NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2023 28. COMMITMENTS (a) Capital commitments Group 2023 2022 $’000 $’000 Payable: – contracted but not provided for 2,238 6,013 (b) The Group has non-cancellable operating leases with rentals payable as follows: Group 2023 2022 $’000 $’000 Payable: – within 1 year 24 73 – after 1 year but within 5 years 5 73 29 146 29. CAPITAL AND FINANCIAL RISK MANAGEMENT Capital management The Group’s objectives when managing capital are to optimise Unitholders’ value through the combination of available capital sources which include debt and equity instruments whilst complying with statutory and constitutional capital and distribution requirements, maintaining aggregate leverage and interest coverage ratio within approved limits. As a key part of the Group’s overall strategy, the Board of the Manager reviews the Group and the Trust’s debt and capital management cum financing policy regularly so as to optimise the Group and the Trust’s funding structure. The Board also monitors the Group and the Trust’s exposure to various risk elements by closely adhering to clearly established management policies and procedures. The Group is subject to the aggregate leverage limit as defined in Appendix 6 of the CIS Code (“Property Fund Appendix”). The Property Fund Appendix stipulates that the total borrowings and deferred payments (together, the “Aggregate Leverage”) of a property fund should not exceed 50.0% (2022: 50.0%) of its Deposited Property and has a minimum adjusted interest coverage ratio of 2.5 times after taking into account the interest payment obligations arising from the new borrowings. The Group has complied with the Aggregate Leverage limit of 50% (2022: 50.0%) and has a minimum adjusted interest coverage ratio of 2.5 times during the financial year, with an aggregate leverage of 41.5% (2022: 39.6%) and adjusted interest coverage of 3.1 times (2022: 3.6 times) as at 31 December 2023. There were no changes in the Group’s approach to capital management during the financial year. ANNUAL REPORT 2023 211 Financials Framework Portfolio Performance Leadership Overview
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