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CDL
HOSPITALITY TRUSTS
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 fixed 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 financial statements of HBT Group are prepared in accordance with Singapore Financial Reporting
Standards (“FRS”).
The financial 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 Singapore Chartered Accountants, 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 financial statements have been prepared on the historical cost basis except as described below.
2.3 Functional and presentation currency
The financial statements are presented in Singapore dollars, which is the functional currency of HBT andH-REIT.
All financial information presented in Singapore dollars has been rounded to the nearest thousand, unless
otherwise stated.
2.4 Use of estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates.
NOTES TO THE FINANCIAL STATEMENTS
