178
27 FINANCIAL INSTRUMENTS (CONT’D)
Foreign currency risk
The H-REIT Manager’s and the HBT Trustee-Manager's investment strategy includes investing, directly or indirectly, in
a diversified portfolio of income-producing real estate which is primarily used for hospitality and/or hospitality-related
purposes, whether wholly or partially, and real estate-related assets. In order to manage the currency risk involved in
investing in assets outside of Singapore, the H-REIT Manager and the HBT Trustee-Manager may adopt currency risk
management strategies that may include the use of foreign currency denominated borrowings to match the currency of
the asset investment as a natural currency hedge.
The exposure of the HBT Group, the H-REIT Group and the Stapled Group to foreign currencies is as follows based on
notional amounts:
Sterling
Singapore
pound
dollar
2015
2014
2015
2014
$’000
$’000
$’000
$’000
HBT Group
Cash and cash equivalents
2
–
35
24
Trade and other payables
(135,742)
–
–
–
(135,740)
–
35
24
Australian
New Zealand
United States
Japanese
Sterling
Singapore
dollar
dollar
dollar
yen
pound
dollar
2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
H-REIT Group
Trade and other
receivables
3,431 4,717 3,029 1,481
–
–
–
– 135,742
–
–
–
Cash and cash
equivalents
8,698 5,881 7,157 4,178 8,259 15,577 2,809
–
–
–
72
61
Trade and other
payables
(813)
(819)
–
– (1,330)
(1,277)
(27)
(15)
(46)
–
(60)
–
Bank loans
(95,660) (100,311)
–
– (197,541) (185,234) (38,324) (35,665) (135,563)
–
–
–
(84,344) (90,532)
10,186 5,659 (190,612) (170,934) (35,542) (35,680)
133
–
12
61
Stapled Group
Trade and other
receivables
3,431 4,717 3,029 1,481
–
–
–
–
–
–
–
–
Cash and cash
equivalents
8,698 5,881 7,157 4,178 8,259 15,577 2,809
–
2
–
107
85
Trade and other
payables
(813)
(819)
–
– (1,330)
(1,277)
(27)
(15)
(46)
–
(60)
–
Bank loans
(95,660) (100,311)
–
– (197,541) (185,234) (38,324) (35,665) (135,563)
–
–
–
(84,344) (90,532)
10,186 5,659 (190,612) (170,934) (35,542) (35,680) (135,607)
–
47
85
NOTES TO THE FINANCIAL STATEMENTS
