013.
4 Ratio of interest expense over weighted average debt.
As at 31 December 2013, 38.8%
or S$276.6 million of CRCT’s debt
will mature in 2014. This includes
the additional loans that were
taken up due to the acquisition
of CapitaMall Grand Canyon. The
Manager continues to adopt a
prudent and proactive approach
to capital management and plans
to repay the bridge loan of S$110.5
million by 2014. Discussions on
refinancing of the remaining loans
with the banks will commence soon.
Cash Flows and Liquidity
CRCT takes a proactive role in
monitoring its cash and liquid
reserves to ensure adequate funding
is available for distribution to the
Unitholders as well as to meet any
short-term liabilities.
Operating Activities
Operatingnet cash flow for FY 2013 was
S$68.6 million, an increase of S$11.3
million over the operating cash flow
of S$57.3 million in the preceding
financial year. This was mainly due to
the lower income tax as compared
to payment made in FY 2012 in
relation to the foreign exchange
gain arising from the revaluation
gain from the shareholder’s loan
principal and interest which were
redenominated from RMB to USD.
Investing Activities
CRCT adheres to stringent
criteria when evaluating potential
acquisitions. This involves a
thorough review of risks and return
and to overall add value to the
existing portfolio and future growth
expectation. CRCT had completed
its acquisition of CapitaMall Grand
Canyon on 30 December 2013.
CRCT will constantly look out for
new acquisition opportunities.
Financing Activities
CRCT continues to adopt a prudent
and proactive approach to monitor
the cash position and level of
borrowings to ensure a healthy cash
position to finance its operations.
CRCT will also tap on the capital
and debt market to facilitate any
new acquisitions.
Cash and Cash Equivalents
As at 31 December 2013, the value
of the cash and cash equivalents
of CRCT stood at S$105.5 million
compared to S$140.5 million as at
31 December 2012. CRCT had raised
capital from preferential offering
of S$59.0 million and private
placement of S$86.1 million on
20 November 2013 and 2 November
2012 respectively. S$139.7 million
out of the total net proceeds of
S$140.8 million from both the
preferential offering and private
placement had been used to fund
the acquisition of CapitaMall Grand
Canyon. This is in accordance with
the stated use of the net proceeds
from the preferential offering and
private placement and all the net
proceeds had been fully utilised as
at 31 December 2013. In addition,
S$8.7 million of the cash retained
from the Distribution Reinvestment
Plan on 25 September 2013 had
been used to repay short term
borrowings and finance cost.