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CDL Hospitality TrustS
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Notes to the Financial Statements
1 General (cont’d)
(ii) H-REIT Manager’s fees (cont’d)
The H-REIT Manager is also entitled to receive an acquisition fee of 1% of the acquisition price
and a divestment fee of 0.5% of the sale price on all future acquisitions or disposals of properties.
The acquisition fee is payable in the form of Stapled Securities and/or cash as the H-REIT Manager
may elect, and such proportion as may be determined by the H-REIT Manager. In the event that
the H-REIT Manager receives an acquisition fee in connection with a transaction with a related
party, any such acquisition fee shall be paid in the form of Stapled Securities issued at the market
price.
(iii) H-REIT Trustee’s fee
Pursuant to the H-REIT Trust Deed, the H-REIT Trustee’s fee shall not exceed 0.1% per annum of
the value of H-REIT’s Deposited Property (subject to a minimum of $10,000 per month) or such
higher percentage as may be fxed by an extraordinary resolution of a meeting of holders of the
H-REIT units. The H-REIT Trustee’s fee is payable out of H-REIT’s Deposited Property on a monthly
basis, in arrears. The H-REIT Trustee is also entitled to reimbursement of expenses incurred in the
performance of its duties under the H-REIT Trust Deed.
Based on the current agreement between the H-REIT Manager and the H-REIT Trustee, the H-REIT
Trustee’s fee is charged on a scaled basis of up to 0.02% per annum of the value of H-REIT’s
Deposited Property (subject to a minimum of $10,000 per month).
2 Basis of preparation
2.1 Statement of compliance
The fnancial statements of HBT are prepared in accordance with Singapore Financial Reporting
Standards (“FRS”).
The fnancial statements of the H-REIT Group and the Stapled Group are prepared in accordance
with the Statement of Recommended Accounting Practice (“RAP”) 7 “Reporting Framework for
Unit Trusts” issued by the Institute of Certifed Public Accountants of Singapore, and the applicable
requirements of the Code on Collective Investment Schemes (the “CIS Code”) issued by the
Monetary Authority of Singapore (“MAS”) and the provisions of the H-REIT Trust Deed and the
Stapling Deed. RAP 7 requires the accounting policies to generally comply with the recognition
and measurement principles of Singapore Financial Reporting Standards.
2.2 Basis of measurement
The fnancial statements have been prepared on the historical cost basis, except as described below.
2.3 Functional and presentation currency
The fnancial statements are presented in Singapore dollars, which is the functional currency of
HBT and H-REIT. All fnancial information presented in Singapore dollars has been rounded to the
nearest thousand, unless otherwise stated.