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ANNUAL REPORT 2014
PORTFOLIO STATEMENTS
As at 31 December 2014
(i)
Investment properties are leased to external customers, except for Jumeirah Dhevanafushi. Jumeirah Dhevanafushi
was leased to CDL HBT Oceanic Maldives Private Limited, a subsidiary of HBT for a term of 10 years from
31 December 2013. For the Japan Hotels, there are master lease arrangements between a trust bank in Japan
(in its capacity as the trust bank holding the legal title to the Japan Hotels) and AKO GK, a subsidiary of HBT
effective from 19 December 2014 to August 2016. The leases for Orchard Hotel, Grand Copthorne Waterfront
Hotel, M Hotel and Copthorne King’s Hotel contain an initial term of 20 years from 19 July 2006 with an option to
renew for a further 20 years. The lease for Studio M Hotel contains an initial term of 20 years from 3 May 2011 with
an option to renew up to a total term of 70 years. The leases for Claymore Connect generally contain an initial term
of one to three years. Subsequent renewals are renegotiated with the lessees. The lease for Rendezvous Grand
Hotel Auckland contains an initial term of 10 years from 7 September 2006 with an option to renew for a further
5 years. The lease for Novotel Singapore Clarke Quay contains a term of approximately 13.5 years from 7 June 2007.
The leases for the Australia investment properties contain a term of approximately 11 years from 19 February 2010.
The lease for Angsana Velavaru contains a term of 10 years from 1 February 2013.
(ii)
Claymore Connect is undergoing asset enhancement works but part of the mall is still operational. It received its
Temporary Occupation Permit ("TOP") in March 2015. The property continues to be measured at fair value.
(iii) Included in H-REIT Group’s investment properties is a net change in fair value of $17,978,000 as at 31 December
2014 (31 December 2013: net change in fair value of $36,556,000) (Note 5). This change in fair value is recognised in
H-REIT Group’s Statement of Total Return for the year ended 31 December 2014 and is not available for distribution
to holders of Stapled Securities.
(iv) There were two valuers commissioned by H-REIT Manager and H-REIT Trustee. The two properties were valued as
at 30 October 2014 for the purpose of the acquisition (Note 26).
