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ANNUAL REPORT 2014
1 GENERAL (CONT’D)
Several service agreements are in place in relation to the management of HBT and H-REIT and its property
operations. The fee structures of these services are as follows:
(i)
HBT Trustee-Manager’s fees
Pursuant to the HBT Trust Deed, the HBT Trustee-Manager is entitled to the following:
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a trustee fee of not exceeding 0.1% per annum of the value of HBT’s Deposited Property (as defined in the
HBT Trust Deed), subject to a minimum fee of $10,000 per month, if the value of HBT’s Deposited Property
is at least $50.0 million. The trustee fee is payable in arrears on a monthly basis in the form of cash.
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a management fee of 10% of HBT’s profit before interest and tax in the relevant financial year (calculated
before accounting for the management fee in that financial year). For the year ended 31 December
2014, the HBT Trustee Manager's fees were satisfied in cash.
The management fee is payable in the form of cash or Stapled Securities as the HBT Trustee-Manager may
elect, and in such proportion and for such period as may be determined by the HBT Trustee-Manager.
Any increase in themaximumpermitted rate or any change in the structure of the HBT Trustee-Manager’s
management fees must be approved by an extraordinary resolution at a meeting of the holders of the
HBT units duly convened and held in accordance with the provisions of the HBT Trust Deed.
Any portion of the management fee payable in the form of Stapled Securities is payable quarterly in
arrears and any portion of the management fee payable in cash is payable monthly in arrears.
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an acquisition fee not exceeding 0.1% of the acquisition price of any authorised investment acquired
directly or indirectly by HBT (pro-rated if applicable to the proportion of HBT’s interest in the authorised
investment acquired). The acquisition fee is payable in the form of cash and/or Stapled Securities
as the HBT Trustee-Manager may elect, and in such proportion as may be determined by the
HBT Trustee-Manager.
(ii)
H-REIT Manager’s fees
Pursuant to the H-REIT Trust Deed, the H-REIT Manager’s management fees comprise a base fee of 0.25% per
annum of the value of H-REIT’s Deposited Property (as defined in the H-REIT Trust Deed) and a performance
fee of 5.0% per annum of H-REIT’s net property income (as defined in the H-REIT Trust Deed).
H-REIT Manager’s management fees shall be payable in the form of Stapled Securities and/or cash as the
H-REIT Manager may elect, and in such proportion as may be determined by the H-REIT Manager on a year
to year basis. Where the management fees are payable in the form of Stapled Securities or (in the event that
unstapling of the H-REIT units and HBT units has taken place) H-REIT units, such Stapled Securities or H-REIT
units shall be issued at the market price (as defined in the H-REIT Trust Deed) prevailing at the date the
management fees accrue. For the financial year ended 31 December 2014, the H-REIT Manager’s fees were
satisfied in the form of 80% Stapled Securities and 20% cash.
Any increase in the maximum permitted rate or any change in the structure of the H-REIT Manager’s
management fees must be approved by an extraordinary resolution at a meeting of holders of the H-REIT
units duly convened and held in accordance with the provisions of the H-REIT Trust Deed.
The portion of the management fees payable in the form of Stapled Securities is paid on a quarterly basis, in
arrears. The portion of the management fees payable in the form of cash is paid on a monthly basis, in arrears.
NOTES TO THE FINANCIAL STATEMENTS
