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15 UNITHOLDER’S FUNDS
Foreign currency translation reserve
The foreign currency translation reserve comprises foreign exchange differences arising from the translation of the
financial statements of foreign operations.
Unit option reserve
The unit option reserve comprises the cumulative value of employee services received for the issue of the units under
the Trust’s Substitution Option Scheme.
Convertible bond reserve
The convertible bond reserve comprises the equity portion of the Forum CB issued net of tax (see Note 12).
Capital management
The Trustee-Manager reviews the Group’s and the Trust’s capital structure regularly, which the Group defines as total
Unitholders’ funds and the level of distribution to Unitholders. The Group uses a combination of debt and equity to
fund acquisition, property development and asset enhancement projects. The Trustee-Manager seeks to maintain an
optimal combination of debt and equity in order to minimise the cost of capital and maximise returns to Unitholders.
The objectives of the Trustee-Manager are to:
(a)
maintain a strong Statement of Financial Position by adopting and maintaining a target gearing range;
(b)
secure diversified funding sources from financial institutions and/or capital markets;
(c)
adopt a proactive interest rate management strategy to manage risks related to interest rate fluctuations; and
(d)
manage the foreign currency exposure through hedging, where appropriate.
There were no changes in the Group’s approach to capital management during the year.
During the year, the Group has complied with all the externally imposed capital requirements.
SAR1112034_TCT_AR_().indb 93
3/23/2012
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